Not upheld: debt collection practices, statute barred debt, enforceability of debt complaint against Cabot Credit Management Group Limited

Decision detail

Summary

Mr W complained that Cabot Credit Management Group Limited was pursuing a debt he claimed was time-barred and unenforceable, despite Cabot acknowledging in writing that it was unenforceable. The account, opened in 2004 and defaulted in June 2018, was sold to a debt purchaser who engaged Cabot to service it. Mr W disputed the debt on 2 May 2025, but Cabot continued contact and requested payment. The ombudsman found that a payment of £6.15 made to the account on 6 December 2022 fell within the six-year limitation period, meaning the debt was not statute barred. Although Cabot treated the account as unenforceable from 12 May 2025, they were entitled to request payment under applicable regulations. The ombudsman found no evidence of inappropriate continued contact after the dispute or inappropriate tone, and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that the account belonged to Mr W based on account statements and default notice bearing his name, and his own reference to never making payments since the account closed. Although Mr W claimed the account was statute barred, the payment of £6.15 on 6 December 2022 fell within the six-year period, meaning the statute barred provisions did not apply. While Cabot treated the account as unenforceable from 12 May 2025, they were entitled to continue requesting payment under CONC 13.1.6, provided they made clear the debt was unenforceable. The ombudsman found no evidence of inappropriate continued contact after the dispute was raised, and the tone of Cabot's communications was not arrogant or entitled. Cabot had a legitimate reason to process Mr W's personal data given the valid debt.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website