Sorting Orange/lowell Debt.

murraynt

Hello All.

A little bit of background.

I took out a phone contract whilst at uni in 2012 with orange. In the summer of 2013 I moved away from the UK for the summer and tried to pay my bill from another bank card as I closed the bank account I started the contract from. I contacted orange and tried to pay the bill but they refused and even put the phone down on me once.

I should have been cooler at this point but because i was not able to pay my bill i left it until i returned to the UK in September 2013. Not a good idea.

I tried again to pay my bill by going in store in September 2013, but this time they couldn't even find my account on their system. Apparently I didn't exist?

I'm not try to bat this debt away. I was young and foolish and I should have paid more attention.

Anyways. I didn't receive any bills through my door until this year ( 5 years later) when i bought a new phone through carphone warehouse.

Now lowell are sending letters saying I owe £380 and are offering a 40% discount, which seems reasonable.


I've now graduated uni and i am employed full time, I'm thinking of buying a house in the next 12-16 months and I'd like to have this debt settled sooner rather than later. (t might have damaged my credit score too much to get a mortgage?:mad:)

What is the best way to pay this debt off? Do i simply call them and pay over the phone or should i get some written evidence that I have paid the debt off?

I've seen some horror stories online of people paying their debts and lowell still chasing them.

Any help would be appreciated!

[Deleted User]

Firstly you don't have a credit "score" its a fictional number, if you are happy with the 40% discount offer then do it all in writing making them confirm its a "full and final settlement"
Then when the time comes the effect of this debt will be wearing off.

sourcrates

You can pay Lowell through there website, or by online banking, they offer a number of ways to pay your account, even in instalments with the 40% discount applied.

Despite what you might read, they are one of the more compliant debt purchase companies.

murraynt

venison wrote: »

Firstly you don't have a credit "score" its a fictional number, if you are happy with the 40% discount offer then do it all in writing making them confirm its a "full and final settlement"
Then when the time comes the effect of this debt will be wearing off.

sourcrates wrote: »

You can pay Lowell through there website, or by online banking, they offer a number of ways to pay your account, even in instalments with the 40% discount applied.

Despite what you might read, they are one of the more compliant debt purchase companies.

Thank you for your replies.

It's good to hear that they are one of the more reputable companies.

Venison, you said "Then when the time comes the effect of this debt will be wearing off." Could you explain this a little more to me? is there a certain amount of time after I pay my debt that it will show?

Willing2Learn

The default will remain on your credit report for six years from the date of default.

murraynt

Willing2Learn wrote: »

The default will remain on your credit report for six years from the date of default.

Thank you Willing2learn.

I have register with Lowell online. When i look at what i have left to pay I am given two options. Options 1 is a discounted balance option 2 is the full balance.

The website says if i use the discounted balance it will show up on my credit balance as "partially satisfied" instead of "Fully Satisfied"

Note: If this account is on your credit file and you opt to pay the 'Discounted Balance' your credit file will be updated to show as 'Partially Satisfied' once your payment plan is successfully completed. If you choose to pay the Full Balance your credit file will be updated to show as 'Satisfied'. It may take up to 50 days for your credit file to be updated.

Should I go with the full balance in that case?

Willing2Learn

Whether partially or fully satisfied - the difference is probably marginal. The default itself is the bit on the credit report that really damages your credit score when assessed by potential lenders.

murraynt

Willing2Learn wrote: »

Whether partially or fully satisfied - the difference is probably marginal. The default itself is the bit on the credit report that really damages your credit score when assessed by potential lenders.

Ok. Thank you for your help. I will pay it off tonight. :T

National_Debtline

Hi Murray


Have you checked your credit file to see if this debt is recorded, and if so what it is showing? There are 3 credit reference agencies and they can hold different information so it's worth checking all of them. You can request a free statutory report, or use these associated websites to also access it for free:


www.noddle.com.uk
www.clearscore.com
www.moneysavingexpert.com/creditclub


As mentioned above, the debt will be removed from your credit file 6 years after the date of the default (assuming one has been registered). That's regardless of whether you fully or partially settle the debt.


It's very important to have details of the full & final settlement confirmed in writing before making a payment. That way if you are ever pursued again in the future you have evidence that they agreed they would not pursue you for the remaining balance of the debt. You can find more information on this here https://www.nationaldebtline.org/EW/factsheets/Pages/fullandfinalsettlementoffers/lumpsumoffers.aspx.


Best wishes


Susie
@natdebtline

murraynt

Thanks for your reply Susie.

I've tried to access my credit file with experian and clearscore but neither sites could find me. I've re registered on the electoral role so I will try again next week.

Thanks for your advice. Would an email chain suffice or should it be a posted letter?

National_Debtline

Hi again Murray


Written confirmation for the full & final settlement is ok by email or letter. However make sure it is clear who the email is from and always keep a copy for your records, should you be pursued in the future. I hope it all goes well.


Susie
@natdebtline