Lowell finance

inacrisis

So I am posting on behalf of a friend who seems to be ignoring this debt but have convinced them to do something about it.

The story goes.... Their partner somehow managed to get a loan in their name whilst living with them. They them never paid it back and apparently must have took the post before my friend saw it. They have now split up and she has been getting letters from Lowell finance who I'm guessing have bought the debt from the original lender.
She has spoken to them but they are demanding the full amount paid back immediately. 2.5k she had offered to pay an amount she can afford till the full amount it paid off. I don't think she has the best credit history or would just get a loan to pay it off. But apparently Lowell are saying cause she ignored there letters for 6 months they won't accept anything but full payment. I would of thought one of these companies would happily accept any kind of payment towards the debt. She is now afraid they will go to court and obtain a ccj. And doesn't want work to know about this. I have told her that even if it went to court and there was a ccj then she would be given the opportunity to make monthly payments and only if she ignored this ccj or didn't make the agreed payments would she then have an attachment of earnings sent to her work.

Could anyone offer any advice on how to deal with this company if they won't accept or listen to any offer she makes that she can afford to pay off the debt.

Thanks

oldhand

If her partner got a loan in her name without her knowledge its fraud and instead of trying to come to any arrangement with the loan company she should notify the police of the fraud...

spadoosh

As above.

We had the same thing happen to us. Didnt want the police involved with family member so managed to get lowell to agree that if we settled the debt that they would remove the default, which the duely did. Guessing they realised some money was better than no money and legal costs.

Im sure someone will correct me soon enough if im wrong but i was under the impression that settled or unsettled defaults are more or less the same thing? Does this mean there wouldnt be much difference between settling the debt and not?

Gaz83

She either reports it as fraud, or tries to deal with the debt.

Lowell are under no obligation to accept any offer.

glennstar

inacrisis wrote: »

Their partner somehow managed to get a loan in their name whilst living with them.

It is against the law to make a fraudulent application for a financial service in the UK. If you are aware of such an event then you are obliged (as is your friend) to report it to the Police. You should also inform the Lender involved as there are quite a number of implications for all parties.

Sorry to sound a bit preachy.

Disclosure: I am not a Solicitor.

inacrisis

Thanks for the replies.

She has reported it to the police and Lowell but until it can be proved the police won't do anything.
All sounds a bit dodgy to me. I have only ever had a loan from my bank so they paid it direct to my current account. Not sure how someone got a loan in her name and had the money transferred to a bank not in her name?

Would someone be able to confirm - can a company like lowell actually take this to court? I have said to her if she can't pay the full amount and they won't accept a payment plan, just wait till it goes to court and then agree with the court to pay a certain amount each month. (I am guessing she hasn't got great credit history as she cant get a loan from anywhere for 2.5k)

Thanks

glennstar

inacrisis wrote: »

She has reported it to the police and Lowell but until it can be proved the police won't do anything.

The purpose of reporting to the Police is not, unfortunately, for them to take direct action, as this is very rare. The Police in the main are not equipped to deal with this sort of crime. The purpose of reporting it is that the Police will add it to their stats which will, at some stage, register with someone, somewhere, for action to be taken - how ever long that might take. As a rule, all crimes should be reported, otherwise no one knows there is a need to take action.

inacrisis wrote: »

All sounds a bit dodgy to me. I have only ever had a loan from my bank so they paid it direct to my current account. Not sure how someone got a loan in her name and had the money transferred to a bank not in her name?

Sadly the point you make is sensible but does not constitute any sort of proof. I have seen many examples of this legitimately happening (i.e. moneys being paid into other accounts at the borrower's request).

inacrisis wrote: »

just wait till it goes to court

I wouldn't advocate this course of action at all. By all means press the point that you feel there has been identity fraud, gather as much evidence as you can about the matter (ask them for emails, Secci, Loan authorisation, e-sign, any voice records, etc) but whatever you do, keep talking to the Lender as a break down in communication will reflect negatively on you.

Disclosure: I am not a Solicitor.

National_Debtline

Hi inacrisis


A debt collector will always work on the basic assumption that a debt is valid and legitimate. In that respect the onus is on your friend to argue she has been a victim of fraud here, and to be prepared to repeat that argument for as long as it takes. Even if the creditor privately believes she has genuine foundations for her argument, it's not in their interests to relent too easily as that would leave them with no chance of recouping the money from anywhere - I think we can safely assume the ex won't be traced any time soon.


She should make a "subject access request" as glennstar recommends above to get her hands on any information held by the creditor to help determine how this loan was obtained without her consent e.g. any evidence of forged signatures on forms etc.


It is useful to refer to section 7.14 of the FCA's guidance on the recovery of disputed debts:


https://www.handbook.fca.org.uk/handbook/CONC/7/14.html


as a reminder of a creditor's responsibilities in this kind of scenario.


Dennis
@natdebtline

glennstar

inacrisis,
It might also be worth bearing in mind that (even though the relationship has changed hands a few times) the obligations of any company (and individuals for that matter) related to the proceeds of crime are onerous and shouldn't be taken lightly. To put this into the context of a Lender. If the situation really is as your friend suggests and the transaction was fraudulent then strictly speaking any profit derived as a result of this transaction is ill gotten. If that profit is then lent out again and profited by then all that money is also deemed the proceeds of crime. You can see how this might snowball quite rapidly.

Whilst this is a not a direct argument that will benefit you when dealing with them it is worth understanding how it affects all business, especially those who are regulated by the FCA, in that they have to demonstrate that their processes are robust, that they follow their own processes rigidly and that a failure to demonstrate said could cost them their license - or possibly worse.

As a result you should not be fobbed off with any statements about not having the information, available, etc. That really won't do.