Barclays Loan & Lowell Financial

littleowl

I originally oposted this on the Loans thread but think it might be more appropriate here:

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 having never been in debt and am anxious to do the right thing.

Please can someone advise me?

eira

I am currently having a true nightmare time with Barclays- my small number of accounts suddenly seem to have multiplied. I am being chased for money I disputed years ago as I paid for the services of a company so crooked that it even involved Interpol! Barclays passed the debt on to a section calling itself 'Mercers' and it wasn't until last year that I found out that Barclays had the account all along as 'Mercers'. I too have contacted Lowell Financial for the 'true copy' of the alleged debt-and never got anything back. Lowell are shifty to the extreme-they even accessed my daughter's files-which they had no reason or permission to do.

They ignore all correspondence so-as advised by the Natiuonal Debtline and on this forum keep it all in writing do not enter into any communication that isn't in writing. They will ignore you but be persistent-but they do get very nasty.

My situation with Barclays is now in such chaos that even Barclays suggested going to the Financial Ombudsman to sort it out. They have a dozen offices and freely admit that files get mislaid.

littleowl

eira - that sounds terrible, I do hope the Ombudsman sorts it out.

Having read threads here I have not contacted them in any other way than the letter requesting proof of ownership of the debt and will certainly not contact them by phone - which is what they keep asking me (or rather my son) to do.

Do you know of a specimen letter which can be sent at this stage? i.e. after they said it is not covered by the Consumer Credit Act etc?

eira

Have a look on this forum or contact the National Debtline-they are a charity and will give you advice over the phone as well as send out detailed packs/sample letters to help you. They have been my lifeline since ex left me with the national debt of a small kingdom. You can find the phone no online. Some of the debt consolidation companies give themselves names that make them sound like 'helpers' but be aware. Lowell Financial boasted to me (on the one time I rang them) that they were outside the remit of the Data Protection Act and the Financial Ombudsman. The OFT only take action if there are several complaints.It really is appalling how many corporate bullies there are around. And contrary to the assertions of some contributors to the debt thread -not all debtors are spendthrift wastrels-it really can be a case of 'there but for the grace of God go I

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They are really slippery customers- so again the National Debtline and keep everything in writing.

eira

And another thing-they will send out a letter from Hampton which poses as a solicitor's firm (it's a part of Lowell). This is a further bully tactic because they know people are afraid of legal action-especially if they are reliable and responsible

rog2

The Consumer Credit Act only regulates loans of under £25,000 - so you need to find out just how much the Loan/Finance was for.
They should, however, send you a copy of the original agreement, on request.
A word with CCCS or National Debtline could help to clarify the matter.

littleowl

Thanks for the replies - I will certainly look at National Debtline.

The debt is around £1,400 - if it was a Barclays loan does that come under the Consumer Credit Act? On the other hand if it was an overdraft would that be the same? Sorry to sound unsure but my son is way at the moment and I am trying to cover all the options for him and discover all the information I can so that when he gets back we can try and sort this out.

rog2

littleowl wrote: »

Thanks for the replies - I will certainly look at National Debtline.

The debt is around £1,400 - if it was a Barclays loan does that come under the Consumer Credit Act? On the other hand if it was an overdraft would that be the same? Sorry to sound unsure but my son is way at the moment and I am trying to cover all the options for him and discover all the information I can so that when he gets back we can try and sort this out.

It sounds like an overdraft, but you need to clarify this with your son.

littleowl

rog2

I belive the original loan/overdraft was around £3,000 - he made payments until he became unemployed. Lowell are asking for £1,400 (ish). How can I ensure that they do own the debt now that they have returned the postal order and say it is not covered by the Consumer Credit Act?

As I said originally I am prepared to help my son by making a full and final settlement offer but I have to be sure they have the right to claim this debt don't I?

rog2

littleowl wrote: »

rog2

I belive the original loan/overdraft was around £3,000 - he made payments until he became unemployed. Lowell are asking for £1,400 (ish). How can I ensure that they do own the debt now that they have returned the postal order and say it is not covered by the Consumer Credit Act?

As I said originally I am prepared to help my son by making a full and final settlement offer but I have to be sure they have the right to claim this debt don't I?

If it was a Loan, then it is, almost certainly, covered by the Consumer Credit Act. Overdrafts, particularily unauthorised overdrafts, tend not to be.
Lowell MUST give you a full statement, on request.

For details check the following link: http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf

littleowl

rog2
Thanks for the link it is very usefrul. Lowell repeatedly ask for my son to phone an 0845 number but we are continuing to communicate only in writing.

They state the 'original creditor' is Barclays Bank plc but then later in the letter refer to 'our client' who, they say, 'has no obligation under the provisions of the Act to supply the information requested...'

If they are acting for themselves, having bought the debt from Barclays, then who can their 'client' be?
I find this confusing - perhaps that is intentional. Perhaps the best thing to do is write again and demand proof that they own the debt before making an offer.