Can someone clear this up for me please - sold on debt

happy2017

Evening,

Could someone please clear this up for me.

I had a loan which has been sold onto a debt collection agency.

Can someone tell me what Lowell should be reporting please, ive not missed a payment with them yet they are reporting as 6 missed payments.

Lowell have informed me of the below:
Lowell Response - 

• Paying less than your contractual amount, then we will report the arrears on your credit file – your current status is at 6. This is the last status before a default is placed on the account. Please be aware that if there is a missed payment we may default your account.

The below is just a spreadsheet i knocked up to track my credit files and to correct any issues i have easily.

Thanks. 

MorningcoffeeIV

It should be 6 missed payments until they default, which should be next month, if you're not planning on making up the arrears..

happy2017

how can lowell default if i have been paying the arranged amount each month? thanks

JCS1

happy2017 said:

how can lowell default if i have been paying the arranged amount each month? thanks

Are you paying less than the contractual amount?

sourcrates

happy2017 said:

how can lowell default if i have been paying the arranged amount each month? thanks

The arranged amount, is not the contractual amount, which is what your original agreement is based on.

Lowell explain the situation quite well in their response.

You have stopped making the contractual payment, and are now paying less than what your original agreement says you should, so because of this, some arrears have built up, and that is what are being correctly reported.

In order for them to stop doing this, you would have to make up the difference between what your contractual repayments should have been, and what you have been paying.

However, it looks like Lowell will be defaulting the account shortly, so that will be your debts new status.

happy2017

The original Contractual payment with Creation Finance was £220 per month.
Went through Stepchange from June 2019 and as part of the DMP Lowell would receive £10 per month.
I have since started self managing my own debt, no change in circumstances and agreed with Lowell to continue the £10 per month.

I've not had this problem with other debt collections agencies such as Cabot, PRA Group, Intrum or Link.

So if Lowell Default the account would it be date next month for example or would it have to match Creation Finance of 24/11/2019?

Thanks.

sourcrates

Ok, are you saying this debt has already defaulted previously ?

Sorry the graph is hard to read.

happy2017

sourcrates said:

Ok, are you saying this debt has already defaulted previously ?

Yes, Creation Finance had defaulted this account on 24/11/2019.  Lowell purchased the debt and reporting as missed payments.

Apologies its a bit messy

sourcrates

Right, apologies for the confusion, in that case, Lowell are incorrectly reporting your debts status, it should be recorded as "D" every month, for default.

The default will show until 24/11/2025, then will be automatically removed.

You should respond to Lowell advising of their "mistake", there entry should show the same date of default as the original, and also display your outstanding balance.

They should no longer be showing missed payments, as default status takes precedence.

happy2017

sourcrates said:

Right, apologies for the confusion, in that case, Lowell are incorrectly reporting your debts status, it should be recorded as "D" every month, for default.

The default will show until 24/11/2025, then will be automatically removed.

You should respond to Lowell advising of their "mistake", there entry should show the same date of default as the original, and also display your outstanding balance.

They should no longer be showing missed payments, as default status takes precedence.

I've been backwards and forwards with then using Resolver UK which has been great but they are adamant that they are reporting correctly which is frustrating.

sourcrates

happy2017 said:

sourcrates said:

Right, apologies for the confusion, in that case, Lowell are incorrectly reporting your debts status, it should be recorded as "D" every month, for default.

The default will show until 24/11/2025, then will be automatically removed.

You should respond to Lowell advising of their "mistake", there entry should show the same date of default as the original, and also display your outstanding balance.

They should no longer be showing missed payments, as default status takes precedence.

I've been backwards and forwards with then using Resolver UK which has been great but they are adamant that they are reporting correctly which is frustrating.

If you have their final response, then its time to escalate the matter.

I think the ICO deal with credit file complaints, but I would check with the FOS (they have a hotline number on their website) first as they may be able to help.

It seems straightforward enough to me to have this resolved.