Cabot and Cap1 card debt - Financial Settlement Offer

[MJ89]

Hi,

 

I currently have an old credit card debt owned by Cabot to the tune of £2k, which defaulted in Nov 2015.

The original creditor was Capital One, who from memory sold the debt onto another DCA before Cabot took it on.

 

I have never made any contact with any DCA in the four years since it defaulted and never made any repayment on the debt.

I pretty much buried my head in the sand and ignored it, as my financial circumstances weren't great.

 

I'm thankfully in a bit better of a position now though and would like to get a first mortgage in the next 3-4 years, so am considering settling this debt,

not for any credit score/file purposes as it should be removed from my credit file beforehand anyway,

but more from a peace of mind that I would be debt free and to eliminate the threat of it ever going down the CCJ route.

 

I have saved the past few months and can afford to repay around half of the outstanding amount, noting that Black Friday is around the corner and I have had "special offers" from them around that time in past, so am assuming I may get something similar this year (think I may previously have been offered 30-40% discount).

 

What I am trying to understand though, is if I were to accept a Black Friday offer on the basis of full and final settlement (I would request acknowledgement of this in writing), would I be right in thinking that the balance then becomes legally unenforceable in the future and that the default would still drop off my credit file in two years time as scheduled, being 6 years since date of default?

[dx100uk]

The Information Commisioners Office says:
.
All references to a defaulted debt must be removed from your credit files after 6 years 
has passed from date of default, whether paid off, paying now or not. 
.
{the WHOLE ACCOUNT WILL VANISH, never to return}.
.
{however, this does not mean the debt itself is not still owed
consider a CCA request.}
.
This is so that someone who continues paying something 
- even after 6 years from default 
- should not be at a disadvantage to someone who pays nothing after default 
and ends up with a clean file after 6 years. 
.
NOTE: {the bracketed text is not Information Commisioners Office guideline but my advise]
 

[MJ89]

Thanks, good to know that it will be removed regardless.

 

So in terms of settling, accepting an offer as F&F wouldn't necessarily mean that it wouldn't come back around in future, even of they agreed in writing?

 

I know I could carry on doing what I've been doing and ignoring it for the next 2 years until it becomes statute barred, but am willing to accept a settlement if it means that it would give me the peace of mind that it's done with once and for all.

[dx100uk]

well no

it means you will be acking the debt for another 6yrs even if you think it might be paid off

so allows 6 more years for the remainder to bounce around.

 

are you at the same address it was taken out at?

 

dx

 

 

[MJ89]

So effectively "full and final settlement" is a meaningless term then?

 

I'm not, no. I moved around 12 months ago and recently had a letter from Cabot stating that they noticed I have moved and would like to welcome me again, or something along those lines.

 

I'm on the electoral roll at my current address, so assumed they traced me.

[dx100uk]

ok well as you've moved you need to protect against a backdoor CCJ to your old address

which is probably what the phishing letter was for.

they say they've noted it though but I wouldn't trust them.

 

why not send a CCA request, that will put them to strict proof that they hold the legally enforceable paperwork to enforce the debt.

might even put you in a stronger F&F position if they don't have it.

 

 

dx

 

[MJ89]

Ok in that case sounds like I need to renew my mail redirection then, just in case they try and sneakily go for a CCJ.

 

Will also try the CCA request too, as I had assumed that F&F settlement meant 'case closed' and it wasn't a debt I was disputing, but guess it doesn't do any harm to see of they can actually prove it.

[dx100uk]

redirection on many court docs doesn't work

we've seen examples here whereby envelopes from courts sometimes say

do not redirect on them

 

just send a CCA request from your correct present address

kills 2 birds with one stone.

 

throw your morality card of owing it in the bin too.

DCA's could care less about their morality, why should you.

 

dx

 

[MJ89]

Ah I see, so sending it referencing my current address solves the issue then.

 

Thanks dx