Lowell chasing an account that defaulted 5yrs & 5mth ago

[Beakybodkin]

Hello there people,

I am increasingly worried as i seem to be getting 3 phonecalls per day and letters requested that i pay for an old debt (that is mine, i may add). The Santander account toŁ722.00, defaulted back on 29/08/2008 and was passed to Lowell in November 2013.

With the default almost coming up to it's 6th year, i was wondering do i pay or not?

Do i contact them and set up a payment plan OR do i continue to ignore phonecalls, voice messages and letters (now passed to Red - debt collectors this week), in the hope that the default will be wiped from my credit file on the 29/08/2014? Would doing this incur any further setbacks such as the default becoming a CCJ on my credit report?

Expert advice would be very much appreciated.

Kind regards,
Beakybodkin

[Amethyst]

Re: Lowell chasing an account that defaulted 5yrs & 5mth ago

Red is part of Lowell so I wouldn't worry too much about the change.

The only way the default would become a CCJ is if Lowell took court action against you (and I wouldn't discount them doing that they are rather claim happy at the moment, particularly on claims coming up to Statute Barred date) AND you lost / admitted and didn't pay within 1 month.

It's a bit of a game of chess at this stage, if they do sent you a formal letter before court action then you should reply asking for more information on the debt whilst no acknowledging the debt, which might enable you to sort a settlement before they take it to court. If they took it to court then you could defend or negotiate with them for settlement to avoid getting the CCJ put on your file for 6 more years, but for now I'd keep shtum but expect a pre action letter before August.

[Beakybodkin]

Re: Lowell chasing an account that defaulted 5yrs & 5mth ago

Somehow i don't think they're going away! phonecall after phonecall (missed) plus texts too. I don't think theyre going to roll over and forget about me and the account from now until the 6 years deadline is up end of August are they?? :mad2:

[Amethyst]

Re: Lowell chasing an account that defaulted 5yrs & 5mth ago

It is unlikely they'll just go away and if you can and want to deal with it, and want to avoid the risk of it going back on to your files as a CCJ, you could contact them to set up a payment plan or a reduced settlement. Lowells do take these to court, as you've seen, particularly ones that are coming up to becoming statute barred.

[Beakybodkin]

Re: Lowell chasing an account that defaulted 5yrs & 5mth ago

Thanks again Amethyst. They are also chasing me for another debt of Ł211 but this letter is being sent through for me to my parents house. Should i acknowlege this one too? Apart from that, i'm waiting till end of this year and then my finances will be (hopefully) back on track. Thanks for your replies.

[Beakybodkin]

Re: Lowell chasing an account that defaulted 5yrs & 5mth ago

I may contact them later today on theor website and set up an arrangement to pay. If i do set up an agreement to pay over so many months. Do I continue to pay when it reaches its statute Barred date? Thanks.

[wales01man]

Re: Lowell chasing an account that defaulted 5yrs & 5mth ago

YES Wait for some advice on here FIRST

[Amethyst]

Re: Lowell chasing an account that defaulted 5yrs & 5mth ago

Once you contact them and start payments then statute barred is out the window for another 6 years after you stop paying, so it would be a case of accepting the debt and making payments until it is cleared off. If you want to avoid court action and possibility of getting a CCJ then negotiating arrangements with Lowell is the best way to do that. If you can do any lump sum payments you could probably get a 40% reduction with some negotiation but if low installment payments it is likely to have to be for the full amount.

We know Lowell DO take court action and do act on debts that are coming up to being statute barred and you have another 5 or 6 months before you reach that stage. You can go back at the point they send a letter before action or submit a court claim and negotiate then, so it is entirely up to you and whether you want to wait it out and hope or get it sorted and out of your hair now.

[Beakybodkin]

Re: Lowell chasing an account that defaulted 5yrs & 5mth ago

Thanks again.
Is this correct - If i arrange to make payments and clear the debt, then this will stay on my credit report for another 6 years but will say settled from the date the final payment will be made? This just doesn't seem fair, seeing as though i've had this on my file for almost 5 1/2 years already! I think i'll hang on for now, save money and then negotiate later for a reduced amount and pay it off before it goes to court action and getting a CCJ.

Thanks for the advice again.

[wales01man]

Re: Lowell chasing an account that defaulted 5yrs & 5mth ago

Problem is as always the 6 year rule nothing is fair in the world of DCAs so it seems.

[Amethyst]

Re: Lowell chasing an account that defaulted 5yrs & 5mth ago

Thanks again.
Is this correct - If i arrange to make payments and clear the debt, then this will stay on my credit report for another 6 years but will say settled from the date the final payment will be made? This just doesn't seem fair, seeing as though i've had this on my file for almost 5 1/2 years already!

Thanks for the advice again.

It shouldn't be re-entered onto your credit file if you negotiate an arrangement. If you got a CCJ it would be on your file for a further 6 years from the date of judgment.

I think i'll hang on for now, save money and then negotiate later for a reduced amount and pay it off before it goes to court action and getting a CCJ.

I think that's a good idea, knowing Lowells it probably will go towards court action but you should be able to negotiate out of getting a CCJ - they will have to supply documents to take you to court so you can ask them for those under the civil procedure rules. If they do send a letter before action then it is a good idea to respond at that point to ask for the relevant information, so post up if/when that happens.

[Beakybodkin]

Re: Lowell chasing an account that defaulted 5yrs & 5mth ago

Hi Amethyst,
This is the latest letter, rec'd yesterday. What shall i do from here? Please advise, your experience is very much appreciated.

Dear Sir

Overdue account
After repeated requests for payment, Red Debt Collection Services have instructed us to pursue you for the overdue balance on your Lowell Portfolio I Ltd Account.

You are contractually responsible for paying the debt. Unless you send payment to us or Red Debt Collection Services immediately, we may prepare for more serious action, which could include applying for a county court Judgment (CCJ) against you.

Once legal proceedings have begun, we may be able to claim the money you owe together with :
. The interest accrued on your overdue account.
. Legal costs of recovering the money you owe.

If we are granted a CCJ you could face the following consequences.

1. Any CCJ against you will be recorded at the Register of County Court Judgments and remain there for up to 6 years.
2. We may apply to enforce the Judgment for example by using bailiffs or applying to recover the money you owe by making deductions directly from your earnings.
3. Failure to repay your debts may have an impact on your ability to obtain credit in the future or the terms on which credit is available to you. Lenders will look at how you have repaid your debts in the past before the decide to grant further borrowing.

If you do not contact us or arrange payment we may begin proceedings. You can set up a direct debit on line go to www,lowell,co,uk.

Call us on 0113 394 6317 to agree repayment and prevent this.

Thanks











.

[ODC]

Re: Lowell chasing an account that defaulted 5yrs & 5mth ago

Standard letter. Wait for the next one. Get a CCA letter off if this is for a credit account

[Amethyst]

Re: Lowell chasing an account that defaulted 5yrs & 5mth ago

Is that letter from Hamptons ? It is a standard letter - you will probably get another with a deadline for response in which will be a letter before action - let us know when you receive that and we'll help you reply - you can negotiate with them at that point on making a settlement. It is unlikely you will reach Stat Barred with this I'm afraid. Do you have any dispute on the amount they are claiming ?

It sounds like, from what you said previously, this is from an overdraft, in which case (sorry ODC) a CCA request is of no effect.

[ODC]

Re: Lowell chasing an account that defaulted 5yrs & 5mth ago

It sounds like, from what you said previously, this is from an overdraft, in which case (sorry ODC) a CCA request is of no effect.

I did say IF it was a Credit Account. It's not actually clear fro the post