Do I accept an offer from a debt collection company?

turtletom100

I have posted a few days ago with regards to a credit card helping to rebuild my credit file and have found out that having the few debts i still have is probably causing my harm and using a credit card may not help to build the score as much as I would have hoped.

I have being makikg other payments and have 2 debts that are currently with Lowells that I need to address, details of both are below:

This is the first one which was originally a provident loan.
LENDER: Lowell
BALANCE: £ 757
UPDATED: 06/01/2017
STATUS: Default

Account start date
17/05/2010
Opening balance
£ 757
Repayment frequency
Monthly
Date of default
30/01/2012
Default balance
£ 757




This is the second one which was a contract with the mobile network 3
LENDER: Lowell
BALANCE: £ 39
UPDATED: 06/01/2017
STATUS: Default

Account start date
09/03/2012
Opening balance
£ 39
Repayment frequency
Monthly
Date of default
18/09/2012
Default balance
£ 39


I was going to ring Lowells and pay the £39 to get that one paid off which I assume will still help even though it is only £39 but I have being reluctant as i have being paying my other debts off and didn't want Lowells to collar me on the provident one just yet. In saying this I have received a letter this week from Lowells offering me a 60% reduction so I have to pay: £306 and they are willing to put it on a payment plan.

What is the best way to handle this/these I have never contacted Lowell as was going to leave and leave the debts but I found out last year that even left after 6 years they don't "dissapear" they are just a bit more hidden and the company can't chase you up. So it is probably better to get them paid off but before I do get in contact with them I wanted to check.

I just want to get credit file sorted so whatever the best way to achieve this is i will be doing. Last year llyods wouldn't give me a contactless card, capital one wouldn't touch me i tried again in January and got accepted with capital one then this month have being accepted with aqua so aslong as i keep payments regularly there the only other thing I can do is sort these debts.

PixelPound

If you pay the reduced offer your credit file gets marked as partially satisfied, but it stops it going any further. If you don't pay the provident one when you have paid the other then they will still chase you for it and you may well end up getting a CCJ which would stay on your credit file for 6 years, be for the full amount with added court costs and probably no settlement offer.

As it is from 2012 then paying would mean from next year once it drops off once it gets to next Feb. The 3 mobile one will be satisfied but stays on until the 6 years is up for that.

turtletom100

nic_c wrote: »

If you pay the reduced offer your credit file gets marked as partially satisfied, but it stops it going any further. If you don't pay the provident one when you have paid the other then they will still chase you for it and you may well end up getting a CCJ which would stay on your credit file for 6 years, be for the full amount with added court costs and probably no settlement offer.

As it is from 2012 then paying would mean from next year once it drops off once it gets to next Feb. The 3 mobile one will be satisfied but stays on until the 6 years is up for that.

Is partially satisfied better than letting it "drop off?

And even though I have had no communication with the company they can still go down the road of obtaining a ccj and it is my understanding that they can do this up until the exact day of 6 years later which I'm pretty sure is worse than partially satisfied.

Arleen

Everything is better than a naked default, although it will not make a major difference. And that is true, they can start the process for getting CCJ up to 6 years since last acknowledgment of the debt, and then it will be more than the initial debt, not less.

forgotmyname

Counter offer their discount and say someone will lend you that amount, but you need it to clear both debts in full and get it in writing. Both account numbers on the letter and one single payment.

They will have paid pennies for it anyway. You need to make them aware you have no money and someone is going to lend you this money. You will only do so if it clears both debts and no you cannot ask them for a penny more.

PaulW922

The debt will drop off six years after the date of default regardless of whether it is satisfied, partially satisfied or not satisfied at all. If you can pay the o/s debt it might be worth doing so, although as others say above it might be possible to negotiate a lower amount. It is unusual getting a payment plan offer and a big discount too so if you are concerned about this progressing to a CCJ you might want to consider it.

sourcrates

Lowell regularly offer discounts such as this, and allow you pay the reduced amount monthly.

You dont need to speak to anyone, you can make offers in writing, or via there website, likewise you have numerous payment options from the site also.

They are usually open to reasonable offers to, so take the advice, and try and settle for less if you can.

PixelPound

turtletom100 wrote: »

Is partially satisfied better than letting it "drop off?

And even though I have had no communication with the company they can still go down the road of obtaining a ccj and it is my understanding that they can do this up until the exact day of 6 years later which I'm pretty sure is worse than partially satisfied.

The default will drop off after 6 years, whether satisfied, partially satisfied, or not at all. If its not satisfied you risk they could go for a CCJ which would stay on for a FURTHER six years (sorry if that wasn't clear). Others have given advice regarding maximising a discount (no idea if they negotiate), I was just meaning by paying either full or discounted means it will then fall off with no risk of further action (which would be the case if you ignored everything in the hope it goes stat barred before).

turtletom100

Cheers for the responses guys, I am going to drop them a email as advised above and say I can borrow a lower amount and wish to pay both off together. Is there a letter template for this sort of letter?

I would prefer to get it paid or at very least on a payment plan than take the chance of obtaining a ccj and being stuck with that for another 6 years.