Lowell bought my 118 defaulted debt

Velli

Hi there,

Yesterday I received a letter from Lowell & 118 (together in one envelope) that Lowell are now the new owners of a 12 month unsecured loan I stopped paying in November 2015. During this period I also defaulted on 4 loans with 4 different payday companies however by now I have taken care of all but this one. I fully intend to take care of the last of my mess which rules out the PROVIT route but there are a few stumbling blocks before I can do so.

1. After checking my credit report I notice a second default has been placed on my account. How do I go about getting this removed?
2. After also checking my credit file I notice that the original default placed on my account by 118 was not placed until 28 months after the account went delinquent despite ICO guidlines which state that 'accounts should be defaulted 3-6 months from last payment date'. How do I go about getting the original default accurately recorded to early 2016? (Giving me a clean slate in early 2022)

I would like to thank you ever so much for taking the time to read through this thread and any input will be greatly appreciated.

Willing2Learn

Hi,

1) A second default for the same credit account do you mean?
2) If it were me, I would make a written complaint to 118, directly quoting that paragraph of guidance from the ICO and threatening to escalate the complaint to the ICO if they fail to comply. Make sure to mark the letter 'complaint', so that it goes to the right department. If they still do not (backdated) default the account then a complaint would be made to the ICO.

Velli

Willing2Learn wrote: »

Hi,

1) A second default for the same credit account do you mean?
2) If it were me, I would make a written complaint to 118, directly quoting that paragraph of guidance from the ICO and threatening to escalate the complaint to the ICO if they fail to comply. Make sure to mark the letter 'complaint', so that it goes to the right department. If they still do not (backdated) default the account then a complaint would be made to the ICO.

Yes precisely 2 different defaults for the same debt. 118 recorded the default in May and Lowell recorded one in August.

I would like to approach this mess surgically as I am hoping to negotiate a 60-70% settlement so would you suggest my first move to be to complain to 118 (regarding the late recorded default date) & also complain to Lowell (Incorrect second recorded default).

1. Is there a risk of alienating Lowell with a complaint? Which could hamper any chance for a settlement?
2. Is there a risk of 'resetting the clock' from August 2018?

[Deleted User]

Velli wrote: »

Is there a risk of alienating Lowell with a complaint? Which could hamper any chance for a settlement?

No. They won't care.

Velli wrote: »

Is there a risk of 'resetting the clock' from August 2018?

The default needs to be accurate. They can't make it even later than it is.

National_Debtline

Hi Velli,


Unfortunately, Lowell could register the original default in their name, as they have now bought the debt, but it must be the original default date. This could explain why there are two defaults for the same account.


The information provided above by Willing2Learn regarding complaints is good. I would only add that you can escalate the complaint to the Financial Ombudsman Service as well as the ICO. Good luck,


Laura
@natdebtline

Velli

Thank you all ever so much for your informational replies.

I gather that my first action should be to complain to 118 to backdate the default date to no later than early 2016 then escalate further to the ICO & the Financial Ombudsman should they refuse. Once default is backdated complain to Lowell that they:

1. Remove the second default
2. Use backdated default date

What is recommended that do if Lowell decide to ramp up the collection process while I am going through the complaint procedure above?

Willing2Learn

1) The default does not need to be removed, it's the date of the default that is in question. The date should be the same as that of the original default so that both defaults for the same account have the same date.
2) Yes, as per ICO guidance.

sourcrates

118 placed original default.

When the debt was sold, lowell took over reporting on your credit file, and put the default in their name.

You will find they are one and the same, the old 118 entry will revert to zero, and any updates will now be recorded by Lowell.

All perfectly normal, your only issue is the default date.

Send a written compliant to 118.

If necessary escalate to the ICO.

Cc in Lowell, advise them of the dispute, your account will be placed on hold till resolved.

Velli

Thank you for your replies Willing2Learn they are really appreciated.

Its just that having done a lot of research I notice that there are conflicting advice provided on here regarding having multiple defaults recorded for the same deliquent debt.

https://forums.moneysavingexpert.com/discussion/5015577/defaulted-twice-for-the-same-debt
https://forums.moneysavingexpert.com/discussion/4667655/can-a-default-be-registered-twice-for-the-same-debt
https://forums.moneysavingexpert.com/discussion/3320140/ive-got-a-duplicate-default-the-same-debt-but-from-2-companies-what-can-i-do

Im just a little confused on if there actually CAN be multiple defaults for the same debt because intuitively that does not sound correct? I stand to be corrected however.

Edit: Apologies I now see sourcrates has broken it down comprehensively. Thank you.

Willing2Learn

I would follow the advice given by both sourcrates and Laura @ National Debtline in this thread, with regard to your multiple default question. They are super knowledgeable lol

Edit: I've just looked at those three threads, and the advice is conflicting...

Velli

Pretty crude and amateurish but I was hoping someone could weigh in on a letter I intend to send in order to have a default backdated?

I am writing to you to request that you backdate a default placed on my account by your company in May 2018. You were made fully aware of my financial situation and my inability to pay in November 2015.
This is an urgent matter and I request the default reported to credit reference agencies be backdated to no later than February 2016. Please note that under ICO guidelines a default should be reported within 3-6 months of failure to pay.
By not applying the default to my credit file at the time I first defaulted on my account you have pro-longed the term in which this will show on my records. I would appreciate this being updated to reflect the accurate date immediately.
Failing this I will have no choice but to take my complaint further to the Information commissioners office and the financial ombudsmen. I look forward to your response as soon as possible.