Facing debt collectors like Cabot Financial can seem daunting. Yet, turning a blind eye to them isn’t the best strategy while you might not be obligated to pay. Something serious could be brewing on the horizon.
So, what’s your best move? Stay tuned as we guide you through your options involving Cabot Financial…
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Yes, you might feel surprised if the Cabot Financial Debt Collector agency contacts you for the first time stating you owe them money. But do not panic just because you receive a letter from an unknown company asking for money.
There are some rare instances where you might get a chance to write off 100% of your debts if certain conditions are fulfilled. With this guide, we have collected all the information you need to know to deal with Cabot Finance. So keep reading to find out more.
Who are Cabot Financial Debt Collectors?
Cabot Financial is a renowned debt collecting and bad debt purchasing agency based in the UK since 1998. You might not recognise them at first as their business model includes giving debt collecting services on behalf of other businesses.
Original creditors do not tend to pursue these unpaid debts since they are often categorised under defaulted debts. In addition to that, these debt collection procedures consume valuable time and resources.
Consequently, these original creditors tend to sell these debts or take debt collection services from companies like Cabot Financial to recover their debts. In this way, they get to focus on their own business while Cabot keeps pursuing after the debtor to recover the due amount.
However, upon visiting the Cabot Financial Europe Limited website, you will see they claim to be distinct from other debt-collecting and purchasing companies.
Their website says they emphasise adopting a flexible and friendly approach to debt recovery from debtors like you. Plus, it says they take the time to understand debtors’ current financial situations and arrange repayment plans to suit their unique financial circumstances.
It’s worth noting that the payment plan offered by Cabot might not always be the most optimal way to resolve one’s debt situation.
There are six main debt collection agencies that work under Cabot Credit Management Group inside the UK. Plus, they have a major debt-collection enterprise in Europe (basing countries such as Spain, Ireland, and France).
What Do Cabot Financial Debt Collectors Do?
Cabot Financial is a debt collection agency that mainly provides services such as:
There is no special debt category that Cabot Financial focuses on recovering. Therefore most of the debts they get to chase after are from remaining balances of bank loans, Credit cards or any other form of debt with another credit issuer.
As a result, you might end up paying Cabot Financial at the end if your original creditor has taken their debt collection service.
But they will surely notify you with an initial notice letter explaining the debt transition and every minute detail you need to know about it. Then, they will start using all standard communication methods like emails, phone calls, and letters to reach out to you.
These communication torchers will last until you make a response to discuss settling the debt. Sometimes they might even visit your home to convince you to pay the debt.
They will surely discuss with you to grant a payment plan once you get in touch with them to solve this debt issue. Next, they will issue you a reference number to pay via the web portal if you get accepted to any payment plan.
Who Do Cabot Financial Collect For?
Cabot Financial deals with a broad spectrum of clients, including banks, credit card companies, loan providers, and even utility companies. If you’ve failed to pay your dues to such institutions, Cabot Financial might be knocking on your door soon.
Below are some of the clients that Cabot Financial Works with.
The Price Cabot Financial Pays for Debts
Cabot Financial debt collection agency purchases debts at a fraction of the original value. This purchase fraction starts at 5% and could go high as 40% of the total debt. Next, they make their profits by ensuring the debtor pays up a larger fraction of the total debt.
For example,
As you can see they have a profit range of £1500 to make a profit. They just have to convince you to settle the debt within the £500 – £2000 range. Any agreement within that range gets a pure profit.
Court Proceedings: Can Cabot Financial Take You to Court?
Yes. The company can seek legal action if you persistently refuse to cooperate or make arrangements to pay the debt.
They will send you one last letter titled “Letter Before Action”, notifying you of taking you to court if you do not settle the debt before the due date mentioned in the letter.
Next, they will go to court to take a County Court Judgement (CCJ) against you if the debts are true. Surely the court will grant the CCJ conjugation against you. This CCJ conjugation will make you legally responsible for the debt and will last for six years in your Credit History if you do not settle the debt within 30 days of receiving a CCJ.
Plus, they will ask the court again to use bailiffs against you if you ignore the CCJ conjugations as well. However, they prefer to negotiate a suitable payment plan at first. Therefore, discuss with Cabot Company to reach an agreement before things escalate.
Is Cabot Financial Legit?
Yes, Cabot Financial is a legitimate business. Below are some facts which will help you to verify their legitimacy.
We believe the above facts are enough to convince you about the legitimacy of Cabot Financial. But keep in mind there is no need to rush to pay the debt just because they are a legitimate company. Therefore, keep reading to find out more about your available options.
Potential Scams Involving Cabot Financial
While Cabot Financial is legitimate, scammers may use their name for nefarious purposes. Always double-check any communication allegedly from Cabot to avoid falling victim to scams.
Plus, there may be some instances where you might experience unethical practices to urge you to end up paying by agents of Cabot Financial. These practices can include
But according to their website, it’s stated that they thoroughly consider complaints they receive against their practices. Therefore, we strongly advise you to make your complaints with provable proof in hand.
We have further discussed their unlawful practices in a dedicated subheading below. So keep reading to find out more.
Why Is Cabot Financial Credit Management Group Contacting Me?
There can be four main reasons for Cabot Financial’s debt collection agency to reach out to you.
This includes:
Surely one of the above facts will be the main reason for Cabot company to reach out to you. Plus, this is the first move they’re going to make towards starting to chase after you to recover their debt. So, let’s explore this further.
How Should I Reply to Cabot Financial Debt Collectors?
Before replying to Cabot Financial, the first thing you should do is verify whether the debts are really yours. For that, you can use the below steps in general.
- You can use a Credit Reference Agency like Experian to research whether any individual or a business in the UK has stated you owe them money.
- Your debts need to be older than six years.
- You should not have any provable communication with your creditors within that six years.
- You should not have received any court order regarding that debt within that period.
- This letter is known as “Prove the Debt Letter”.
- Cabot Financial is bound by law to reply to you with a letter showing the necessary proof.
- Remember to keep a photocopy of the letter as well. It’s because the copy of this letter comes in handy if things escalate into a court case without getting a reply from them.
- Without proof, you never have to pay unless the court orders you to do so.
Engage with Cabot in a conversation and respond to their attempts at debt collection if the debts are true. You can negotiate a suitable repayment plan or consult a debt solution expert to explore other options.
What do I do if Cabot Financial tries to collect a debt that I don’t owe?
In rare cases, Cabot Financial might attempt to collect a debt you don’t owe. In such cases, demand debt validation to confirm the debt’s authenticity.
There are three main reasons why Cabot Financial will reach out to you even though you do not owe them.
Therefore, we strongly suggest you reach out to the Cabot Debt collection agency and convince them with proof showing you do not owe them a penny.
Can Cabot Financial send bailiffs?
Yes. Cabot Financial can send bailiffs to recover the debt only if court proceedings are successful. However, this is usually a last resort.
Let us walk you through how the Cabot Financial agency proceeds with its action towards debt collection.
- The court will grant a CCJ against you, which will make you legally responsible for the debt if proven in court.
- This lasts for six years in your credit history if not settled within 30 days of CCJ issuing.
- Plus, this will negatively impact taking loans and credit cards in the future.
- Your seized belongings will be stored in a warehouse and eventually will be sold in an auction to recover total debt and bailiff’s charges.
As you can see, this is not a path you need to explore by ignoring the Cabot Debt collection agency. Instead, take action to find a solution before things escalate to this extent. There is plenty of time in between these processors. Hence use that time to find a good solution.
How Can I Stop Cabot Financial From Calling Me?
You cannot permanently stop Cabot Financial from reaching out because they have the right to establish communication with you. Therefore they will use constant phone calls, emails, letters and even home visits if needed to make contact with you.
But you have rights too. Hence you can request them via written letter stating that you prefer to communicate with them through letters only. By law, they have to honour that request and stop all other forms of contacting tactics.
You can make a complaint to Cabot Financial at first if you feel like their agents are breaking the law. Next, you can complain to the Financial Ombudsman Service of your area if you feel like Cabot’s debt collection service does not give you a solution for the issue.
What Can I Do About Cabot Financial Agents Harassment?
You can make a complaint to Cabot Financial headquarters about the experience you had with their agent that feels like harassment. That should be the first thing you should do.
Always remember to discuss these kinds of issues with provable proof in your hand with them. Otherwise, nothing will change from their end.
Let’s find out what type of actions sort under harassment before taking any actions.
If Cabot Financial’s actions cross the line into harassment, report them to the Financial Ombudsman Service(FOS). They can help protect your rights. But keep in mind, no one can help you unless you have provable proof in your hand.
Therefore. always remember to keep records and copies of all types of communication you had with them just to be in the safe zone.
What Can I Do If Cabot Financial Prove My Debt?
You will end up paying Cabot Financial at some point in time if they send you the written proof you requested. As we discussed in the above sections, it’s not a wise decision to ignore their reach outs as things could escalate to a worse situation, including court action.
The easiest thing you could do is to pay off the debt and get done with them. Otherwise, you could discuss with them to gain acceptance for a repayment plan where you could settle the debt with a fixed number of instalments.
Keep in mind to ask them to provide you with a written agreement of the repayment plan you agree upon before paying a penny to them. This will make it harder for Cabot Financial to challenge in the future with new conditions and law enforcement.
There are other options available inside the UK where you could try to resolve this matter if you find difficulties in getting an agreement for an affordable repayment plan.
What If I Can’t Afford to Pay?
Dealing with debt can be daunting, particularly when it seems unaffordable. But even when faced with Cabot Financial, multiple debt solutions still exist to manage your debt. Let’s dive into the possibilities.
An IVA can be a lifeline if your debt has grown overwhelmingly by thousands of pounds. This is a formal agreement made with all your creditors, including Cabot Financial, to pay back all or part of your debts over a specified time.
This IVA allows you to make a single and affordable payment each month. And it is distributed among your creditors by using an Insolvency Practitioner. This payment plan usually extends over five to six years.
The remaining debts are written off at the end of this IVA period. You may be wondering if Cabot Financial accepts IVAs. Yes, they do! IVAs can be an effective route towards financial freedom.
A DRO is a type of insolvency that freezes your debts for a year. Your creditors are not allowed to contact you within this period. Your debts could be written off if your financial situation hasn’t improved by the end of this period.
DROs are designed for people with relatively low levels of debt (less than £20,000) and few assets. Notably, Cabot Financial must respect a DRO if it’s issued.
If neither an IVA nor a DRO seems feasible, bankruptcy could be your last resort. Bankruptcy is a form of insolvency that’s generally considered when other options have been exhausted. It’s a serious step with severe implications. These preceding include asset seizure and adverse effects on your credit rating.
Once you’re officially bankrupt, Cabot Financial can’t take any further action to recover the debt without court permission. Plus, your outstanding debts will be written off after you finish your bankruptcy period.
Faced with these options, you might feel overwhelmed. That’s why seeking professional advice is invaluable. Debt advisers can offer personalised guidance, helping you understand which options suit your circumstances best. They can provide insights into dealing with debt collectors like Cabot Financial.
Lastly, we can’t overlook the importance of a budget. A well-planned budget can help you manage your money effectively. Plus, it will keep your debt under control and prevent future run-ins with Cabot Financial.
Each debt solution has its merits and demerits, and what works for one might not work for another. So, what’s your next step? How will you tackle your debt? Stay tuned for our next section, where we delve into the potential to eliminate your Cabot Financial account balance entirely!
Is There a Way to Write Off My Cabot Financial Account Balance?
Cabot Financial won’t voluntarily wipe off your debt. Some debt solutions may help write off a portion or all of it.
The best option is not to pay if your debts are sorted under the Statute-Barred category. Or else you will have to apply for a debt solution that could help you in writing off some of your debt.
Payment Methods for Settling Debts with Cabot Financial
Cabot Financial offers an online portal for payments. You can also pay via bank transfer, standing order, or direct debit. Remember to keep your reference number handy.
You can access your debt account any time of the day through the Cabot website. This web account displays important facts about
Plus, It’s worth mentioning that your credit file’s score is expected to improve once the debt is fully paid back or your payment plan is successfully completed.
Contact Information for Cabot Financial Debt Collection
For further queries or concerns, you can contact Cabot Financial at their physical address or via their phone number.
| Address: | 1 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4UA |
| Phone: | 0344 556 0263
Monday to Friday – 8:00 am – 8:00 pm Saturday – 9.00 am – 1.30 pm |
| Website: | www.cabotfinancial.co.uk |
Sources for Getting Debt Counselling
Several UK charities offer free debt counselling. And they are the best option for you to choose if you find hardship dealing with your debt collection agency, such as Cabot Financial.
Below are some of the famous debt charity organisations that operate within the UK.
Staying Informed About Your Debts
Staying informed about your debts is crucial. Keep an eye out for any changes, such as your debt being transferred to another collector.
Make a habit of at least checking your credit report once a month to be on alert to any debt collection company purchasing your debts.
Below are some of the famous debt collection agencies that tend to purchase debt from other businesses often.
Key Points
- Cabot Financial is a company based in the UK that specialises in pursuing and acquiring debts on behalf of other companies. They often work with major utility and lending companies.
- In the UK, certain individuals may have the legal option to write off a portion of their debt.
- It might be prudent to respond with a “prove the debt” letter to verify the validity of the claim and potentially explore avenues to avoid paying the debt if you receive communication from Cabot.
- Debt solution methods like Individual Voluntary Arrangements (IVAs) or Debt Relief Orders (DROs) could be effective in reducing or even totally eliminating the debt owed to Cabot.
- It is advisable to seek guidance from debt management companies or debt charities to explore better alternatives for repayment plans if Cabot validates your debt.
FAQ
Cabot Financial is known for collecting debt on behalf of a wide array of large UK-based utility and lending companies. Some renowned names include Scottish Power, First Utility, and NPower. They also play a vital role in debt collection for governmental entities such as HMRC and the DVLA.
It’s because they’re trying to communicate with you about a debt account associated with you. It could be a debt account they’ve recently acquired or one whose payments are due for review.
Yes, they do. Cabot Credit Management Group is a debt collection agency licensed to buy and collect debt in the UK and Ireland. Since its establishment in 1998, Cabot Financial has ascended the ranks to become one of the largest debt-purchasing and debt-collection companies across Europe.
Cabot Financial is an authorised debt collecting and bad debt purchasing agency based in the UK and Europe. They are a proud member of the Credit Services Association (CSA). As long as they abide by CSA guidelines, they are permitted to collect defaulted accounts.
Ignoring Cabot Financial is the worst course of action in this scenario. Failing to respond to Cabot’s attempts at communication may result in a County Court Judgement (CCJ) or a Scottish Court Decree (SCD), adversely affecting your credit rating for up to six years.
