Old Loan Caught up With Me

aldredd

Hello, looking for a bit of advice...

A loan that I've 'dodged', I guess you could say, for a few years, has caught up with me. I've recently moved back into the UK after living overseas for a few years, and about 8 weeks later got a letter from ours best friends; Lowell Group. I'm surprised the letter found me really, as it's a brand new house, and they didn't include the postcode, but it did find me.
I'm not here to try and get out of what I owe, just trying to buy myself some time really.

Based on your experiences, what is my best next step? I've read that under no circumstances should I ring them - so I wont. But do I ignore the letter for now and hope they only sent it on the off chance I would receive and respond, or do I get back in touch (by writing). In reality, I just can't afford to pay anything of it back right now - I do work, but after rent, bills etc, I'm left with less than £300 per month - which has to feed and clothe myself, my partner and my baby once it's born in a few weeks, and from what I've heard, Lowell aren't very sympathetic when it comes to your personal circumstances / how much you can actually afford to re-pay. How open are they to offers? Such as £100 p/m - which would still mean me needing to get a p/t job at the weekend, on a £7k debt? Or, am I better off investigating the IVA route? Not my preferred option, as I do have some 'good' debt, and can't loose my car, as it's a 80 mile round trip to work (it's only an old car though).

Any advice / thoughts / suggestions would be appreciated.

never-in-doubt

How long was the debt? I'd just send it back to them as addressee unknown (yea yea , maybe not the most honest advice but tough !!!!!! - we're in a recession, dog eat dog!)....

Have a mooch here if they carry on hassling you: Dealing with Bailiffs Harassment

If anything, you could send the 15. Prove it Letter from this thread: Unenforceability & Template Letters II

adouglasmhor

Has the debt been unserviced for 6 years or more?

aldredd

Hi, the debt has been unserviced for about 3 years, so is still 'enforceable' in that respect.

Can you 'get away' with returning to sender if it's been opened? In fact, think I checked the envelope as well, (may still be in the bin though). Silly of me to open it really - I knew the letter was going to arrive as they'd been mooching around my credit profile a couple of weeks before :-(

NiD - can I send a letter stating I know nothing about the debt when I technically do? Can I be 'found out', or is it a standard way of getting them to prove it's your and they have all the paperwork etc?

never-in-doubt

adouglasmhor wrote: »

Has the debt been unserviced for 6 years or more?

Sorry forgot to mention Statute Barred - thanks for prompt! If so then send the following:

Dear Sirs,

Re: Statute Barred Account - Numbered - XXXXXXXX

You have contacted me regarding the account with the above reference number, which you claim is owed by myself.

I would point out that under the Limitation Act 1980 Section 5 "an action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued".

I would also point out that the OFT say under their Debt Collection Guidance on statute barred debt that "it is unfair to pursue the debt if the debtor has heard nothing from the creditor during the relevant limitation period".

The last acknowledgement to this debt was made over six years ago and no further acknowledgement or payment has been made since that time. Unless you can provide evidence of payment or written contact from me in the relevant period under Section 5 of the Limitation Act, I suggest that you are no longer able to take any action against me to recover the alleged amount claimed.

The OFT Debt Collection Guidance states further that "continuing to press for payment after a debtor has stated that they will not be paying a debt because it is statue barred could amount to harassment".

I await your written confirmation that no further contact will be made concerning the above account and confirmation that this matter is now closed.

I look forward to your reply.

Yours faithfully




Sign digitally

never-in-doubt

aldredd wrote: »

Hi, the debt has been unserviced for about 3 years, so is still 'enforceable' in that respect.

Can you 'get away' with returning to sender if it's been opened? In fact, think I checked the envelope as well, (may still be in the bin though). Silly of me to open it really - I knew the letter was going to arrive as they'd been mooching around my credit profile a couple of weeks before :-(

No don't return to sender. Just ignore them and eventually they will go away, alternatively you should send the prove it letter. Bear in mind if you have used your old address (from where the debt was registered) then they will link you to the new address..... there can be no ties, in order to 'hide' from a previous debt!

aldredd

never-in-doubt wrote: »

No don't return to sender. Just ignore them and eventually they will go away, alternatively you should send the prove it letter. Bear in mind if you have used your old address (from where the debt was registered) then they will link you to the new address..... there can be no ties, in order to 'hide' from a previous debt!

Thanks NiD - there are links between my old address of 3 years ago and my current address - they're shown on my credit profile, which would be how the !!!!!!s found me. As I understand it, if I write asking for proof - does this 'reset' the clock for the 6 years rule? Or is it only once I acknowledge it? Is it worth seeing if they send a further letter, after which point send the prove it letter? It's feesable that the letter wouldn't have found me, as they didn't include a postcode, and it's a brand new development in a large(ish) city

Edit: Loving the swear filter - but sometimes it should be allowed :oD

iolanthe07

In your first post you said that you were not trying to get out of what you owe, which is decent and honourable of you and far beyond some of the shyster advice you get on here. If you really are prepared to face your responsibilities, then get in touch with them and offer a reasonable settlement.

never-in-doubt

aldredd wrote: »

Thanks NiD - there are links between my old address of 3 years ago and my current address - they're shown on my credit profile, which would be how the !!!!!!s found me. As I understand it, if I write asking for proof - does this 'reset' the clock for the 6 years rule? Or is it only once I acknowledge it? Is it worth seeing if they send a further letter, after which point send the prove it letter? It's feesable that the letter wouldn't have found me, as they didn't include a postcode, and it's a brand new development in a large(ish) city

Edit: Loving the swear filter - but sometimes it should be allowed :oD

What you say is correct! If you send the prove it letter you're not admitting to it are you (acknowledging the debt)? So statute barred does not change from the original 6 years from date of last payment/acknowledgement.

I'd just ignore them - simple really.

Ignore the holier-than-thou brigade that will tell you to pay it back, this would be a huge mistake (sod morals, they don't feed the kids) as the 6 years statute barred date would change the moment you make a payment. As it is 3 years old you'd be better just sending any further mail back as unknown (at this stage)....

never-in-doubt

iolanthe07 wrote: »

In your first post you said that you were not trying to get out of what you owe, which is decent and honourable of you and far beyond some of the shyster advice you get on here. If you really are prepared to face your responsibilities, then get in touch with them and offer a reasonable settlement.

Oh get off your high horse! Why should he? I bet you a million quid he never got into debt with Lowell so why should he even speak to them, let alone offer them repayment?

If the lender wants to sell a debt to this scum for 12p in the pound then that is their silly fault. The OP should ignore the DCA who will, invariably, not have assignment rights anyway! Pointless arguing cos you guys will never learn - morals is a personal choice - My morals support my family, not the banks or my obligations to the banks!

aldredd

Thanks guys - my priorities lie with being able to feed / clothe / house myself and my soon to be family, which is why I want to put off this as much as possible, as I know they will try and suck every last penny out of me they can, but that's not to say I don't admit to being 'responsible' (although I might define responsible as providing for my kid, but that's not the point!). If I knew lowell would be reasonable - and nothing I have ready about them makes me think they would be - I would be more willing to get in touch. I'll probably hold my card to my chest, and see what move they make next.
For what it's worth, my other 'good' debts are well managed (couple of CCs and a catalog account, all ran very well), this was just one of those stupid 'I'm 18 and think I want to get married' things.

Out of interest, is there any 'code of conduct' relating to loan - income ratios? I was only earning about 10k at the time, and got a 7.5k loan when i already had other obligations.