Who is Cabot Financial?
Cabot Financial is one of the UK's largest debt purchasers. They buy unpaid debts from original creditors — banks, credit card companies, retailers — typically for a fraction of the original amount, and then attempt to collect the full balance from the consumer. If you have received a letter from Cabot, it means Cabot now owns your debt, not the original company you borrowed from.
This is important because it affects what they are required to prove — and what rights you have.
Why is Cabot contacting me instead of the original creditor?
When a creditor decides to write off a debt, they often sell it to a debt purchaser like Cabot. Cabot paid a fraction of what you owe, and now seeks to collect the full amount. The sale of a debt does not affect your rights — everything you could have argued against the original creditor, you can still argue against Cabot.
Cabot must be able to prove they legally own the debt, provide documentation showing what you owe and why, and comply with FCA rules on fair treatment of consumers.
What to check before you do anything
Is the debt statute barred? In England and Wales, most debts become unenforceable after 6 years from the last payment or written acknowledgment. Cabot regularly pursues old debts — check when you last made a payment or acknowledged the debt in writing.
Can Cabot prove they own the debt? Ask for a Notice of Assignment showing the debt was legally transferred to them. If they cannot provide this, their right to collect is questionable.
Do they have the original credit agreement? If the debt relates to a credit card, personal loan, or store card, you can send a CCA request under the Consumer Credit Act. If Cabot cannot produce the original signed agreement within 12 working days, the debt becomes unenforceable while they remain in default.
Is the amount correct? Cabot sometimes adds interest or charges. The total they are claiming should not exceed what was permitted under the original agreement.
What not to do
Do not make any payment before understanding the debt. Even a small payment resets the statute of limitations clock and can revive an otherwise unenforceable debt.
Do not acknowledge the debt in writing carelessly. A letter saying "I remember this loan but I think the amount is wrong" has reset the clock.
Do not ignore a court claim. Cabot does pursue County Court Claims. If you receive a formal N1 claim form, you have 14 days to respond or they receive a default judgment automatically.
Not sure what your Cabot letter is claiming?
Upload it and get a plain-language explanation — what Cabot is claiming, whether the debt looks enforceable, and a ready-to-send response letter.
Upload your letter — it's free →Cabot sometimes incorrectly calculate limitation dates or claim that earlier contact reset the clock when it did not. You have the right to dispute their position. A written response setting out your calculation of the limitation date, sent by recorded post, is the appropriate starting point.
Yes. Write to Cabot asking that all future communication be in writing only. FCA rules require them to treat you fairly — persistent calling at unreasonable times constitutes harassment and can be reported to the Financial Ombudsman Service.
Payments made to a previous holder should reduce the outstanding balance. Request a full statement of account showing all payments received and how the current balance was calculated. Discrepancies should be disputed in writing.
If the debt relates to a regulated consumer credit agreement and Cabot cannot produce it in response to a formal CCA request, the debt is unenforceable for as long as that default continues. This is a legal position, not a guarantee — but it is a meaningful protection.