Lowell Finance and statute barred accounts

[callyuk]

Hi, My partner and I both have 2 account that have been bought by Lowell Finance, my account is for T-Mobile and my partners is for Littlewoods (which is now Shop Direct). Both accounts have not been paid for over 6 years as we had no idea who had the accounts to make payments. I have sent a statute barred letter for each account the Lowells.

The response to my partners debt for Shop Direct was that a default notice had been sent to my partner 21 December 2009, and that Lowells would obtain a copy and send it to him. He waited at least 2 months and then received a letter stating the default note was enclosed but it wasn't and that Lowells were willing to reduce the balance by 15% as a goodwill gesture.

The response to my debt for T-Mobile was that they had proof that I'd made a payment on the account thus making not statute barred and they sent me a T-Mobile statement, which only stated that the account was being closed and there was a credit for some charges that T-Mobile has credited back to the account, so I wrote back stating there wasn't a payment on the statement, and asked for proof of the payment. Lowells then came back stating a Default notice had been issued in January 2009. Which I have not received a copy of.

What I need to know is for statute barred accounts, does this include contact from the creditors to ourselves or is it just proof that we have not made a payment or accepted responsibility for the debts? As I'm a little confused as in the past other accounts I have had have just been written off and I've never had anyone disagree and try and send me default notices.

Please could someone put my mind straight as to what contact covers a statute barred account?

Thanks

Callyuk :tinysmile_hmm_t2:

[Johnboy007]

Re: Lowell Finance and statute barred accounts

Lowell are up to their old tricks again.....
They are clutching at straws...... Trying to get money from you.
Contact would include acknowledgement of the debts or payment, to the creditor on these accounts, during the previous six years.
The onus of proof of this, lies with Lowell.
Let them try and supply you with the proof.
If you are absolutely convinced that no payment or contact has been made for at least six years, with regards to the two debts.
Then they are statute barred, and Lowell haven't got a hope in hell of getting money from you.
Inform Lowell that you consider both debts to be SB and as such, will not be sending them any payments, or any more correspondence in the future.
Send the letter by first class, signed for post ( cost under £2.00 ).
Then just collect any letters sent to you in future by Lowell, and burn them on the 5th November.

[whatnow?]

Re: Lowell Finance and statute barred accounts

This has partially answered the question I joined this site to find the answer to, thank you JohnBoy007. Just to reiterate, the start date for the 6 years of the statute barred starts when the account is finally treated as a default (in my case, 8 months after I refused to pay a T-Mobile charge I strongly believe I do not owe and they then terminated the phone number/contract)? This start date stands even when the original debtor (T-Mobile then EE) sold it on to Lowell Portfolio 1 Ltd about 3 years later?

However, my concerns are as follows: I never responded to the many, many letters I received but when I moved almost a year ago I was unable to give them my new address otherwise I think the count down to the Statute Barred would have been reset. (I could have been traced by Lowell through Experian.) Yesterday I tried to get a loan to buy a much needed car and was refused. I checked my Experian report and discovered that they had been awarded a CCJ in May of this year (still beyond the SB even with the later than understood default date). I'd waited years for them to take me to court and it is gutting to find that they did it and I had no chance to put my case forward. I've now completed a n244 to try and have the CCJ set aside. I have stated that 1. I believe I do not owe the money and provided supporting material and 2. asked the SB be considered. So, after all that my questions are:

1. What are my chances of the CCJ being set aside or should I just count my losses, pay off the debt (which I do not owe), and live with my credit rating being stuffed for the next couple of years?

2. Should I put forward both reasons why the CCJ should be set aside or just the SB? Should I put the SB first or after my reasoning (and supporting material) as to why the debt is not owed?

Any advice will be greatly appreciated. Even if it's "post this under a separate thread"!

[Amethyst]

Re: Lowell Finance and statute barred accounts

This has partially answered the question I joined this site to find the answer to, thank you JohnBoy007. Just to reiterate, the start date for the 6 years of the statute barred starts when the account is finally treated as a default (in my case, 8 months after I refused to pay a T-Mobile charge I strongly believe I do not owe and they then terminated the phone number/contract)? This start date stands even when the original debtor (T-Mobile then EE) sold it on to Lowell Portfolio 1 Ltd about 3 years later?

However, my concerns are as follows: I never responded to the many, many letters I received but when I moved almost a year ago I was unable to give them my new address otherwise I think the count down to the Statute Barred would have been reset. (I could have been traced by Lowell through Experian.) Yesterday I tried to get a loan to buy a much needed car and was refused. I checked my Experian report and discovered that they had been awarded a CCJ in May of this year (still beyond the SB even with the later than understood default date). I'd waited years for them to take me to court and it is gutting to find that they did it and I had no chance to put my case forward. I've now completed a n244 to try and have the CCJ set aside. I have stated that 1. I believe I do not owe the money and provided supporting material and 2. asked the SB be considered. So, after all that my questions are:

1. What are my chances of the CCJ being set aside or should I just count my losses, pay off the debt (which I do not owe), and live with my credit rating being stuffed for the next couple of years?

2. Should I put forward both reasons why the CCJ should be set aside or just the SB? Should I put the SB first or after my reasoning (and supporting material) as to why the debt is not owed?

Any advice will be greatly appreciated. Even if it's "post this under a separate thread"!

Really SB starts when the creditor COULD terminate/default your account, it's a bit of an argued subject the exact date SB starts from on various types of debts, it is from cause of action, so that would be from when the creditor could take action to recover.

Yes you will need to apply for set aside and we'll have to check the dates (ie what date did you refuse to pay t-mobile? and did you go through complaints process etc) so pop this on a new thread if you don't mind, save later confusion.

The setaside will need reasons for setting aside (ie why you didnt know about it till now) and be abel to show you have a defence with a reasonable chance of success. There's a guide in the library section.

[Johnboy007]

Re: Lowell Finance and statute barred accounts

Well friend,
An SB is just that........
It is statute barred.
If your CCJ was taken out on a statute barred debt, then Lowell will have to get it removed, and you should ask them to remove the black mark from the credit agency.


This from H.M Customs & Excise...
IHTM28384 - Liabilities: law relating to debts: statute-barred debts

If a lender allows time to pass without receiving any payment an action for recovery may become barred.
Under the Limitations Act 1980 the time limits are

• in simple contracts, 6 years
• in contracts under seal, 12 years.

If the debtor acknowledges the debt in writing or makes a part payment within the original limitation period, then the time limits start to run again from the date of acknowledgement or the date of payment.
Even though the lender may be barred from pursuing recovery, a debtor may decide to pay the debt after the expiry of the time limits. Because of this you should allow a debt which is otherwise statute-barred if the personal representatives pay the debt and you receive evidence that the payment has been made.
These instructions do not apply to debts in Scotland. Under Scottish law, if a lender allows time to pass without receiving any payment an action for recovery may become barred under the Prescription and Limitation (Scotland) Act 1973. (For details of this Act see Gloag and Henderson 12th edition at Chapter4.). These debts are completely extinguished and cannot be enforced. Once the prescriptive period expires the debt cannot be allowed as a deduction.

[FlamingParrot]

Re: Lowell Finance and statute barred accounts

What I need to know is for statute barred accounts, does this include contact from the creditors to ourselves or is it just proof that we have not made a payment or accepted responsibility for the debts? As I'm a little confused as in the past other accounts I have had have just been written off and I've never had anyone disagree and try and send me default notices.

Please could someone put my mind straight as to what contact covers a statute barred account?

It is a common misconception that there has to be no contact whatsoever in 6 year for a debt to be SBd, but that's not the case, otherwise creditors would just keep writing once or twice a year to keep the debts alive.

The only way to reset the clock is by making a payment or a written acknowledgment, which could be a letter offering a certain amount every month, a lump sum or F&F settlement. That's one reason creditors often send those infamous discount letters to people who haven't paid in years, to tempt them into acknowledging the debt by saying "I can't pay 75% but would you accept 50%?" :rant: :rant: :rant:

[FlamingParrot]

Re: Lowell Finance and statute barred accounts

Let them try and supply you with the proof.
If you are absolutely convinced that no payment or contact has been made for at least six years, with regards to the two debts.
Then they are statute barred, and Lowell haven't got a hope in hell of getting money from you.
Inform Lowell that you consider both debts to be SB and as such, will not be sending them any payments, or any more correspondence in the future.
Send the letter by first class, signed for post ( cost under £2.00 ).
Then just collect any letters sent to you in future by Lowell, and burn them on the 5th November.

That would be good advice in different circumstances, only in this case they've taken the OP to court and obtained a CCJ.

With a CCJ the creditor can take further enforcement action such as applying for an attachment of earnings or a warrant to send bailiffs.

It will take more than a SBd letter to fight this, the CCJ needs to be set aside.

[FlamingParrot]

Re: Lowell Finance and statute barred accounts

However, my concerns are as follows: I never responded to the many, many letters I received but when I moved almost a year ago I was unable to give them my new address otherwise I think the count down to the Statute Barred would have been reset. (I could have been traced by Lowell through Experian.) Yesterday I tried to get a loan to buy a much needed car and was refused. I checked my Experian report and discovered that they had been awarded a CCJ in May of this year (still beyond the SB even with the later than understood default date). I'd waited years for them to take me to court and it is gutting to find that they did it and I had no chance to put my case forward. I've now completed a n244 to try and have the CCJ set aside. I have stated that 1. I believe I do not owe the money and provided supporting material and 2. asked the SB be considered. So, after all that my questions are:

1. What are my chances of the CCJ being set aside or should I just count my losses, pay off the debt (which I do not owe), and live with my credit rating being stuffed for the next couple of years?

A CCJ stays on record for 6 years. If it was obtained in may this year, it won't go away till 2020. Unlike defaults which only appear on your credit file, CCJs are in the public record and anyone can search for them by paying a small fee.

If the debt would have been SBd when proceedings were issued (I'd say around a month before the CCJ was recorded), then you should apply to have it set aside. :thumb:

2. Should I put forward both reasons why the CCJ should be set aside or just the SB? Should I put the SB first or after my reasoning (and supporting material) as to why the debt is not owed?

SBd is an absolute defence, even if the debt is owed. Out of interest, why do you say it's not owed? :confused2:

[whatnow?]

Re: Lowell Finance and statute barred accounts

That would be heaven, but now a CCJ has been made it's still down to me to have that rescinded? I don't imagine it's as easy as writing to Lowell's and asking them politely to have the CCJ removed and my credit score cleaned up. I've already written the cheque for £155 (knowing that the CCJ is only worth £240, but damned if I should have a CCJ against my name when it isn't deserved). All the websites that I've been able to find that give some information on this say that once the CCJ has been handed down it doesn't matter if the debt was SB, the CCJ still has to be challenged or the debt paid and that's the problem for the defendant.

[whatnow?]

Re: Lowell Finance and statute barred accounts

The SB came into force anything between 8 months and 6 weeks before the CCJ was recorded. This is based on when T-Mobile closed the account down and the date the account was registered as default (only found out by me today when I called Lowell's solicitors).

I don't think the debt is owed, Flaming Parrot, which is why I've never paid it or offered to pay it since the account was terminated.

Thank you for your support and advice.

[whatnow?]

Re: Lowell Finance and statute barred accounts

Thank you, Amethyst. Will do.

[FlamingParrot]

Re: Lowell Finance and statute barred accounts

That would be heaven, but now a CCJ has been made it's still down to me to have that rescinded? I don't imagine it's as easy as writing to Lowell's and asking them politely to have the CCJ removed and my credit score cleaned up.

That would be lovely but sadly not very likely. :flypig: :flypig: :flypig:

I've already written the cheque for £155 (knowing that the CCJ is only worth £240, but damned if I should have a CCJ against my name when it isn't deserved).

I didn't realise the amount was that small. Obviously if you don't want a CCJ on record you'd need to have it set aside. In some cases you could have the court fee waived: https://www.nationaldebtline.org/EW/...t/Page-05.aspx :thumb:

All the websites that I've been able to find that give some information on this say that once the CCJ has been handed down it doesn't matter if the debt was SB, the CCJ still has to be challenged or the debt paid and that's the problem for the defendant.

If the CCJ is paid within 28 days it gets wiped off the register, however, in this case it's been longer than that, so even if it was paid, it would still appear, albeit as 'satisfied'.

If you succeeded in getting it set aside then it would be removed.

[whatnow?]

Re: Lowell Finance and statute barred accounts

In some ways it's crazy to fight it because there will be loss of earnings, probably travel costs, and, if I lose (and possibly even if I win), then Lowell's costs, but I really feel the need to. I don't have huge expectations, though.

[Johnboy007]

Re: Lowell Finance and statute barred accounts

It is a common misconception that there has to be no contact whatsoever in 6 year for a debt to be SBd, but that's not the case, otherwise creditors would just keep writing once or twice a year to keep the debts alive.

The only way to reset the clock is by making a payment or a written acknowledgment, which could be a letter offering a certain amount every month, a lump sum or F&F settlement. That's one reason creditors often send those infamous discount letters to people who haven't paid in years, to tempt them into acknowledging the debt by saying "I can't pay 75% but would you accept 50%?" :rant: :rant: :rant:

FP is correct.
If you acknowledge in any way what-so-ever that you owe the debt, or even that it exists, then the six year period will start again from date of acknowledgement.
Likewise, a payment by you, of even a penny, would amount to the same thing.
If you feel you must reply to any letter, just say that you do not acknowledge the debt in any way.
Add nothing more to your letter other than that.
The trick here, is to sit it out until you are absolutely sure that the six year time period is up.
Then forward a letter saying that as far as you are concerned, the debt is statute barred.
Then ignore any other letters from them.
Eventually they will get the message and the letters will stop.