Cabot and cyldesdale Loan - just issued me a Section 87 notice

[DBan]

Hi everyone,

I'm after some help advice, I have a loan with Clydesdale bank that has been passed onto Cabot.

I fell into arrears for 9 months due to some financial difficulties, I had since spoken to Clydesdale.



I have increased my monthly payment from £287 to £350 a month to carry on paying the loan whilst clearing the arrears at the same time which they were fine with, they made no mention of potentially being defaulted or the debt being passed onto Cabot.

I have made the payments since on time without missing any further payments and no further correspondence with Clydesdale by phone or letter.

In November I received a Letter from Cabot informing me they had bought the debt and to change over the payment details from Clydesdale to them which I have done via my online banking.

On Friday I have received a letter from them threatening that if I don't pay the arrears amount of £1602.40 under section 87 of the consumer credit act 1974 by 28th April 202 it will be defaulted. The debt on my credit report is currently showing as late payment which it had been showing when the debt was with Clydesdale Bank.

I've spoken to Cabot online who have been really unhelpful but have acknowledge I've been making monthly payments regularley as I was previously with Clydesdale but I haven't got a payment plan setup with them, I've explained to them that I don't have £1602.40 laying around otherwise I would've paid the arrears amount of and queries that how can I owe them the arrears if they've bought the loan from Clydesdale.

My question is; is there anything I can do which won't make my credit file any worse, what are my rights and will I need to find a way to clear the arrears regardless?

Any help would be most appreciated.

[The Tech Clerk]

waste of time ringing them - start a diary and keep everything within the diary, also all communications in letter form and files sent recorded delivery, they have problems with registration, but an debt buyer if no default issued could enter default on file/and do as per rule, Warwick65 might have more detail in these circumstances, also have you requested a CCA enclosing a £1.00 postal order in the past?

[The Tech Clerk]

If it is

Cabot

Financial (UK) Ltd then they are not authorised by the FCA to issue legal proceedings. is that the name on cabot letter heads??

[DBan]

Hi, I have tried talking to them but they were very unhelpful. Haven't sent a CCA yet as I received the letter on Saturday.

[The Tech Clerk]

do not talk to them from now on all in writing as I stated


answer post 3 please?

[DBan]

If it is

Cabot

Financial (UK) Ltd then they are not authorised by the FCA to issue legal proceedings. is that the name on cabot letter heads??

Its Cabot Financial Europe Ltd, I'm more than happy to attach letter blanking out my name, address and reference.

[Warwick65]

In some ways it is a good thing to get the default over and done with because late payment markers also damage your credit score. At least with a default it is over and done with in 6 years.

Now an important question, is the sum being asked for correct - is that the amount of your arrears? I would also have expected Clydesdale to default you before before selling the debt on.

A few more questions at the moment if you do't mind.

Did you get a notice of assignment saying the account was being sold?- Sorry I see you did but my next question is important.

If so who EXACTLY bought the debt - what wording is used, for example Cabot Financial (Europe) ltd.

Now here's a point- if the debt hasn't been defaulted then it is still live. If that is the case I wonder if the FCA guidelines on Forbearance in the present circumstances would be relevant.

Never-In-Doubt Do you know?

[Joanna Connolly Solicitors]

I'm more than happy to attach letter blanking out my name, address and reference.

Hello

Don't be pressurised to do anything in haste.

Can you tell me when (what year) you opened this loan account and how you did that (i.e. over the phone, online etc)?

How much was the loan for at the outset and what is/was the term of the loan (xx months etc)?

Your post implies that you may have not been sent a Notice of Assignment when the loan was sold to Cabot. Is that correct?

Don't post any documents on the forum - even redacted ones. This is to protect your security.

Unless I've misunderstood (it happens) you have been paying Clydesdale not Cabot until recently (November 209?).

Di

[Joanna Connolly Solicitors]

if the debt hasn't been defaulted then it is still live.

If the account wasn't defaulted before it was terminated and assigned to Cabot then they (Cabot) have a legal problem.

Di

[Joanna Connolly Solicitors]

I have a loan with Clydesdale bank that has been passed onto Cabot.

. . . . they made no mention of potentially being defaulted or the debt being passed onto Cabot.

On Friday I have received a letter from them threatening that if I don't pay the arrears amount of £1602.40 under section 87 of the consumer credit act 1974 by 28th April 202 it will be defaulted. The debt on my credit report is currently showing as late payment which it had been showing when the debt was with Clydesdale Bank.

Can you clarify who sent you that letter threatening to issue you with a Default Notice - was it Cabot or was it Clydesdale Bank?

Di

[Joanna Connolly Solicitors]

Haven't sent a CCA yet as I received the letter on Saturday.

I wouldn't send a s77-79 CCA Request yet since the full facts aren't known at this moment in time.

Di

[Warwick65]

If the account wasn't defaulted before it was terminated and assigned to Cabot then they (Cabot) have a legal problem.

Di

That was my non legal thought but I do not know under what terms Cabot are involved at this point. I did just find this on stepchange

https://www.stepchange.org/debt-info...creditors.aspx

So in 3 days time you could ask them for a payment holiday and see what they say. BUT before all that I would answer the questions Di has asked

[Joanna Connolly Solicitors]

I did just find this on stepchange

https://www.stepchange.org/debt-info...creditors.aspx

Cabot is not a creditor (i.e. they don't provide credit) - they are a debt purchaser, which is different.

StepChange is supported by their "funding partners" listed here (including Cabot, Lowell, PRA, Arrow, Hoist and Intrum) > https://www.stepchange.org/about-us/...work-with.aspx

Di

[Roger]

Cabot is not a creditor (i.e. they don't provide credit) - they are a debt purchaser, which is different.

StepChange is supported by their "funding partners" listed here (including Cabot, Lowell, PRA, Arrow, Hoist and Intrum) > https://www.stepchange.org/about-us/...work-with.aspx

Di

Oh what lovely company you keep said Little Red Riding Hood to the disguised Wolf!
Please Mr Wolf can I have payment Holiday say 6 YEARS and one Month!

[DBan]

In some ways it is a good thing to get the default over and done with because late payment markers also damage your credit score. At least with a default it is over and done with in 6 years.

Now an important question, is the sum being asked for correct - is that the amount of your arrears? I would also have expected Clydesdale to default you before before selling the debt on.

A few more questions at the moment if you do't mind.

Did you get a notice of assignment saying the account was being sold?- Sorry I see you did but my next question is important.

If so who EXACTLY bought the debt - what wording is used, for example Cabot Financial (Europe) ltd.

Now here's a point- if the debt hasn't been defaulted then it is still live. If that is the case I wonder if the FCA guidelines on Forbearance in the present circumstances would be relevant.

Never-In-Doubt Do you know?

In all honesty I can’t remember the exact arrears around £3200 when it was with Clydesdale but it is now at £1604 with Cabot.

I received no letter in correspondence to Clydesdale intending to sell the debt on.

The company who bought the debt were Cabot Financial (Europe) Limited, I received a letter from them on 13th December 2019 saying they had bought the debt and were happy for me to keep paying the monthly amount required by the terms of my credit agreement.

I hope this is helpful.

Thanks