Default offer

wanttomove

 I have a default on my credit file that I think is from an old catalogue account for around £600. Last year I was heavily in debt and spent the majority of the year working all hours to clear it, fast forward to losing my dad in October and gaining a modest inheritance I have been able to clear all my outstanding remaining debts. Everything else was always paid on time and up to date and I left this one because I wanted to concentrate on clearing all my other debts and then to investigate where this default was from as I can't believe I have missed it, I'm normally on the ball.

Anyway, the first I knew about this default was a letter from Lowells who have clearly bought it, I initially emailed them a number of times asking for them to tell me where it was from as I didn't recognise the sum, they ignored my emails and continued to send letters and emails asking me to get in touch to pay it.

I'm now at a point where I want to sort this one out. It has been defaulted since Feb last year. 

The latest letter from them the other day was offering a reduced settlement of £200 thereabouts to settle the debt but will go on my credit file as 'partially settled', I know the default being on there is going to affect my credit rating for the next few years anyway, not a lot I can do about that now I guess so the questions I have are:

I 'think' this is an old catalogue debt but am not 100% sure.
At this point I have no financial concerns, I still have a significant sum in inheritance but earn a good salary in a secure job with just my mortgage now, is it better to clear the full amount or the reduced amount I've been offered, does this make any difference in credit worthiness in the grand scheme of things?
Are there any template letters I could use asking them to either 'prove' the debt or to ensure that payment of either the full amount/reduced settlement amount will ensure the debt is completely settled?

thank you

CliveOfIndia

There certainly is a "prove it" template over on the Debt-Free Wannabe board, along with lots of other very helpful guidance.  Have a read through the Sticky, hopefully that will give you a good starting point.

https://forums.moneysavingexpert.com/discussion/6027800/debt-free-wannabe-sticky-provit-statute-barred-letters-defaults-help-and-guidance-all-here#latest

sourcrates

Anyone who contacts you regarding the payment of a debt should always receive the same first response, as CliveOfIndia points out above, in this case you should send the provit letter, it basically asks for proof of liability without formal acknowledgement of the debt.

You require Lowell to inform you who the original creditor was, what the outstanding balance is, if they have the correct legal paperwork to ask you to pay this debt, that would be in the form of a copy credit agreement, and as the debt has been sold to Lowell, a copy of the notice of assignment as well.

If all pans out as it should, you can make whatever arrangement you see fit, on the other hand if they cannot provide any or all of the above, the debt would be unenforceable in court, and Lowell could not legally force you to pay this.

wanttomove

This is great advice thank you both