Default on Credit file different to Debt Collection agency

morrison836

Hi, I have a default on my credit file for £300 from an 02 contract last year, Lowell financial have sent letters looking saying I owe £700, anyone any advice on how I can deal with Lowell on this?

fermi

Demand a breakdown of the amount?

O2 may have added remaining contact term on? Fees for late payment? Interest at 2%?

It is likely Lowell can only add fees of their own if your original O2 contract specifically allows 'collection' fees to be added, and even if it does you would only be liable to pay genuine and necessary costs.

Also the default balance on a credit report is only the balance at the date of the default, and may not be the current one.

mcpitman

morrison836 wrote: »

Hi, I have a default on my credit file for £300 from an 02 contract last year, Lowell financial have sent letters looking saying I owe £700, anyone any advice on how I can deal with Lowell on this?

Morning, as explained in the post before this.

The value of collection will increase due to fees and costs being added, either to account for the phone calls and letters they have sent you about it, legal fees involved in involving the DCA, then the DCA will put theor fees on top.

How did the default come about and why was the debt not paid at the time?