Settlement with cabot

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vandriver

Registered User
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I have an old Mbna debt of 17.9k which is now owned by Cabot Financial.
There has been no payments ever to Cabot and the last payment to Mbna was about 2014.I have never acknowledged the debt in writing or indeed ever engaged with Cabot.
This week they wrote offering a settlement of 30%(ie 70% off) .
I realise that if I was ever taken to court,I could enter a defence of the debt being statute barred,however having the debt settled for a token amount has some value as the amount is reported to the CCR every month and stops me borrowing ever again.
Now,questions!
(1) Does phoning Cabot to discuss a settlement cause the debt to be acknowledged and reset the clock on enforcement(I have seen other threads where the acknowledgement has to be in writing)
(2) What would be a reasonable amount to offer be?
Any insight gratefully received
 
ClubMan said:
Are you sure about that?
On what basis?
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No payment made for over 6 years,and no communication in writing ever to cabot.
From citizens information "If your creditor does not start the court action within 6 years of the debt being due, the action can be held to be statute-barred by the court. "
 
vandriver said:
No payment made for over 6 years,and no communication in writing ever to cabot.
From citizens information "If your creditor does not start the court action within 6 years of the debt being due, the action can be held to be statute-barred by the court. "
Click to expand...
Also from Citizens Information...

Glossary of debt terms

Explains some of the commonly used words and terms in the areas of problem debt and personal insolvency.
www.citizensinformation.ie www.citizensinformation.ie
The law in relation to time limits is complex...
Click to expand...
If I was you I'd probably get professional legal advice.
And I'd pay the solicitor's bill.
 
vandriver said:
I have an old Mbna debt of 17.9k which is now owned by Cabot Financial.
There has been no payments ever to Cabot and the last payment to Mbna was about 2014.I have never acknowledged the debt in writing or indeed ever engaged with Cabot.
This week they wrote offering a settlement of 30%(ie 70% off) .
I realise that if I was ever taken to court,I could enter a defence of the debt being statute barred,however having the debt settled for a token amount has some value as the amount is reported to the CCR every month and stops me borrowing ever again.
Now,questions!
(1) Does phoning Cabot to discuss a settlement cause the debt to be acknowledged and reset the clock on enforcement(I have seen other threads where the acknowledgement has to be in writing)
(2) What would be a reasonable amount to offer be?
Any insight gratefully received
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You've been offered a very generous settlement on money you owe, looks like a result, I'd pay it.
 
Hi Vandriver.
Similar scenario with me. Smaller amount.
I was offered 30 day 20% settlement on numerous occasions.
In the last few years I had decided to settle for 100%, but down the line at some stage when my finances allowed.
Then I got the 30 day 20% offer again and with a little bit of juggling my budget for a few weeks I managed to pay the 20% within the time frame.
I still reserve the right to pay the remaining 80% in the future if I so desire.
 
RichInSpirit said:
Hi Vandriver.
Similar scenario with me. Smaller amount.
I was offered 30 day 20% settlement on numerous occasions.
In the last few years I had decided to settle for 100%, but down the line at some stage when my finances allowed.
Then I got the 30 day 20% offer again and with a little bit of juggling my budget for a few weeks I managed to pay the 20% within the time frame.
I still reserve the right to pay the remaining 80% in the future if I so desire.
Click to expand...
Why would you pay 100% when you can settle for 20%?
Would the former leave a clean credit record while the latter would not or something?
Or is it simply a point of principle?
 
ClubMan said:
Why would you pay 100% when you can settle for 20%?
Would the former leave a clean credit record while the latter would not or something?
Or is it simply a point of principle?
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I will have to see what I feel like if I have all my other debts sorted in the future.
If I have the resources I might pay the balance.
There are a few different reasons I might pay the 80% in the future.
 
vandriver said:
I have an old Mbna debt of 17.9k which is now owned by Cabot Financial.
There has been no payments ever to Cabot and the last payment to Mbna was about 2014.I have never acknowledged the debt in writing or indeed ever engaged with Cabot.
This week they wrote offering a settlement of 30%(ie 70% off) .
I realise that if I was ever taken to court,I could enter a defence of the debt being statute barred,however having the debt settled for a token amount has some value as the amount is reported to the CCR every month and stops me borrowing ever again.
Now,questions!
(1) Does phoning Cabot to discuss a settlement cause the debt to be acknowledged and reset the clock on enforcement(I have seen other threads where the acknowledgement has to be in writing)
(2) What would be a reasonable amount to offer be?
Any insight gratefully received
Click to expand...
1. The acknowledgement has to be in writing under the Statute of Limitations Act. So it seems that chatting about it won’t reset the clock.

2. 30% sounds reasonable. Cabot will have purchased the debt from Mbna (now Avant Money) for a fraction of its value (say 10%), but Cabot needs to make its profit. 30% is reasonable.

Do nothing and it’s correct that you can’t be sued successfully, but your credit history remains impaired.
 
Gordon Gekko said:
Moral reasons perhaps?

Being a deadbeat probably gnaws away at some people, to their credit.
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How does making a less than 100% settlement on a debt with the agreement of the creditor make one a "deadbeat"? Maybe bankruptcy and personal insolvency practitioners should be called "deadbeat practitioners"?
 
ClubMan said:
How does making a less than 100% settlement on a debt with the agreement of the creditor make one a "deadbeat"? Maybe bankruptcy and personal insolvency practitioners should be called "deadbeat practitioners"?
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A ‘deadbeat’ is simply a person who reneges on their debts and doesn’t pay them.
 
If Cabot know that they are beyond the 6 year period why would they waste money on legal proceedings? I assume that they act commercially.
 
CuriousCork said:
If Cabot know that they are beyond the 6 year period why would they waste money on legal proceedings? I assume that they act commercially.
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Because it's very cheap for them to start legal proceedings, and it pays off if only a small percentage of people pay up.
 
Just seeing this. People often refer to the 6 year rule but it's not clear cut & if Cabot tried to enforce this quite substantial debt a reasonable defence would be required. I don't believe people should assume they are protected under the 6 year rule.

I believe it's more difficult than ever to enforce legacy personal Debts if no action has been taken within a reasonable period of time but with such a substantial debt there's nothing to stop Cabot seeking a Judgement & if the OP has property, seeking a Judgement Mortgage. It would cost them very little.

OP can choose to ignore & only act if Cabot issue legal proceedings when a Defence can be entered through a Solicitor. I'd not be advising any direct contact with Cabot but OP Should be mindful this debt won't go away & will show up on their Credit Report.
 
To answer the OP questions directly, all religion and philosophy aside..

1) Yes. And.. what letter of settlement?
2) What they paid for your debt. Or better still. Nothing.

vandriver said:
the amount is reported to the CCR every month and stops me borrowing ever again.
Click to expand...

With regard to this part of your statement, I would perhaps apply two of the many questions by the ever inquisitive ClubMan...

ClubMan said:
Are you sure about that?
On what basis?
Click to expand...
 
How do I know the debt is reported to the CCR every month?Because it's on my credit report in black and white.
How do I know I can't borrow money?
Because I've tried.
 
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