Seeking Advice on Debt with Lowell Financial

olevbendz

Hello everyone,

I've been managing my debt with Lowell Financial for a couple of years now, making token payments of £1. However, I recently reached out to them to discuss the possibility of settling the debt with a final payment of £210 out of the £600 total. Unfortunately, they declined this offer.

During our conversation, I mentioned my intention to request a Consumer Credit Agreement (CCA) from them. However, Lowell Financial stated that there isn't one available as the debt originated from an old electric company, SSE, dating back to 2015. I quote "There is no credit agreement as this is for gas and electricity so we cannot provide one and no utility provider can provide that either".

This has left me in a bit of a quandary. I fear that by attempting to resolve the debt, I may have accidentally re-opened a statute-barred debt. I'm uncertain about its enforceability, especially given that the debt does not appear on my credit file. If there had been a default, it would have been removed in 2021. However, due to its age, I'm unable to verify its status or whether a default ever occurred.

My main concern now is whether Lowell Financial could pursue me for a new default or County Court Judgment (CCJ) related to this debt.

I would greatly appreciate any advice or guidance you can offer. What steps should I take from here to navigate this situation effectively? Thank you

fatbelly

Is this a debt you have been making £1 payments to? If so it's not likely to be statute barred as every payment restarts the clock.

They are correct that energy debts are not subject to the Consumer Credit Act.

The entry will not be reappearing on your credit file.

If they've turned down your offer of 35%, have they suggested a figure?

olevbendz

fatbelly said:

Is this a debt you have been making £1 payments to? If so it's not likely to be statute barred as every payment restarts the clock.

Yes, I have been making token payments of £1 towards this debt for the past couple of years. Does it re-start even after it's been previously statue barred?

The entry will not be reappearing on your credit file.

If there hasn't been a prior default, could they initiate one now if I ceased payments? While it seems they can't pursue a County Court Judgment (CCJ) without a Consumer Credit Agreement (CCA), I'm not fully versed in all the nuances of this situation.

If they've turned down your offer of 35%, have they suggested a figure?

They just said there was no discount available for my account  

I've taken the step of requesting a SAR from them, which I believe was a good move. My hope is that this might yield additional information regarding the history of the account/debt and shed light on whether it has already been recorded as a default on my credit file.

sourcrates

olevbendz said:

fatbelly said:

Is this a debt you have been making £1 payments to? If so it's not likely to be statute barred as every payment restarts the clock.

Yes, I have been making token payments of £1 towards this debt for the past couple of years. Does it re-start even after it's been previously statue barred?

The entry will not be reappearing on your credit file.

If there hasn't been a prior default, could they initiate one now if I ceased payments? While it seems they can't pursue a County Court Judgment (CCJ) without a Consumer Credit Agreement (CCA), I'm not fully versed in all the nuances of this situation.

If they've turned down your offer of 35%, have they suggested a figure?

They just said there was no discount available for my account  

I've taken the step of requesting a SAR from them, which I believe was a good move. My hope is that this might yield additional information regarding the history of the account/debt and shed light on whether it has already been recorded as a default on my credit file.

You need to be sure with your dates, if any period of 6 years passed since the bill was generated, with no payment or written acknowledgement, then it may have been statute barred.

Once barred, always barred, paying it after the limitation period has expired does not re-start the clock.

A utility bill is not subject to the consumer credit act, so there will not be an agreement for this account.

A SAR was a good move, it should give you the dates etc, you can then work out if it went statute barred before you started paying it.

fatbelly

Most debts are defaulted before they are sold to Lowell so that probably explains why it used to appear on your file but now doesn't and won't be coming back

If there has been a 6year period of no acknowledgement then the debt is statute barred and stays that way. S29(7) LA 1980

This is not a Consumer Credit Act debt so that Act gives you no protection.

olevbendz

sourcrates said:

olevbendz said:

fatbelly said:

Is this a debt you have been making £1 payments to? If so it's not likely to be statute barred as every payment restarts the clock.

Yes, I have been making token payments of £1 towards this debt for the past couple of years. Does it re-start even after it's been previously statue barred?

The entry will not be reappearing on your credit file.

If there hasn't been a prior default, could they initiate one now if I ceased payments? While it seems they can't pursue a County Court Judgment (CCJ) without a Consumer Credit Agreement (CCA), I'm not fully versed in all the nuances of this situation.

If they've turned down your offer of 35%, have they suggested a figure?

They just said there was no discount available for my account  

I've taken the step of requesting a SAR from them, which I believe was a good move. My hope is that this might yield additional information regarding the history of the account/debt and shed light on whether it has already been recorded as a default on my credit file.

You need to be sure with your dates, if any period of 6 years passed since the bill was generated, with no payment or written acknowledgement, then it may have been statute barred.

Once barred, always barred, paying it after the limitation period has expired does not re-start the clock.

A utility bill is not subject to the consumer credit act, so there will not be an agreement for this account.

A SAR was a good move, it should give you the dates etc, you can then work out if it went statute barred before you started paying it.

Hopefully the SAR will shed more light on the dates.

If a utility bill is not subject to the consumer credit act, is it enforceable on the off chance it isn't barred? I feel I'm a little confused between the difference between a credit debt and a utility debt and what they could theoretically do or can't do.

sourcrates

For utility bills, the bill must be in your name, and for a period you lived in the address it purported to service.

They have 6 years to enforce simple contract debts, you can also try and check that the original company complied with the back billing rules, again a SAR should give you most of this information.

Its a bit simpler with consumer credit act debts, it all rests on been able to supply a copy of the original credit agreement, which determines liability, or not, and of course the limitation act also may apply.