lowell portfolio nearing statutory default
sw321
Posts: 2 Newbie
Hi, this may be long winded so please bare with me..
I took out a Lloyds TSB credit card at 18, (Still in collage, no job) with a £1000 limit. It had PPI and I'm sure I was told on the phone that if the card was used responsibly over a year the balance would be reduced to zero which never happened, but I don't have any paperwork to say this was miss sold and know it will be near impossible to prove.
Anyways, I did max out the card (due to no job) and subsequently did not keep up with payments leaving it to be passed on from debt collector to debt collector over time with my head in the sand.
Some years later, I'm now looking to improve my credit situation. The issue I have today is;
The last default date on my credit file says this to be in 25th October 2012, nearly 6 years for it to become "Statutory Default" which has been why I have been ignoring it. However, Lowell, who have had the debt for sometime, are now starting to sound more serious with talk of court action, which with a CCJ would impact me for another 6 years.
My questions (eventually,)
Is there a way to prolong their threatening for a couple of month so that a court would not entertain an old debt?
If I do have to pay it (would rater not, but unwillingly willing) what would be the best way as to then keep it off, or improve my credit score? Enter into a payment plan, pay the court ETC?
Thanks if you read this far, and really hope someone can help.
I took out a Lloyds TSB credit card at 18, (Still in collage, no job) with a £1000 limit. It had PPI and I'm sure I was told on the phone that if the card was used responsibly over a year the balance would be reduced to zero which never happened, but I don't have any paperwork to say this was miss sold and know it will be near impossible to prove.
Anyways, I did max out the card (due to no job) and subsequently did not keep up with payments leaving it to be passed on from debt collector to debt collector over time with my head in the sand.
Some years later, I'm now looking to improve my credit situation. The issue I have today is;
The last default date on my credit file says this to be in 25th October 2012, nearly 6 years for it to become "Statutory Default" which has been why I have been ignoring it. However, Lowell, who have had the debt for sometime, are now starting to sound more serious with talk of court action, which with a CCJ would impact me for another 6 years.
My questions (eventually,)
Is there a way to prolong their threatening for a couple of month so that a court would not entertain an old debt?
If I do have to pay it (would rater not, but unwillingly willing) what would be the best way as to then keep it off, or improve my credit score? Enter into a payment plan, pay the court ETC?
Thanks if you read this far, and really hope someone can help.
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Comments
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They will know that the SB date is coming up, so will apply for the CCJ before then if the sum is worthwhile. They won't fall for you pretending to looking for your cheque book.
The default will drop off 6 years from being applied, paid or not. Paying it will prevent the CCJ, which would then be on your files for another 6 years.
If you do get a CCJ, you would need to pay it in full within 30 days to have it set aside.
You don't have a credit score. Just credit history.0 -
Hi sw321 and welcome to the forum
You mention Lowell are starting to sound more serious about court action, have you received a letter before claim? This tells you they are considering court action and gives you a form that must be completed within 30 days. If you receive a letter before claim make sure you seek advice straight away as it is very important you respond. You can get this from one of the free debt advice agencies.
It's worth considering if Lowell could be out of time to collect the debt, this is when a debt is known as statute barred. This will apply if there has been 6 years (since court action could have been taken) where you have not made a payment towards the debt, acknowledged it in writing and court papers have not been issued.
The 6 year period starts from when court action could have been taken, i.e. after the first or second payment you missed on the credit card, not the date the default was registered on your credit file. If you think the debt is statute barred there is a sample letter you can send to Lowell. You can find more information about this here https://www.nationaldebtline.org/EW/factsheets/Pages/time-limits-for-recovering-debts/statute-barred-debt.aspx.
Best wishes
Susie
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
Hi Susie, Thanks for your reply. Checking my online statements, my last payment was Feb 2012, so would this be grounds to send them the sample letter on your site?
Thanks.0 -
Hi again sw321
From what you've said it sounds like the 6 year limitations period is going to start from either March or April 2012 (your first or second missed payment). If you are confident that have after that you never made another payment or acknowledged the debt in writing then you can send the statute barred sample letter.
The onus is then on Lowell to prove the debt is not statute barred. If they cannot do that they will have to stop pursuing you. The sample letter is also worded so that it does not acknowledge the debt is yours.
Good luck with it all
Susie
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
I thought Statute Barred started from the date it defaulted?0
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I thought Statute Barred started from the date it defaulted?
Hi Gary
This can cause some confusion but the 6 year limitation period starts running from the cause of action, that is the date court action can be taken to recover the debt. With a debt like a credit card that is usually after one or two missed payments. Any subsequent payment or written acknowledgement of the debt will restart the 6 year period, unless the debt is already statute barred.
Best wishes
Susie
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
I'd ignore this debt. It's already statute barred and the entry is about to drop off your credit file.
In the unlikely event of a court claim, defend it.
Actually, before they start one they must do a formal Pre-action letter with response form. If you get one of those, post here cos we can delay that for a couple of months.
If you get to October, send the SB letter and Lowell will roll over and agree with you.
If you send it now, you'll get into an argument with them.0
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