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Strange Lowell Letter
djpat1982
Posts: 5 Forumite
Hi there,
I have received what seems to be a letter that can be "ignored" but I was just wondering what other peoples thoughts are.
The letter relates to a defaulted credit card from my reckless youth. The default will become 6 years old September this year.
It seems to be offering me a reduced payment to clear the debt now but also says they cannot enforce any court action as the period to be able to do that has expired so it makes me wonder if its worth paying it. It seems to be trying to trick me into paying a lump sum.
For the last year or so the debt has just been paid at £1/ month so I know it wont become Statute Barred but will it just drop off my credit file or can something more sinister happen? Do you think I should just pay the discounted settlement or just let the monthly payments carry on?
The content of the letter is as follows:
We would like to give you a discount to help clear your outstanding debt.
Your outstanding balance is currently £1272.25. However, our offer to you is to discount this by 75% which means all you need to pay to clear this debt is £318.06.
To take advantage of this discount please call us on 0843 506 9155 and make payment by card. If you cannot afford to pay it in one go then we will be happy for you to pay by installment at an amount you can afford.
If you are struggling with debt, please see overleaf for details of organisations where you can get free, confidential and impartial advice.
You should be aware that the period for recovering your debt by court action has expired, so we will not be issuing court proceedings to enforce payment. However, your debt still exists and legally we are within our rights to continue to ask you for repayment.
Yours sincerely
Andrew Bartle
Now you may be thinking I owe it, so should pay it but the truth be told I have paid the initial limit of £500 3 times over since opening the account back in 2002. They let me open the credit card account a few days before turning 18 so the card arrived on my doorstep on my birthday. I did abuse it but kept it managed for a few years before finally receiving a default so I won't feel guilty not paying it just so long as it drops of my credit file.
Thank you for taking the time to read such a long post. I look forward to any comments.
I have received what seems to be a letter that can be "ignored" but I was just wondering what other peoples thoughts are.
The letter relates to a defaulted credit card from my reckless youth. The default will become 6 years old September this year.
It seems to be offering me a reduced payment to clear the debt now but also says they cannot enforce any court action as the period to be able to do that has expired so it makes me wonder if its worth paying it. It seems to be trying to trick me into paying a lump sum.
For the last year or so the debt has just been paid at £1/ month so I know it wont become Statute Barred but will it just drop off my credit file or can something more sinister happen? Do you think I should just pay the discounted settlement or just let the monthly payments carry on?
The content of the letter is as follows:
We would like to give you a discount to help clear your outstanding debt.
Your outstanding balance is currently £1272.25. However, our offer to you is to discount this by 75% which means all you need to pay to clear this debt is £318.06.
To take advantage of this discount please call us on 0843 506 9155 and make payment by card. If you cannot afford to pay it in one go then we will be happy for you to pay by installment at an amount you can afford.
If you are struggling with debt, please see overleaf for details of organisations where you can get free, confidential and impartial advice.
You should be aware that the period for recovering your debt by court action has expired, so we will not be issuing court proceedings to enforce payment. However, your debt still exists and legally we are within our rights to continue to ask you for repayment.
Yours sincerely
Andrew Bartle
Now you may be thinking I owe it, so should pay it but the truth be told I have paid the initial limit of £500 3 times over since opening the account back in 2002. They let me open the credit card account a few days before turning 18 so the card arrived on my doorstep on my birthday. I did abuse it but kept it managed for a few years before finally receiving a default so I won't feel guilty not paying it just so long as it drops of my credit file.
Thank you for taking the time to read such a long post. I look forward to any comments.
0
Comments
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As you are paying £1/month, it does not go Statute Barred. So they could get a CCJ against you.0
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They have bought the debt but did not get the CCA documents.
My best guess...
Hang on ?
....They let me open the credit card account a few days before turning 18 ...
Well that explains it, you could not enter a Credit agreement as you were not 18 at the time.
Explore this more, if true you dont have to pay them one more penny.I do Contracts, all day every day.0 -
Marktheshark wrote: »They have bought the debt but did not get the CCA documents.
My best guess...
Hang on ?
....They let me open the credit card account a few days before turning 18 ...
Well that explains it, you could not enter a Credit agreement as you were not 18 at the time.
Explore this more, if true you dont have to pay them one more penny.
So they've said it in writing that the period for court action recovery has expired?
That's a letter worth keeping, and for payments to cease immediately.0 -
adamkonitz wrote: »So they've said it in writing that the period for court action recovery has expired?
That's a letter worth keeping, and for payments to cease immediately.
If OP was not 18 at the time it "expired" immediately they let her have the credit card.I do Contracts, all day every day.0 -
DandelionPatrol wrote: »As you are paying £1/month, it does not go Statute Barred. So they could get a CCJ against you.
I know it wont go Statute Barred but thanks. Also they say in the letter they cant recover teh debt by court action as mentioned above so I guess they can't get a CCJMarktheshark wrote: »They have bought the debt but did not get the CCA documents.
My best guess...
Hang on ?
....They let me open the credit card account a few days before turning 18 ...
Well that explains it, you could not enter a Credit agreement as you were not 18 at the time.
Explore this more, if true you dont have to pay them one more penny.
I can remember the day I opened it as the clerk even said "happy birthday for Thursday, have you ever thought about opening a credit card" etc. Filled in the forms then it got processed over the following days. Can even see that the official account opening was on the 7th Sept and my bday is the 6th.
Also what is the CAA document you mention?
Regardless of that though, the way the letter is worded would suggest I could be in the clear anyway?
Thanks for the replies so far!0 -
If you are sure you were not 18 when you signed the credit agreement, it is void in that they can not enforce it, a Judge would show them the door before they sat down.I do Contracts, all day every day.0
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adamkonitz wrote: »So they've said it in writing that the period for court action recovery has expired?
That's a letter worth keeping, and for payments to cease immediately.
Thank you for your reply.
That is what I was thinking whilst reading it. It seems they are offering a discount to try and make me pay "something" at least, but at the same time saying we cant take you to court so don't worry about it. Seems strange. I wonder if as it is getting close to the 6 year mark and there is still a large balance that they have looked in to taking it to court, maybe then seen I wasn't 18 when the forms were filled in so are trying to grasp at whatever payment they can get.0 -
Marktheshark wrote: »If you are sure you were not 18 when you signed the credit agreement, it is void in that they can not enforce it, a Judge would show them the door before they sat down.
I suppose trying to argue that and recover the payments I did make wouldn't be worth it now? Original debt was with Halifax, sold to Lowell.0 -
Thank you for your reply.
That is what I was thinking whilst reading it. It seems they are offering a discount to try and make me pay "something" at least, but at the same time saying we cant take you to court so don't worry about it. Seems strange. I wonder if as it is getting close to the 6 year mark and there is still a large balance that they have looked in to taking it to court, maybe then seen I wasn't 18 when the forms were filled in so are trying to grasp at whatever payment they can get.
They only ever offer discounts when they know they haven't got a leg to stand on.
If it were me, I'd cease payments immediately.0 -
Never mind what their letter says, they CAN get a CCJ. Don't be under any illusion about this. Statute barring is the point at which they cannot get a CCJ. And you agree it is not Statute Barred.I know it wont go Statute Barred but thanks. Also they say in the letter they cant recover teh debt by court action as mentioned above so I guess they can't get a CCJ0
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