How to Dispute Cabot Financial Debt Defaults & Collection Notices

Overview: Disputing a Cabot Financial Debt Entry

Cabot Financial (part of Cabot Credit Management Group / Encore Capital Group) is one of the UK's largest purchasers and managers of delinquent consumer credit accounts. Cabot regularly buys defaulted account portfolios from major high street banks (such as Barclaycard, HSBC, Lloyds), subprime card issuers (Aqua, Vanquis), and telecoms for a fraction of face value.

Because Cabot purchases old debt in bulk spreadsheets, critical original legal documentation—including original signed credit agreements, default notices, and valid notices of assignment—is frequently lost or unavailable. Under UK consumer protection legislation, you have statutory rights to audit Cabot's legal title and dispute unenforceable credit markers.

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3 Core Grounds to Challenge a Cabot Debt Marker

graph TD
    A[Cabot Debt Dispute] --> B[1. Section 78 CCA Documentation Audit]
    A --> C[2. Defective Notice of Assignment / LPA 1925]
    A --> D[3. Statute-Barred Debt / Limitation Act 1980]

    B --> E[12-Day Statutory Clock -> Unenforceability under S78 6]
    C --> F[Failure to Prove Legal Title Transferred from Original Creditor]
    D --> G[6 Years of Inactivity -> Unenforceable & Credit File Deletion]

1. Section 77/78 Consumer Credit Act Request

Under Section 77 (loans) and Section 78 (credit cards) of the Consumer Credit Act 1974, Cabot is legally obligated to provide a true copy of your original executed credit agreement, terms, and a signed statement of account upon receipt of a written statutory request accompanied by a £1 postal order.

• The 12-Working-Day Rule: Cabot has exactly 12 working days from delivery to supply compliant documents.
• Legal Consequence: If Cabot fails to supply compliant documentation, Section 78(6) renders the debt legally unenforceable in court. Cabot cannot obtain a County Court Judgment (CCJ) while in default of your request.

2. Defective Notice of Assignment (Law of Property Act 1925)

Under Section 136 of the Law of Property Act 1925, for a debt assignment to be legally enforceable:

• Formal written notice of the assignment must have been served on you by the original bank or Cabot.
• If Cabot cannot provide a valid deed of assignment or proof of notification, Cabot lacks legal title to initiate legal proceedings in its own name.

3. Statute-Barred Debt (Limitation Act 1980)

Under Section 5 of the Limitation Act 1980, if 6 continuous years (5 in Scotland) have elapsed since the default date or last payment without legal proceedings or written acknowledgment:

• The debt is statute-barred and legally unenforceable.
• Under FCA Sourcebook CONC 7.15, it is an unfair business practice for Cabot to demand payment on a statute-barred debt.
• Once 6 years have elapsed from the original default date, the entry must be purged from Experian, Equifax, and TransUnion.

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Verified Cabot Corporate & Regulatory Profile

When serving formal notices, ensure all correspondence is sent to Cabot's registered headquarters in West Malling:

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Step-by-Step Escalation Workflow

graph TD
    A[Step 1: Send S78 Request + £1 Postal Order via Recorded Delivery] --> B[Step 2: 12 Working Days Elapsed]
    B --> C{Documents Provided?}
    C -->|No / Incomplete| D[Issue Notice of Unenforceability & Dispute CRA Markers]
    C -->|Yes / Fully Compliant| E[Audit Terms for Default Notice Procedural Flaws]
    D --> F[Escalate to Financial Ombudsman if Harassment Continues]

Step 1: Submit a Formal Section 78 Request

Draft a formal Section 78 letter. Enclose a £1 Postal Order marked *"Statutory Fee under Section 78 CCA 1974 only — not a payment towards any debt"*. Send it via Royal Mail Signed For to *1 Kings Hill Avenue, Kings Hill, West Malling, Kent, ME19 4UA*.

Step 2: The 12-Day Compliance Clock

Track delivery online. The statutory clock starts the day after delivery. If Cabot fails to provide a true copy within 12 working days, issue a formal Notice of Non-Compliance and Unenforceability.

Step 3: Referral to the Financial Ombudsman Service (FOS)

If Cabot continues collection pressure or threatens court action while in breach of Section 78, refer the dispute to the Financial Ombudsman Service (0800 023 4567 | financial-ombudsman.org.uk). The Ombudsman can order Cabot to cease collection and delete inaccurate credit markers.

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Frequently Asked Questions

Can Cabot register a new default date on my credit file?

No. Under Credit Reference Agency operational standards (SCOR rules), the default date on your credit file must remain the original default date set by the original lender. Cabot cannot re-age the account.

What should I do if Mortimer Clarke Solicitors sends a court letter?

Cabot frequently instructs its retained law firm, Mortimer Clarke Solicitors Limited, to issue County Court claim forms. If you receive a Letter of Claim, immediately respond under the Civil Procedure Rules (CPR) Pre-Action Protocol requesting full CCA agreements, statements, and assignment notices.

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Download Pre-Written Cabot Dispute Templates

Stop debt collection harassment with verified legal notices. The UK Credit Secrets Playbook includes pre-formatted MS Word templates for Cabot Section 78 CCA requests, notices of unenforceability, statute-barred notices, and Mortimer Clarke Pre-Action Protocol responses.

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