V.old large debt with Lowell - but it doesnt show on my credit file

Simbeanie

Forgive my naivety but I'm new to this website so I may not make much sense at first... Hoping someone can help!!

I have a large debt from a 9 year old HSBC loan account (took it out in 2005). Its been with Lowell Financial for what seems like forever (a good few years) and I currently pay them £26 per month. I also have access to experian online. I note from my credit file that there is no mention of this outstanding debt on there whatsoever, and there never has been. My credit file was affected 6 years ago by another debt when I got into difficulty paying a Halifax account due to losing my job. That problem was clear on my file, but can confirm 100% that there is no mention of the HSBC account at all on my file. My current credit rating is currently at "866 - fair." Have I just been lucky that the HSBC debt doesn't show on my credit file??

Further I received a letter from HSBC 2 weeks ago saying they think they have mis-sold PPI to me on that loan. I wrote to Lowell asking them for a copy of the original loan agreement and I now have a copy of this. I used the details from that to fill in the questionnaire and sent it back to HSBC. I am currently inside the 8 week waiting period for them to send me a response to the PPI claim. Fingers crossed!!

However, in terms of the Lowell side of things, I am wondering how they purchased the debt from HSBC originally, is there a document that they have to provide me with in order to prove that they bought the debt? some form of contract? And, if they can't provide one to me is there a chance that I may not have to continue to pay the loan? I am thinking that I've been quite fortunate that this debt is not on my credit file and I'm a bit wary of doing or saying anything to them which may result in them suddently updating it. Especially seen as I have only just this year managed to get my credit rating in good order!

Whilst I fully appreciate that I had the debt and that it should be paid, I am struggling to pay them the £26 per month and short of a lottery win or a miracle I wont be able to pay the debt off before I die as it would take that long to clear it given my current financial position - I just dont earn enough to pay it any quicker!

It also weighs on my mind that if the HSCB do uphold the PPI Claim and make a refund to me, that they may pay it straight to Lowell. Is there a chance that they will do that, and are they allowed to do that?. The original loan was for £13k to consolidate debts, and it consolidated a HSBC cred card which prob also had PPI on it... I have also asked them to have a look at that for me. Might as well try to have a positive attitude about it!

Does anyone have any comments on this?

Thanks in advance!

Simbeanie x x x

Tixy

Hi and welcome

How long ago since you originally got behind with payments and deaulted on the loan?

Defaults fall off your credit file after 6 years so if its longer than that then thats likely why it doesn't show in either hsbc or lowells name.

If its not 6 years since you defaulted then you might want to check to see if the account shows on your equifax or callcredit (noddle) report.

If hsbc sold the debt to lowell then there would be a notice of assignment.

But if they are only acting on behalf of hsbc and collecting on there behalf then there wouldn't necessarily be any paperwork.

Lowell have a copy of the agreement and that would be considered proof of the debt.

Its usual that if PPI is reclaimed that this is paid against the debt so its quite likely that will happen yes. And yes they are allowed to.

edit - just to add if the account and default have dropped off your file due to age then they cannot be added on again by the bank / lowell or a future debt collector. The only way this debt could affect your credit file again would be they commenced court action and obtained a CCJ against you.

Simbeanie

Cheers. If HSBC had originally put this on my credit file then I would have seen it at the time. It has never been on there at all. The only thing that is on there is a satisfied CCJ (which came about at the same time as the HSBC problem) and that's ones due to come off at the end of this year as it will have been 6 years. I can only think that for some reason there has been an oversight on their part that this never showed up. Its not on any other cred report either.. I applied for a couple when I reaslied that it didnt show on Experian. I'm happy that it's not there, dont get me wrong, I just want to be sure that by raising questions with Lowell about how they purchased the debt, that this doesn't cause them to suddenly update my credit file?

OK - so, Notice of Assignment, I'm mildly familar with the document as I work in civil litigation. So, I will request a copy of the Notice tomorrow. If they cant produce it, what happens then? If it turns out that they just act on behalf of HSBC as opposed to having actually purchased the debt, then I understand that in that circumstance HSBC would be within their rights to set off the money against the oustanding debt.

However I was under the impression that if there is a Notice of Assignment, then the bank have sold the debt, and any liabilities they had in respect of it. So on that basis, if they have sold the debt in its entirety to Lowell and relased all ties and associations that they once had with the original debt, then if the claim is upheld, the HSBC owe the money directly to me only and not Lowell as Lowell would now be a third party to the matter. Have I not understood that correctly? Sorry, I'm just finding this really confusing! Thanks for your help too, hoping you are still online to reply? Simbeanie x x x

Simbeanie

Hi, just seen your comment about them not being able to put it back on my file again, thanks. Whilst its not there I suppose I just wont worry about it However, have I misunderstood the position with regards to how it works if there is a Notice of Assignment in place? Thanks x

Tixy

Simbeanie wrote: »

However I was under the impression that if there is a Notice of Assignment, then the bank have sold the debt, and any liabilities they had in respect of it. So on that basis, if they have sold the debt in its entirety to Lowell and relased all ties and associations that they once had with the original debt, then if the claim is upheld, the HSBC owe the money directly to me only and not Lowell as Lowell would now be a third party to the matter. Have I not understood that correctly?

PPI reclaims are not an area I know loads about. It might be worth clarifying with one of the regulars on the PPI reclaim section of the forum. Try posting on the PPI section and hopefully amersall, dunstonh or someone will be able to answer for you.

Simbeanie

Thank you, I really appreciate your help! x