Barclays Loan and Lowell Financial

littleowl

Hello,

I am trying to help my son who has been contacted by Lowell Financial about a debt to Barclays Bank for - I think - a personal (or car) Loan.

The loan was taken out in around 2004 and he paid continually - then he became unemployed and moved several times.

The letter from Lowell Financial received last week demanded the balance of the loan. We sent a letter requesting a copy of the Credit Agreement etc together with a £1 postal order.

Today we have received a letter returning the postal order and stating:

"The agreement to which you seek is not a regulated credit agreement and is not governed by the above (Consumer Credit) Act"

First of all I would like to know whether a personal loan really is not governed by the Act and, secondly, where to go from here.

I am prepared to assist my son by making an offer in full and final settlement but am a little wary considering Lowell is giving no proof that they own the debt.

I have no experience in this field havin never been in debt and am anxious to do the right thing.

Please can someone advise me?

mightymouse

Hi

How much is debt?.

In 2004 Personal loans were regulated by the Consumer Credit Act 1974 up to £25,000 and loans above that are usually secured.

littleowl

Thanks - the amount is around £1,400 and I am not sure whether it was a bank loan or overdraft. Are they both covered by the Act? If so how do I respond to the letter and return of £1 fee from Lowell?

crazyfj

Hi

Yes they are both covered the act, I would write back to them(i've enclosed a copy letter)

They need to write back to you with a copy.

---

With reference to the above agreement, we would be grateful if you would send us a copy of this credit agreement.

We understand that under the Consumer Credit Act 1974 (Sections 77−79), we are entitled to receive a copy of our credit agreement on request. We enclose a payment of £1.00 which represents the fee payable under the Consumer Credit Act.

We understand a copy of our credit agreement should be supplied within 12 working days.

We understand that under the Consumer Credit Act creditors are unable to enforce an agreement if they fail to comply with a request for a copy of the agreement under these sections of the Act.

We look forward to hearing from you.

Yours faithfully
Mr A N Other

littleowl

thank you craztfj - I will send that

littleowl

Update

I have had a reply to my CCA request of 13th August.
Lowell's says :
'Your comments have been noted and we will be in contact once the matter has been investigated. Please do not hesitate to contact us should you require any further information in the meantime.'

So - while they have replied within the 12+2 days they have not sent a copy of the CCA. Surely if they have it they could have sent a copy?

Should I just wait for further communication?

As I said at the beginning I just want to get this settled and intend offering a f&f settlement offer when I can be assured I am actually dealing with the right people who own the debt. Should I, perhaps, get in touch with Barclays to try and sort this out?
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rog2

They have, unfortunately, a further 30 days before you can report them - if they can provide a true copy of the original signed cca within this time frame, then they have the right to continue to pursue the 'alleged debt'. However, as they have, already, technically committed an offence by not supplying it within the 12+2 days, then they should not continue to harrass you until they supply it.
If they are unable to supply it, then, to put it plainly, the 'alleged debt' becomes 'irredeemably unenforceable'.

littleowl

Thanks for the reply rog2. I do understand that but wonder whether I should get in touch with Barclays to try and settle this matter or to leave things as they are for another 30 days.