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  • FIRST POST
    • murraynt
    • By murraynt 30th Jul 18, 9:38 PM
    • 6Posts
    • 0Thanks
    murraynt
    Sorting Orange/lowell Debt.
    • #1
    • 30th Jul 18, 9:38 PM
    Sorting Orange/lowell Debt. 30th Jul 18 at 9:38 PM
    Hello All.

    A little bit of background.

    I took out a phone contract whilst at uni in 2012 with orange. In the summer of 2013 I moved away from the UK for the summer and tried to pay my bill from another bank card as I closed the bank account I started the contract from. I contacted orange and tried to pay the bill but they refused and even put the phone down on me once.

    I should have been cooler at this point but because i was not able to pay my bill i left it until i returned to the UK in September 2013. Not a good idea.

    I tried again to pay my bill by going in store in September 2013, but this time they couldn't even find my account on their system. Apparently I didn't exist?

    I'm not try to bat this debt away. I was young and foolish and I should have paid more attention.

    Anyways. I didn't receive any bills through my door until this year ( 5 years later) when i bought a new phone through carphone warehouse.

    Now lowell are sending letters saying I owe 380 and are offering a 40% discount, which seems reasonable.


    I've now graduated uni and i am employed full time, I'm thinking of buying a house in the next 12-16 months and I'd like to have this debt settled sooner rather than later. (t might have damaged my credit score too much to get a mortgage?)

    What is the best way to pay this debt off? Do i simply call them and pay over the phone or should i get some written evidence that I have paid the debt off?

    I've seen some horror stories online of people paying their debts and lowell still chasing them.

    Any help would be appreciated!
Page 1
    • venison
    • By venison 30th Jul 18, 9:58 PM
    • 2,281 Posts
    • 2,461 Thanks
    venison
    • #2
    • 30th Jul 18, 9:58 PM
    • #2
    • 30th Jul 18, 9:58 PM
    Firstly you don't have a credit "score" its a fictional number, if you are happy with the 40% discount offer then do it all in writing making them confirm its a "full and final settlement"
    Then when the time comes the effect of this debt will be wearing off.
    Former Board Guide
    • sourcrates
    • By sourcrates 30th Jul 18, 10:21 PM
    • 14,866 Posts
    • 13,952 Thanks
    sourcrates
    • #3
    • 30th Jul 18, 10:21 PM
    • #3
    • 30th Jul 18, 10:21 PM
    You can pay Lowell through there website, or by online banking, they offer a number of ways to pay your account, even in instalments with the 40% discount applied.

    Despite what you might read, they are one of the more compliant debt purchase companies.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • murraynt
    • By murraynt 31st Jul 18, 7:02 AM
    • 6 Posts
    • 0 Thanks
    murraynt
    • #4
    • 31st Jul 18, 7:02 AM
    • #4
    • 31st Jul 18, 7:02 AM
    Firstly you don't have a credit "score" its a fictional number, if you are happy with the 40% discount offer then do it all in writing making them confirm its a "full and final settlement"
    Then when the time comes the effect of this debt will be wearing off.
    Originally posted by venison
    You can pay Lowell through there website, or by online banking, they offer a number of ways to pay your account, even in instalments with the 40% discount applied.

    Despite what you might read, they are one of the more compliant debt purchase companies.
    Originally posted by sourcrates
    Thank you for your replies.

    It's good to hear that they are one of the more reputable companies.

    Venison, you said "Then when the time comes the effect of this debt will be wearing off." Could you explain this a little more to me? is there a certain amount of time after I pay my debt that it will show?
    • Willing2Learn
    • By Willing2Learn 31st Jul 18, 7:14 AM
    • 738 Posts
    • 578 Thanks
    Willing2Learn
    • #5
    • 31st Jul 18, 7:14 AM
    • #5
    • 31st Jul 18, 7:14 AM
    The default will remain on your credit report for six years from the date of default.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • murraynt
    • By murraynt 31st Jul 18, 7:28 AM
    • 6 Posts
    • 0 Thanks
    murraynt
    • #6
    • 31st Jul 18, 7:28 AM
    • #6
    • 31st Jul 18, 7:28 AM
    The default will remain on your credit report for six years from the date of default.
    Originally posted by Willing2Learn
    Thank you Willing2learn.

    I have register with Lowell online. When i look at what i have left to pay I am given two options. Options 1 is a discounted balance option 2 is the full balance.

    The website says if i use the discounted balance it will show up on my credit balance as "partially satisfied" instead of "Fully Satisfied"

    Note: If this account is on your credit file and you opt to pay the 'Discounted Balance' your credit file will be updated to show as 'Partially Satisfied' once your payment plan is successfully completed. If you choose to pay the Full Balance your credit file will be updated to show as 'Satisfied'. It may take up to 50 days for your credit file to be updated.
    Should I go with the full balance in that case?
    • Willing2Learn
    • By Willing2Learn 31st Jul 18, 7:34 AM
    • 738 Posts
    • 578 Thanks
    Willing2Learn
    • #7
    • 31st Jul 18, 7:34 AM
    • #7
    • 31st Jul 18, 7:34 AM
    Whether partially or fully satisfied - the difference is probably marginal. The default itself is the bit on the credit report that really damages your credit score when assessed by potential lenders.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • murraynt
    • By murraynt 31st Jul 18, 9:35 AM
    • 6 Posts
    • 0 Thanks
    murraynt
    • #8
    • 31st Jul 18, 9:35 AM
    • #8
    • 31st Jul 18, 9:35 AM
    Whether partially or fully satisfied - the difference is probably marginal. The default itself is the bit on the credit report that really damages your credit score when assessed by potential lenders.
    Originally posted by Willing2Learn
    Ok. Thank you for your help. I will pay it off tonight.
  • National Debtline
    • #9
    • 31st Jul 18, 10:03 AM
    • #9
    • 31st Jul 18, 10:03 AM
    Hi Murray


    Have you checked your credit file to see if this debt is recorded, and if so what it is showing? There are 3 credit reference agencies and they can hold different information so it's worth checking all of them. You can request a free statutory report, or use these associated websites to also access it for free:


    www.noddle.com.uk
    www.clearscore.com
    www.moneysavingexpert.com/creditclub


    As mentioned above, the debt will be removed from your credit file 6 years after the date of the default (assuming one has been registered). That's regardless of whether you fully or partially settle the debt.


    It's very important to have details of the full & final settlement confirmed in writing before making a payment. That way if you are ever pursued again in the future you have evidence that they agreed they would not pursue you for the remaining balance of the debt. You can find more information on this here https://www.nationaldebtline.org/EW/factsheets/Pages/fullandfinalsettlementoffers/lumpsumoffers.aspx.


    Best wishes


    Susie
    @natdebtline
    We 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 Steps
    • murraynt
    • By murraynt 31st Jul 18, 10:37 AM
    • 6 Posts
    • 0 Thanks
    murraynt
    Thanks for your reply Susie.

    I've tried to access my credit file with experian and clearscore but neither sites could find me. I've re registered on the electoral role so I will try again next week.

    Thanks for your advice. Would an email chain suffice or should it be a posted letter?
  • National Debtline
    Hi again Murray


    Written confirmation for the full & final settlement is ok by email or letter. However make sure it is clear who the email is from and always keep a copy for your records, should you be pursued in the future. I hope it all goes well.


    Susie
    @natdebtline
    We 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 Steps
    • murraynt
    • By murraynt 6th Aug 18, 9:27 AM
    • 6 Posts
    • 0 Thanks
    murraynt
    I have just received this reply.

    Once the discounted balance has been paid, your account will close with a zero balance.



    The discount only applies if you keep to the agreed arrangement. If your account is being reported to the credit reference agencies we will mark any default as !!!8220;partially satisfied!!!8221; when paid to show a discount was accepted.



    To take up the discount, let me know how you intend to clear the discounted balance, including:



    How you!!!8217;ll pay (e.g. in full or in instalments).
    The frequency of payments (weekly, fortnightly, four weekly or monthly).
    The date of your first payment.
    What method of payment you wish to use.
    Your bank account number and sort code (for Direct Debit payments).
    Your name as it appears on your bank account / debit card.


    Many of our customers choose to pay by Direct Debit. I can set this up for you if you provide the details outlined above.



    I!!!8217;ve put your account on hold for 14 days to allow time for you to get back to us.



    If you!!!8217;re worried about your debt you can get free confidential advice from a number of independent organisations including:
    • sourcrates
    • By sourcrates 6th Aug 18, 11:48 AM
    • 14,866 Posts
    • 13,952 Thanks
    sourcrates
    Yes........all looks ok to me.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
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