Lowell issues a default notice that Capital One removed

[Pamy]

Hi all, I am a newbie here and hoping to get some advice.

Well in 2013 I got a credit card with Capital one and ran into some extreme financial difficulties. I was in contact with Capital One through out and they removed the default from my credit file as a goodwill gesture but still had to pay the outstanding balance. I have been making payments towards the debt without missing a payment and the debt was recently sold to Lowell in July 2015. I was happy to carry on my payments with Lowell....

I was checking my updated credit report this morning and bam! Lowell have issued a default notice on my account taking me right back into the red as I have spent months building my credit report so I can get a business loan and overdraft. I called Lowell and at first they said they had no knowledge of the default notice as they are legally not allowed to issue defaults. Then they changed the story to say oh the default must have always been there and Experian has just updated the name to show Lowell Portfolio as they are now the legal owners of the debt. That is not true as I have been monitoring my credit files from all 3 credit agencies and this default was removed by capital one in 2014. When I mentioned this to them, they said in that case the default has been automatically reactivated because Lowell is the legal owner now!!

I have have never disputed the debt and all payments have been up to date. I have not defaulted on a payment with Lowell nor did they ever write to me saying they are about to issue me with a default and they are refusing to amend this record and refusing to acknowledge they actually put the default on my account! Is this legal? What can I do? I am so mentally distressed right now as my credit score was going into the 800s and now I am back to been untouchable by any lenders and my business is going to go bust.

[FlamingParrot]

Re: Lowell issues a default notice that Capital One removed

Hi and welcome

Hi all, I am a newbie here and hoping to get some advice.

Well in 2013 I got a credit card with Capital one and ran into some extreme financial difficulties. I was in contact with Capital One through out and they removed the default from my credit file as a goodwill gesture but still had to pay the outstanding balance. I have been making payments towards the debt without missing a payment and the debt was recently sold to Lowell in July 2015. I was happy to carry on my payments with Lowell....

This is rather unusual, have you got anything in writing from Cap One saying they'd remove the default?

I was checking my updated credit report this morning and bam! Lowell have issued a default notice on my account taking me right back into the red as I have spent months building my credit report so I can get a business loan and overdraft. I called Lowell and at first they said they had no knowledge of the default notice as they are legally not allowed to issue defaults. Then they changed the story to say oh the default must have always been there and Experian has just updated the name to show Lowell Portfolio as they are now the legal owners of the debt. That is not true as I have been monitoring my credit files from all 3 credit agencies and this default was removed by capital one in 2014. When I mentioned this to them, they said in that case the default has been automatically reactivated because Lowell is the legal owner now!!

It's true that Lowell are not allowed to issue default notices, only the original creditor can issue them, however, a default notice is not the same as a default on your credit files.

I have have never disputed the debt and all payments have been up to date. I have not defaulted on a payment with Lowell nor did they ever write to me saying they are about to issue me with a default and they are refusing to amend this record and refusing to acknowledge they actually put the default on my account! Is this legal? What can I do? I am so mentally distressed right now as my credit score was going into the 800s and now I am back to been untouchable by any lenders and my business is going to go bust.

Lowell didn't have to write to you to inform you about the default because that would have already been done by CapOne as the original lender. They only have to amend the record to reflect the new ownership. If you have anything from CapOne saying they agreed to remove the default then you should forward that to Lowell. :typing:

[Pamy22]

Re: Lowell issues a default notice that Capital One removed

Hi, thank you for the response. I couldn't log into the account I posted on so I had to make another one.

No I do not have a letter from Capital One with me but the default was removed in 2014 and only re appeared yesterday when my credit report was updated for the month. Lowell are still maintaining they have no idea how their name has ended up on my credit file as they did not update my credit file and do not issue defaults. They are still saying the file must have updated itself automatically as they are now the legal owners of that debt. I have 2 other accounts with Lowell that I am paying off and none of them have ever shown up on my credit file. I have spoken to all the credit referral agencies and they said there is no such thing as an automatic update and that a company has to request information is changed or updated.

What do I do with Lowell? I was applying for business funding this month and now that has been turned down I am afraid I will have to close my business and be without any income....and therefore won't be able to pay Lowell or any of my creditors. Seriously on the verge of a mental break down because of this

[Pamy22]

Re: Lowell issues a default notice that Capital One removed

I can't upload any files but the credit history on the default has not been reported on at all as if it was wiped clean from my report. All of 2014 is clean and it only appears in September 2015

[beaconsman]

Re: Lowell issues a default notice that Capital One removed

Lowells are indeed lowlifes. Dont get too stressed about it, IM fighting them over another matter with VAnquis. Everything with Lowells is papertrails, never ever call them and agree to things over the phone, always on hard copy. Its the only thing that you have in a defence if needed at a later date should they mess up, as they have with mine.

[FlamingParrot]

Re: Lowell issues a default notice that Capital One removed

Hi, thank you for the response. I couldn't log into the account I posted on so I had to make another one.

No I do not have a letter from Capital One with me but the default was removed in 2014 and only re appeared yesterday when my credit report was updated for the month. Lowell are still maintaining they have no idea how their name has ended up on my credit file as they did not update my credit file and do not issue defaults. They are still saying the file must have updated itself automatically as they are now the legal owners of that debt. I have 2 other accounts with Lowell that I am paying off and none of them have ever shown up on my credit file. I have spoken to all the credit referral agencies and they said there is no such thing as an automatic update and that a company has to request information is changed or updated.

Unfortunately if you haven't got anything to evidence the fact CapOne agreed to remove the default it could be tricky to establish that fact. Technically it's correct to show a default if you defaulted on the account, if you see what I mean. :mmph:

What do I do with Lowell? I was applying for business funding this month and now that has been turned down I am afraid I will have to close my business and be without any income....and therefore won't be able to pay Lowell or any of my creditors. Seriously on the verge of a mental break down because of this

Maybe [MENTION=1508]Nibbler[/MENTION] can suggest something, he is the credit default expert. :yo:

I can't upload any files but the credit history on the default has not been reported on at all as if it was wiped clean from my report. All of 2014 is clean and it only appears in September 2015

This may be of help: http://www.legalbeagles.info/forums/...r-details-safe!) :nerd:

[Pamy22]

Re: Lowell issues a default notice that Capital One removed

I have attached the credit file. I have also just noticed they changed the default date. The credit card went into default in 2013 but Lowell have changed it to 2014.
I am not trying to get out of paying my debts but I am unable to go anywhere work wise with a default on my file and earn any money to pay by bills and debts.

[Nibbler]

Re: Lowell issues a default notice that Capital One removed

Maybe @Nibbler can suggest something

I'll come back to this one later today, or tomorrow, if no one beats me to it.

[nemesis45]

Re: Lowell issues a default notice that Capital One removed

Hi when you say that the " account went into default in 2013" do you mean you received a default notice sometime in 2013?
If so did you take any action to remedy the default?
Btw, the 2015 date is Not a new default date just the date on which the files have been up dated.
The default would have been registered by the original creditor not Lowell who can only update the file
information not change a default date.

Depending when the DN was issued in 2013 it could well be that a default was not registered in 2013 e.g. A DN issued Oct/Nov may well lead to a default in the early months of 2014.

A DN is and its dates have no bearing on when a default is actually registered the ICO considers this should be within 6 months of the cause of action.

nem

[Pamy22]

Re: Lowell issues a default notice that Capital One removed

Thanks for the response.
the original default by Capital One was issued in 2013 and the credit report stated it would be reported until 2019. That was completely taken off my report, with credit score going up as a result. The new DN that showed up on my account states it was issued in 2014 and will be reported until 2020 and according to Lowell it is a Capital One default that has nothing to do with them. I called Capital One who said they removed the notice from my file and stopped reporting on that file in 2013, the debt now belongs to Lowell and Capital One no longer has anything to do with it. So I am not sure where to go from here or what to do as I am not getting anything that makes sense between the two companies.

Also when the original DN was issued in 2013, it showed up on my credit file and I was in contact with Capital One to pay off the debt. I continued to make payments with Lowell when I was informed it had been sold to them.