Who is Cabot Financial?

Cabot Financial Ltd is a UK-based debt purchaser and part of Cabot Credit Management Group, which is owned by Encore Capital Group — one of the largest debt buyers in the world. Cabot purchases portfolios of consumer debt from banks, credit card companies, and other lenders, then collects on those debts in its own name.

Cabot is authorised and regulated by the Financial Conduct Authority (FCA) and must follow the FCA's rules on how it treats customers when collecting debts.

What type of letter have you received?

There are several types of communication Cabot may send:

  • A Notice of Assignment — telling you your debt has been sold to Cabot from another creditor
  • A standard demand letter — asking you to pay or set up a payment arrangement
  • A Letter of Claim — a formal pre-action notice giving you 30 days to respond before court action
  • A court claim form — meaning legal proceedings have already been started

Read the letter carefully to identify which type it is. A Letter of Claim will say so explicitly and will include reply forms.

What to check before you do anything

Is this debt yours?

Cabot purchases large volumes of debt data, and errors are possible. Verify that the account details, original creditor, and dates match your own records. If you have no knowledge of the account, you can ask Cabot in writing to provide evidence that the debt belongs to you.

Is the debt statute-barred?

In England and Wales, most unsecured debts become legally unenforceable after six years from the date of the last payment or written acknowledgement. In Scotland the limit is five years. If your debt is older than this threshold and you have not recently paid or acknowledged it, Cabot cannot take court action — though they may still contact you.

⚠ Do not pay before checking the age of the debt A partial payment on a statute-barred debt resets the limitation period. Check when you last made a payment before responding or paying anything.

Is the amount correct?

You have the right to ask Cabot for a full statement of account showing the original balance, any interest added, and any charges applied. The total they are demanding should be clearly explained. If it is not, request a breakdown in writing.

Can they produce the original credit agreement?

Under the Consumer Credit Act 1974 (Section 77–79), you can request a copy of the original credit agreement for a fee of £1. If Cabot cannot provide an enforceable agreement, they cannot pursue court action.

Not sure what your Cabot letter means?

Upload it for a free plain-English overview — we'll explain what type of letter it is and what your options are.

Check my letter free →

How to respond to Cabot

Always respond in writing rather than by phone. Keep copies of everything. If you need to dispute the debt, request the credit agreement, or set up a payment plan, do so by letter or email.

  • Verify the debt is yours before making any contact
  • Check the age of the debt before making any payment
  • Request the original credit agreement if in doubt
  • Respond to a Letter of Claim within 30 days
  • Never discuss the debt by phone without a written record

If Cabot is acting unfairly

If Cabot is contacting you more than is reasonable, using misleading language, or failing to follow FCA rules, you can complain formally to Cabot and then to the Financial Ombudsman Service (FOS) if the matter is not resolved within eight weeks.

A note on this guide

This guide provides general information about Cabot Financial letters. It is not legal advice. For significant debts or court claims, contact Citizens Advice (citizensadvice.org.uk) or StepChange (stepchange.org).