Paying off my Lowell debts

payingemback

Hiya all

I just got off the phone to Lowell.

I have £1500 worth of debts which they have offered to reduce to just over £1200 if I make full payment, which I will soon be in a position to do.

I told Lowell that I would only be willing to make full payment if they removed the 3 defaults from my credit file...

After going to talk to their mangers (or so they say) they called me back to tell me that they cannot remove the defaults, and that for them to do so would be illegal.

I've told them, in that case.. 'what is my incentive to pay the debt in full?' If the defaults are there in any form they will stop me getting credit, so why would I pay them off? I may as well pay someone else and wait for these defaults to drop off my file unsettled.'

In reality, contrary to what I have told them, I'll settle the debt, even if it is by instalments, but I want try everything I can to get these defaults removed. I feel like I have a good bargaining chip by having the ability to pay them off, but so far it's falling on deaf ears.

Is it illegal for Lowell to remove the defaults?

What should my next move be?

DarnIt_3

Make sure you have in writing that they will remove the default!
Personally I wouldn't have offered to pay £1200 as a settlement, you should have started at £700 and worked your way up!

fermi

payingemback wrote: »

Is it illegal for Lowell to remove the defaults?

No. Not illegal.

Normally it is a struggle to get lenders and DCAs to remove a default in return for a settlement, but it does happen.

payingemback

DarnIt wrote: »

Personally I wouldn't have offered to pay £1200 as a settlement, you should have started at £700 and worked your way up!

Absolutely, and I did start lower. £1200 is what they have currently said they can do, I've not yet agreed to anything.

payingemback

fermi wrote: »

No. Not illegal.

Normally it is a struggle to get lenders and DCAs to remove a default in return for a settlement, but it does happen.

Right, I didn't think it was illegal...

They have said that legally they can't remove a default at all, and have NEVER removed a default. They say the only party who could remove a default is the original creditor, and then only if I disputed the debt and they agreed that I did in fact not owe the money.

They said that to remove a default that should be there is 'Fraud'.

fermi

payingemback wrote: »

Right, I didn't think it was illegal...

They have said that legally they can't remove a default at all, and have NEVER removed a default.

I'm sure that they have.

payingemback wrote: »

They say the only party who could remove a default is the original creditor, and then only if I disputed the debt and they agreed that I did in fact not owe the money.

If the credit record entry is still in the name of the original lender, then the original lender would have to do it.

If Lowell have bought the debt and had the entry changed to their name, then they have the power to amend OR remove it.

payingemback wrote: »

They said that to remove a default that should be there is 'Fraud'.

Utter bullwarks :rotfl::rotfl::rotfl::rotfl::rotfl:


Lowells are liars. Plain and simple.

payingemback

The entries (defualts) on my file are called...

Credit Card from Lowell Portfolio 1 Ltd
Communications Supplier from Lowell Portfolio 1 Ltd

and actually the other one is not on my file and not a default, so that doesn't matter.

So I assume these are controlled by Lowell and they do in fact have the power to remove them. They told me that the original creditor is the one who has changed the name of the account to reflect the sale of the debt to lowell, and the original debtor is still the only one who can amend the entry on my file. Not true I assume now.

fermi

payingemback wrote: »

So I assume these are controlled by Lowell and they do in fact have the power to remove them. They told me that the original creditor is the one who has changed the name of the account to reflect the sale of the debt to lowell, and the original debtor is still the only one who can amend the entry on my file. Not true I assume now.

Yep.

If Lowell have bought the debt and had the entry changed over into their name, then they are now legally the 'data controller'. Only they can change or remove it.

The original lender cannot alter it now.

fermi

Lowell staff will swear blind that the sky is green and grass is blue.

Talking to them on the phone is a waste of time more often than not.

Usually best to put your offer in writing and insist that they respond in writing.

They will be less inclined to tell porkies about what can and can't be done with you credit file or the debt if they have to put it in writing. On the phone they will fib and/or betray their own staff's ignorance.

payingemback

Yeah I was thinking I need to take this to letter correspondence now.

I was thinking though, if they are able to remove defaults, why do they try everything in the book not to? I mean it's no skin of their nose what's on my file as long as they get their money, so if it is possible, why don't they just offer it to get their money?

fermi

I think it's a case of precedent and commercial interest.

The original lenders want to place defaults as a punishment for defaulting, and as a warning to other lenders checking your file.

If you could just default, let the debt get sold on, and then easily negotiate a settlement including the removal of the default, then that would set a precedent that the lenders would not like, and that would harm their business model.

In turn, a DCA seen to be practising this as a regular policy would soon find the original lenders being very reluctant to sell their defaulted accounts on to them.

So they will swear black and blue that it "isn't possible".

Some DCAs/lender can and do make limited exceptions. The trick is getting them to admit that in the first place, and then agree to it.

Not easy at all.