Cabot Financial is a financial recovery firm based in the UK. If they’ve contacted you asking you to repay a debt, you might be wondering whether you need to pay it and, more importantly, whether it’s a legitimate company.

Being contacted by a debt recovery firm can be daunting, but there’s no need to panic. Knowing how to navigate the process can ease some of the stress you might be feeling and allow you to make a plan to deal with your debt once and for all.

This guide will outline Cabot Financial in more detail, including who the company is, where they are based, and how to respond to letters they have sent you.

Who is Cabot Financial?

Owned by Cabot Credit Management Group, Cabot Financial is a debt recovery firm registered in England and Wales.

Established in 1998, the business was one of the first entrants into the UK debt recovery market. Today, it’s one of the largest debt purchase companies in the country, having helped over 1 million customers take their first step towards financial stability.

The company purchases accounts at a reduced price from creditors and lenders, including credit companies and banks. They then become the legal owner of the debt, meaning they keep 100% of the money they recover from debtors.

Cabot Financial is a debt collection company, not an enforcement agent company. This means that they can’t force entry or seize your belongings and can only ask you to pay what you owe.

Is Cabot Credit Management still based in Kings Hill?

Yes, Cabot Financial is still headquartered in Kings Hill, Kent.

The address of their registered office is:

Kings Hill

West Malling

Kent

ME19 4UA

UK

Is Cabot Financial a regulated debt collection company?

Cabot Financial is authorised and regulated by the Financial Conduct Authority (FCA) and is a member of the Credit Services Association (CSA). This means that they are held to certain standards when collecting debts and must adhere to strict rules and regulations.

The FCA is the UK’s independent financial services regulator tasked with ensuring financial companies treat customers fairly during the debt recovery process. In doing so, they oversee the professional conduct of over 50,000 businesses.

The CSA is the trade association for the debt collection and debt purchase industries. With over 300 members, it aims to promote fair and ethical collection practices.

Why have Cabot Financial contacted me?

Receiving a letter from a debt collection company can take you by surprise – especially if you didn’t know your debt had been passed on. However, knowing why they are contacting you can help you understand what your next steps should be.

If you’ve received a suspicious message from Cabot Financial, it means they have recently purchased your account from your original creditor. They will initially contact you through letters and phone calls but might also send text messages and emails if they receive no response.

Remember, you have a range of options for dealing with debt collectors so there’s no need to panic or to rush into anything. Knowing your options can help ease some of the pressure.

How should I deal with money owed to Cabot Financial?

There are various solutions available to you when dealing with money owed to Cabot Financial.

We’ve outlined your options below:

Verify the debt

The first step you should take when you’re contacted by a debt collection company is to verify that the debt is yours and the amount you’re being asked to pay is correct. To get started, talk to them online via the live chat on the bottom of your screen or call directly.

It’s also important to ensure you’re contacting Cabot Financial through authentic channels. If you’re in any doubt, only get in touch with them through the contact details listed on the original debt letter and don’t respond to an email address or phone number that seems suspicious.

Settle the debt upfront

If you have the means to do so, it’s always a good idea to make full payment of the debt as soon as possible. This will put a stop to all collection efforts and allow you to get to a great place with your finances.

To settle the debt quickly, you can make a payment via their online portal or bank transfer. They will ask for basic details to find your account, such as your surname, date of birth, postcode, reference number, and email address.

Arrange a repayment plan

If you want to repay your debt in instalments, you can set up a payment plan to settle your balance in manageable monthly payments. However, while you should always offer to pay as much as you can, you must be confident that your monthly repayments won’t cause any further financial hardship.

There are several ways to make monthly payments. Depending on your circumstances and preferences, you can set up a standing order, make bank transfers, or send cash or a cheque from your local post office.

Can Cabot Financial take legal action against me?

Yes, Cabot Financial can take legal action against you to get you to repay your debt if you continually ignore their attempts to get in touch with you. Some of the actions they might take include:

County Court Judgment (CCJ)

One of the first forms of legal action a debt collection firm will often take is to issue you with a CCJ. If the court rules in their favour, you will be served with a CCJ ordering you to repay the debt in full or in instalments.

Having a CCJ on your credit file can have a detrimental impact on your credit score for six years, making it extremely difficult to get credit in that time.

Enforcement action

Failure to come to an agreement with a debt collection agency or ignoring a CCJ can lead to them taking enforcement action against you. This means that they can send bailiffs to your home to recover payment of the debt.

Bailiffs have greater legal powers than debt collectors. They could potentially seize your belongings (e.g. jewellery, electronics, and vehicles) and sell them at auction to recover payment of the debt.

Wage garnishment

If you’re employed, a debt collector might be able to obtain a court order to have your wages garnished in an attempt to force repayment of the debt. This means that a percentage of your earnings will be deducted and sent to your creditor before you get paid to help settle your outstanding balance.

However, it’s important to note that you must be left with a fixed percentage of your monthly income (usually 60%). It’s also only used as a last resort and if the debt collector deems it absolutely necessary.

What are my options if I can’t afford my debt repayments to Cabot Financial?

Even with the various options available to you, you might still find it impossible to deal with your debt in a way that’s affordable to you. Thankfully, there are steps you can take to help ease some of the burden:

Explain your situation

If you can’t afford to repay what you owe, it can be tempting to ignore a debt collection company in the hopes that this makes them go away. However, this is highly unlikely to happen, and, in most cases, they will increase their contact with you until they get a response.

Instead, you should thoroughly explain your situation to the debt collector as soon as possible. This will let them know what you’re experiencing and reassure them that you’re not simply trying to get out of paying what you owe.

Enter a debt solution

If you’re struggling to juggle multiple debts, a debt solution could help you consolidate what you owe into manageable monthly payments and perhaps even write off a percentage of your balance.

Depending on your circumstances, you could be eligible for an Individual Voluntary Arrangement (IVA), a Debt Management Plan (DMP), or bankruptcy. To discuss your options, reach out to a debt advisor for tailored advice.

Propose a settlement offer

In some cases, a debt collection company might be willing to accept less than the full amount owed if it means they will receive a lump sum as opposed to nothing.

Because debt collection companies tend to purchase debts at a fraction of what they’re worth, they might be open to discussing a full and final settlement.

Ask to freeze interest

To stop your financial situation from escalating, a debt collection agency might agree to temporarily pause all interest and other charges. This can prevent your outstanding balance from increasing while you work on dealing with your debt.

However, while freezing interest can provide some much-needed breathing room while you work on getting your finances back to full health, there’s no guarantee that a debt collector will agree to do so.

What do customers say about Cabot Financial?

Cabot Financial has thousands of online reviews from customers who have dealt with the company directly. With an overall score of 4.0 out of 5.0, they are rated ‘Great’ on Trustpilot.

The majority of reviews highlight the firm’s empathetic approach with users stating that their team of customer consultants make it a ‘genuine and kind company’. One customer was ‘really thankful to Cabot’ because they ‘helped me pay my debt off and made the payments affordable so it was all manageable.’

Another customer stated that, up until the point they were contacted by Cabot Financial, debt was something they ‘ignored and hoped would go away’. However, the customer service advisor they spoke to listened to them about what they could afford to repay and helped them find a solution.

Before responding to a debt collection company, it can be useful to familiarise yourself with what former customers have to say. Knowing how the debt collection process is likely to progress can help put you at ease about your journey to financial recovery.

Where can I get more advice on dealing with my unaffordable debt?

It can be embarrassing and scary being in debt – especially if you’re being pressured into payments you can’t afford or you didn’t realise you had debt in the first place.

At UK Debt Expert, a member of our friendly and experienced team can review your financial situation and outline your options for dealing with your debt. No matter your circumstances, we can help you find a way to manage your credit commitments.

If you’re not ready to talk to someone about your debt, check out our quick tips and infographics aimed at helping you take back control of your finances and stopping your money problems from getting out of control.

We know how daunting it can be to talk about your money worries with a stranger, but burying your head in the sand will only make the situation worse. Reaching out for help is the first step towards financial recovery.