Lowell pre legal assessment

[Guest]

Hello. Hoping somebody can help. Received a pre legal assessment letter from Lowell last week (I think it's the second one, this time offering 40% off "before we decide whether to take legal action") regarding an old utility bill from a previous address. My question is what is the last step I can leave it until they can send a court claim possibly leading to CCJ? I don't really want to address any letter from them until I really have to.. Is a pre assessment letter one step before court claim/letter before action? It's only around 4.5 years since I left that property, so still some time before 6 years is up..

If I were to pay at 40% off and not the full amount, it says the account will be partially satisfied. Does this have a negative effect on rating, more so than if I were to pay in full?


Any help much appreciated.

[Celestine]

Yes, this usually means the next stage is a pre action letter before a court claim. Lowell are fairly active on that front, but we haven't had any recent claims due to Covid19.
A partial settlement will show on your credit file but a lot less problematic than a CCJ. What does your file say currently regarding this account.

[ComfySocks]

Thank you for the reply. Does this mean that I still have another step/opportunity to resolve after this 'pre legal assessment' letter, before court proceedings are started?

If the full debt is paid, does it not show on the credit file at all? As opposed if I pay the discounted amount.

I'm not sure of what the file currently says. Never checked before as a bit weary of others complaining of getting all kinds of calls after doing so..

Apologies, very green in this area..

[Celestine]

Morning - It would be helpful to check your credit file to see if anything is showing on there. Utility bills are not usually recorded to your credit file because they are not actual credit.
However, court action to recover the debt could result in CCJ which would have a major impact.
A hefty discount on a utility bill is therefore quite tempting, does it have an expiry of offer date? Yes you will have a further opportunity for settlement, you may receive a pre-action letter next, but that would be for the full amount.

[ComfySocks]

Thank you.

That's interesting.. so wouldn't matter whether the full amount or discounted amount was paid, in terms of how it looks on the credit file? The discount date has passed but the post was late so had already passed anyway.
If it does already show on the file then paying the full amount is the better option? How much would paying the partially satisfied amount effect the credit rating, in general?

[Celestine]

Probably not a lot of difference between a partial or full settlement, in fact I'm not even sure if any of it will show at all on your file given it is a utility bill.

[MIKE770]

some utility companies have reported on CRAs for a few years now British Gas etc etc

[Celestine]

I was reading how on Experian you can 'request!' your utility data be included to 'improve your rating'...….!

The OP really does need to check their file to see whether anything is showing. If there is, then a full settlement would repair faster.

[MIKE770]

agreed

[ComfySocks]

Thanks both. Where is best to check? It's actually under my partner's name and they are not keen to address the issue so I'm trying to do a bit of research..
if I were to pay it on their behalf, does it look bad in future, say if I were to try to get a mortgage and lender check bank records (I understand it's quite a thorough process) that there is a payment made to Lowell's?

[ComfySocks]

Also, is it marked on your file (if there) for six years from the time you default, or does it stay there for six years from when you make the payment and satisfy/partially satisfy? Thanks!

[ComfySocks]

Probably wrong terminology there. Perhaps 'was marked unpaid' than defaulted?
Couldn't figure out how to edit post, sorry

[Celestine]

Thanks both. Where is best to check? It's actually under my partner's name and they are not keen to address the issue so I'm trying to do a bit of research..
if I were to pay it on their behalf, does it look bad in future, say if I were to try to get a mortgage and lender check bank records (I understand it's quite a thorough process) that there is a payment made to Lowell's?

No - you making a payment to settle a partners debt will not affect your ability to get a mortgage in future. When making such an application it is usual for the mortgage company to want to see 3 months of most recent bank statements to evidence wage payments being received and expenditure going out.
All the Credit Reference Agencies are pretty much the same these days. Just make sure you don't get caught up in a paid access, free access is all you need.

[Celestine]

Also, is it marked on your file (if there) for six years from the time you default, or does it stay there for six years from when you make the payment and satisfy/partially satisfy? Thanks!

Six years from default.
Then a further 6 years of CCJ if the creditor succeeds in a claim.

[ComfySocks]

Thank you so much, Celestine. I very much appreciated all your help and advice. I feel a little less stressed about the situation!