Lowell Settlement

firstbuyer

Hi All,

Looking for some advice please.

My partner had a letter from Lowell out of the blue asking for £2.3k for a Vodafone debt. This was actually taken out by his sister under his name and unbeknown to us she hasn't paid it... in 2 years :mad:

He's already got a default for it now, and to be honest we're so over it - she won't pay and we just want it to go away.

I rang Lowell and offered them £1000 being what I thought was cheeky and after some discussion they agreed to take it to settle the account but mentioned it would affect credit etc. We've considered the "adverse" affects of it showing as partially settled and we're fine with it.

I just want to 100% confirm that the letter they've sent for the payment will hold up as any research I've done into Lowell shows they get flaky and change their mind on final settlements at a discount!!

So here go's....

Dear Mr **** *****

Thanks for agreeing to pay £1000.00 to clear this account. We’re expecting a payment of £1000.00 from you on 19 April, 2019.

You now just need to let us know your bank/card details so we can set up your formal repayment plan. To do this, please call us on .....
If we don’t hear from you within 7 days, we’ll contact you again.

Any help? Anyone been here before ... appreciated.

Exodi

I'm confused, their letter seems to suggest they're expecting £1000.00 as an over-payment and are expecting a formal repayment plan to be set up for the balance and may even be unaware this is a F&F settlement? You've also only communicated your intentions over the phone that leaves you wide open to exploitation.

The National Debtline has a good template here (click). Send a letter to them along these lines to clarify that this is a F&F settlement.

The core statement being that the amount is offered to relieve you of your indebtedness/liability. Wait for them to confirm this in writing before making any payments.

macman

Are you offering £1K as a lump sum, or over a set period?
What guarantee do you have from her that she won't repeat the fraud if you clear the debt?

firstbuyer

A final settlement. They’ve said they can only send out standardised letters?! The letter does say the payment will clear the account.. not sure what to do!

D_M_E

Dear Lowell,

As per your letter dated xx/xx/xxx, please find enclosed checque for £1,000 in full and final settlement as agreed.

Yours faithfully,

firstbuyer

firstbuyer

Have since rang again and now have this letter...

Dear Mr *** ***
Paying off your outstanding balance
Thanks for your recent payment offer, which we’re pleased to confirm.
Your payment arrangement
You currently owe £2311.17
Amount to pay £1000.00 *
Your payment terms
This is to confirm that you have agreed to pay £1000.00 to clear this account and a payment of £1000.00 is expected from you on
19 April, 2019.

What do we think?

Exodi

firstbuyer wrote: »

Have since rang again and now have this letter...

Dear Mr *** ***
Paying off your outstanding balance
Thanks for your recent payment offer, which we’re pleased to confirm.
Your payment arrangement
You currently owe £2311.17
Amount to pay £1000.00 *
Your payment terms
This is to confirm that you have agreed to pay £1000.00 to clear this account and a payment of £1000.00 is expected from you on
19 April, 2019.

What do we think?

I mean it really depends how cynical you want to be. Personally I'm still not overly convinced; the asterisk after the amount to pay is suspicious (what term does this relate to?) but their wording about clearing the account is of some re-assurance.

I would still push them for a letter that confirms that the amount is accepted as a full and final settlement and that you will be relieved of your liability and they will take no further action to pursue the debt after this payment. They've clearly shown their somewhat flexible to amend their letters and I've read more than a couple horror stories were debts are pursued after a 'F&F' settlement.

MEM62

firstbuyer wrote: »

This was actually taken out by his sister under his name and unbeknown to us she hasn't paid it... in 2 years :mad:

firstbuyer wrote: »

Not sure what to do!

Report it as fraud and ask for it to be removed from your credit file.

firstbuyer

I mean it really depends how cynical you want to be. Personally I'm still not overly convinced; the asterisk after the amount to pay is suspicious (what term does this relate to?) but their wording about clearing the account is of some re-assurance.

I would still push them for a letter that confirms that the amount is accepted as a full and final settlement and that you will be relieved of your liability and they will take no further action to pursue the debt after this payment. They've clearly shown their somewhat flexible to amend their letters and I've read more than a couple horror stories were debts are pursued after a 'F&F' settlement.

So the * relates to this

* This is the full amount you agreed to pay. It does not reflect any payments made since then.

They said that if I want more I'd need to contact again and a bespoke letter would be sent out. Its not helpful that you just go to a call centre and speak to someone at random

firstbuyer

Report it as fraud and ask for it to be removed from your credit file.

We tried this... This happened before myself and my partner got together so I didn't initially know the full extent. He took the phone contract out for her but she stopped paying him full amounts. He got Vodafone to transfer all of the details over to her but it seems they only changed the bank details and not the actual contract.

We can't even access the Vodafone account as it is all in her name, and because he initially took it out in his name Lowell are saying he is a Guarantor in "the laws eyes". If she agrees its her debt, they've said they wont transfer it to her either, it will still stay with him (i/e pursuing and the bloody default) but the payment will come from her account. She's living on the breadline so won't pay at all - hence why I just want to get it over and done with.

Mistakes are there to be made I guess - he knows not to do it again now! :sad:

WhenIam64

Lowell are saying he is a Guarantor in "the laws eyes".

Clearly nonsense as he either is (by signing something) or he isn't.

Why not sue the sister for recompense by proving the facts. Civil court is balance of probabilities.

If you don't protect your financial reputation, no one else will.