Received a letter - Pre-Litigation Department :(

od0s · 19 January 2009 at 3:00PM

Hi all,

When I was a stupid 18 year old at university I got myself into debt with two credit card companies - Egg and CapitalOne.

I could not afford repayments and unfortunately I ignored the debts hoping they'd go away.

I am not just turned 23 and am working full time. My parents recently received a letter from LOWELL FINANCIAL saying I owed a debt of £749.11 to original creditor EGG.

It is headed: PRE LITIGATION DEPARTMENT

It then reads:

Our agent has failed to make contact with you and as a requirement we must now inform you that 7 days from the date of this letter we intend to pass this matter onto our Legal Department to review your account.

This may involve commencing legal action against you and applying to the Court for a Judgement that may be registered against you. If this is successfully obtained from the Court, and you fail to comply with the terms of it we may apply to the Court for an order to enforce the Judgement without further notice to you.

IF THE COURT THE GRANDS ENFORCEMENT OF THE JUDGEMENT WE MAY LOOK TO EITHER:

1. Instruct a bailiff to remove goods from your premises should the debt not be paid or
2. Apply for an attachment of earnings order directing your employer to decuct payments from your earnings
3. Obtain a charging order against your property or
4. Obtain payments directly from your bank account via a third party debt order or
5. Request your attendance in court for examination of your financial means.

As an attempt to resolve this matter, in order to avoid the possible need to take LEGAL ACTION you MUST contact us NOW.

PAYMENT CAN BE TAKEN OVER THE PHONE BY DEBIT OR CREDIT CARD

******************************************************

I really do not know how to proceed. I have read on many sites that I should NOT contact them. Others say to do so.

I have come here for some advice. I really hope someone can give me a few pointers....

Thanks so much!

iwanttohavesomemoney · 19 January 2009 at 3:08PM

Well, you ran up the debt, so you need to pay it off. To be fair, although that sounds harsh, you'll find that the more upfront you are with them the better. I too ran up some debts, but have been paying them off for a while and hopefully should be debt free before xmas.

Your debt is low to them; ring them up, be polite. Afterall, put yourself in their shoes, arsey people won't get far!
Work out what you can afford to pay them, maybe £62.50pm over 12 months, and put that to them. Obviously, I don't know your circumstance, but its better to face up to it than risk a CCJ. When you do ring that kind of place up, they don't sound half as bad as the letter makes out!

Good luck

RAS · 19 January 2009 at 3:08PM

Hi

Love, firstly this is major care tactics and you need to read the letter properly

If the court .... we MAY

The bit you really need to read is

If this is successfully obtained from the Court, and you fail to comply with the terms of it we may apply to the Court for an order to enforce the Judgement.

Since this was Egg, we need to know what sort of account this is and where about in the UK you live?

RAS · 19 January 2009 at 3:11PM

Hi

Please do not ring a DCA like Lowell. All communication has to be in writing.

iwanttohavesomemoney · 19 January 2009 at 3:14PM

Ras, just a quick question; why not ring? In my experience (bank of scotland, mbna, capital one), when they've sent letters like that through debt collectors, I've always just rang them. Politely explained my situation and worked out a repayment plan, and never had a problem even when I've had to ring them to miss a payment.

cheers

Ames · 19 January 2009 at 3:17PM

Because debt collection agencies are usually very nasty on the phone and try all kinds of tricks to get you to pay more than you can afford. Lowell are one of the worst. On the phone they can make all kinds of threats, which they can't do in writing.

Jesthar · 19 January 2009 at 3:19PM

iwanttohavesomemoney wrote: »

Ras, just a quick question; why not ring? In my experience (bank of scotland, mbna, capital one), when they've sent letters like that through debt collectors, I've always just rang them. Politely explained my situation and worked out a repayment plan, and never had a problem even when I've had to ring them to miss a payment.

cheers

Good for you, iwant,

but it sounds like you've been VERY lucky! Many DCAs are outright bullies, especially on the phone, and consistantly threaten and harrass for increased payments. And Lowell are most definitely in this category; one of the worst for underhand scare tactics...

iwanttohavesomemoney · 19 January 2009 at 3:37PM

oh right ok, I'll count my lucky stars then that I haven't come across this bunch of coconuts.

I still think though that the poster would get a reasonable settlement plan by getting in touch with them asap. Maybe a tactic which I have used would help, starting by offering a few quid less per month that I can actually pay to give a bit of leeway when they write/phone back to try for a bit more.

cheers :-)

od0s · 19 January 2009 at 4:09PM

Thanks for the advice so far.

I haven't looked at my credit file for a while, but I know that Egg showed up on there and was listed as DEFAULT in around 2005-2006.

If I get this debt paid off, will it greatly improve my credit rating and/or get this bad credit history removed from my file?

Is everyone agreed that I must contact Lowell? If so it appears I need to do this by letter, rather than phone. The only thing that worries me is I have read that people have responded to Lowell and just got the same sort of standard letter sent back to them. As if they only want a full payment and they want it NOW. Some say they are very unwilling to cut deals or bargain and offer lower monthly payments.

I'm so unsure with how to handle this it is scary!

RAS · 19 January 2009 at 4:12PM

You need to tell us what sort of debt as per previous message.

iwanttohavesomemoney · 19 January 2009 at 4:22PM

A default will remain on the record for 6 years from date of default. But, it will show 'settled' in the balance column when it is paid off. Which feels mighty nice I can assure you!

Received a letter - Pre-Litigation Department :(

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