Lowell account closed

Weybridge78

A relative of mine who is on a self-managed DMP with StepChange has been on a £1 token payment a month with Lowell for some time now due to financial and medical problems. The credit card debt was originally with Lloyds and is over £9,000.

The relative received a letter yesterday from Lowell stating that they have been investigating previous correspondence which asked for some more time to decide whether £1/month was still affordable or not (relative did not send such a letter to Lowell). The letter continues to say that decision has been taken to no longer pursue the balance on the account and that it is now closed.

In consideration of the balance, this, of course, is excellent news. However, we are not sure as to whether this means that the debt will stay on his credit file and will just not be pursued, or whether the debt has been written off. Furthermore, we are wondering how this has actually happened. The debt is considerable, so does anyone have any ideas as to how and why this has occurred? The relative did tell Lowell in May that he could continue making the token payments.

pogofish

How on earth did Lowell get to start a credit card..?

Weybridge78

pogofish wrote: »

How on earth did Lowell get to start a credit card..?

Please see the first paragraph of my OP. Lowell was passed on a defaulted credit card debt from Lloyds.

Shakin_Steve

Pedants abound.

pogofish

Weybridge78 wrote: »

Please see the first paragraph of my OP. Lowell was passed on a defaulted credit card debt from Lloyds.

So its a debt issue, not a credit card - Surely the Debt forum is more appropriate?

Shakin_Steve

Weybridge78 wrote: »

A relative of mine who is on a self-managed DMP with StepChange has been on a £1 token payment a month with Lowell for some time now due to financial and medical problems. The credit card debt was originally with Lloyds and is over £9,000.

The relative received a letter yesterday from Lowell stating that they have been investigating previous correspondence which asked for some more time to decide whether £1/month was still affordable or not (relative did not send such a letter to Lowell). The letter continues to say that decision has been taken to no longer pursue the balance on the account and that it is now closed.

In consideration of the balance, this, of course, is excellent news. However, we are not sure as to whether this means that the debt will stay on his credit file and will just not be pursued, or whether the debt has been written off. Furthermore, we are wondering how this has actually happened. The debt is considerable, so does anyone have any ideas as to how and why this has occurred? The relative did tell Lowell in May that he could continue making the token payments.

Maybe it was costing too much to keep processing the £1 payments?

Willing2Learn

Hi, it appears from what you have said as though the debt has been written off. Your relative should keep that letter safe.

As far as being reported on your relative's credit files goes. The debt should be removed six years from when the debt became delinquent, or six years from when the debt was defaulted.

PixelPound

Could it be Stepchange had contacted Lowell, they do periodic reviews of DMP's - was your relative paying stepchange or lowell.

If they state they are not pursuing, it means it still exists and if its showing as a default, that will fall off the credit file 6 years from the default date. Your relative may want to keep all paperwork as some DCA sell on debts they've bought, so whilst Lowell decide its not worth pursuing, it doesn't mean they won't sell it on to another company.

Weybridge78

nic_c wrote: »

Could it be Stepchange had contacted Lowell, they do periodic reviews of DMP's - was your relative paying stepchange or lowell.

If they state they are not pursuing, it means it still exists and if its showing as a default, that will fall off the credit file 6 years from the default date. Your relative may want to keep all paperwork as some DCA sell on debts they've bought, so whilst Lowell decide its not worth pursuing, it doesn't mean they won't sell it on to another company.

He was paying Lowell. True, they may sell it on to someone else.

Would it be worth asking Lowell what the letter actuallty means?

Willing2Learn

The letter is pretty clear in meaning. They have said they have made the decision to no longer pursue the balance, and that the account is now closed...Phone them to confirm if you have any doubt...

DCFC79

Weybridge78 wrote: »

He was paying Lowell. True, they may sell it on to someone else.

Would it be worth asking Lowell what the letter actuallty means?

You said he was on a self managed dmp with step change, if hes a self managed dmp then how are step change involved ?