Lowell not removing default on credit reference

[newtonc589]

Hi there.

I'm after some help. A while ago; out of the blue, i started getting threatening letters from Lowell claiming that i owed £2995 for an alleged credit card debt from Sep 2010. I checked my Credit Reference and noticed that a default had been set up approx 3 years ago for this alleged debt which has no doubt affected me with obtaining credit in the past. I had no recollection of this debt; so i after reading some advice on this forum, i wrote to Lowells to demand copies of the original agreement of this debt to prove that i was indeed me that owed it. I also asked them to remove the adverse Default and subsequent records from my credit file.

Today, i received a letter from them stating that they could not source the requested information and therefore, they would not be pursuing the debt. The letter now showed an amount of £0.00; so that's a start! However they went on to say that "We are required to record true and accurate information on your credit file, any default registered for this account will remain in place until at which time it is scheduled to come off; usually 6 years after the default was originally registered. So this is where i need some advice. They have acknowledged that they cant find proof that the debt is actually mine, but are refusing to remove the default for a debt that can't be proved is mine. How is this right? Surely if the debt cant be proved is mine, then the default should be removed otherwise i'm being penalised with an adverse credit score for a debt that doesn't exist. I obviously need to write again to them to put this to them, but i need help with writing a letter. Does anyone have any templates for this instance, or some legal quotes i can throw at them. I'm grateful for any help. This is the first time i've had to deal with anything like this; its caused me no end of stress and i just want them off my back and putting my credit score right. Oh, they state that they are required to "record true and accurate information on your credit file" If they cant prove the debt was mine, how is leaving the default on there, a true and accurate record? Anyway, thanks for taking the time to read this spiel! Any advice would be massively appreciated.

[Debt Camel]

Re: Lowell not removing default on credit reference

If you are saying that you never opened the credit account in question, I suggest replying saying this and asking for the debt to be removed from your credit record as it has been incorrectly traced to you. When this is done, you need to keep all the correspondence in case the debt gets sold to someone else and pops back on your credit file.

If you just asked them to produce the CCA agreement for the debt and they couldn't, then it's correct that the debt should stay on your credit record aas it still legally exists even if it is unenforceable.

[R0b]

Re: Lowell not removing default on credit reference

But surely, if the default has been applied by Lowell and by their own admission they have no documents relating to the agreement, how can they say that the default is true and accurate and, if challenged, how are they going to prove that when it is already admitted that they don't hold anything. To me no evidence = no default, especially if they are not able to show the alleged amount on the credit report is correct.

[MIKE770]

Re: Lowell not removing default on credit reference

then you go to the originator and demand proof that you were the account holder in view you know nothing about the alledged debt??? and have had no dealings with them? send Recorded Delivery and await their response, that should sort it out once and for all. failure of which you will make a formal complaint to them and to the Regulators.


if what you indicate is true and they admit not you = a claim for damages etc might be in place

[newtonc589]

Re: Lowell not removing default on credit reference

Thanks for your info re this. From what i've read, Lowells should be able to remove the Default as the DCA; especially as it was them that added it in the first place. Forgive me if i'm wrong, but is there really any value in contacting the original creditor (lloyds) in this case? I was just going to send a strong letter to Lowells demanding its removal as the debt is not enforceable and they cannot prove that i was the debtor. I just cant get my head around that fact that they cant prove i owe the debt but can just bung a default on my CR and not be able to remove it. Surely that is illegally passing my personal information to a 3rd party without my permission for one. I was just after some direction with what to put in the letter; some references to where they my have breached certain issues like harassing me, DPA using my infro etc. I am looking myself but its a legal minefield and i want to be sure that what i write is coherent and strong enough to get the message across that i mean business. Interesting thought about a claim for damages though MIKE770, could i reference that in the letter aswell? I'm applying for a mortgage soon and don't want this affecting it. Its been agreed in principal though but if it gets refused at the final hurdle cos of Lowells, ill not be a happy chap; nor will the wife!!

[newtonc589]

Re: Lowell not removing default on credit reference

Hi Debt Camel.
So, they have admitted the debt is not mine as they cannot produce any evidence and they have set the balance to zero. Are you saying that with this being the case, they can just randomly affect my CR negatively with a Default but not adjust it to correct the issue? That's negatively affecting me through no fault of my own.

[MIKE770]

Re: Lowell not removing default on credit reference

lowells would of changed only the owner of the debt as they purchased it, the dates remain the same as the Originator published , as for non enforceable then the entry as long as it is a true record from the time you were with originator then it will stay until it drops off.


claim for possible damages refers to the question you hinted that you owe them nothing the origiantor and had no account with them i..e. false records issued?/

[newtonc589]

Re: Lowell not removing default on credit reference

You get my thinking Rob. Do you have any letter template that i could use, or some quotes or direction. Thank you.

[MIKE770]

Re: Lowell not removing default on credit reference

Search Results

'Lloyds wrecked my credit history over £928 debt I didn't owe ...

www.telegraph.co.uk › Finance › Personal Finance › Borrowing › Loans

[Debt Camel]

Re: Lowell not removing default on credit reference

Hi Debt Camel.
So, they have admitted the debt is not mine as they cannot produce any evidence and they have set the balance to zero. Are you saying that with this being the case, they can just randomly affect my CR negatively with a Default but not adjust it to correct the issue? That's negatively affecting me through no fault of my own.

I am not clear exactly what they said. If they just said they can't produce the CCA agreement, then they could still be maintaining there is legal debt.

If they accept the debt is not yours, then as I said, they should delete it from your credit record.

[R0b]

Re: Lowell not removing default on credit reference

You get my thinking Rob. Do you have any letter template that i could use, or some quotes or direction. Thank you.

I don't really have a template that is specifcally used for your use but what is it you want to say in there?

[charitynjw]

Re: Lowell not removing default on credit reference

But surely, if the default has been applied by Lowell and by their own admission they have no documents relating to the agreement, how can they say that the default is true and accurate and, if challenged, how are they going to prove that when it is already admitted that they don't hold anything. To me no evidence = no default, especially if they are not able to show the alleged amount on the credit report is correct.

You get my thinking Rob. Do you have any letter template that i could use, or some quotes or direction. Thank you.

See the FCA's take on this, esp McGuffick v RBS.
https://www.handbook.fca.org.uk/hand...ate=2016-09-04

[R0b]

Re: Lowell not removing default on credit reference

It's not the issue of enforcement, but the issue surrounding a breach of the DPA particularly principle 4 which is to keep personal data up to date and accurate at all times and that is a separate cause of action.
Arguably, by Lowell admitting that it holds nothing in relation to the contract and taking steps to remove the alleged debt completely then how can it say that the default was accurate and/or up to date? The onus is on Lowell to prove that the data is accurate but in my mind, that may be difficult having already admitted they are in possession of no documents. It has already admitted it has a duty to make sure data is up to date but it is a case of 'prove it'.

There will of course be a risk to pursuing this but under the DPA it is up to the data controller to show that it has complied with the DPA when challenged about the accuracy of the data it holds on someone.

[charitynjw]

Re: Lowell not removing default on credit reference

The original creditor (should) issue the default via a s87 CCA Default Notice.
This will then indicate the 'cause of action' date. (usually 14 days or so after the DN).
I guess that Lowell are arguing that, although they cannot source a copy of the actual agreement, there is sufficient evidence to show that there was an agreement, based on other records held.
There is the danger that, if provoked, they will revisit the situation, reconstitute the agreement to satisfy CCA s78 (if applicable) &
litigate.

[R0b]

Re: Lowell not removing default on credit reference

I agree and understand how defaults work but it is still the responsibility of the data controller (Lowell) to ensure accuracy as to the data recorded. Telling the debtor that they have an obligation to record accurate data would not be sufficient to discharge that obligation in my eyes. Data controllers should be prepared for any challenges made by a person and provide with sufficient evidence, to show that the data is accurate. A simple way of doing this is to carry out an audit and verify the information is correct e.g. checking the data that Lowell holds against any records the original creditor may hold.

The DPA doesn't give a meaning on the word 'accurate' but it does define 'inaccurate' as being incorrect or misleading as to any matter of fact. Obviously there will be no data breach for inaccurate information if Lowell has obtained information from a third party and taken reasonable steps to ensure the accuracy of it and can show it with an evidence trail.

As we all know, debt purchasers such as Lowell have little to no information except possibly for an account number and a name and possibly an address. Whilst it might not be wise to poke the bear, it is ultimately the OP's decision but does not prevent the right to challenge it on the basis of facts given by Lowell already. If Lowell are relying on third party information, they should be able to provide with ease how the default is accurate, such as providing a copy of the default notice and any other relevant information.

If not, and/or Lowell were refusing to provide the relevant information, that could be grounds for an application to remove the default on the basis that the debtor reasonably believes they hold no information as to the accuracy of it.