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Lowell 90% Offer. Advice Please
Sky_High
Posts: 8 Forumite
Hi
I recieved a letter recently from Lowell, offering a substantional saving (90%) to settle a long standing debt (Over 10k ) that i have been servicing for year's at a small amount each month..
A family member has offered to give me the funds to settle this debt. Lowell state in their letter that if pay (Just over £1k, by mid October) I'll get the 90% offer, and they will mark the account partially settled.
Is this letter legal proof? should they try and do the dirty after payment has been made, and try to recover the remainder. They also offer to pay over 3 payments, but i would just clear it with the funds i will recieve.
Thanks in advance for any advice
Sky_High
0
Comments
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If the account would only be 'partially settled' then it sounds like they could still pursue you for the rest of the debt. I think you'd be ok with that letter but personally I'd seek professional advice.
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How old is this debt?, was it CCA regulated?, have you done a CCA request?
Lowell offer discounts on occasion, but a 90% discount suggests they either want to clear the decks, or they know they will have trouble providing the proof of liability, should you ask for it.
If you want to accept the offer, make sure Lowell agree to the following:
"I am accepting this offer on the clear understanding that neither you nor any associate company will take any other action to collect or enforce this debt in any way and that I will be released from any liability".
Your credit file will be updated to show a partial settlement, if the account is still being reported.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter1 -
sourcrates said:How old is this debt?, was it CCA regulated?, have you done a CCA request?
Lowell offer discounts on occasion, but a 90% discount suggests they either want to clear the decks, or they know they will have trouble providing the proof of liability, should you ask for it.
If you want to accept the offer, make sure Lowell agree to the following:
"I am accepting this offer on the clear understanding that neither you nor any associate company will take any other action to collect or enforce this debt in any way and that I will be released from any liability".
Your credit file will be updated to show a partial settlement, if the account is still being reported.
Is it best then to ask them to provide a letter confirming there can be no further chasing of the debt, or does the above info cover that?
Cheer's0 -
Yes a CCA was done at the begining. the debt is at least 10 yrs old, and i have been paying a small amount every month since. I am disabled due to a spinal condition, and there's little to no hope of paying this off as i am in my sixties and not of good health.
I think they must have realised there's not much chance of getting the full amount, hence the offer.0 -
Lowell, for what its worth, don`t usually sell on the debts they purchase, and they do tend to write off any shortfall from settlement deals, I would feel better if you got them to agree to that statement, its from a standard National debt line template letter, you must cover yourself as you can never trust what might happen.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter2
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sourcrates said:Lowell, for what its worth, don`t usually sell on the debts they purchase, and they do tend to write off any shortfall from settlement deals, I would feel better if you got them to agree to that statement, its from a standard National debt line template letter, you must cover yourself as you can never trust what might happen.
Cheer's0 -
HI @sSourcrates
I went to the NDL website and i take it, it's the full and final template letter i need to send to them, and on reciept of confirmation by letter that the debt will be Full and Finally settled, other wise no payment will be made.
Thanks again.0 -
Hi
I am needing further advice please. I wrote to Lowell asking for confirmation as to the debt not being stillchased after payment has been made. But they have only come back again saying virtually the same as the original letter. and i quote from Lowell
We have noted the contents of your letter and we can confirm that we're willing to accept the discount offer of £1,xxxx, as settlement of the balance, which is a discount of 90%.
If you choose to accept this offer any default will show as partially satisfied on your credit file. This tells potential lenders that you've made an arrange ment to ssettle your debts for less than the full amount.This may affect your credit score. If you pay by installments (they offered 3) thediscount is applied on the final installment.
What i still have concerns about is i asked them to confirm in the letter i sent to them.stating the following !
"I am accepting this offer on the clear understanding that neither you nor any associate company will take any other action to collect or enforce this debt in any way and that I will be released from any liability".
They have not done so.
Any advice is appreciated.1 -
To be fair, Lowell tend to do what they say they will, they don`t sell on their debts, or partial debts, so I would say you will be ok.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter1
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Thank you for the help @sourcrates ., It's appreciated.0
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