Lowells - How long after an account has defaulted can a default date be registered?

solentsusie

I know that one of you clever lot on here will know the answer to this.

How long after an account has defaulted can a creditor register the default start date? I presume a year or more later is way too long?

My friend has just had a nasty shock when checking their credit file in that an old debt they know should be considered statute barred (lets not get into any morale arguments on this please!!!) has just popped up on their credit file as being registered as defaulted in July 2009.

They know they defaulted on the account at the beginning/mid 2008. They even wrote to the creditor at that time offering payments or bankruptcy as they had no assets.

Over 2K has been added to the debt by Lowells as well from the look of their credit file.

They are now worried that Lowell are now going to attempt to get a CCJ for this debt that should be statute barred.

What should their approach on this be? The original creditor (M&S credit card) never contacted them after they wrote to them offering reduced payment, and no payments were made after the letter was sent and they never received a response. My friend still believes they have a copy of the letter they sent to M&S and is looking for it so they can double check the exact date they last corresponded with them. They have never corresponded with Lowells or any other debt collection agency.

Anyway, I think Lowell are trying to pull a bit of a fast one here, so any advice appreciated on what the starting point should be in dealing with this.

enfield_freddy

6mths? , which would make the final payment made to be dec/jan 2008/9., is it possible that your friend is a year out?


the thing should run off in july 2015 , so perhaps keeping there head down for the next 4 mths might be best

fermi

Regarding the debt being statute barred, the date for that has nothing to do with what date they have used for a default on the credit file. That runs from the first time they could have taken action under the agreement, which would have been 1 or several missed monthly payments depending on the agreement terms. That would then be reset each time they made a payment or acknowledge the debt in writing after that. So in your case depends on the timing of that letter or later payments as to whether that is the start, or if reaching x missed payments was.

Default on a credit file is something different, and should be recorded when it is fair to say that the relationship between you and the creditor has "broken down".

In cases where there has been no payment and contact etc then under ICO guidelines of the time that can't realistically be any more than 6 months after last last payment and arguably could be as little as 3.

I would also not that the default on this account if July 2009 will be removed from reports in July 2015.

solentsusie

Thanks enfield freddy.

No they are definitely not a year out, although they may not know the exact date they know the year as they had just lost their home, so the year certainly sticks in their mind for many reasons.

I think they are more concerned that Lowells might attempt to obtain a CCJ. Or perhaps Lowell are doing this to get them to contact them?

I suppose they can counterclaim it is statute barred, or as you say, keep their head down until July and see what happens.

fatbelly

solentsusie wrote: »

What should their approach on this be?

I would ignore for now.

If they start a court claim, defend on the grounds that it's statute barred.

If Lowell start their usual letter writing campaign you could use a SB letter later this year. If you try that now, you'll just encourage them.

fermi

I would keep an eye out as Lowells do sometimes try it on with ill advised court action, hoping that you don't understand when the time starts.

solentsusie

Thanks Fermi

From what they can recall if the default date was registered (as per the Lowell date) in July 2009 that would certainly have been a minimum of a year after the actual date they stopped payment and last contacted the creditor.

As I say, it may be that Lowell are attempting to get them to contact them and make payment on a debt that really should be statute barred.

My only concern has been that Lowell might attempt to get a CCJ before the alleged July 2009 date drops off their file.

solentsusie

Thanks fatbelly

I think I will advise them to wait it out and see what happens.

It was just a shock to them as they have spent the last 7/8 years sorting their life out after a really bad time and this marker on their credit file has come out of nowhere.

They would have been contactable as they haven't moved house or anything in that time but this is the first they have heard of it.

I suspect they will have a letter from Lowell winging its way to them.

solentsusie

My friend has found the last letter sent.

The last contact was made offering payment in December 2008. No acknowledgement of the letter or offer of reduced payments was ever made by the creditor and no further payments were made after this date.

So even if you go from this date forward as a worst case scenario, it would have been 7 months later that a default was recorded according to Lowell.

sparkles12_2

I had a dispute with the god awful 02 last year , Lowell bought the debt from them and did the same to me ( I didn't know it was a debt as it was in dispute with the communications ombudsman , who were useless as it happens) , i nearly had a heart attack when i seen it on my credit file , to begin with i didn't receive any word from either them or 02 asking for payment as the case was with the ombudsman ) , no records current or previous listings were on my credit file as 02 had the account on hold until the dispute was resolved or so they said , then 02 apparently sold it on , i had no idea they were doing this , had no letters , no emails from either company asking for payment due to it being in dispute as i would have paid right away if id lost my case with the ombudsman rather than have a default as ive been trying for almost 6 years to keep all my accounts in order so this caused me so much stress and potentially could have destroyed any chance of me obtaining a mortgage which i am preparing for . Lowell dated the account on my file as the same date the account was started with 02 and the default 4 months later . I rang Lowell right away to ask who they were , they told me that when they purchase a debt it comes with the default from the date it defaulted and filed already with the company they buy the debt from but in my case 02 had my account in green with a 0 to say no money was owing , so there was no default but i assume sneaky 02 did their own thing regardless ..I assume in your friends case they would have to do the same , i have to say though i emailed Lowell and explained everything , sent them all my evidence on my dispute etc , it took a few weeks but they decided to close the account down and removed the default from my credit file and they did , it was just updated last month .. so i was really pleased in how they handled it .. I believe the default should be dated when the relationship broke down between your friend and the original lender not the date when it was sold on as according to Lowell they buy the accounts that are already in default with the original company the credit agreement was with .. Thats what they told me

enfield_freddy

they are treating that letter as a payment , not an offer of payment , so they are counting from there , I was led to believe it was 6 mths after last contact , and as Fermi says "under ICO guidelines of the time that can't realistically be any more than 6 months after last last payment and arguably could be as little as 3."


so they are padding it to the max 6 mths


head down , ride it out ,