Help I want to deal with Lowell and I'm unsure 😐

Feelinghopeful

So basically I've been burying my head in the sand with Lowell since Sept 2011 which is when I last had any contact with them.
At the time they had taken over a credit card debt to the tune of £3678.
I agreed to pay £20 a month on direct debit and have never acknowledged anything from them or spoken to them since. The money goes every month and they seem happy enough as I get no correspondence.
Upon checking my credit file the outstanding as of now is £2247 and obviously shows as a default.

My understanding of the whole situation is poor so please excuse my ignorance

My questions are as follows:
1) a friend suggested that this default would fall off my file after 6 years? Is this true?
2) would I be better to try and ask them to accept a partial settlement as full and final (I have 1,000 I could offer).
3) should I just leave it as is and just continue at £20 a month forever?

Any help or pointing in the right direction would be much appreciated.

No it's never gone to court and I think it's an old aqua credit card if that helps any

Many thanks

fatbelly

Feelinghopeful wrote: »

My questions are as follows:
1) a friend suggested that this default would fall off my file after 6 years? Is this true?
2) would I be better to try and ask them to accept a partial settlement as full and final (I have 1,000 I could offer).
3) should I just leave it as is and just continue at £20 a month forever?

1. The default, and the whole entry, falls off your file 6 years after it was issued.

2. Yes a F&F deal at 50% might work

3. It's 112 more payments at £20 as things stand

Feelinghopeful

Thank you for your reply

As it's about to fall off my file then will that put me in a better bargaining position for them to accept a partial settlement or would that affect it falling off?

Why would I continue to pay something if it's not affecting my credit file anymore?

Sorry, I'm not very good with these things.

For the past seven years I've been a cash only person and this still haunts me

Feelinghopeful

If anyone has any suggestions of what I should/shouldn't do with this Lowell debt and are able to explain the why's and wherefore in basic terms than in all ears. Many thanks

StopIt

Feelinghopeful wrote: »

Thank you for your reply

As it's about to fall off my file then will that put me in a better bargaining position for them to accept a partial settlement or would that affect it falling off?

Why would I continue to pay something if it's not affecting my credit file anymore?

Sorry, I'm not very good with these things.

For the past seven years I've been a cash only person and this still haunts me

They may well be amenable to cash now, than cash over time.


There's F&F Letter Templates on the National Debtline website, to make sure that they agree that any monies paid will be a full settlement with an agreement that they will not sell the rest on etc etc. Do not deal over the phone, only writing. Also, give yourself room to negotiate up If you have £1,000 to spare, offer £700, and give yourself room. You never know, they might accept it anyway.


A common myth about debt is that once it's off your credit file, it can't affect you if you don't pay. It's a common one because the Limitations Act is also 6 years, but that only applies once 6 years has passed without payment or acknowledgement. It is separate from how a debt is reported to the CRA systems. This means despite it being off your credit files, it is still very much a live debt.


How does that matter if they can't report the debt? Very simple. If you stop paying, Lowell can still send this debt to court to obtain a CCJ for the next 6 years. The CCJ will appear on your credit files for another 6 years, unless if defended or settled within 30 days of adverse judgement.


If a debt if off your credit files, the settlement, along with the debt itself will not show at all and wont make a difference to your credit history.

sourcrates

Feelinghopeful wrote: »

If anyone has any suggestions of what I should/shouldn't do with this Lowell debt and are able to explain the why's and wherefore in basic terms than in all ears. Many thanks

Just because a debt falls off your credit file does not mean you are still not liable for it, you are, 100%.

Non payment could still result in Lowell taking legal action against you.

Lowell are usually open to deals, make them an offer to settle once and for all.

reason2

fatbelly wrote: »

1. The default, and the whole entry, falls off your file 6 years after it was issued.

2. Yes a F&F deal at 50% might work

3. It's 112 more payments at £20 as things stand

Lowell are really good with F&F - i just had one agreed for a balance of £1180, they have accepted £250

Feelinghopeful

thank you, that's really informative and exactly the sort of basic information I needed (rather than keep burying my head forever with this)

Feelinghopeful

reason2 wrote: »

Lowell are really good with F&F - i just had one agreed for a balance of £1180, they have accepted £250

Wow! thats amazing.
Can I ask how long you had been paying them and whether it still had a long time to run? Did they ask where you was suddenly getting funds from?

fatbelly

Feelinghopeful wrote: »

If anyone has any suggestions of what I should/shouldn't do with this Lowell debt and are able to explain the why's and wherefore in basic terms than in all ears. Many thanks

You should use your savings to do a full & final settlement. You can start low, maybe 35%, using the standard letter, and see what happens

Feelinghopeful

Just wanted to say thank you. Lowell have accepted my offer of £700 in final settlement. Feelinghappy