Lowell debt close to being statute barred HELP!

Fluffyclouds87

Hi, 
So I need some advice because we all know how stressful dealing with lowells can be! 

I'll try and make this short.... I took out a loan with Lloyds bank a long time ago but made my last payment on 17th Dec 2018 (so very close to now being statute barred) 

Following a relationship breakdown and a mental breakdown I became a jobless single mum and couldn't afford to make the loan repayments...Lloyds passed me onto a specialist team froze my interest and didn't chase me for the debt and to be honest I totally forgot about it! 

That was until last week when lowell sent me a "we now own your debt letter" 

With this debt being so close to becoming statute barred Id really like to work out what steps I can take to hold them off and then be able to  finally send a statute barred letter. I really don't want to recieve a ccj. The stress and anxiety this had already caused I can't cope with fighting a ccj. 

I know not to write anything what will show i accept the debt and re start the 6 years.

Should I send a prove it letter first? If so when (bearing in mind I want to drag the process out to make it past dec) 

Or should I send one asking for time to seek legal advice first? 

Also is there any pre written letters I can copy and email to insure I use the correct legal language. 

I feel like I'm so close and yet so far! 

Thanks 😊 

fatbelly

Well the first thing is to stay calm.

Do you know if the loan had already defaulted at the time you made the last payment? Or was that the last contractual payment and they defaulted you later?

If the latter, this loan should still be showing on your credit file and so perhaps you could check and let us know the default date.

Lowell cannot start a court claim without first sending a preaction letter, with reply form and 30-day timescale.

Let us know if you get one.

For now I think the safest policy is to do nothing. Let Lowell work through some standard letters.

Fluffyclouds87

Thank you for your speedy reply fatbelly.

I have just looked it up on my credit file and the account shows it defaulted on 6th June 2019. 

Since the first letter I have recieved a tx message from them and an email basically saying how helpful they are 🙄 

I really want to hold of receiving the threats of court because while the account is still "active" I know they can take me down that route and win. 

Although I'm in a much better financial position now I am still barely getting by and the thought of having to find the money to repay the balance is stressing me out. 

I'm sure lowell are fully aware it will soon be statute barred and will probably want to work quickly 😬 

The wondering every day if another letter will arrive is giving me sleepless nights already and it's only been a week! 

Thank you 

RAS

Hi, please stay calm. At this stage it is impossible to say whether Lowell have the documents needed to take legal action. And you don't want to ask until it is necessary.

fatbelly

The main thing you need to know is that on the basis of the info you have given, this will go statute barred on 7 June 2025, assuming neither side changes the status and that you aren't living in Scotland.

They could stop it by issuing a court claim. You could reset the date by making a payment or acknowledging the debt in writing.

The reason why the default date is now used as the 'cause of action' is following a court case PRA  v Doyle. Earlier arguments are blown out of the water and won't work.

You say you don't want to receive 'threats of court' and worry daily whether they might write. You also say that you don't have the means to pay this, and that if they start court action they will win, which is far from true

Please ignore their texts and emails. Only letters count.

What we need to do is work out a strategy that you can live with.

For starters, in round figures, how much are they saying you owe and how much could you find as a lump sum or a monthly payment if you needed to?

We are not going to rush this. Lowell have a stock of standard letters that they will run through, probably offering increasing discounts over the next 6 months. For today the sensible thing for you to do is nothing.

Fluffyclouds87

Oh so that's even more frustrating because all the advice online seems to say 6 years from last payment. 

The amount is around £7500. I have no savings for a lump sum. 

I literally just started working in July and working towards saving looks like that is out the window until I've paid this back now ☹️ 

Fluffyclouds87

I felt like I'd gotten myself to a place where I could better myself and have a better relationship with money and maybe for once in my life feel some financial safety. This feel like a massive set back but something I'll have to deal with. 

fatbelly

Fluffyclouds87 said:

I literally just started working in July and working towards saving looks like that is out the window until I've paid this back now ☹️ 

You should start to save for a variety of reasons.

We will try to help yo not to waste it on Lowell

Rob5342

Fluffyclouds87 said:

Oh so that's even more frustrating because all the advice online seems to say 6 years from last payment.

Debt Camel describe it as being like a 6 year timer that runs from default, and gets reset every time you make a payment.

https://debtcamel.co.uk/statute-barred-debt/

MEM62

Fluffyclouds87 said:

I literally just started working in July and working towards saving looks like that is out the window until I've paid this back now ☹️ 

You really need to take in the advice that you are being given. You are not even at the point where you can be sure you have to repay it so stop thinking too far ahead as you are only causing yourself avoidable stress.  Play the game that @fatbelly is guiding you through.   

ManyWays

Is the only debt that you have been ignoring? 
How much can you realistically save up in the next few months?