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    • Laura327
    • By Laura327 8th Apr 18, 1:42 PM
    • 9Posts
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    Laura327
    Default confusion
    • #1
    • 8th Apr 18, 1:42 PM
    Default confusion 8th Apr 18 at 1:42 PM
    I have a default on my credit report from Lowell ( debt bought by them) the default was added 3 months ago and the default amount is £1750 however the actual balance is showing at £5100? Is this charges Lowell have added to the account since the default
    I donít understand why there are two different figures. Can anyone explain this to me please Iím hoping to start a dmp in the next few months
Page 1
    • nic_c
    • By nic_c 8th Apr 18, 4:24 PM
    • 1,709 Posts
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    nic_c
    • #2
    • 8th Apr 18, 4:24 PM
    • #2
    • 8th Apr 18, 4:24 PM
    It could be from a variety of sources. You don't say what type of debt, but usually a default is applied after you have defaulted on the agreement, e.g. missed few payments. You will get a default amount. The creditor may add fees in trying to recover the debt, this can include a debt collection agency working on their behalf. They could then sell it on and the new legal owner, usually another DCA.
    So it could be what Lowell have added, or what the original creditor incurred. Though a 200% increase in three months sounds a lot.
    • sourcrates
    • By sourcrates 8th Apr 18, 5:13 PM
    • 15,278 Posts
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    sourcrates
    • #3
    • 8th Apr 18, 5:13 PM
    • #3
    • 8th Apr 18, 5:13 PM
    Lowell do not add fee`s of any kind to debts they buy, in the same vein, creditors do not add debt collection fee`s either.

    They are not allowed too, unless the original contract says they can, 95% of simple contract debts do not allow this.

    Its pretty simple to explain those figures to you, I would say your total outstanding debt to them is £5100.

    The £1750 will be the amount of arrears on the account, at the time the account was bought.

    It will just be for information purposes, your total balance is still £5100.
    Last edited by sourcrates; 08-04-2018 at 5:16 PM.
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