Please Help...extremely worried!

aero589

I owe money to HSBC which is now being chased by Lowell Financial (as instructed by Lowell Portfolio).

My debt is approx 5/6years old and in Dec 2006 I received a letter from Lowell advising me that they had bought the debt from and that the outstanding balance of £2266.76 would be chased by Lowell Financial.

Whilst I acknowledge that I do owe money, I have no recollection of the exact amount (sure it wasnt that much though!). I called Lowell to discuss the matter, I found the agent very abrupt and felt bullied into agreeing to pay £80 per month.

After the phonecall I became aware that Lowell had sent me no documentary evidence showing that they had indeed bought the debt.

I sent a letter to them asking for this documentary evidence, a full detailed breakdown of the charges and asking them to reconsider the payment plan amount as realistically there is no way I can afford £80 per month.

After 2 weeks Id still heard nothing so I wrote to them again. I then received another letter from them advising that I hadnt honoured my agreement and that I needed to call them to make payment. They had not acknowledged either of my 2 letters.

So, I wrote them a third letter and sent it recorded delivery.

I received another letter from them stating that if I fail to respond then they may start legal proceedings and possibly apply for bailiffs.

I heard nothing for approx 6 months and today they have sent me a Statutory Demand and say they may present a Bancruptcy Petition against me (they have enclosed Form 6.1). I dont know what this is or whether they have taken me to court etc. Im really stressed and unsure what to do now. They have not provided me with any evidence and have refused to acknowledge my previous correspondence.

NB I have not made any payments.


Any advice would be greatly appreciated.

tealady

Unfortunately as you have rung them then you have acknowledged the debt. I would contact Consumer Credit Counselling Service or a CAB and ask to speak them regarding what your rights are. If you don't have any assets then bankruptcy wont benefit them anything but don't be bullied into paying what you can't afford.

In_Search_Of_Me

tealady I'm not sure this is accurate as by discussing something you're not necessarily ack it - op has asked for copy of agreements & not had them which he/she is entitled to. If the debt is over 6 years old I think its statute barred anyway (but dont take my word for it - just heard it somewhere!!)...which is why you need the paperwork to see if it is! Agecies have a habit of bullying to get money without necessarily having the required paperwork

However, thats just semantics! I would ring CCCS or one of the other free agencies and would ask if they can negociate on your behalf. Am not sure how you respond and suggest that expert advice is required.

Just wanted to send a hug & suggest investigating before doing anything more with regard to the agency!

fermi

Yep. For "Statute Barred" debts any acknowledgement must be from you in writing or a payment. NO phone conversation/call, whoever makes it or whatever is said (not even if it is recorded and logged), can legally count as acknowledgement.
For a debt to be "Statute Barred" there must be a full 6 year period between any such acknowledgements, but once barred it remains so forever. So if you need to consider that approach, dates are very important.

Detailed info on "Statute Barred" debts and the "Limitation Act" is here:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

The Statutory Demand should always be taken seriously, but bear in mind that these are thrown about like confetti by some DCA's with absolutely no intention of following them through. It costs the creditor/DCA from £590-1700 in up front fees/costs to petition for your bankruptcy (while the SD costs nothing) and they have no guarantee of getting this back let alone the original debt.

There is useful info on SD's here: http://www.insolvencyhelpline.co.uk/legal_issues_explained/statutory_demand.htm

You need to seek some professional advice ASAP on the legality and enforceability of the demand. National Debtline (phone no and link in my signature) are good with advice on these, but the other agencies below will also have some experience.