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

[DBan]

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

Ho Di,

I took the loan out on 6th July 2017, for 60 months online.

The amount was for £12,000 plus interest.

I hadn’t been sent any notice that Clydesdale has sold the loan until I received a letter from Cabot Financial (Europe) Limited notifying me they had bought the loan on 13th December 2019.

At which point I setup a standing order to pay the amount via my online bank, I hadn’t bothered contact Cabot at that point as I assumed it was what ignore was and to keep paying the amount.

[DBan]

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

Di

Hi Di, the account hadn’t shown a default just notifications of late payment on my credit report with Clydesdale showing as satisfied in my closed accounts and one open from Cabot appeared on the open accounts showing late payment.

With the letter arriving on 13th December 2019, saying Cabot had bought the debt so I have continued to pay my monthly payments but to Cabot and on Saturday I received a default notice served in accordance with section 87 of the consumer credit act of 1974 threatening that if I don’t clear the arrears of £1604 by 28th April they will default the debt and further action will be taken.

[DBan]

Hope this all helps and I’ll try to answer any other questions if I can.

Thanks to all for your help.

[Joanna Connolly Solicitors]

Hi Di, the account hadn’t shown a default just notifications of late payment on my credit report with Clydesdale showing as satisfied in my closed accounts and one open from Cabot appeared on the open accounts showing late payment.

. . . on Saturday I received a default notice served in accordance with section 87 of the consumer credit act of 1974 threatening that if I don’t clear the arrears of £1604 by 28th April they will default the debt and further action will be taken.

Who sent you the Default Notice - Clydesdale or Cabot (name on the letterhead)?

Di

[DBan]

Who sent you the Default Notice - Clydesdale or Cabot (name on the letterhead)?

Di

Hi Di, The Default notice is from Cabot Financial (Europe) Limited.

[Joanna Connolly Solicitors]

Ho Di,

I took the loan out on 6th July 2017, for 60 months online.

The amount was for £12,000 plus interest.

I hadn’t been sent any notice that Clydesdale has sold the loan until I received a letter from Cabot Financial (Europe) Limited notifying me they had bought the loan on 13th December 2019.

Things are slowly becoming clearer.

I'm trying to determine when (if at all) a DN should have been issued since from what you say the expiry date of the loan would not have been until June 2023.

In your first post you say that you had been in arrears for nine months. This suggests that you had broken the terms of your credit agreement at some point. Or did you always clear the arrears promptly and then fell behind again a month or so later?

Whatever the case, the account should have been defaulted before it was terminated and assigned to Cabot.

Is/was this your only debt?

Sorry for all the questions but it's important to get the facts straight first and foremost.

So far the issue may be one of assignment.

Di

[Joanna Connolly Solicitors]

Hi Di, The Default notice is from Cabot Financial (Europe) Limited.

Really

Di

[DBan]

Things are slowly becoming clearer.

I'm trying to determine when (if at all) a DN should have been issued since from what you say the expiry date of the loan would not have been until June 2023.

In your first post you say that you had been in arrears for nine months. This suggests that you had broken the terms of your credit agreement at some point. Or did you always clear the arrears promptly and then fell behind again a month or so later?

Whatever the case, the account should have been defaulted before it was terminated and assigned to Cabot.

Is/was this your only debt?

Sorry for all the questions but it's important to get the facts straight first and foremost.

So far the issue may be one of assignment.

Di

Hi Di, During the period of missed payments I was working/living in New Zealand and had set aside money in my UK account to cover the loan payments with Clydesdale and due to my stupidity I had forgotten to transfer more funds over and was only when I moved back to the uk I had seen what had happened.
I rang up Clydesdale and explained what had happened and because I had no job upon arriving back, Clydesdale had agreed for me to initially pay £50 a month for six months until I could get myself sorted out. As soon as I was working full time again I called Clydesdale and upped my payment to £350 a month to pay the £284 a month plus £64 to go towards paying off the arrears. I updated my address and contact details with them but at no point was there a mention of potentially defaulting or the debt being sold on.

I agree that this should of been defaulted when I missed the payments too.

All the issues have arisen since Cabot have taking over the loan/debt.

I have one debt other that is with Cabot for some finance which has a payment plan with them.

[DBan]

Really

Di

It is, is that a good thing?

[Joanna Connolly Solicitors]

Hi Di,

. . . . at no point was there a mention of potentially defaulting or the debt being sold on.

I agree that this should of been defaulted when I missed the payments too.

All the issues have arisen since Cabot have taking over the loan/debt.

I have one debt other that is with Cabot for some finance which has a payment plan with them.

So Clydesdale may have taken the view (rightly or wrongly) that the six months 'break' paying £50 per month was a payment holiday or an ATP (arrangement to pay). What is showing/recorded on your CRA file about this period?

Clydesdale may then have decided to sell your account to Cabot as live, not delinquent, if you were paying the contractual amount (plus any arrears) at that time. Only Cabot don't normally buy debts which aren't delinquent so this baffles me.

You've now fallen into arrears again so Cabot think they can issue a DN.

This is all pure speculation of course.

What's the other debt with Cabot - I might as well look at both situations at the same time

Di

[Joanna Connolly Solicitors]

It is, is that a good thing?

Possibly, maybe.

If you'd like me to take a peek at the DN to put everything in context, you can email it to me using di@joannaconnollysolicitors.co.uk . No need to blank anything out.

Di

[DBan]

So Clydesdale may have taken the view (rightly or wrongly) that the six months 'break' paying £50 per month was a payment holiday or an ATP (arrangement to pay). What is showing/recorded on your CRA file about this period?

Clydesdale may then have decided to sell your account to Cabot as live, not delinquent, if you were paying the contractual amount (plus any arrears) at that time. Only Cabot don't normally buy debts which aren't delinquent so this baffles me.

You've now fallen into arrears again so Cabot think they can issue a DN.

This is all pure speculation of course.

What's the other debt with Cabot - I might as well look at both situations at the same time

Di

On my credit file re Clydesdale it’s shows as in arrears the goes patchy from no data to the odd in arrears up until the account is closed.

Then the Cabot one starts which immediately shows in arrears and the status is called Dellinquent if that helps?

Will get you the full details of the other one as I don’t have the paperwork so I will have to research it to get all the details.

[DBan]

Possibly, maybe.

If you'd like me to take a peek at the DN to put everything in context, you can email it to me using di@joannaconnollysolicitors.co.uk . No need to blank anything out.

Di

Of course I shall scan it when I’m at work tomorrow.

[DBan]

Possibly, maybe.

If you'd like me to take a peek at the DN to put everything in context, you can email it to me using di@joannaconnollysolicitors.co.uk . No need to blank anything out.

Di

Hi Di,

Scan of letter emailed, let me know if its arrived.

Thanks again

[Joanna Connolly Solicitors]

Hi Di,

Scan of letter emailed, let me know if its arrived.

Yes it's arrived

I'll reply shortly with some more questions I'm afraid.

Di