Lowell chasing O2 debt

[lolavix]

Afternoon all, wonder if anyone can help me with this please...

I'm trying to sort out my boyfriend's finances as we will be looking at a mortgage in a few years - checked his credit file and he has a default from 3 last year which needs to be paid off, however on going through his post I have come across letters from Lowell chasing an O2 debt.

I have spoken to the boyfriend and he is adamant that his contract had finished with O2 in 2013 (not entirely sure I believe this knowing how disorganised he is but hey ho) and that he didn't owe them anything.

I have come across emails from Lowell stating that he owes £166, and later emails saying they would accept £83. They are still emailing weekly so I can't see them giving up any time soon.

I have no issues with getting this paid off, but there is currently no record of any O2 debt or Lowell debt on his credit file. My worry is that by acknowledging their contact and paying off the debt - they will add a default to his credit file. Or will this happen anyway? I would have thought it would be showing already as a debt collection agency is involved.

If we do pay off the debt, will it still show as settled if we pay at 50% And should we pay at all?

Any help would be greatly appreciated, I only have experience of getting a default removed when it was in error however these are perfectly valid, I just need to minimise the impact it has on his credit rating for a mortgage application!

[FlamingParrot]

Re: Lowell chasing O2 debt

Welcome aboard

I'm trying to sort out my boyfriend's finances as we will be looking at a mortgage in a few years - checked his credit file and he has a default from 3 last year which needs to be paid off, however on going through his post I have come across letters from Lowell chasing an O2 debt.

Unfortunately even if the default is paid off, it will still remain on file, only it will show as 'satisfied' or 'settled'.

I have spoken to the boyfriend and he is adamant that his contract had finished with O2 in 2013 (not entirely sure I believe this knowing how disorganised he is but hey ho) and that he didn't owe them anything.

I have come across emails from Lowell stating that he owes £166, and later emails saying they would accept £83. They are still emailing weekly so I can't see them giving up any time soon.

I have no issues with getting this paid off, but there is currently no record of any O2 debt or Lowell debt on his credit file. My worry is that by acknowledging their contact and paying off the debt - they will add a default to his credit file. Or will this happen anyway? I would have thought it would be showing already as a debt collection agency is involved.
If we do pay off the debt, will it still show as settled if we pay at 50% And should we pay at all?

Before paying anything, I'd send Lowell a prove it letter such as this one (amend to suit): http://www.legalbeagles.info/forums/...835#post478835

Any help would be greatly appreciated, I only have experience of getting a default removed when it was in error however these are perfectly valid, I just need to minimise the impact it has on his credit rating for a mortgage application!

Indeed, defaults can only be removed if they were recorded in error, however, going by the above, it looks like there's only one default and the other alleged debt is not showing up at all.

I'd send the letter and wait for a response from Lowell before paying anything to them.

[FlamingParrot]

Re: Lowell chasing O2 debt

Welcome aboard

I'm trying to sort out my boyfriend's finances as we will be looking at a mortgage in a few years - checked his credit file and he has a default from 3 last year which needs to be paid off, however on going through his post I have come across letters from Lowell chasing an O2 debt.

Unfortunately even if the default is paid off, it will still remain on file, only it will show as 'satisfied' or 'settled'.

I have spoken to the boyfriend and he is adamant that his contract had finished with O2 in 2013 (not entirely sure I believe this knowing how disorganised he is but hey ho) and that he didn't owe them anything.

I have come across emails from Lowell stating that he owes £166, and later emails saying they would accept £83. They are still emailing weekly so I can't see them giving up any time soon.

I have no issues with getting this paid off, but there is currently no record of any O2 debt or Lowell debt on his credit file. My worry is that by acknowledging their contact and paying off the debt - they will add a default to his credit file. Or will this happen anyway? I would have thought it would be showing already as a debt collection agency is involved.
If we do pay off the debt, will it still show as settled if we pay at 50% And should we pay at all?

Before paying anything, I'd send Lowell a prove it letter such as this one (amend to suit): http://www.legalbeagles.info/forums/...835#post478835

Any help would be greatly appreciated, I only have experience of getting a default removed when it was in error however these are perfectly valid, I just need to minimise the impact it has on his credit rating for a mortgage application!

Indeed, defaults can only be removed if they were recorded in error, however, going by the above, it looks like there's only one default and the other alleged debt is not showing up at all.

I'd send the letter and wait for a response from Lowell before paying anything to them.

[lolavix]

Re: Lowell chasing O2 debt

Thanks for taking the time to reply FlamingParrot

I was reluctant to send a letter to Lowell incase another default suddenly appeared. Worst case it is then recorded on his file, would it have to be backdated to when the debt was actually unpaid?

I'll send them a letter and see how we get on.

The 3 default is entirely his fault however we should still be able to get a mortgage with one settled default - 2 is a lot more unlikely though

[nemesis45]

Re: Lowell chasing O2 debt

Lowell Cannot place a new default!
All it can do is up date the original entry with its details, the Default Date Must Remain the Same.

I serious doubt that a satisfied default will influence a mortgage provider in any positive way.

Mortgage lenders as we see so often in the media are extremely cautious, the latest " questionnaires " are very intrusive in regard to credit history of applicants, any defaults in the last 5 years will have a negative effect, he will be asked about this when applying.
Lenders look for at least 3 years of good++ credit management and some up to 6 years.

nem

[lolavix]

Re: Lowell chasing O2 debt

Lowell Cannot place a new default!
All it can do is up date the original entry with its details, the Default Date Must Remain the Same.

I serious doubt that a satisfied default will influence a mortgage provider in any positive way.

nem

Thanks nem

I am worried about them actually registering a default - there is no record of the O2 debt or any default related to it on any of the credit reference agencies. This is why I wasn't sure whether to just ignore them (probably not the best idea) incase a response prompts them to update his file.

I have spoken to a mortgage broker already regarding the 3 default, who said that in 3 - 4 years time when we look for a mortgage, it should not cause too much issue as it will be around 5 years old by then, but I do want to get the debt paid off ASAP as it's only £100.

Unfortunately, he has buried his head in the sand in regards to his finances and didn't realise the impact a default would have in the future, it's now a bit of damage limitation I think by trying to get everything sorted!

[lolavix]

Re: Lowell chasing O2 debt

Apologies, I've given some incorrect information somewhere - the last few emails I can find are from Lucas Credit Services on behalf of Lowell - does this mean they have sold the debt on?

Thanks

[nemesis45]

Re: Lowell chasing O2 debt

The O2 account probably does not show now Lowell owns the debt, what is the default date on that?
Paying off a defaulted debt will not remove a default entry it stays for six years.

nem

[lolavix]

Re: Lowell chasing O2 debt

The O2 account probably does not show now Lowell owns the debt, what is the default date on that?
Paying off a defaulted debt will not remove a default entry it stays for six years.

nem

There is no default date at all - there is no record of O2, Lowell or Lucas on his credit file, in closed accounts or active accounts - the default showing is the one to 3 which I have discussed with them and will be paying so that it is settled.

[nemesis45]

Re: Lowell chasing O2 debt

Then it's gone from CRA files then it's Gone Never to return!!
You could try 3 " for a gesture of good will" when paying the debt off i.e. " I am clearing this account as a " gesture of good will and would ask 3 to reciprocate by removing the record of this account from all credit reference agencies to which has been reported".
You may be lucky!
(3 is not obliged to do this as the default should stay on file for the balance of the 6 year period)

nem

[lolavix]

Re: Lowell chasing O2 debt

Then it's gone from CRA files then it's Gone Never to return!!
You could try 3 " for a gesture of good will" when paying the debt off i.e. " I am clearing this account as a " gesture of good will and would ask 3 to reciprocate by removing the record of this account from all credit reference agencies to which has been reported".
You may be lucky!
(3 is not obliged to do this as the default should stay on file for the balance of the 6 year period)

nem

Sounds promising then - so we could ignore Lowell's/Lucas's demand for payment?

I'll write to 3 and ask them, it's a long shot but worth a go!

Thanks a lot for your help nem

[nemesis45]

Re: Lowell chasing O2 debt

Personally I would ignore them.
My guess is the debt is statute barred already.

nem