Unrecognised Lowell Financial default for £61 on my credit file from 2014

Penri1980

Hello,

I have recently been contacted by Lowell Financial Ltd claiming that I owe them £61 from a debt that they say I owed BT back in 2014. I am sure that I didn't owe BT this sum back in 2014 or any other time since, and the address that they have against the file is my parents' house, which I've never had a phone or broadband contract at. This 'Default' is appearing in my TransUnion credit report but not in Equifax or Experian, but I am still concerned as I'm planning to apply for a mortgage at some point in the next year. How do I go about disputing this debt and get the default removed from my credit file? Am I best contacting Lowell or BT, or both? Are there specific actions that I shouldn't take as they might damage my chances of the Default being wiped?

Any help would be appreciated. Thanks in advance.

onthemend88

What is the exact date of the default? They only stay on your credit file for 6 years so it sounds like yours would be due to drop off at some point this year if it defaulted in 2014.

I would still look at contacting Lowell though, and even look at paying it off for the sake of £61 as they are within the timeframe to issue a CCJ for the account which would be much worse for a mortgage application than an almost 6 year old default. 

You could even offer them a partial settlement of 50% of the balance (I would go even less actually as they probably bought the debt for peanuts). 

maxximus75

What was the actual date in 2014 of the default?

They are probably chancing it by contacting you as they know the debt is about to be statute bared and unenforceable after six years from date of default.

It seems that Lowell are doing this a lot, recently.

sourcrates

It will disapear from your file regardless this year, however contacting Lowell will stop the debt becoming statute barred, yes its only £61 quid, but if it was £6.100 would you be so keen about contacting them.

Look at the default date on your credit file, it will not only disapear on that date, but become statute barred also.

Penri1980

Thanks for the advice. I went to look for the specific date and realised that the only date on the TransUnion report (via Money Supermarket app) is actually for the Account Opening Date, which is 15th January, 2014, so I don’t know if the supposed default is from 2014 after all. I’m guessing that a ‘Prove It’ letter should be my first action, so I can find out more info on the debt, without accepting liability?

huckster

Lowells as a DCA only update defaults to show they have become the new debt owner.

You could phone BT just to check about this debt they recorded. And if it is a mistake, make a complaint and ask them remove the data they processed, plus confirm it in writing. Then provide this information to Lowells requesting they wipe this debt record.

If it is a debt you owe and it is only £61, it really depends on when the 6 years from default date is and when you are looking to apply for a mortgage. Depending on this, you might want to ensure any debt default is shown as fully paid.

 If you have problems with finding out information to help you. Then your next action is a GDPR subject access request to BT, to see what data they have processed  about you, as well as sending a prove it letter to Lowells.

Lowell will not be very helpful with information, as they only receive a spreadsheet with basic information when buying debts in huge volumes. And they won't assist you in obtaining information from BT for you.  They will just ask you to pay the £61 owing and will mark your credit file as debt fully repaid.  Hence why BT should be contacted as well.

Penri1980

Thanks @huckster. I’ll contact BT to see if I can get some info on this supposed debt and then take it from there following your advice. Appreciate all your help guys.

Hal01977

huckster said:

Lowells as a DCA only update defaults to show they have become the new debt owner.

You could phone BT just to check about this debt they recorded. And if it is a mistake, make a complaint and ask them remove the data they processed, plus confirm it in writing. Then provide this information to Lowells requesting they wipe this debt record.

If it is a debt you owe and it is only £61, it really depends on when the 6 years from default date is and when you are looking to apply for a mortgage. Depending on this, you might want to ensure any debt default is shown as fully paid.

 If you have problems with finding out information to help you. Then your next action is a GDPR subject access request to BT, to see what data they have processed  about you, as well as sending a prove it letter to Lowells.

Lowell will not be very helpful with information, as they only receive a spreadsheet with basic information when buying debts in huge volumes. And they won't assist you in obtaining information from BT for you.  They will just ask you to pay the £61 owing and will mark your credit file as debt fully repaid.  Hence why BT should be contacted as well.

This seems to be a tactic of Lowell's and I would question if it is legal!
I have a similar problem with a credit card debt.
Without going into to much detail it stems from four years ago when I had a difficult time due to the death of my sister in a car accident followed by time off work with severe depression. I will be contacting the Credit card company to ask why they removed the account and then it appeared as Lowell 2 months later, in November last year, as a straight defaulted new account that absolutely trashed my credit score down 76 overnight!!!!  If it had been a reassignment I'm sure it would not have had such a detrimental effect.  Its never been my intention to not pay the debt and, with being in a better place now along with an offer of cash from a relative to pay it, I was going to go down the route of an F&F. However with a newly opened account this would trash my credit score even more if it would have been the older account with a transfer notice  Its pure underhanded and border line illegal if you ask me. My thought is that they are doing this to extend and move away debts from SB legislation.

Absolute scum of the earth that needs putting to rest!!!

MovingForwards

@Hal01977 ignore the credit score / rating as it's not seen or used by any UK financial institution. It's the credit history they see and use when assessing applications.

The CC company would have sold / assigned the debt and you cannot have 2 defaults for the same debt. 

sourcrates

Banks and financial institutions are not equiped to chase up the many thousands of accounts that fall into default every year, they simply do not have the time or the staff to do so.

Usually after 3/4 months the debts are sold on, in bulk, many thousands at a time, mostly with very little information attached to them, and certainly no legal paperwork to prove they are enforceable, the original creditor always retains that.

When Lowell, or other companies purchase these debts, if they have defaulted, then the original default entry is changed to settled, to reflect the sale of the account, and the balance is also reduced to zero, the original default date stays.

The debt purchasing company then add their own entry, under their name, with a default balance outstanding, but crucially, the original date of default.

Lowell will not have a clue about events that happened prior to them becoming involved, BT will, or should.

D3xt3r5L4b

Hal01977 said:

huckster said:

Lowells as a DCA only update defaults to show they have become the new debt owner.

You could phone BT just to check about this debt they recorded. And if it is a mistake, make a complaint and ask them remove the data they processed, plus confirm it in writing. Then provide this information to Lowells requesting they wipe this debt record.

If it is a debt you owe and it is only £61, it really depends on when the 6 years from default date is and when you are looking to apply for a mortgage. Depending on this, you might want to ensure any debt default is shown as fully paid.

 If you have problems with finding out information to help you. Then your next action is a GDPR subject access request to BT, to see what data they have processed  about you, as well as sending a prove it letter to Lowells.

Lowell will not be very helpful with information, as they only receive a spreadsheet with basic information when buying debts in huge volumes. And they won't assist you in obtaining information from BT for you.  They will just ask you to pay the £61 owing and will mark your credit file as debt fully repaid.  Hence why BT should be contacted as well.

This seems to be a tactic of Lowell's and I would question if it is legal!
I have a similar problem with a credit card debt.
Without going into to much detail it stems from four years ago when I had a difficult time due to the death of my sister in a car accident followed by time off work with severe depression. I will be contacting the Credit card company to ask why they removed the account and then it appeared as Lowell 2 months later, in November last year, as a straight defaulted new account that absolutely trashed my credit score down 76 overnight!!!!  If it had been a reassignment I'm sure it would not have had such a detrimental effect.  Its never been my intention to not pay the debt and, with being in a better place now along with an offer of cash from a relative to pay it, I was going to go down the route of an F&F. However with a newly opened account this would trash my credit score even more if it would have been the older account with a transfer notice  Its pure underhanded and border line illegal if you ask me. My thought is that they are doing this to extend and move away debts from SB legislation.

Absolute scum of the earth that needs putting to rest!!!

They’ve done nothing wrong or illegal