Letter from Lowell

decemberboy

Hi all,

A few years ago I got into a terrible mess financially with various things but over time I've managed to get on top of it and am managing a lot better.

However recently I have received a couple of letters from Lowell Financial regarding a debt I had with a credit card from Capital One. I did have a card with Capital One in 2003 or 2004 and I did default on it, however the letters from Lowell is the first I have heard about it in years. I foolishly thought 'out of sight, out of mind'.

They say that I owe £656.17 but I have no knowledge of whether this amount is accurate or not, they have also said they will send someone to my house to discuss the matter. In the most recent letter they have offered me three options: a 75% full and final settlement, an 85% full and final over three months or a direct debit of £60PM until the debt is cleared.

What I was wondering is what is the best cause of action to take? I don't want anyone visiting my property, I can afford to pay the debt off in instalments but before I do I want them to send me evidence that the amount I owe is correct and any other documents that I have a right to see first. They also encourage me to call them to discuss the matter but I'd rather communicate by letter only.

Any letter templates, advice or help over this would be greatly appreciated, I have heard some stories about Lowell so want to make sure everything is correct before I begin to pay this off. Thanks.

fatbelly

Are you sure this is your debt? Is the account number quoted and correct?

You may be better sending the prove-it letter as a first step (if you send anything) unless you are 100% sure

No-one will visit but they would have no rights to do anything if they did.

So, when did you last make a payment on this card? If 2004 then it will be statute barred (6 year gap in England/Wales, 5 in Scotland) and they have to stop chasing if you inform them you will not be making payments.

Most standard letters are on this thread

Alatna

Hi,
I agree with Fatbelly -if you haven't paid or acknowledged this debt since 2003/4 then it's probably Statute Barred. The prove it letter is the way to go. Watch out for claims that you made an "attempted payment", restarting the Stat Barred clock... an old trick to make you believe you have to pay it.
If you make any payment AFTER the time limit however, it remains statute barred and once you inform them that you will not be paying it for this reason they have to leave you alone.

kind regards,
Alatna

fermi

Agreed. No point messing around with CCA requests until you are sure that (a) the debt is actually yours, and (b) the debt is not statute barred.

wookiebob

Lowells did this to me too and started calling me constantly causing major stress. Do not give them any money! Send off the £1, it'll be the best pound you ever spent as it's unlikely they will have the correct paperwork.

decemberboy

Thanks everyone. I am pretty certain the debt is statute barred (or if it's not it will be in the next couple of months), but getting the letters made me think that it perhaps wasn't. I assumed that after a debt is statute barred then nobody would try and collect it, but after reading up a bit more I realise this isn't the case.

Would ignoring the letters be my best bet then? Lowells seem very persistent but I now realise the company employs this tactic to try and frighten people into paying.

Alatna

Hi December Boy,
I would say "selectively ignore" - keep an eye on the content of the letters idle threats use the words "may" "could" etc. If they mean it they'll say "will", "shall" etc. Post the content up on here if you're worried.
At some point, if they start getting nasty, send them a prove it letter. Procrastination is key.
Don't send a CCA request yet. Certainly don't mention the magic words Statute Barred until you're past the sell by date.

(On this issue, most sorry to point this out lisamckinney, but the CCA Request pasted earlier is out of date - it's no longer a criminal offence not to respond. It could do with being taken down so no one else copies it.)

I'm not yet familiar with this particular forum but I'm sure Fermi can point you in the direction of the correct letters when needed...

Alatna

Alatna

Just had a quick look around, can't find an actual template library, but here's a "Prove It" letter for when you need it:

Dear Sir/Madam

Ref:

You have contacted me claiming that I owe money to you in respect of an account with the above reference number, however I have no knowledge of any such debt to your company.

I am familiar with the ‘Office of Fair Trading Debt Collection Guidance’ which states that it is unfair to send demands for payment to an individual when it is uncertain that they are the debtor in question.

I would also stress that the OFT Guidance states that it is unfair to pursue third parties for payment when they are not liable and that not ceasing collection activity whilst investigating a reasonably queried or disputed debt is regarded as using deceptive/and or unfair methods.
I refer you also to CPUTR 2008.

I therefore request that no further contact be made concerning the above account unless or until you can provide documentary evidence as to my liability for the debt in question or your written confirmation that an error has been made and this matter is now closed.

Please note that I will only discuss this matter in writing for the purpose of proof and accurate record keeping. Under no circumstances will I discuss it on the telephone or doorstep.

I trust we can resolve this amicably and within the legal guidelines, otherwise I will have no option but to make a complaint to the Trading Standards department and the OFT.


Yours faithfully

fermi

If you think the debt is yours but statute barred, then there are template letters here:

https://forums.moneysavingexpert.com/discussion/2606811

Or if you also dispute the debt entirely, as per Alatna's letter, then you could use a hybrid version such as...

http://forums.moneysavingexpert.com/showpost.php?p=37829646&postcount=16

fatbelly

wookiebob wrote: »

Lowells did this to me too and started calling me constantly causing major stress. Do not give them any money! Send off the £1, it'll be the best pound you ever spent as it's unlikely they will have the correct paperwork.

Do NOT send £1.

Do not make any payment

Do not acknowledge the debt

As Fermi says, No point messing around with CCA requests until you are sure that (a) the debt is actually yours, and (b) the debt is not statute barred.

I like Fermi's hybrid letter.

Alatna

Me too, it's excellent, but we don't know for sure whent he debt becomes Statute Barred, so it wouldn't do to alert them to this yet, in my opinion.
I'd be tempted to send a Subject Access Request to Capital One to get the full info and actual SB date.