Cabot - how best to deal with 10+ year old debt

Houndslow

Houndslow

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2
2009:
took out credit card with MBNA

2013:
hit financial trouble and missed payments
debt was sold to debt collector (can't remember if it was Cabot or someone else)
living and working abroad so tried to get loan to pay off balance (approx €5k) - due to an admin error I failed in this
talked to the debt collection agency for the last time approx April 2013

2014:
left the continent and the debt behind (not condoning this life choice but I was a very different person then)
figured I would wait out the 6 years until my credit history was clear

2019:
debt was not on my credit report any more
borrowed money (less than €2k) no problem, paid it back before it was due

2021:
tried to borrow money (less than €2k) and was denied
checked Central Credit Register report - which now included the debt of €5k from Cabot Financial, going back to 2017

2025:
today - received updated report from CCR - debt from Cabot is still there, going back to 2020


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What are my options in dealing with this?

1) I am still in no way in a position to pay off €5k, not yet. If I contacted them about a settlement (20-30%) by phone, what does that affect?
2) Is there a best practice to deal with them?
3) Does a settlement deal look the same to other lenders as full payment?
4) Am I better off saving up and paying it in full (could take 1-2 years)?
5) Am I completely blocking myself from borrowing until this is sorted out? I don't need to do so right now, and I won't be in a mortgage position for a couple of years at least, but I would like to know, just in case.

TIA
 
Houndslow said:
If I contacted them about a settlement (20-30%) by phone, what does that affect?
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Better to do request this in writing to be honest, but once the loan is then cleared, it will be another 5yrs before it drops off the CCR
Houndslow said:
Does a settlement deal look the same to other lenders as full payment?
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I can't remember what the CCR says but my lender was able to tell me I had a reduced settlement as part of credit check for a (failed) loan app some years ago.
Houndslow said:
Am I better off saving up and paying it in full (could take 1-2 years)?
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IMHO damage is already done regardless.
Houndslow said:
Am I completely blocking myself from borrowing until this is sorted out?
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From personal experience you are blocked from most banks until the it drops off the CCR.

If I were you I would look to get a reduced settlement and get rid of the debt then you just have to wait the 5yrs and you will have a clean bill of health!
 
Savvy said:
Better to do request this in writing to be honest, but once the loan is then cleared, it will be another 5yrs before it drops off the CC
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Terrible advice as it restarts the 6 year clock !

Houndslow said:
I am still in no way in a position to pay off €5k, not yet. If I contacted them about a settlement (20-30%) by phone, what does that affect?
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Nothing. The debt will remain statute barred unless you make a part payment or acknowledge the debt in writing.
 
Houndslow's problem is that the debt continues to be reported to the CCR. There is no statute barring on this. Could go on for ever. Savvy's advice is correct. Come to an arrangement with Cabot. Partial settlement in exchange for a balance write off, and then wait 5 years for the transactions to age-out on the CCR.
 
TLO said:
Houndslow's problem is that the debt continues to be reported to the CCR. There is no statute barring on this. Could go on for ever. Savvy's advice is correct. Come to an arrangement with Cabot. Partial settlement in exchange for a balance write off, and then wait 5 years for the transactions to age-out on the CCR.
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As it stands now if Cabot decide to try and get a judgement against the OP for the full 5k the matter is easy to defend using the statue barred defence.

If the OP writes to Cabot, as per Savy's advice, looking for a part payment in full and final settlement he/she would be acknowledging the debt and thus wouldn't be able to used the statute barred defence if Cabot sought a judgement for the full amount.

The OP would be far better off ringing Cabot, which doesn't restart the debt clock, see what they will accept in full and final settlement and get them to confirm that in writing. Then pay up and wait for the 5 years for the information to removed from the CCR.
 
Houndslow said:
2014:
left the continent and the debt behind (not condoning this life choice but I was a very different person then)
figured I would wait out the 6 years until my credit history was clear
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This is an error so many people make.

Primarily it is because they believe the narrative put about by people on social media that have little or no actual knowledge of how it works - despite that the correct and factual information is available from several official sources including Citizens Information website

Here's the pertinent information from the Credit Register itself -

"Where all liabilities under the loan agreement have been repaid, written off or discharged, the credit information is held on the Central Credit Register for a period 5 years after the loan is repaid, written off or discharged."

"It is important to note that this 5 year period will only start to run when the loan is repaid, written off or discharged by your lender. If you default on your loan agreement and cease making payments then the 5 year period will not start to run. In this situation your lender may continue to report the loan and it will continue to appear on your credit report."


So a debt can remain on the record for decades if a creditor has not written it off (or if it has been paid)


Probably nothing to lose by offering a settlement. But they won't accept 20%-30%. You might have hope at 50%.
 
peemac said:
So a debt can remain on the record for decades if a creditor has not written it off (or if it has been paid)
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Actually a very smart move by Cabot even though the debt is Statute barred. It "forces" people to contact them if the debtor ever wants to access a loan of any description in the future.
 
I think it's worth remembering what happened last weekend where a small unpaid debt had big repercussions 16 years later.

These things can and do come back to haunt many people years sometimes decades later

Best advise I'd give the OP is pay it off now before it costs you more later
 
peemac said:
Probably nothing to lose by offering a settlement. But they won't accept 20%-30%. You might have hope at 50%.
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I have seen Cabot offering full and final settlements at much less than 50%. In my experience the chances are high that Cabot would have made such an offer to the OP some time ago in an effort to close out the matter.

The Horseman said:
Actually a very smart move by Cabot even though the debt is Statute barred. It "forces" people to contact them if the debtor ever wants to access a loan of any description in the future.
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Financial Institutions are only required to search the CCR for loans of €2k or more.
 
The Horseman said:
Actually a very smart move by Cabot even though the debt is Statute barred.
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Worth noting also that the matter being statute barred does not mean the creditor can't attempt to seek a judgement against the debtor and I have seen Cabot do just that where they have had claim notices issued well outside the six year timeframe.

The defence is that the matter is statute barred .

ClubMan said:
Maybe with all their moving around they didn't get any correspondence from Cabot?
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Very possible.

Op can ring Cabot and make a Subject Access Request under GDPR which should show the OP all of the relevant information relating to him/her.
 
@Brendan Burgess on the contrary if a debt is low enough not to warrant the expense of serious legal action up to and including sending the Sheriff etc the debt can be written off in the Cabots accounts but can be left on a credit report and if the debtor ultimately discharges even part of the debt on a 50/50 basis then 50% of a debt is better than 0% of a debt.

I agree it is not a smart move of the debtor to think if they leave the country the debt is gone. One of the positive outcomes of the financial crisis was the CCR if for no other reason to protect people from themselves.
 
The Horseman said:
@Brendan Burgess on the contrary
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Sorry, on the contrary to what?

Maybe my wording is confusing. You said it was a smart move by Cabot to leave the debt on the record.

I don't consider it especially smart, by which I mean it's just normal to want to collect your money.
 
Thank you all.

I will call Cabot, see what they say about a settlement, hopefully be able to pay it ASAP (or else save more to pay off whole thing if they won’t settle) and then wait the five years, getting finances in order and then apply for mortgage.
 
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