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Hi All,
So far I've found this forum to be an invaluable source of information, so thank you. However, I don't seem to be able to get an answer for my queries.
My partner has received a letter from Lowell Financial regarding an outstanding debt. This was previously with another DCA called Sigma Financial. I had sent letters to Sigma on behalf of my partner stating that the debt was Statute Barred and was unenforceable. They have obviously since passed the debt over to Lowell Financial.
I sent Lowell a standard template letter stating that the debt is Statute Barred (My partner hasn't had any dealings with or made any payments since 2008). However, they have replied to my letter stating the following:
"We confirm that your account remains legally enforceable by us because the debt did not become fully due and payable until the Default Notice was issued. According to the information provided by Sigma Financial, the Default date was 10th April 2011 and, therefore, we consider that the debt is enforceable for 6 yrs after this date"
Now my understanding of Statute barred debts is that the 6yrs starts at the time of the last payment or correspondence. Indeed a Company can register a Default many years after contact has been lost with the debtor but the 6yr clock does not reset. Equally, if a debt is sold to another DCA, the 6yr clock also does not reset.
Can anyone confirm whether I am correct in my thinking? I would hate to send them a reply stating incorrect information. I have heard that Lowell Financial do some very underhanded things to try and get a payment, and I believe this is another one of their tricks.
Thanks all
David
So far I've found this forum to be an invaluable source of information, so thank you. However, I don't seem to be able to get an answer for my queries.
My partner has received a letter from Lowell Financial regarding an outstanding debt. This was previously with another DCA called Sigma Financial. I had sent letters to Sigma on behalf of my partner stating that the debt was Statute Barred and was unenforceable. They have obviously since passed the debt over to Lowell Financial.
I sent Lowell a standard template letter stating that the debt is Statute Barred (My partner hasn't had any dealings with or made any payments since 2008). However, they have replied to my letter stating the following:
"We confirm that your account remains legally enforceable by us because the debt did not become fully due and payable until the Default Notice was issued. According to the information provided by Sigma Financial, the Default date was 10th April 2011 and, therefore, we consider that the debt is enforceable for 6 yrs after this date"
Now my understanding of Statute barred debts is that the 6yrs starts at the time of the last payment or correspondence. Indeed a Company can register a Default many years after contact has been lost with the debtor but the 6yr clock does not reset. Equally, if a debt is sold to another DCA, the 6yr clock also does not reset.
Can anyone confirm whether I am correct in my thinking? I would hate to send them a reply stating incorrect information. I have heard that Lowell Financial do some very underhanded things to try and get a payment, and I believe this is another one of their tricks.
Thanks all
David
