Lowell portfolio and solicitors

deadlydame

I have a shop direct debt (passed on to Lowell in Sep 14) after I failed to pay a buy it now order on time (50% interest was added) but informed shop direct I was struggling due to financial difficulties. They didn't want to know and slapped the fees on plus 20 each month for late payment. Due to the realisation I would be paying this for years (I'm on benefits and have been since having my account) I decided to ignore it. It was passed to various debt collection agencies but has settled with Lowell portfolio. They send me lots of letters offering big discounts on the remaining balance If I contact them and arrange a payment plan but I've never answered a phone call from them or responded to a letter. My most recent letter states that if do not get in touch they'll be considering passing my account to a solicitor. I owe almost £4,000 altogether but the original balance was £900 which included the doubled interest. I haven't even wanted to ring them to settle a balance as I've read they never accept low payments and I just cannot afford to pay huge chunks of money. Would really like some advice on what I should do.

StokieBecks

You can set up an account online with lowell and never have to speak to them. The online portal will allow you to log into your account and make payments or set up a direct debit. You need to make a payment plan with them really as soon as possible. If they make a court judgement against you the amount will jump again and more than likely the court will set a monthly payment for you. Do not do anything over the phone. If you need to contact them do so in writing.

If you can agree a settlement fee (again in writing) they may well allow you to pay this in installments. I have an agreed discount on my Lowell account but I am paying monthly.

Please try not to ignore it, address it before it gets to a ccj claim. If this means contacting StepChange or another free debt charity to discuss your options then do that.

deadlydame

I'm considering ringing step change because I read about a debt relief order. There's no way I can make huge monthly payments. I know some people on here may say well it's your own fault you didn't pay etc but that's not the case, I tried really hard to come to an arrangement with shop direct and explained that doubling my balance would make it hard for me to keep up and they didn't want to know. I just don't think it's morally right to pay a scum bag debt collection agency 4K for a balance which was originally (before interest) 500 pounds mainly because they aren't the original creditor either.

National_Debtline

Hi

It sounds like a debt relief order (DRO) could be a viable option for you if you meet the criteria.
There is a factsheet with the important information here:

www.nationaldebtline.org/EW/factsheets/Pages/debtrelieforders/droadvice.aspx

The alternative is to arrange a low payment plan if you think you might be in a better financial position to pay more in future.

Before any of that you could make a request for a copy of the CCA agreement. The debt is unenforceable until they can supply it, so you may not have to repay the debt if they don’t have a copy. There is some more information and a link to a sample letter on this factsheet:

www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx#quicklink1

James
@natdebtline

sourcrates

Hi,

Agree with James above, do a CCA request to Lowell first, they have now bought your debt, so they will have to go back to shop direct to get the right paperwork.

How long did you have the account ?

Catalogue companies are notorious for not bothering with credit agreements.

deadlydame

I'd had the account since 2007 but I only fell into arrears mid 2014 having paid everything up to do before that.

fatbelly

I agree with the cca request. If the account was started before 6 April 2007 you will have a stronger argument that this is unenforceable if they cannot produce a copy of the original agreement.

Just to clarify, Lowell actually buy debts for a fraction of the balance figure, then chase you for the full balance. On a 4k debt they would potentially stand to make a profit of £3600.

deadlydame

Unfortunately it was toward the end of 2007 and not before April Lowell really are leeches. I'm thinking about a debt relief order possibly as I certainly won't be able to pay off big chunks of this each month.

sourcrates

deadlydame wrote: »

Unfortunately it was toward the end of 2007 and not before April Lowell really are leeches. I'm thinking about a debt relief order possibly as I certainly won't be able to pay off big chunks of this each month.

Dosent matter, they still must produce something.

For the sake of a quid it's worth doing.

National_Debtline

Deadlydame, do you owe other debts too? If you owe other debts which you can’t afford to repay a DRO might still be the best option overall, even if Lowell can’t supply a CCA agreement for this Shop Direct debt.

It’s a good idea to contact a free debt advice agency to take full advice on your situation either way.

James
@natdebtline