Cabot Financial - Lloyds Loan

[RoxyRose0007]

I took out an unsecured loan with Lloyds bank early 2008 for £15k and defaulted on the account in 2009 upon separation with my violent ex partner. 

 

The debt has since been passed onto Cabot Financial debt collectors with a current balance according to them for £10k roughly. 

 

I have an 8 year old child who was diagnosed with ADHD when he was 6 years old and at present I am his sole carer since his father left us when he was 12months old.  

I too was diagnosed with ADHD in late 2018 and have my own struggles along with trying to support my child throughout school. 

 

I am just about managing to meet my mortgage payments each month and my child and I are currently living in sub standard living conditions which I must urgently resolve therefore I cannot afford to make payments to them right now although I'm not refusing to in the future. 

 

The issue i have with them is the constant bombardment of letters and telephone calls to my landline even though I have informed them over the telephone I am not in a position to make payments at present. 

 

I am am concerened they will take me to court because on top of all my other problems I don't feel I could mentally take anymore right now and not being stabilised on my medication. 

 

I would appreciate any advice thank you 

 

 

 

 

[dx100uk]

when was the last payment?

is the charge still showing on your house deeds?

 

[RoxyRose0007]

Hi, the last token payment was 28 March 2018 for £1.

 

Lloyds bank never took me to court for the loan they sold the debt straight onto Cabot Financial therefore there is no CCJ or charging order against my property.  The debt also doesn't show on my credit file now. 

[BankFodder]

Have you been making these token payments all the time since it was defaulted? If it has that I'm afraid that has kept the debt alive because otherwise it might have been statute barred. Who was it who recommended that you make £1 token payments?


This was a loan made under the consumer credit act – have you asked for a CCA agreement?
 

[RoxyRose0007]

Citizens advice advised me to make token payments after the account defaulted however I refuse to have token payments taken from my bank account since 28 March 2018 to avoid going overdrawn for I have no overdraft and have been penalised with bank charges therefore I stopped them. 

 

No I haven't asked for a CCA.

[BankFodder]

Were I expect that site team member @dx100uk will be along at some point to provide some more direct advice, but I suggest that you start off by making a CCA request. I'm afraid that the payment of a regular 1 pound token has kept the debt alive otherwise it might have been statute barred.

A proper approach by citizens advice or any other agency would have been to test the enforceability of the debt by trying to find out if there was a CCA agreement. However, the debt was a lot younger then and so it is probably more likely that the agreement existed. I suppose there is a slight possibility that it doesn't exist now.

Make a statutory CCA request – they have 12 days +2 days of service to provide it.

[RoxyRose0007]

Hi, thank you for your response.  

 

I will make a statutory CCA request this week to Lloyds bank or Cabot Financial? 

 

Also Lloyds bank contacted me via letter last month to inform me that they have refunded £100.02 back into my account before they moved me to Cabot financial for they incorrectly applied some interest to my account when they shouldn't have. They also advise me to contact Cabot in relation to this.

 

[dx100uk]

why did I think there was a charge...silly me.

 

Lloyds sold the debt to cabot for <15p=£1 and cabot will try and fleece you for the full balance.

 

get a CCa request off to Cabot ASAP

 

o'd also get an sar off the LLoyds to get all the statements  etc

as there will be a very good reason why LLoyds did do court as they do, and would of crushed you.

 

don't be scared od DCA's they are not bailiffs

and have

ZERO legal powers on ANY debt.

 

dx

[RoxyRose0007]

Thank you for your response. 

 

I have questioned why Lloyds bank haven't already taken me to court already and I thought maybe it is due to having my own property perhaps? 

 

I shall CCA Cabot and send a SAR to Lloyds bank and I will update the thread accordingly. 

[BankFodder]

Far more likely that they would take you to court if they knew that you had a valuable asset. That would give them an opportunity to place a charge on your property. They haven't done this so it's even more interesting

[RoxyRose0007]

I agree with you and I am totally intrigued with this matter now. 

 

In all fairness the loan should never have been agreed for I wasn't in full time employment at the time and I was on medication for depression which I learnt was ADHD in 2018. The loan was to consolidate my existing debts into one so I could manage it better. 

 

I am not refusing to pay the debt for I took the money but I am not in a position at present to make payments to clear the account. I hope this changes in the future.  

 

i have financial and personal problems upon which I am trying to keep a roof over my childs head and raise him as a single parent. This isn't easy since he has ADHD himself and is struggling and behind academically at school. 

 

I am at the end of my teather with it all. 

[dx100uk]

well stop being at the end of your tether and stop worrying about the morality of paying this loan (or any other consumer debt) back to a fleecing DCA..throw the morality card out the window..they do..they couldn't careless about your situation...so neither should you.

 

await the results of the CCA/SAR and stay OFF that phone regarding ANY debt.

you are under NO legal obligation to converse with ANYONE regarding ANY debt at your door, on the phone or by email.

WRITING from iow on ONLY.

 

dx

 

[RoxyRose0007]

I have read online that for a debt to become statue barred you must not have made a payment or had any contact with them through writing for 6 years and one month, therefore isn’t requesting a subject access request and CCA regarded as having contact? 

[BankFodder]

No.  It's not about contact - it's about acknowledging the debt.

 

Where did you read that???

[dx100uk]

stop reading 'on the internet' then.. read on CAG only.

 

dx

 

[RoxyRose0007]

Hi, I read it on debt camel before i came online here and your correct I mis read it sorry. 

 

To receive a SAR or CCA will they request identification from me? 

[dx100uk]

debt camel can be good but it sometimes wanders into freeman of the land twaddle.

 

you do not have to id yourself nor sign a cca request ..which always goes to the present owner of a debt.

 

however an sar is the total opposite, if you have moved you should provide say a ctax copy par example to prove who/where you are now and you always sign an sar…-it that always goes to the original creditor, regardless to present ownership,

 

neither can reset the sb clock as they are legal requests .

[RoxyRose0007]

Right understood and thanks for your advice I shall keep you all posted. 

[RoxyRose0007]

No problem I know what you meant

[London1971]

On 05/02/2020 at 16:25, RoxyRose0007 said:

On 05/02/2020 at 17:43, RoxyRose0007 said:

Citizens advice advised me to make token payments after the account defaulted.

 

 

 

 

 

 

This is terrible advice from the CAB. It's one thing to make token payments before a default, to try and stop it happening in the first place but afterwards it's totally against your best interest.

 

Once you have done the CCA and SAR as advised above, its worth browsing through the below link

 

https://cdn.ymaws.com/csa-uk.site-ym.com/resource/resmgr/docs/code_of_practice/code_of_practice.pdf

 

This is the Credit Services Association of which all trading styles of Cabot are a member of.There is a section about halfway through on dealing with health and mental health issues, 

 

k. Upon identifying a customer with health problems, including mental health and customers with disabilities, consider what evidence of their health problem is necessary and appropriate, especially in circumstances where seeking such evidence could add a cost burden to the customer. This would include requesting evidence through the Debt and Mental Health Evidence Form. l. In instances where a customer is in a vulnerable situation, only initiate court action if it is reasonable and proportionate to do so. m. Ensure information in relation to a customer’s vulnerable.

 

 

It might well be that them not being able to dig up a CCA will be the end of the matter but the above might be another weapon in your aresnal to get them off your back if it isn't. A consultant's / doctors letter with medications , side effects etc can be a powerful tool, to end these things.