Are you being hassled by Cabot Financial Debt Collectors? Do you owe money you are unable to repay? Are you being asked to repay debts you don’t owe? Are you being threatened about being taken to court? If any of these questions relate to you, this article is designed to help you. You might not need to pay them back!
Figures from complaints service Resolver show that gripes about debt collection practices at big firms and government bodies have more than doubled over the past year, rising from 830 to 2,006.
Who are Cabot Financial Debt Collectors?
Founded in 1998, Cabot Financial are one of the older debt purchasing and collection companies out there. However, one of the first things that you notice when you enter the Cabot Financial website is that they state that they are different to other debt purchase companies. They believe that they take a flexible and friendly approach to collecting debt from people. Including arranging repayment plans that suit the customer and taking the time to understand the individual and their own circumstances.
Read what to do if you can’t pay back your debt.
First, check your credit score for free [takes 1 minute]
Get your credit score (for free) so you can check to see if there is anything negative that you can ask to be reversed. I recommend Experian’s free credit report as this is what most lenders use. It takes 1 minute. Do this now.
Not available for everyone, but ideal if you’re eligible [1 minute]
You can write off 75% of your debt with this government solution. You only qualify if your debts are over £1,700 and you owe more than one company. If you meet these criteria, then take 1 minute and check to see if you qualify on the Debt Information Service website.
What does Cabot Financial Debt Collectors Do?
Cabot Financial are a company who purchase debt. This means that they will buy the remaining balance of a loan, credit card or any other form of debt that you may have with another lender, and then take up the job of chasing it with you for payment. They seem to take a modern approach to debt collection, chasing you through the more standard approaches, such as over email and by the phone, before allowing you to make a payment via their online portal.
Are Cabot Financial Debt Collectors legit?
Based in a number of offices around the UK, with a head office in Kings Hill, Cabot Financial are a part of the Cabot Credit Management Group, which is authorised by the Financial Conduct Authority. Not only this, but they are also members of the Credit Services Association. These things point towards the fact that Cabot Financial are a legit company, however, it is important that much like any other credit collection agency, that you wait to make a payment, as paying as soon as you receive communication could be against your best interests.
Why are they contacting me?
Cabot Financial will be contacting you because they think that you owe money that you have failed to repay.
They buy debts like yours from other organisations, so the money you owe will normally be money that was originally owed to a different organisation.
Who do they collect for?
Cabot Financial collects debt for companies like:
- Scottish Power
- First Utility
- and others
How debt collectors can make your life hard
Debt collectors can make your life hard in a number of ways and how they do that will depend on how much you owe and how far behind you are with your repayments.
First, they will contact you on a regular basis and this can be stressful. They may also visit you in person. Second, they can register your failure to make repayments with credit reference agencies, damaging your credit rating. And third, they can take you to court to obtain a CCJ against you.
It can prove almost impossible to get the debt collectors called off. Victims say they have suffered sleepless nights and been afraid to open their doors in case bailiffs turn up.
What actions are Debt Collectors likely to take?
Initially, they are likely to contact you either in writing, by phone or both. They will hope that they can secure repayment of the debt, either via a lump sum or by arranging a payment plan, without having to take further action.
If you fail to respond they may send a debt collector to your home. In extreme cases, you may be taken to court which could mean a CCJ is made against you.
What does Cabot Financial Debt Collection Process look like?
Cabot Financial have an online payment portal which you can make one-off payments or even pay your scheduled plan via. They also allow for payment to be made over the phone if that is something that you are going to require. Their main aim, rather unsurprisingly, is to receive payment for the debt that they are trying to collect.
Will Cabot Financial send bailiffs?
If you do not respond to their initial attempts to contact you, Cabot Financial may send a debt collector to your home but they will not send bailiffs. Debt collectors have very limited powers compared to bailiffs.
If a CCJ is made against you and you do not settle the CCJ or keep up with the monthly instalments agreed by the court, the court may send bailiffs to your home.
Can Cabot Financial sell my home?
Cabot Financial cannot sell your home. However, if you are taken to court and a CCJ is made against you the court may grant a charging order which means that if you do not settle the CCJ or keep up with the monthly repayments agreed by the court, you may be forced to sell your home to repay the debt.
Will I get an Attachment of Earnings Order?
An Attachment of Earnings Order means that your debt repayments are taken directly from your wages each payday so you cannot avoid making the payments.
If you are taken to court and a CCJ is made against you the court will consider an Attachment of Earnings Order as a method of ensuring that your debt is repaid.
Can I ignore Cabot Financial?
You can choose to ignore Cabot Financial although if you fail to reply, it is possible that they will escalate matters. This could mean that they send a debt collector to your home or it could even mean that you end up in court.
If you agree that you owe the money it may be in your best interest to discuss the debt with Cabot Financial. You don’t have to, but they will generally be able to come up with a payment plan that makes it easier to repay your debt.
Can I prevent Cabot Financial from contacting me?
If you want to prevent Cabot Financial from contacting you, you can send them a “cease and desist” letter. Once you have sent this Cabot Financial must not make further contact with you.
However, this “cease and desist” letter does not mean that your debt is written off and you will still owe the money. There is nothing to stop Cabot Financial from taking you to court to obtain a CCJ against you if you do this.
Check that you owe Cabot Financial
You should be able to check that you owe Cabot Financial because they will tell you which organisation they have bought the debt from. They will also tell you how much is outstanding. They should be able to provide you with a copy of your original credit agreement.
It is important that you check your own records to ensure that no mistakes have been made and that you do owe the amount that they are claiming that you owe.
Create a simple budget
Taking 10 minutes to create a budget is time well spent. This will tell you what the maximum that you can afford to pay back with your current income and expenses. You can tell this information to the debt collectors and they can then work with you.
Check out my ‘financial snapshot‘ post to learn how.
Can’t afford to pay?
If you can’t afford to pay Cabot Financial the full outstanding amount they will usually be prepared to agree to a payment plan based on your monthly income and expenditure.
Cabot Financial may also be prepared to offer a discount in return for a full and final settlement figure. If such an offer is made you should get written confirmation that the debt has been settled once you have paid and no further action will be taking before you make the payment.
How do I write off my Cabot Financial debt?
There are a number of ways of that you can write off your Cabot Financial debt and how you do this will depend on your situation. If you can prove that you do not owe the money you can have the debt written off. Alternatively, if you do owe the money you can pay the outstanding amount to settle the debt.
If you cannot repay the debt and will not be able to repay the debt in the foreseeable future, you might need to consider insolvency. This comes in a number of forms, such as Individual Voluntary Arrangements, Debt Relief Orders and bankruptcy.
How can I set up a payment plan?
If you are unable to repay your debt in full but can make monthly repayments, you can usually set up a payment plan. Cabot Financial’s online budget calculator works how much money you have leftover at the end of each month that can be used towards debt repayment.
It is important to make sure you include absolutely all of your expenditure rather than just your monthly household bills. This includes the cost of travel to and rom work, the cost of replacing clothing, etc.
You can register a payment plan via the portal on their website. Alternatively, you can phone the company to discuss your options.
How can I make a partial payment?
You can make a partial payment over the phone with a debit card, via a payment slip, via bank transfer or by cheque. You can also pay online via their website.
How this partial payment is used will depend on whether your account is in arrears. If your account is in arrears the payment will be used to pay off those arrears. If your account is not in arrears it will be used to reduce your outstanding
Can I pay with a credit card?
Yes, you should be able to pay using a credit card online or over the phone. Do this very carefully though. I suggest you read my guide about using a credit card as a loan before you do.
What other options are there with your debt?
If you are unable to pay your debt, either in full or via a payment plan, you should discuss your situation with a debt counsellor who will be able to tell you whether there are better ways of handling your debt and what other options you have.
There are 5 main options that can help you with your debt:
- Snowball Method – if you can afford to make the minimum payments on your debt, then this method to become debt-free is almost definitely your best option. The great thing about the snowball method is that it actually improves your credit score, whereas the other options will damage it.
- Debt Management Plan (DMP) – this solution has you paying less than the minimum every month and the lenders stop charging interest. Ideal for a short period if you have, for example, lost your job.
- Individual Voluntary Arrangement (IVA) – this solution works well if you owe over £6,000 and need to protect your house from being repossessed.
- Debt Relief Order – is suitable if you have debts of less thank £20,000, have barely any income and don’t have a
- Bankruptcy – is for many people the fastest way to way to hit the reset button. Don’t be put off, there’s a lot of stigma around the word ‘bankruptcy’, however, it could be the right thing for you to do.
Feeling too shy to call?
You shouldn’t worry about being too shy to call l because the company deals with over 700,000 people in your situation each year and will know exactly how you are feeling.
However, if you really don’t want to call Cabot Financial you can also email or send letters to the company.
I have had dealings with this company via a debt plan. I recently contacted them myself and I was dealt with in a polite and supportive manner. They were very helpful and understanding and accepted much lower offers to settle my debts with them. I had a positive experience unlike other reviews I have read.
I was unfortunate enough to have my debt sold to Cabot. They constantly called me, but most of the time the poor agent on the end of the phone didn’t understand why so their dialler must be poor technology or the people that create the strategy have no idea. They also tried on regular occasions to talk me into going onto a payment plan that was not only detrimental to my own personal finances, but also completely ignored all my other debts which clearly showed they had no focus other than making their own money back. I have debt with other companies, but Cabot were without doubt the worst I dealt with by far.
How do I make a complaint about Cabot Financial Debt Collectors
Complaints about the tactics used by debt collection agencies and bailiffs themselves soared 77 per cent from 864 to 1,529.
If you want to make a complaint about Cabot Financial the first thing you should do is to contact the company to see whether they can resolve it to your satisfaction.
If the matter is not resolved to your satisfaction you can escalate your complaint by speaking to the ombudsman. How you do that will depend on what type of debt is involved because there are two to different ombudsmen and each deals with different types of debt.
The Cabot Financial complaints procedure is detailed on their website.
Cabot Financial Debt Recovery Contact Details
Company Name: Cabot Financial (Europe) Limited
Other Names: Cabot Credit Management Group, Cabot Credit Management (CCM)
PO Box 241
Phone: 0344 556 0263
Fax: 01732 521 216
Cabot Financial are a debt collection agency that purchases debt from other sources. This means that they chase debt that was actually owed to another lender. This can be confusing to the person who owes the debt. However, it does seem that they are dedicated to working with debtors, ensuring that they reach a payment plan that meets both of their needs. Although, the idea of being chased for debt is never going to be something that someone agrees with and is going to be happy about happening to them.
Cabot Financial FAQs
Cabot Financial is owned by Encore Capital Group, the largest debt buyer in the US
Cabot Financial Limited is regulated by the FCA. Its registration number is 743525.
HMRC does use debt collection agencies to collect unpaid tax but they do not currently use Cabot Financial for this.
Yes, Cabot Financial buys other companies’ debts. It does this at less face value and makes its money when it collects the face value of the debts.
If you don’t reply to Cabot Financial’s letters what happens next well depend on a number of factors. They may send a debt collector to your home and may even take you to court to obtain a CCJ against you.
Cabot Financial cannot give you a County Court Judgement but they can apply to the court to ask the court to grant one.
No, you cannot be arrested for debt other than in a very small number of specific circumstances. The debts that Cabot Financial handle do not qualify so it is not possible for you to be arrested if you do not pay Cabot Financial.
There are two types of CCJ letter. The first is a County Court claim form and if you ignore this the court will decide whether you owe the money in your absence. If it decides that you do, it will grant a CCJ against you. The second is the County Court Judgement. This confirms that the court has decided that you owe the money. If you ignore this letter, it could result in court bailiffs visiting your home.
Cabot Financial cannot issue a warrant. However, the court may issue a warrant if a CCJ has been made against you.
Cabot Financial are debt collectors, not bailiffs. This means that they do not have the same powers as bailiffs.
Cabot Financial can come to your home but you do not have to let them in. In fact, you are not even obliged to answer the door to them.
Cabot Financial cannot force themselves into your home. They can only enter your home if you invite them in and you do not need to do so.
In principle, Cabot Financial will never give in. If you do not repay your debt, a record of your non-payment will remain on your credit history. In practice it is not economically viable for them to continue to chase small debts.
If it is obvious that you are unwilling or unable to repay a small debt they may stop pestering you after a while. However, if the debt is a large debt they will be more determined to ensure that the debt is repaid. This could involve taking you to court in an attempt to obtain a CCJ against you.
Provided a CCJ has not been already made against you, a creditor can usually only take legal action in an attempt to recover a debt if it does so within six years of you last acknowledging the debt exists. This period is only five years in Scotland.
You can acknowledge a debt either by making a payment or by replying to correspondence about the debt. If you do that during the six (or five) year period, the clock is reset and the period starts running again.
After this time has elapsed, the debt becomes statute barred. This means that although you still owe the money, the debt will be too old for your creditor to collect.
Within reason, Cabot Financial can legally chase you for a debt for as long as they want provided they keep in regular contact with you. However, once a debt has become statute barred they cannot enforce that debt via legal action. You only have to repay it if you choose to repay it voluntarily.
Cabot Financial do not write off debts, but they may consider a full and final settlement figure that is less that the amount owed. You should get written confirmation that the company will take no further action against you before paying the full and final settlement amount. Of course, if you go down the insolvency route they may have to write off some or all of the debt.
You can contact Cabot Financial by phone or email. Their contact centre is open from 8am to 8pm on weekdays and 8am to 2pm on Saturdays.
If you just want a general chat to discuss your options, the best way to contact Cabot Financial is by phone. However, the advantage of contacting Cabot Financial via email is that email gives you a record of what was said in case you need to refer back to that at a later date.
You can make payments to Cabot Financial in a number of ways and how you make the payment will depend whether you are making a one-off payment or regular payments as part of a payment plan.
For one-off payments, you can pay over the phone with a debit card, via a payment slip, via bank transfer or by cheque. You can also pay online via the Cabot Financial website. Regular payments can also be made via direct debit or standing order.