Cabot financial letter

fogfurn

Hope this is the correct category please forgive if not

ive been paying a agreed payment on bad debt with credit union for over 10 years and now out of the blue a letter arrived from Cabot financial saying they have now Taken over debt and to contact them to arrange payments

so I did and I have to fill in a statement of means for them to decide how much I can afford to pay

so yes I can pay more but will they demand more than I can afford

any advice please should I go to someone legal for advice or should I just fill in form and hope for best

i mean yes I can afford more but I’d like to enjoy life to in my fifties

any advice on how to handle this please

It wouldn't be in their interest to demand more than you can afford.

As for enjoying life in your fifties, I don't know what kind of lifestyle you're aiming for but if it's a loan already in long term arrears the aim will be to get it paid off as efficiently as possible. It's probably still racking up interest, so it would actually be negligent of them to offer you an unnecessarily low repayment amount.

If I was you I'd fill out the form and wait for the repayment arrangement details before making a plan. There's likely to be appeal and complaint options before going the legal route.

fogfurn

Thank you

ofcourse I want to pay it quickly and I don’t really have that good life style that was really the wrong thing to say

the interest was frozen as part of the agreement originally so there is no interest

th For your reply

Jim2007

https://www.boards.ie/discussion/comment/119323708#Comment_119323708

Since the interest was frozen, it might be advisable to seek legal advice as to what exactly signed up to, in case interest might be brought back into play.

fogfurn

https://www.boards.ie/discussion/comment/119323872#Comment_119323872

Thank you

do you think if I went to my bank that they could give me a loan to pay it as I’d feel safer with a bank but now that I’m on bad credit list over the credit union loan for years I probably won’t

mickdw

Sounds pretty crap for your credit union to do this.

Have you.been keeping up agreed payments?

Be very careful in how you engage with Cabot.

I can't see them facilitate an interest freeze so get advice before signing anything.

fogfurn

https://www.boards.ie/discussion/comment/119324858#Comment_119324858

Yes I never missed a payment

Jim2007

https://www.boards.ie/discussion/comment/119324823#Comment_119324823

You have their money and they have to try and get it back.... there is nothing you need to feel safe about.

Given your history I doubt it, but you can always ask.

Jim2007

https://www.boards.ie/discussion/comment/119324858#Comment_119324858

A loan 10 years outstanding with frozen interest.... that is more than reasonable.

mickdw

https://www.boards.ie/discussion/comment/119325455#Comment_119325455

But being paid as per latest agreement ..... As I understand it.

fogfurn

https://www.boards.ie/discussion/comment/119325455#Comment_119325455

Yes I know it is and I am quite happy to pay back

im just a little worried dealing with Cabot. Once I keep to my agreement with them do you think I’ll have no worries or problem with them

thats what I’m worried about really

fogfurn

https://www.boards.ie/discussion/comment/119325986#Comment_119325986

No that was with credit union I’m only been in contact with Cabot now

POBox19

https://www.boards.ie/discussion/2058254038/cabot-financial-letter

The terms of your agreement with the CU should remain unchanged including if you pay by Direct Debit. I'd have a word with your CU first.

This begs the question if you were repaying in accordance with whatever was agreed with the CU then why did they assign/sell it to Cabot?

A question for the CU.

fogfurn

https://www.boards.ie/discussion/comment/119326043#Comment_119326043

There was never anything in writing it was agreed over phone about repayments but a letter was sent to me about interest been frozen

fogfurn

https://www.boards.ie/discussion/comment/119326062#Comment_119326062

Yes I don’t understand as I have always paid and never missed

but will it make a difference by questioning

mickdw

https://www.boards.ie/discussion/comment/119326039#Comment_119326039

Yes that is my point. If you were keeping up whatever latest agreement you had with the credit union, it is pretty bad form for them to pass the debt to Cabot.

POBox19

https://www.boards.ie/discussion/comment/119326071#Comment_119326071

That letter will prove to be very important as it is what the CU sent to you and the basis on which you have been paying since then. I'd be digging it out and having a good read right now.

fogfurn

https://www.boards.ie/discussion/comment/119326136#Comment_119326136

Ok thanks

i will do that

IK09

If you have even 30% of the total outstanding amount put away or you can get your hands on it...dont send Cabot anything other than an offer in "full and final settlement of the debt". Dont send them an SFS. Dont send them a Statement of Means. Nothing other than a letter saying that a family member has been kind enough to give you the money to make a proposal for the settlement of the debt provided it is in full and final settlement.

See what they come back with. If they bite...they bite...if they dont then carry on with the process.

fogfurn

https://www.boards.ie/discussion/comment/119326363#Comment_119326363

Unfortunately any extra money I had went for my son’s education

I owe 19000

fogfurn

Ok thanks everyone for your discussion

move spoken to credit union and we have agreed to up and continue paying as before so all ok

mickdw

That's great news. I hope Cabot are suitably informed immediately.

fogfurn

https://www.boards.ie/discussion/comment/119327393#Comment_119327393

Yes I’m assured of this

thanks again everyone

daheff

Make sure you get a letter from CU advising what was agreed. Otherwise they could pull this same stunt again.

If CU refuse, then send them a letter outlining details agreed and with whom/when.

macvin

https://www.boards.ie/discussion/comment/119326363#Comment_119326363

Cabot have contract credit manage agreements with many financial institutions. Cabot is part of the giant Nasdaq listed company Encore Financial Group and has a capitalisation value of $1.5Billion.

In this situation they are acting on behalf of the CU and in a way is better for the OP as he/she is just an account number whereas in a local CU they "know" you better - and that can be good and bad.

It is far simpler for all involved to follow the process, ensure the payments are manageable and get the debt paid off or talk to the CU and see if they would continue to mange it themselves

But start playing games and you can very quickly find that any leeway is suddenly blocked.

mickdw

The op has talked to credit union and previously agreed terms are to continue.

I think it was sharp practice by whoever passed this to cabot..... Assuming everything the op said is correct.

I don't see where the upside is for the op by dealing with Cabot versus an interest frozen deal with the credit union.