Lowells - Credit Agreement Request

[tomflurbs]

Hello, I have a debt with Lloyds which was for an overdraft on an account that has now been closed. Lowell is currently chasing and I've decided to confront it (after three years of dodging the bullet). They sent me a "letter" from Lloyds saying they had handed over the debt to Lowell (even though it was very dodgy and had the same references and markings as the Lowell Letter) I then duly sent off a CCA request and my postal order. I've had a letter back today saying the following and im a bit confused "the account relates to a bank account that you held with Lloyds. We would advise you, however, that a bank overdraft is a running credit account and is such exempt from Part V of the CCA 1974 relating to the form and content of regulated agreements. There is, therefore, no statutory requirement to enter into a credit agreement for the overdraft. We have requested statements from the original creditor to show how the outstanding balance was accrued. These will be forwarded to you upon receipt. When Lowell Portfolio purchases a debt from a client we issue a letter of assignment to the customer which fulfils the legal obligations under the law of property. This letter was sent to you. We would not normally issue a specific deed of assignment unless the matter had progressed to court action (not sure if this bit is in there just to scare me but if anyone could explain that would be great) Please be assured your account is on hold until which point we are in receipt of your statements" I get that its on hold but my questions are 1) Once I get these "statements" is the debt legally enforceable 2)can anyone explain the second part about the deeds and C) Can they legally and actually get a hold of my personal bank statements? seems against data protection or does that not exist once the account goes into debt? Any help would really really be appreciated. Apologies to the whole bit of text im not sure how you goto another line? Return doesn't work. Thanks in advance....the confused!

[FlamingParrot]

Re: Lowells - Credit Agreement Request

Hello, I have a debt with Lloyds which was for an overdraft on an account that has now been closed. Lowell is currently chasing and I've decided to confront it (after three years of dodging the bullet). They sent me a "letter" from Lloyds saying they had handed over the debt to Lowell (even though it was very dodgy and had the same references and markings as the Lowell Letter) I then duly sent off a CCA request and my postal order. I've had a letter back today saying the following and im a bit confused "the account relates to a bank account that you held with Lloyds. We would advise you, however, that a bank overdraft is a running credit account and is such exempt from Part V of the CCA 1974 relating to the form and content of regulated agreements. There is, therefore, no statutory requirement to enter into a credit agreement for the overdraft. We have requested statements from the original creditor to show how the outstanding balance was accrued. These will be forwarded to you upon receipt.

This is correct, an overdraft is a facility attached to a current account so you wouldn't have signed a separate credit agreement for it as you would for a loan or a credit card. The standard CCA request would not apply.

When Lowell Portfolio purchases a debt from a client we issue a letter of assignment to the customer which fulfils the legal obligations under the law of property. This letter was sent to you. We would not normally issue a specific deed of assignment unless the matter had progressed to court action (not sure if this bit is in there just to scare me but if anyone could explain that would be great) Please be assured your account is on hold until which point we are in receipt of your statements" I get that its on hold but my questions are 1) Once I get these "statements" is the debt legally enforceable

They have a duty to provide information with regards to an overdraft, hence the statements. You may have arguments to challenge the account but without knowing any details, it's hard to tell. It all depends on whether you had an arranged O/D facility in the first place, whether you were allowed to exceed it, charges applied, etc. :confused2: But being an O/D, you can't argue unenforceability on the basis of lack of a properly executed agreement or non-compliance with s.77-79 request as you would with a card or loan.

2)can anyone explain the second part about the deeds

When a debt is sold, the debtor should receive a notice of assignment, it sounds like you have received it, but you wouldn't normally receive the actual deed of assignment. They are saying they would be willing to supply the deeds if they took you to court, to prove legal ownership of the debt. That doesn't mean they are taking you to court. :nono:

and C) Can they legally and actually get a hold of my personal bank statements? seems against data protection or does that not exist once the account goes into debt? Any help would really really be appreciated. Apologies to the whole bit of text im not sure how you goto another line? Return doesn't work. Thanks in advance....the confused!

As you yourself have requested them, it wouldn't be a breach of the DPA to obtain your statements to satisfy your request and they are the new owners of the account. It would be a breach if they disclosed your statements to an unauthorised third party but not to yourself.

[Trixie Pixie]

Re: Lowells - Credit Agreement Request

Hi Tom,

I cant answer all your questions but I can tell you my experience with an overdraft. I had an O/D with a bank account I had had for over 25 years and they sold it on to Cabot. Cabot said the same thing about the CCA and O/D being such exempt from Part V of the CCA 1974, blah blah... But, before I could do anything Cabot had a County Court Claim thrown at me and I had to settle part of the monies.

Did you send the CCA to Lowell? Have you had a Letter of Assignment from Lowell to say they have bought the account, or a letter from your bank to say the account has been assigned to Lowell? They can only get hold of your bank statements if the debt has been assigned? or as the DCA requested by your bank to act for them. Lowell would then have to request your statements from Lloyds. In my experience I thought it would then be Lloyds that sent the bank statements to you! (?)

What I do know about Lowell as I have learnt this week is that they dont play fair, normally go straight for Statutory Demands or other ways to scare people into paying, harass them with calls and basically lie!

I am sure someone more experience will come along shortly to help you with the legal side of the O/D.

[Celestine]

Re: Lowells - Credit Agreement Request

Lowell are a debt purchaser and will have bought the debt outright from Lloyds for a fraction of its face value, but can/will enforce the whole amount. Lloyds will have now written your debt off and gained tax relief from it. Nice system huh?

As FP explained a CCA request is pretty pointless on an old overdraft, therefore it is quite likely you will need to address this debt.

However, you can only pay what you can actually afford. If however, you can offer a lump sum partial settlement, they will be highly likely to rip your arm off. Start as low as 20% and haggle!

Keep an eye on your credit file. When was the original Lloyds default date? Make sure Lowell don't add anything themselves.

[tomflurbs]

Re: Lowells - Credit Agreement Request

Lowell are a debt purchaser and will have bought the debt outright from Lloyds for a fraction of its face value, but can/will enforce the whole amount. Lloyds will have now written your debt off and gained tax relief from it. Nice system huh?

As FP explained a CCA request is pretty pointless on an old overdraft, therefore it is quite likely you will need to address this debt.

However, you can only pay what you can actually afford. If however, you can offer a lump sum partial settlement, they will be highly likely to rip your arm off. Start as low as 20% and haggle!

Keep an eye on your credit file. When was the original Lloyds default date? Make sure Lowell don't add anything themselves.

They have put the account on hold which buys me sometime to save to pay it. However do they need to provide the statements to proceed? I don't want them turning round demanding the money when I haven't had full statements if what I'm paying for

Thanks for the help so far. This website really is a shining light in what can be a dark world

[CleverClogs]

Re: Lowells - Credit Agreement Request

Tom or Trixie, was the overdraft more than or less than £750?

Do you rent or own your home?

[tomflurbs]

Re: Lowells - Credit Agreement Request

Tom or Trixie, was the overdraft more than or less than £750?

Do you rent or own your home?

It was about two grand and no I rent. It was a student overdraft and I requested it be upped to this amount


I just want to know if they can enforce this without sending the statements? The account is on hold but I don't want that to change if I don't get a copy of the statements I'm not paying it, but is that stance legally right?

thanks

Tom

[CleverClogs]

Re: Lowells - Credit Agreement Request

As you rent, the low-lifes at Lowells are less likely to try sending you a Statutory Demand or even trying to make you bankrupt.

As for your legal stance, I rather doubt that it would satisfy a court.

[FlamingParrot]

Re: Lowells - Credit Agreement Request

As you rent, the low-lifes at Lowells are less likely to try sending you a Statutory Demand or even trying to make you bankrupt.

As for your legal stance, I rather doubt that it would satisfy a court.

Being an overdraft and not subject to a CCA request, probably not, however, Cel above has suggested making a low F&F offer. :thumb:

[MIKE770]

Re: Lowells - Credit Agreement Request

Did the £750 figure go up recently to £1,000?