Lowell Reporting Account

AndyBruce

Hi all,

Any help from anyone in the know much appreciated.

A couple of years ago Lowell started chasing me, claiming to have assignment of an old credit card account. Despite being asked on numerous occassions, Lowell never demonstrated legal assignment. Lowell pushed the matter despite never providing any documentation showing legal assignment all the way to county court. Their claim was immediately thrown out, 'struck out' I think is the term and the reason given was 'Upon the court not being satisfied on the evidence that the claimant has established it is entitled to enforce any debt'.

Despite the above, Lowell continues to report this account as a default. Furthermore, the balance shown includes its legal and court costs which it added when it took the matter to county court.

My question is, is Lowell entitled to continue to report the account as in 'default' despite showing no evidence of any assignment, and can it really add its court costs to the balance it is reorting as owed when the court made clear it had no evidence of assignment.

Thanks in advance for any help.

[Deleted User]

As long as they are the only party reporting it, yes. The lack of assignment just means they cannot collect on it.

Not sure about the balance showing the legal costs - I would suspect not.

[Deleted User]

What date did the account default?

AndyBruce

Thanks guys. The account is showing as defaulting in 2014, and yes they are the only organisation reporting it.

It's not causing me any problems as such, but thoght I'd check to see if Lowell ok to do so under circumstances.

Regarding the balance, I don't suppose it makes a difference as long as Lowell can't enforce. Or can they sell it on, and will that cause difficulties?

[Deleted User]

To sell it on , they would need to prove it was enforceable, which they can't at present. No one will buy an unenforceable debt.

pogofish

Deleted_User wrote: »

No one will buy an unenforceable debt.

Lowell don't even care if there is a debt to begin with - and they will sell it-on regardless.

PixelPound

They can add legal costs to the balance so there will be costs from claims form being issued. The court ruling just means its unenforceable at present, does not mean the debt goes away, it is outstanding, they just cannot enforce the debt until they get the Notice of Assignment at which time it can be enforced.

It will fall off your credit file after 6 years

AndyBruce

Thanks for your help guys. Much appreciated.

Debt_suvivor

Lowell report it hun because they are debt purchasing not collection. The original creditor will have put the default on in 2014, as they purchased the account under credit file reporting process the original creditor has to take theirs off so it can be replaced with theirs. If not you end up with 2 defaults which is unfair.