Paid Lowells now original creditor has taken the closed account back and reopened it, is it legal?

becky004

Due to a relationship breakdown was left with a significant amount of debt, several of these debts ended up with Lowells in early 2021. Largest account (Vanquis) was just over 4k, smallest one £18. In December 2021 Lowells agreed to accept 25% of the amounts owed in settlement (I have the emails stating I had made the last payment on each debt and the account is closed).

Sometime in 2021 I also got involved in the irresponsible lending through a legal firm and didn't really expect to hear anything, but in January 2022 Vanquis accepted partial responsibility for irresponsible lending and said I was owed just over £1700, that they would get the account back from Lowells and apply it to the account. I explained that the account with Lowells was closed so there was no account for them to take back, they said they would need to investigate and get back to me.

In mid March they contacted me again claiming Lowells had not informed them that the account was closed and could I provide proof, so I sent them the email showing final payment was made and the account was closed, have heard nothing since. Received an email yesterday from Credit Karma saying there was something new on my credit report, on checking it is the Vanquis account, minus the money I paid to Lowells to close my account and minus the £1700 they owed for irresponsible lending, leaving a debt of just over £1400, so they have reopened the closed account.

Are creditors allowed to take back closed accounts from debt collectors and reopen them? If so this leaves the door open for the other creditors to do the same.

Thanks for reading.

fatbelly

I presume they're not actually asking for payment - it's just that it's reappeared on your file.

Is there a default date showing? If it's nearly six years ago this is going to drop off anyway.

Otherwise you are going to have to complain to Vanquis and, if they don't remove it, take the result to the ICO, who in truth may side with Vanquis. Then your only avenue is to use the courts.

This is the sort of thing that can happen if you start a compensation claim on a closed account - you're resurrecting the damn thing.

becky004

The default date is February 2020, so still a few years to go. They haven't asked for any payment as yet.

To be honest I didn't think anything would come of the irresponsible lending and hadn't paid it any thought, it was just a case of financially drowning and trying anything and at the time the Lowells accounts were all open, then Lowells were constantly texting and emailing and it was making me really ill so I made them an offer, they accepted and a family member paid it for me. 

I never thought the original creditor could take a closed account back and reopen it or I would never have made Lowells the offer to start with, you live and learn I guess.

 

fatbelly

If someone at Vanquis can be made to sit and look at your case then they should agree to take the record off your file.

Do a written complaint and require their response within 8 weeks.

sourcrates

Agree with fatbelly, when you win a redress claim, if the account was previously sold, then the original creditor has to take the debt back in order to apply the redress, normally not a problem, unless like in your case, the debt was settled.

I think as per the above, get someone to look at your case and it should be resolved in your favour.