Are you being contacted by Cabot Financial?

debt collector UK

With a rising financial crisis in these times, a lot of people are sinking more and more into debt. Even though the situation will get better eventually, there is uncertainty right now. If you owe a debt and are having a hard time repaying it, that is understandable. 

In fact, your creditors might be stressed out too. The amount of debt they have to collect is increasing constantly, and so are their losses. In this type of situation, they can either give the task of collecting to an agency or sell them your debt. 

By selling your debt to a recovery agency, your creditors can cut at least some of their losses. This is the point where a debt collecting agency like Cabot comes into your life, bringing more stress along with them. But, you need not be worried. Nowadays, it is possible to get advice and solutions with just a call. But before that, there are some things you might need to know about Cabot Financial.

Who is Cabot Financial Ltd?

Among all the companies that buy debt, Cabot Financial is a well-recognized name. Based in England, this company mainly collects debts for companies. This means they don’t have the special powers that enforcement agencies do. Though they do have the same legal status as your creditor. 

So, they can start legal proceedings against you for not paying debts. If you owe them money, they wouldn’t stop chasing it until you’ve paid them. It is the source of their profit after all.

What steps would they take when you owe them?

Cabot follows the same procedure as any debt recovery company. They would send you a payment reminder first. This letter would notify you of the amount you owe and the company you owe it to. They would give you a week’s time to make the payment.

Now, you might feel like ignoring it but are advised not to do so. If you are not able to pay within the given, you would get another letter, reminding you about the payment. It would also notify you that you would get a visit from an agent if you don’t pay. If you get visited by the agent, you would have to pay the entire amount.

What happens if you avoid paying them?

Trying to avoid Cabot, or any debt collecting agency for that matter, will not make the situation any better as you shall see. There is simply no way that you can get away without not paying your debt. 

If you ignore the two reminders, you must be ready for the visit from an agent. Though you can choose not to let this agent enter your property if you want. Cabot’s agents don’t have the right to use any kind of force to enter your property. Their powers are very limited. 

Though they can enter if you’ve left your door unlocked. Once they’re in, they can only discuss with you about the debt. They’re not authorized to take any goods from your house if you don’t pay. If they fail to collect the money, they can’t do anything, but return to their agency and report it. 

But, you would still get another chance to pay before they take legal action. They would send you a money claim and ask you to pay the full debt added with an extra rate. You would get two weeks’ time to pay this amount. If you fail to do so, they’ll finally opt for legal action.

What legal actions can they take against you?

If you fail to pay Cabot even after all their reminders, they’ll start a proceeding at the county court. There, the court will order you to clear the debt you owe. They can also file a bankruptcy petition against you if they’re convinced that you can’t pay them. 

In that case, you’ll go through a 1-year period, before finally getting discharged from bankruptcy. During this period, you might have to pay Cabot a monthly instalment. The amount you’ll have to pay would be decided based on what you can afford. 

So, you need not worry about not being able to pay for your basic necessities. Once you’re discharged, all your debts except certain types will be written off.

Yet another circumstance you might have to face and that is if you have failed to pay the monthly instalment amount you had agreed to. In that case, you will get a visit from a bailiff. To avoid such a situation, it is important that you consider the instalment amount carefully before agreeing on it. A debt advisor might be very helpful to you in this matter.

How do you write off the Debt you owe to Cabot?

From what it appears to be, there are only two main ways to write off the debt-either an IVA or bankruptcy. Most people would probably choose to avoid bankruptcy, but not everyone is eligible for an IVA. 

There is also a way out if you’re looking for one, a debt relief order. This would allow you a year’s time to pay your debt. The interest rates would be frozen during this period. If your financial situation doesn’t show any improvement after this time, your debts will be written off. 

Though some types of debts such as criminal fines can’t be written off using this order. In any case, ignoring the debt doesn’t offer any solution. The bottom line is that you’ll have to act quickly, consult a debt advisor if required.

What if the debt calculation is wrong or you don’t owe them at all?

You might find the amount demanded by Cabot to be too high, or that they’re asking you for a debt you’ve never taken. Now, these types of cases are not at all rare. Debt collection agencies might often make these types of errors. So, you must contact them and clear things with them as soon as possible, if you face this situation.

Is Cabot a legitimate company?

Cabot Financials Ltd is a completely legitimate company. They are regulated by the Financial Conduct Authority. As a result, they have to maintain professionalism while collecting debts.