Help Please- Lowell Grp or Lloyds?

[szilvikee13]

Hi There,

Just wondering if anyone could help me with the issue/argument I am currently facing with Lowell and Llloyds over a debit card overdraft that's escalated to a £ 500 debt.

I opened 2 accounts with Llloyds in 2006 (one classic and one saving). I used both of them until 2007 when I moved abroad. The accs remained open. Unfortunately I didn't realise that I had membership with a company that renewed automatically (£20/yr) as well as insurance on my Ipod (£2.35/month). Because I left the accs open these transactions took my classic acc into minus and the accs became overdrawn. First only -11, then -14, -34 etc month by month until it spiralled to -500 with all their charges. The actual overdraft went up to £38, the rest is ther charges. I didn't actually use the acc, so i wasn't trying to buy things, I was simply careless and forgot about them direct debits.

Apparently Llyods contacted me that my acc is overdrawn but since I left the country they could not get in touch with me.

In 2010 I came back and made contact, gave them my new address. They sent me a thank you letter, nothing else.

Then I found out, just a few months ago that they sold my classic acc and the debt to Lowell in 2009. Their argument is that, in 2010 when I gave them my new address my classic acc was alreday sold, that's why they did not say anything about it. I think that is just not good enough though. Data retention is a regulatory requirement, they should have had this on file.

Now I am being bugged by Lowell to pay £500.

I'm not sure who I should make contact with. Shall I go back to Lowell and explain, although they are not very helpful and their interest is to get my money, or shall I contact Lloyds' debt recovery department since as far as I'm concerned I am their customer? Btw, the saving acc is still actively used by me, so I am their active customer. I am a little concerned and disappointed that my debt was sold like that to a non-regulated company, I still want to be 100% certain that I am dealing with an FSA regulated firm and that my consumer right will be protected, that is why I am reluctant to make contact with Lowell.

Who should answer questions such as, how I was contacted (if letter do they have proof?), I opted for online statements so why was I not contacted in email or through my online banking etc? They do have an obligation to notify customers of all charges. But do they have to prove that they tried? Yeah I wasn't living there when I tried, but in 2007 a letter is really the only way banks communicate, especially if I had online banking? What they are doing here may not be illegal but sure as hell is unethical. Do you think this is something worth challenging?

If anyone has any advice or can speak from experience I would be most grateful.

Thanks

[Celestine]

Re: Help Please- Lowell Grp or Lloyds?

Right, Lowell are a debt purchasing company, so it is now their debt (if it has been lawfully assigned).

However, the charges you have are bank charges and are not recoverable. Lloyds are highly unlikely to reduce the charges at all I'm afraid. This is a very common story with lloyds accounts.

So any negotiations will have to be with Lowell. They wont give a toss about your 'consumer rights' I'm afraid. They have a CCA licence from the OFT and although they have been reprimanded in the past for dodgy debt collection practises, they continue to treat 'debtors' with absolute disdain.
First tip: Do not call them unless you record the call.
Keep everything in writing.

Lowell will have paid between 10-20% of the value of your debt, so you can negotiate with them, either a lower full and final settlement or a payment plan.