How To Deal With Cabot Financial Debt Letters – What Are My Rights?
Cabot Financial is part of the Cabot Credit Management Group and has over 20 years’ experience in providing credit management services.
It is the largest credit management services provider in the UK, with multiple offices nationwide, and its headquarters in Kent.
Cabot are a debt collection agency for a number of different sectors, including banking, consumer finance, retailers, telecommunications, utilities companies and Government agencies.
What is Cabot Financial And Why Are They Contacting Me?
You will hear from Cabot if they have recently purchased your account from your previous credit provider.
Cabot are Europe’s largest debt purchasing company – if they purchase your debt, you will now owe the money to Cabot instead of the original company your debt was with.
They are responsible for recovering your debt and will be in touch with you for payment.
If Cabot Have Purchased My Debt, Why Do I Still Owe Money?
This can be a point of confusion when a company purchases your debt. They are not paying off your debt, they are buying it from your previous creditor. Companies like Cabot purchase accounts from creditors whose customers haven’t paid the balance due.
Creditors sell ‘bad debts’ at a discount, so they get instant cash and pass the responsibility of chasing customers for payment onto the purchasing company. The debt purchaser (in this case, Cabot) then owns the debt.
You still owe the money and Cabot stand to make a profit because they seek full payment from you, even though they purchased your debt at a reduced price.
What Will Happen If I Don’t Pay?
If you have received a letter or call from Cabot about your debt, and you can’t afford to pay, you’ll need to discuss your situation with Cabot. If you ignore letters, Cabot may be forced to take legal action against you.
Legal action could cause further damage to your credit file and cause you to incur additional fees and charges on top of the amount you already owe.
I’ve Been Issued With A County Court Judgement – What Should I Do?
If you’ve been issued with a County Court Judgement (CCJ), it means the court has decided you owe the money. It is important to repay your debt to avoid further action being taken and mounting costs.
A CCJ will stay on your credit file for 6 years BUT you can avoid having the CCJ registered on your credit record if you clear the debt within one calendar month.
If you can’t clear the debt, you may be able to pay in instalments. Remember if you don’t keep up the payments, you could end up being taken back to court. If this happens, not only will you incur more fees, other measures may be taken against you.
Will Cabot Send bailiffs?
Cabot will try to avoid legal action wherever possible, so sending bailiffs is usually a last resort. Cabot may send bailiffs if you’ve been given a CCJ and the debt remains unpaid.
To send bailiffs, an application must be made to the court for a Warrant of Control. If granted, you will be given 7 days’ notice of their first visit – you can prevent the bailiffs coming by paying what you owe within the 7 days.
Alternatively, you may be able to suspend their visit by filling in an N245 application form, detailing how you intend to repay your debt.
What Is An Attachment Of Earnings Order?
If you fail to pay after being issued a County Court Judgement, Cabot could apply to the court for an Attachment of Earnings Order (AEO). This is where your debt repayment is deducted directly from your wages by your employer.
This can cause embarrassment in front of your boss, or even disciplinary action.
You might be able to get the AEO suspended – you’ll receive an ‘N56 form for replying to an attachment of earnings application’ from the court.
You can use this form to make an offer of payment and/or ask for a suspension and state your reasons. If accepted, your employer will not be made aware of your debts.
Can I Set Up A Payment Plan?
If you are unable to settle your account in full, you can ask to arrange a payment plan with Cabot. It is important, when making this type of arrangement, that you consider all your existing financial commitments and work out a budget.
You need to ensure you still have enough money to live on, otherwise you may be causing yourself more harm than good.
I Can Only Afford A Partial-Payment
You might be able to make a partial-payment to settle your debt. If you have some of the money owed, but can’t afford to pay it all, you can make Cabot Financial an offer. They may agree to settle your account for less than you owe.
If they do, your debt will be paid off, but this will show on your credit file as a ‘partial settlement’ and may affect your ability to get credit in the future.
I’m Struggling With Debt – What Are My Options?
Debt can have a huge impact on your mental wellbeing, but you can get help from a non-judgemental debt specialist like Scottishtrustdeed.co.uk so you’re not tackling it alone.
There are several ways in which we can support you and will work with you to explore your options for managing your debt. You could reduce your monthly repayments or have some or all of your debt written off with one of the following options:
- Debt Management Plan
- Debt Consolidation Loan
- Debt Arrangement Scheme
- Scottish Trust Deed
- Minimal Asset Process
- Individual Voluntary Arrangement (IVA)
- Bankruptcy/ Sequestration
I’m A Vulnerable Customer
Cabot have a dedicated Sensitive Support Team to work with vulnerable customers. If you have a vulnerability such as mental illness, terminal illness, learning disability or have recently suffered a bereavement, you should discuss this with Cabot Financial.
While it can be difficult information to share, Cabot can provide special support if you are in difficult circumstances. This can include payment holidays, known as forbearance, while you get back on your feet.
Accreditations
Cabot Credit Management Group is authorised and regulated by the Financial Conduct Authority (FCA) and is a member of the Credit Services Association (CSA). It is also registered with the Lending Standards Board and complies with the Standards of Lending Practice.
Make A Complaint
If you wish to make a complaint about Cabot, you should do this directly with them in the first instance. You can contact Cabot’s Customer Complaint Handlers on 0345 849 8891 between 8am and 5pm Monday-Friday.
It’s usually better to put your complaint in writing, as it gives you time to consider what to say and you’ll have a record of the communication. You can email your complaint to [email protected]
If you are not satisfied with the outcome of your complaint against Cabot Financial, after 8 weeks you can escalate to the Financial Ombudsman Service or the Credit Services Association.
The Financial Ombudsman Service, Exchange Tower, London, E14 9SR
0300 1239 123
Credit Services Association Ltd, 2 Esh Plaza, Sir Bobby Robson Way, Great Park, Newcastle Upon Tyne, NE13 9BA
0191 2170 775
FAQs
Can Cabot Debt Recovery come into my house?
Without a court order, absolutely not. Neither Cabot or any other debt collection agency nor a debt collector is considered a court-appointed bailiff. Cabot may visit the address of a debtor but cannot enter the dwelling without the consent of the resident.
How can I stop debt letters from Cabot?
Write to Cabot to Request them to Stop Contacting You (If That’s What You Want) Under the FCA guidelines, if you request that a debt collector stop contacting you completely, it must do so (with a few exceptions). Your request must be in writing. You can use the ‘prove the debt letter’ to do this.
How can I legally write off debt from Cabot?
Unaffordable debt to Cabot can be legally written off by using the Scottish Trust Deed scheme or IVA (If you reside in England). This can also protect your assets, such as your house or car from repossession. See if you qualify by using our free debt calculator here.
Can Cabot take me to court?
If you owe money to Cabot and you don’t pay, you can be sued. If Moorcroft sues you and wins, the court will enter a judgment (also called an order) against you that says you must pay back the debt. But if all your money and property are protected, then creditors cannot take them from you.
Will I ever clear my debts?
Yes. Although your debts might feel insurmountable, there are a number of options available to enable you to get debt-free.
What can I do if I have more than one debt?
If you have debts with several creditors, you should seek advice from a debt specialist like scottishtrustdeed.co.uk – your options will depend on how much you owe, who to and where you live.
How can I make a payment to Cabot?
Cabot Financial accept payment by bank transfer, debit or credit card, cheque, direct debit, standing order, postal order or PayPoint.
Services Offered By Cabot Financial Management: Debt
