Introducing Lowell Letter (Debt recovery)

Davie09

Hi,

I came home today to find a letter from Lowell Portfolio regards a debt I accept is mine (credit card) from about 2005. Unfortunately at that time I went through a long time of illness and my credit cards weren't top priority.

The letter introduces the company who bought the debt in 2008. I have no problem now with coming to an agreement on paying it off but I have a few questions I want to ask first.

1. Is it best to ring and arrange a payment plan?

2. I couldn't pay the full ammount now but I could pay a large percentage, is there any room on agreements for payment?

3. Though an enquiry is registered on my Experian Credit Report from Lowell there is no other log of the account I 'have' with them. Will ringing them and paying effect my credit score and account? (Since returning to work I have spent my time trying to build a good account)

4. Are possible other old debts going to start tumbling through my door if I pay this one?

I have no idea how to deal with this and to be honest I am feeling stressed out about it already. I remember having to deal with another 'debt recovery' agency a few years ago who managed to loose payments and demand far too much money (mobile phone company, they went bust, it was moved to a high street phone company who strangely thought I owed exactly what I thought and the debt was paid in full and is not on my credit file). I just want to protect the credit report I have build since returning to work and keep the stress levels down.

Many thanks in advance for any help on this.

Davie

PS. I have no idea how they got my address, the only recent things I have done have signed up for my credit report and taken the first step to be on the electoral role, what causes them to find your address?

bottleofred

Hi Davy,

I've never dealt with Lowell, but my advice would be not to ring them and always communicate in writing and keep all correspondence. Depending on how large the actual debt is, you could offer them a one off full and final settlement. As the debt has been with them for a while, I'd probably offer 20% of the full amount as a starting point and personally, certainly wouldn't pay more than 50%, but only you know if you can afford this or any other amount. Regarding question 3, don't ring them and correspond in writing ALWAYS!! For question 4, it's hard to say if other DCAs will start contacting you, but if Lowell buy any more of your debts they'll obviously be in touch. I'm not sure how they got your contact details, but there has been more than a hint of suspicion in the past about the credit report companies providing info to DCAs.

Good luck

Davie09

thanks for the reply.

Also I don't know if this makes any difference but to my knowledge the last payment on this accout would have been around October 2005. At the time I lived in England but since have moved north of the border to Scotland. I was told that Statute Barred Debt in Scotland is 5 years not 6. Living here would I be covered by that? Is there anyway to find out when you made a last payment on a debt? (The credit agreement date is mid 2003). (I can find no record of a payment from my bank account from Sept 2005)

I was a tad suspicious of Experian as it advertised on the 'statement'.

Again my credit report is the important thing. Though I will write to them this week.

Deep_In_Debt

Don't speak with Lowell or any other DCA's on the phone - keep everything in writing.

DCA's would have bought the debt for peanuts - pennies in the £ so even if you offer them 30% they will probably be making a profit. Start low 20% even. Make sure all offers are made in writing and that you ensure that neither they, nor any associate or 3rd party will chase you for the remainder of the debt and that your credit file is marked as "satisfied" and that you are released from any further liability. This is important as they will sell the remainder on and you may be chased for that in a few years...had my fingers burnt on this one.

Never ring them.

National Debtline website has some good template letters you can use.

Good luck.

callistris

Lowell are just like any other DCA except this lot usually buy up really old debts normally ones which are statute barred, but judging the dates of your debt from the credit card they seem to have changed this policy of late.
These debts though they do only pay a very small percentage for, in that its only a few pence for every pound of the debt;) So a 20% full and final settlement offer would still rake in a huge profit for them!

Do as bottleofred says by only communicate to them by writing!
Don't be surprised if you get a follow up letter from RED debt collection services saying the debt has been passed to them blah blah blah, they are in fact the same crowd as lowell, just they sit at a different desk in the same office:D so don't be fooled by it;)

FTW

Davie09 wrote: »

thanks for the reply.

Also I don't know if this makes any difference but to my knowledge the last payment on this accout would have been around October 2005. At the time I lived in England but since have moved north of the border to Scotland. I was told that Statute Barred Debt in Scotland is 5 years not 6. Living here would I be covered by that? Is there anyway to find out when you made a last payment on a debt? (The credit agreement date is mid 2003). (I can find no record of a payment from my bank account from Sept 2005)

I was a tad suspicious of Experian as it advertised on the 'statement'.

Again my credit report is the important thing. Though I will write to them this week.

Statute barring is 5 years in Scotland. You could send Lowell the Statute Barred letter template (easily found) - that puts the onus on Lowell to prove otherwise.

FTW

Davie09 wrote: »

Hi,

I came home today to find a letter from Lowell Portfolio regards a debt I accept is mine (credit card) from about 2005. Unfortunately at that time I went through a long time of illness and my credit cards weren't top priority.

The letter introduces the company who bought the debt in 2008. I have no problem now with coming to an agreement on paying it off but I have a few questions I want to ask first.

1. Is it best to ring and arrange a payment plan? No. Absolutely do NOT call them - that'll achieve nothing.

2. I couldn't pay the full ammount now but I could pay a large percentage, is there any room on agreements for payment? You could try and arrange a settlement figure - but have them prove it's even owed first (see my previous comment!). Also, read my response to your question 4 to understand why it's not advisable to that.

3. Though an enquiry is registered on my Experian Credit Report from Lowell there is no other log of the account I 'have' with them. Will ringing them and paying effect my credit score and account? (Since returning to work I have spent my time trying to build a good account). Even if you paid, your entry would still be there - your credit file would be marked as 'satisfied', but the default would remain there for one more year. If you've gone 5 years without any noticeable harm, 1 more year's an easy wait.

4. Are possible other old debts going to start tumbling through my door if I pay this one? Don't pay it until they prove it's owed and still stands - question it. You require evidence that it still stands - their word is not enough. Let us know what you receive from them, and we can take it from there.

There have been instances of people paying debts, and then receiving letters from another collection agency later on.

That's especially true of 'settlement figure' debts - the company that accepts the settlement passes the deducted figure onto another agency for that other agency to collect.

I have no idea how to deal with this and to be honest I am feeling stressed out about it already. Lowell are not worth you getting stressed over. In fact, they're worth nothing.


I remember having to deal with another 'debt recovery' agency a few years ago who managed to loose payments and demand far too much money (mobile phone company, they went bust, it was moved to a high street phone company who strangely thought I owed exactly what I thought and the debt was paid in full and is not on my credit file). I just want to protect the credit report I have build since returning to work and keep the stress levels down.

Many thanks in advance for any help on this.

Davie

PS. I have no idea how they got my address, the only recent things I have done have signed up for my credit report and taken the first step to be on the electoral role, what causes them to find your address? What you've just said - signing up for credit reports (some DCAs pay a monthly subscription to access people's credit reports - especially Experian!), and they do check the electoral roll and local phone books as well.

My responses are in red. Hope this helps.

fatbelly

Davie09 wrote: »

Also I don't know if this makes any difference but to my knowledge the last payment on this accout would have been around October 2005. ... have moved north of the border to Scotland.

Give it a month to be safe, then send the letter at the end of this factsheet:

Factsheet | Liability for debts & the Prescription & Limitation (Scotland) Act 1973

Under Scottish law, the debt is ‘extinguished’, This means that it no longer exists and there is no debt for the creditor to pursue.

Lowells are having a last-minute attempt to rescue the debt. Unfortunately they have left it too late.

fermi

Davie09 wrote: »

I was told that Statute Barred Debt in Scotland is 5 years not 6. Living here would I be covered by that?

Yes, you would.

If Lowells want to take legal action against you, then they must do it through the court system/jurisdiction of where you live.

As that is now the Scottish courts, those courts are bound by their Limitation laws as to when a debt can and cannot be enforced via a decree. i.e. they have to apply their own rule of 5 years.

Davie09

Thanks to all for all your help, I will keep an update as to what happens.

Just one thing on:

3. Though an enquiry is registered on my Experian Credit Report from Lowell there is no other log of the account I 'have' with them. Will ringing them and paying effect my credit score and account? (Since returning to work I have spent my time trying to build a good account). Even if you paid, your entry would still be there - your credit file would be marked as 'satisfied', but the default would remain there for one more year. If you've gone 5 years without any noticeable harm, 1 more year's an easy wait.

FTW your responses were excellent and there is just one thing that seems odd to me here with regards my credit report.

On my credit report from Experian it merely shows Lowell Financial Limited performed an Unrecorded Enquiry on the 14th October.

That is all that is there, there is no mention of the account anywhere else. In my accounts section I have just the 4 I expect to be there (all with Status Satisfactory).

This is what puzzles me, why did they perform an Unrecorded Enquiry but not register the account with my profile? Or should I expect it to turn up soon?

And what is an unrecorded enquiry?


And thank you Deep in Debt, the National Debt Helpline are giving me a ring tomorrow, thanks for putting me in that direction.

fermi

Davie09 wrote: »

On my credit report from Experian it merely shows Lowell Financial Limited performed an Unrecorded Enquiry on the 14th October.

That is all that is there, there is no mention of the account anywhere else. In my accounts section I have just the 4 I expect to be there (all with Status Satisfactory).

This is what puzzles me, why did they perform an Unrecorded Enquiry but not register the account with my profile? Or should I expect it to turn up soon?

And what is an unrecorded enquiry?

An unrecorded enquiry is a search that is only visible to you. You can see it because it is your file, but any potential lender checking your file to credit check/score you won't see it.

Most likely it is the result of Lowells tracing the account to you and/or checking other details on your file.

As to why no details of the account were registered?

- Maybe the original creditor didn't report to Experian, so Lowells don't have an entry to update?
- Or if there was an entry, did you default more than 6 years ago? It would be gone if you did, and it can't be put back.
- Or sometimes when a debt is sold, the creditor removes their entry, and the buyer then adds theirs on. Occasionally the 2ndt doesn't happen. Lowells are a pretty incompetent outfit, so wouldn't surprise me.

Otherwise, who knows?..............