Lowell Debt Collector Letters Misleading!

[wales01man]

Re: Lowell Debt Collector Letters Misleading!

A debt on a CRA should be marked as Satisfied when paid off Staying for 6 years is a detterent for debtors to not get into debt!

By removing all mention of a debt from a file after someone bothers to clears it would make a nonsense of the effect of a debt filed .
Only if the file is wrong should the CRAs remove it this seems to be the problem in many cases

[OliverJames]

Re: Lowell Debt Collector Letters Misleading!

Ok great, thanks for the advice. I have no problem clearing the debt, just want to make sure I'm not playing into their hands by doing so, and not going to come unstuck by paying off the reduced amount.

Thanks again

[Nibbler]

Re: Lowell Debt Collector Letters Misleading!

It's up to you. They are obliged to mark it as at least a partial settlement with any outstanding balance cleared, no matter what any ignorant little twit may claim on the phone. If they didn't you could complain and have it corrected.

[OliverJames]

Re: Lowell Debt Collector Letters Misleading!

No, they wouldn't accept the credit card i wanted to transfer the balance on to. Not such a bad thing as i wanted to get some 3rd party advise before moving forward, as it may be worth me clearing the entire debt and having no more comeback from it?

[Nibbler]

Re: Lowell Debt Collector Letters Misleading!

So it's not the letter that is misleading, but the staff you spoke to on the phone.

What they are probably referring to is it being marked with a partial settlement flag.

That is per ICO guidelines.

http://www.scoronline.co.uk/files/sc...ment_final.pdf

Your record should be closed and marked as partially settled if:

• The lender accepts final settlement of the account for less than the balance outstanding
• Your account is included in an insolvency such as a bankruptcy or IVA which is discharged / completed and less than the full amount is paid

Would still show that the debt had been paid off or 'cleared', but just that you did it by paying less than the full amount. Any remaining balance, if shown at all, should be zeroed.

In the end most of Lowells staff are barely trained, and are just repeating a script and using terms they have no real knowledge of. That applies to their managers as well.

So have you paid this now or not?

[OliverJames]

Re: Lowell Debt Collector Letters Misleading!

My natural understanding of 'clearing a debt' would be that means it would be 'paid off' and the creditor would agree that no more was owed. i.e it would be settled.

I certainly would not think it meant that it would be removed in it's entirety from my credit files, but would just expect it to be marked on them that it had been settled/satisfied.

To be honest I can't see the authorities or ombudsman looking at it any other way either.

That is without seeing the letter though.

Thanks for the quick response.

During the conversation they advised me that the debt wouldn't be shown as cleared, just a balance paid (if that's the right terminology). That said, i understand it not being removed from my credit report, but by me paying off the balance (not called balance in the letter) i would expect it to show to future lenders as a ZERO balance, and if possible i would then be able to get it removed down the line.

I just feel that they were misleading with their letter, but maybe I am looking too deeply in to it and being a little too defensive because they were so rude on the call.

Thanks again

[Nibbler]

Re: Lowell Debt Collector Letters Misleading!

My natural understanding of 'clearing a debt' would be that means it would be 'paid off' and the creditor would agree that no more was owed. i.e it would be settled.

I certainly would not think it meant that it would be removed in it's entirety from my credit files, but would just expect it to be marked on them that it had been settled/satisfied.

To be honest I can't see the authorities or ombudsman looking at it any other way either.

That is without seeing the letter though.