Lowells & a statute-barred debt

MrsPanscrubs

Hi all. 

I have recently received communication from Lowells who have 8 accounts of mine. I've followed advice from this forum and sent prove it letters, which have all been provided and I know all the debts belong to me. I have not spoken with Lowells at all, only via email. I'm willing to pay the debts and am chucking extra money and have paid two of the smaller ones off. 

All together, I owe just under £6500, I have set up a payment arrangement with Lowells, that is affordable and will pay off more from overtime etc to drive down the term. In 18 months, I should be debt clear. 

However, one of the debts is statute barred as confirmed by Lowells and they have confirmed no court proceedings will commence if I dont pay this debt. 

Part of me wants to pay it as it is my debt, the monthly arrangement does include this account, but then another part of me thinks why should I pay £456 if I don't legally have to, but then that part of me will always be thinking did I do the right thing. 

The debt is BT broadband and phone from 2013, I was a tenant and the landlord needed to move back into the property at the end of the 6 mth term and the contract was taken out over 18 months for broadband and phone. Following this, I then had a difficul few years and buried my head in the sand, ignoring a mass of debts, which, I knew I would have to face one day. That day arrived 4 mths ago when I finally accepted that I needed to sort my life and money out. I have spent the last 6 mths doing so and aim to have paid off this 6.5K by June 2023. 

I now have no other debt and my priority bills are up to date,  I pay my car insurance annually, run a sim only £10 phone, manage my finances well, having followed many diaries here for years in the background and have felt motivated and inspired by many of them. 

I simply can't come to terms with not paying this statute barred debt, even though a small part of me thinks, I don't have to, but if I'm going through the process of a debt- free life, is it best to pay it and finally put it to bed? 

I work full-time, run a couple of credit cards, have an available overdraft limit, that I never use, I run an old banger that I'm saving up to replace, I have about 3K in savings, have no dependents, all flown the nest, I'm also divorced and life isn't bad at all. 

That leads me to another question, would it make sense to empty my savings to reduce the 6.5K debt, I'm just a little worried that my old banger won't make it through its next MOT in April without costly repairs. 

Thank you in advance for any guidance. 

fatbelly

My comments.

1. The statute barred debt is a lower priority than the others so stop thinking about it for now. Concentrate on the rest.

2. 18 months is a shorter period for repaying than Lowell will be used to. If it causes any hardship, pay less.

3. Your savings are best viewed as an emergency fund. Lowell will not be charging any interest so leave it where it is but obvs pay off your active credit cards each month and don't use your overdraft so you don't incur interest there.

sourcrates

MrsPanscrubs said:

Hi all. 


I simply can't come to terms with not paying this statute barred debt, even though a small part of me thinks, I don't have to, but if I'm going through the process of a debt- free life, is it best to pay it and finally put it to bed? 

Don`t be silly, the debt is barred by limitation, which means the creditor is forbidden by law from taking legal action against you to recover the debt.
The Limitation act gives lenders 6 long years to recover bad debts, if they can`t be bothered with it for that length of time, then nor should you, it will fall off your credit file on the 6th anniversary of its default date, and won`t be back.

Please don`t line Lowell`s pockets unnecessarily, they will literally have paid pennies in the pound for that account, the original creditor long since having lost interest in it.

In Scotland they are much more succinct in their policy, after 5 years the debt becomes extinguished in law, and the creditor cannot ask you to pay it, nor can they take any other action against you.

You have other, enforceable debts to service, concentrate on them instead.

MrsPanscrubs

fatbelly said:

My comments.

1. The statute barred debt is a lower priority than the others so stop thinking about it for now. Concentrate on the rest.

2. 18 months is a shorter period for repaying than Lowell will be used to. If it causes any hardship, pay less.

3. Your savings are best viewed as an emergency fund. Lowell will not be charging any interest so leave it where it is but obvs pay off your active credit cards each month and don't use your overdraft so you don't incur interest there.

Hello fatbelly, 

Thank you for your advice. On point 3, I'm inclined to agree with you and will do so as if my car isn't going to last me another 12 months from April, I'll have to buy a secondhand car which that emergency fund is for and hopefully will be a little bit more for me by then. 

I'm grateful for the advice on the other two points too. I've set myself a realistic target on the monthly payment, it is the minimum so I can up it, if I need to with overtime, but taking nothing for granted with work in such uncertain times, I'll at least know I can drop the amount in the event I do lose my job. 

MrsPanscrubs

sourcrates said:

MrsPanscrubs said:

Hi all. 


I simply can't come to terms with not paying this statute barred debt, even though a small part of me thinks, I don't have to, but if I'm going through the process of a debt- free life, is it best to pay it and finally put it to bed? 

Don`t be silly, the debt is barred by limitation, which means the creditor is forbidden by law from taking legal action against you to recover the debt.
The Limitation act gives lenders 6 long years to recover bad debts, if they can`t be bothered with it for that length of time, then nor should you, it will fall off your credit file on the 6th anniversary of its default date, and won`t be back.

Please don`t line Lowell`s pockets unnecessarily, they will literally have paid pennies in the pound for that account, the original creditor long since having lost interest in it.

In Scotland they are much more succinct in their policy, after 5 years the debt becomes extinguished in law, and the creditor cannot ask you to pay it, nor can they take any other action against you.

You have other, enforceable debts to service, concentrate on them instead.

Hi Sourcrates, 

I am being silly now you've put it to me that way. The 6th anniversary is soon approaching by the end of this year. I should just leave it now and you're absolutely correct, why should I line Lowell's pockets. Thank you for helping me to give my head a wobble. 

I'll concentrate on the other debts and throw what I can at them while work is keeping me in overtime yet still putting in my emergency fund. 

EssexHebridean

I’ll give a slightly alternative view to Sourcrates’ stance here, much as I agree with reluctance to line Lowell’s pockets. If, in 5 years, 10 years time, in the back of your mind, there will be something that comes out and haunts you every so often, makes you feel a sense of “I should have…” or “I wish I’d done that differently” and that will affect your mental health, then £456 is a very small amount to pay for peace of mind and knowing you can fully put it behind you. If you will be prouder of yourself for paying the lot and putting it all behind you, than you would for taking the stand and saying “no Lowell’s, you were too slow, that’s your loss”  then there is a balance there to be struck. Only you can know in your heart what the score is there, and only you can make a decision accordingly. 

I agree with Fatbelly - you have time to wait this one out and consider it - let Lowell’s know that right now you will not be paying anything to that debt, and leave it until last. By the time it comes around, I suspect you’ll have had time to sit with the situation and will know what’s right for you. 

Wanting to pay it, or even feeling that you should isn’t silly if that’s the feeling that’s right for you, and you wouldn’t be letting anyone down by making that choice, any more than you’d be letting anyone down by choosing not to pay it either. 

Oh - and that EF is a no brainer - keep it, only use savings to clear debt if that debt is costing you money, this isn’t. 

DjangoUnchained

Personally I dont think anyone should feel any moral obligation to pay debt collectors anything, whether or not you feel the debt is yours. These scumbags paid less then 10% to obtain your debt. They lie and cheat people where they can get away with it. Dont pay them please.

MrsPanscrubs

EssexHebridean said:

I’ll give a slightly alternative view to Sourcrates’ stance here, much as I agree with reluctance to line Lowell’s pockets. If, in 5 years, 10 years time, in the back of your mind, there will be something that comes out and haunts you every so often, makes you feel a sense of “I should have…” or “I wish I’d done that differently” and that will affect your mental health, then £456 is a very small amount to pay for peace of mind and knowing you can fully put it behind you. If you will be prouder of yourself for paying the lot and putting it all behind you, than you would for taking the stand and saying “no Lowell’s, you were too slow, that’s your loss”  then there is a balance there to be struck. Only you can know in your heart what the score is there, and only you can make a decision accordingly. 

I agree with Fatbelly - you have time to wait this one out and consider it - let Lowell’s know that right now you will not be paying anything to that debt, and leave it until last. By the time it comes around, I suspect you’ll have had time to sit with the situation and will know what’s right for you. 

Wanting to pay it, or even feeling that you should isn’t silly if that’s the feeling that’s right for you, and you wouldn’t be letting anyone down by making that choice, any more than you’d be letting anyone down by choosing not to pay it either. 

Oh - and that EF is a no brainer - keep it, only use savings to clear debt if that debt is costing you money, this isn’t. 

Hello EssexH, 

Thank you so much. I'm still conflicted regarding it. I feel bad that allowed all of this to get out of hand and build as they did. I slways knew they'd rear once I was more settled and they did. (The debts) and as you've always highlighted, the "process" is where it happens. If it is me lining Lowell's pockets, thats one element - yet, the peace of mind in completing the 'process' of facing up to debts and that all consuming anxiety that ruled me knowing one day that white envelope from Huddersfield was going to drop through the letterbox and could no longer be ignored. I'll leave it for now until I'm on my way to driving down what I owe and then revisit this one when the others are settled. At face value, I can see where sourcrate is saying ' don't be silly ' concentrate on the enforceable ones and don't worry about the SB one. I'm not worried about credit scores as I know they're a gimmick only, but I'm keen to tidy up my credit history and be rid of those defaults. I'm not seeking credit in any form these days as I value living from my salary and having the EF even if it means spending that on a car next April. It is my mental health I want to keep healthy. That far outweighs anything else. So I'll wait and continue driving down what I owe. I've paid the two smaller ones which were in the region of £100, one last month and one the month before. 

Thank you for the advice. 

sourcrates

I would normally agree 100% with what Essex has to say, they are a very much valued member of this online community.

And I`m not seeking to influence how you may want to deal with this.

However, when it comes to dealing with debt purchasing companies, such as Lowell, and financial legislation, I would always advise you leave your morals, your anxiety, and any other qualms you may have, at the front door, you need to deal with them with a cold and calm head, imagine the shoe were on the other foot, they would not hesitate to use this legislation against you, they would do so in the blink of an eye, believe me.

Anything to do with money should be decided on the basis of what`s best for you, you have to look out for yourself as no one else will do so, this debt, and I`m sorry to keep going on about it, but I am a fervent believer in consumer rights, and people standing up for themselves against these giant conglomerates.

You should inform them that as the debt is statute barred under section 5, limitation act 1980, they are no longer able to enforce this account, and therefore You are exercising your statutory right not to pay this debt.

Put the money to better use, walk away with your head held high and a spring in your step, then never give it another thought.

EssexHebridean

Genuinely Sourcrates, I completely understand your viewpoint, and in theory I don’t disagree with it at all, but I also know how that situation would sit with me, and I’m coming from the same position of conflict as the OP.  I’d want to say “screw you” to them over it, but I’d also be very concerned that it would play on my mind for ever and a day - hence giving the alternate viewpoint. 

This bit of your post stands out to me “Anything to do with money should be decided on the basis of what`s best for you, you have to look out for yourself as no one else will…” Absolutely true - and that is such an individual thing, I honestly don’t believe any one of us can prescribe another person’s right thing when feelings of conscience and mental health are in the frame. I don’t think there are any “shoulds” in this picture (apart from the one in your quote, which is spot on!)  - just the end solution that sits best with the person who the situation effects. 🤷🏻‍♀️

fatbelly

Lowell will send settlement offers to you on the unenforceable debt. They have a series of standard letters. There's no harm in ignoring them. I think the final one is a 90% discount. That's pretty much break-even for them.

See where you are with things when you get that letter.