Lowell: Old debt. Are they bluffing?

FlickyFoot

I received a letter from Lowell regarding a store card debt that defaulted in 15 years ago. I sent a prove it letter and they got back to me with some details, including a claim that I made a £12 payment towards the debt in 2020. I have no recollection of this payment whatsoever. I have checked my bank statements and there's no sign of the payment being made from my account.

Are they bluffing? Am I right in thinking the debt should be statute-barred? However, the fact they claim I made a payment in 2020 would negate that, wouldn't it? I'm unsure how to go ahead with this. Any help would be much appreciated.

Brie

I'd be writing back (never phone) and say the £12 wasn't paid by you and you have no knowledge of where the payment came from.  And ask them to prove the source of this.  Their account should show something that would help them prove this even if it might mean that they need to go to their bank to get a transit number or similar.  

The problem is it's very hard to prove a negative which is what you are needing to do.  But as they have the funds they should be able to provide something that says where the money came from.  

Grumpelstiltskin

For them to apply for a CCJ they would have to have proof of the 2021 payment, so tell them you need proof of the alleged payment.

FlickyFoot

Thank you both. I'll send a letter requesting proof as suggested.

The letter says they acquired the debt from CL Finance Limited and provides a court case number. Does that mean at some point it's been to court? And if it's been to court, why have they not sent bailiffs to my house? I mean, I'm thankful they haven't. I'm just curious.

Grumpelstiltskin

Have you checked all of your credit reports to see if you can find any mention?

FtbDreaming

I seem to have had 2 debt companies come out of the woodwork in the last 2 Months. The first is Lowell chasing a debt from 2010 which was originally with Orange. The second is a gym contract from 2013 because I cancelled the membership when I got pregnant. Neither debts show on my credit report and both should be statute barred. I just find it really odd that 2 very old accounts surfaced randomly at the same time. 

I dont have anything to add for your situation I just find it odd. The bailiffs actually did come for one of mine but the dog was barking so we warmed him it bites and he left. 

FlickyFoot

Grumpelstiltskin said:

Have you checked all of your credit reports to see if you can find any mention?

I just checked my Credit Karma and MSE Money Club reports and there's nothing on either of them. No mention of any searches from Lowell in the past 12 months. No CCJ's. Nothing. Very odd.

FlickyFoot

FtbDreaming said:

I dont have anything to add for your situation I just find it odd. The bailiffs actually did come for one of mine but the dog was barking so we warmed him it bites and he left. 

Ah if only I were allowed to have a dog   I've had another old debt pop up too. Not the best timing is it?

sourcrates

If the alleged debt defaulted 15 years ago, and you haven`t paid or acknowledged it within those 15 years, even if you had made the 2020 payment, as Lowell are claiming, it would still have become statute barred long before that event allegedly happened.

If as they seem to imply, legal action was taken, they have  6 years to enforce court judgements, after that permission of the court is required, and must be sought before the 6 years expire, it appears they are out of time there too, as no trace appears on your credit report.

About 80 odd % of CCJ`s just sit unactioned, until the 6 years are up, and they become unenforceable, instructing bailiffs costs money, and most judgements never get enforced because of this.

Once statute barred, always statute barred, it cannot be unbarred, and payment after the fact does not alter that.

If the above is indeed the case, I would send Lowell a short letter quoting the above.

Debt purchasing companies invent random small payments to try to coerce you into thinking the debt is still alive, and get you to pay up, they have no issue lying to you, but they would never do so to a court, if`s funny how when you call their bluff, these phantom payments simply vanish into thin air.

badmemory

I knew I had seen those phantom payments somewhere else.  It was by Erudio student loans they did it quite a lot to keep the debts open.  Thank you sourcrates.

fatbelly

It doesn't matter. If it defaulted in 2008 and you made no payment til 2020 then the debt became statute barred in 2014  and stayed that way (Limitation Act 1980 s29(7)).

Tell them that on the basis of information they have sup plied, you won't be paying and you expect them to follow CONC 7.15.8

Of course if they obtained a ccj before 2014 then the 2020 is irrelevant but they would now be out of time to enforce it without specific permission from the court