Lowell Financial / Portfolio / whatever they're called..

[NandJ]

In August 2007 I received a letter from these chumps asking for repayment of a debt they had bought from HSBC for an unpaid overdraft of an account I held back back around 2001. I knew I owed the money so began a payment schedule and have been paying just £20 a month till now. I've been trying to secure a loan but am having problems due to the default notice played on my profile in 2004 by these guys, so I gave them a call to see if they'd be willing to settle the debt for a lower figure than what was owed, hoping this would then repair my credit profile. They agreed to wipe a few hundred pounds of the debt and I'm due to pay the sum in a few weeks. However after doing some research I've learnt that paying off the debt might not remove the default notice from my account, which puts me back to square one. I've read some of the threads about Lowell and they sound dodgy to say the least....

 

I'm in the process of drafting a CCA letter to them, but seeing as how I've been paying them till now do I have a leg to stand on in challenging the debt? Even if I was to pay them the amount, what are the chances they would remove the default notice from my profile, and not just change it to satisified?

 

I understand some people have been having difficulties sending Lowell recorded letters due to them having a PO box address; is the Enterprise House, 1 Apex view address working ok?

 

Many thanks for your help, all suggestions are greatly appreciated.

[rory32]

In August 2007 I received a letter from these chumps asking for repayment of a debt they had bought from HSBC for an unpaid overdraft of an account I held back back around 2001.

Between 2001 and 2007 did you acknowledge this debt in any way either by making an offer of payment or a payment towards the account? If the debt has not been acknowledged for a cotinuous period of 6 years then it is statute barred.

However after doing some research I've learnt that paying off the debt might not remove the default notice from my account, which puts me back to square one.

Correct. The default would be simply marked as satisfied which in reality doesn't really change your credit rating. If you are to come to a settlement you must make the default removal a condition of the settlement and have Lowell's acceptance confirmed in writing.

I'm in the process of drafting a CCA letter

An overdraft is running account credit but the agreement is different for overdrafts than for other credit agreements. Section 74 of the Act allows for certain types of agreement to be excluded from part V (form and content) where the OFT has so determined. This detemination (the Determination) regarding overdrafts under section 74 was made on 21 December 1989 subject to three conditions.

 

(a) That the creditor shall have informed in writing the OFT of his general intention to enter into agreements to which the Determination will apply;

 

(b) that...the debtor shall be informed at the time or before the agreement is concluded

- of the credit limit, if any;

- of the annual rate of interest and charges applicable from the time the agreement is concluded and the conditions under which these may be amended;

- of the procedure for terminating the agreement

and this information shall be confirmed in writing.

 

© that where a debtor overdraws his current account with the tacit agreement of the creditor and that account remains overdrawn for more than 3 months, the creditor must inform the debtor in writing no later than 7 days after that 3 month period of the annual rate of interest and charges applicable.

[IdaInFife]

Wishes I could explain things like Rory

 

 

But if nanj has been making payments after the 6 years does that not start the ball rolling again?

 

 

Ida x

[rory32]

But if nanj has been making payments after the 6 years does that not start the ball rolling again?

 

No. Once a debt is statute barred it remains so. It can not be unstatute barred.

[IdaInFife]

Thanks for answering Rory.

 

 

ida x

[NandJ]

Thanks for the reply Rory,.

 

What does statute barred mean? Nope, I made no contact or attempt to repay the debt between 2001 and 2007 or made any contact with HSBC or Lowell in that time. Thinking about it now however, the last time I spoke to HSBC about the account must have been in late 2002/early 03 when I visited a branch and they told me the account had been closed and been passed to the their debt collectors. How do I check how long it has been?! My credit report states that Lowell issued the default in 2004..

 

In regards to the debt being an overdraft, apologises Rory but I got a bit lost in the legal stuf you mentioned! Should I still draft the letter using the standard template on this site?

 

Thanks.

[IdaInFife]

Yes, still draft the letter but it has to have been 6 years clear to the date since you made the last payment. the default date is irrelevant.

 

 

Ida x

[rory32]

What does statute barred mean?

Once a debt is statute barred you have no legal obligation to pay it.

Thinking about it now however, the last time I spoke to HSBC about the account must have been in late 2002/early 03 when I visited a branch and they told me the account had been closed and been passed to the their debt collectors.

This does not constitute acknowledgement.

How do I check how long it has been?! My credit report states that Lowell issued the default in 2004..

Send template M from here You'll need to modify it a bit to suit your circumstances.

In regards to the debt being an overdraft, apologises Rory but I got a bit lost in the legal stuf you mentioned! Should I still draft the letter using the standard template on this site?

It doesn't really cover overdrafts as they have an exemption. The copy of the agreement for overdrafts would just be a letter from the bank.

[rory32]

The emphasis is always on the creditor to prove that the account is not statute barred. London Congregation Union Inc v Harriss and Harriss [1988] 1 All ER 15, CA at 13.3)

[eastendboy]

Statute barred means that a debt is no longer legally collectable. As for the CCA letter, it is my belief that a bank overdraft is not covered by the same laws, so the letter would be meaningless.

 

However, I'm still learning here myself and I'm sure that Rory32 will give you a much better offering as to what to do next.

[questioning]

Hi

Statute barred means that it is no longer enforceable.

A better explanation as to statute barred can be found here

 

http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/146530-have-you-received-threatening.html?highlig

 

Edited as Rory was much faster at typing and finding links for you than I was,

If you follow this link then you will see if gives you info on what action to take against lowells, how ever before following the link do send the statute barred letter 'M' first so you can find out if it is definately satute barred.

I'm sure it is but just wait for there reply. They could come back with utter rubbish to try and convince you that is is not statute barred in that case if you are unsure post there reply on here. I doubt they have any true evidence in there favour. You seem to know what action was taken during the six year period.

Edited July 5, 2008 by questioning

[rory32]

Regarding the rather late default placed on you file the following may be of interest (particularly point 11) http://www.experian.co.uk/www/pages/downloads/compliance/guidance_on_defaults.pdf

[NandJ]

Thank you to all your replies, very informative indeed. I see in hindsight I should not have started repayments back in August of last year but instead tried to find out if the debt was statute barred.

 

Regarding letter 'M' in the templates, given the fact that I have indeed been making payments, 11 now all together I believe, will this not remove the statute bar from the debt as I have acknowledged it and begun repayments?

 

Very interesting link on the experian site Rory. Point 11 seems to state lenders are only allowed to file a default notice once payments have been missed for more than 6 months. However I couldn't quite see anything that says the default must be filed within a certain time frame...unless I'm reading it wrong?

 

I'm still not quite sure where to go from here. All advice is greatly apprecaited.

[rory32]

Regarding letter 'M' in the templates, given the fact that I have indeed been making payments, 11 now all together I believe, will this not remove the statute bar from the debt as I have acknowledged it and begun repayments?

 

Debts can not become unstatute barred. Once the debt is statute barred it will always remain so.

 

Regarding the default I would initially complain to the ICO about the default years later. This won't necessarily remove the default but it will start the ball rolling in the right direction.

[Sol]

No, as Rory said, once it's statute barred it remains.

[NandJ]

Ok. So am I right in assuming my only way forward from here is to try and see if the debt is indeed statute barred? If not then I presume I'm just going to have to pay it off...grr

 

I think the letter below should do the trick, without the bit in red?

 

 

 

Dear Sir/Madam

 

Acc/Ref No 4563210025897412

 

You have contacted us regarding the account with the above reference number, which you claim is owed by ourselves.

 

We would point out that under the Limitation Act 1980 Section 5 “an action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued.”

 

We would also point out that the OFT say under their Debt Collection Guidance on statute barred debt that “it is unfair to pursue the debt if the debtor has heard nothing from the creditor during the relevant limitation period”.

 

The last payment of this alleged debt was made over six years ago and no further acknowledgement or payment has been made since that time. Unless you can provide evidence of payment or written contact from us in the relevant period under Section 5 of the Limitation Act, we suggest that you are no longer able to take any court action against us to recover the alleged amount claimed.

 

The OFT Debt Collection Guidance states further that “continuing to press for payment after a debtor has stated that they will not be paying a debt because it is statute barred could amount to harassment contrary to section 40 (1) of the Administration of Justice Act 1970”.

 

We await your written confirmation that this matter is now closed and that no further contact will be made concerning the above account after that last letter.

 

We look forward to your reply.

 

Yours faithfully

Mr A N Other

[rory32]

The letter above you will have to modify due to the circumstances of the account. If you need help with this let us know.

[NandJ]

Help, please!

[rory32]

Okay. Let me have a think about it as it is rather late now and I'll post tomorrow if no one beats me to it.

[questioning]

Lowell Finance Ltd.

PO Box 172

Leeds

LS11 9WS

 

This add. worked fine for me back in April, Yes its the po.box add, its what was on the letters I received from them.

I normally use the add. that is on the mail that I've received.

[babybear39]

I'd be tempted to put 'you conned me into paying a statute barred debt you cheeky *****!!!' But that might not get you very far :o

[NandJ]

Thanks questioning, I'll be sure to use that address. Anyone have an idea on which letter I should send to these guys?

[NandJ]

Sorry to re-post, but I fear I might have been forgotten... Anyone have an idea on which letter I should send to these guys?

[questioning]

hi,

Letter M, link posted earlier in this thread.

i would send that but amend it to suit your circumstances.

You need to leave out the part which says that no payments have been made in the past 6 yrs, just add that the debt was statute barred when you started making the payments and you only made them as you didn't know what else to do and were worried etc. You have since found out about the statute barred Reg's. once statute barred it cannot become un-statute barred, even though you had started paying it was after the 6 years of no contact. add bits like that.

If you are sure of your dates I wouldn't worry too much as they are not aloud to even ask you for the money.

I know you are concerned about the default. If you do a search there are threads on here regarding getting defaults removed from credit files.

[NandJ]

Grrr..just been speaking to the people at Lowell and they've refused to remove the default notice placed on my report in 2004 even if I settle the account with them. Their excuse was it is against the law and Data Protection blah blah, all they can do is tell experian to mark the debt as 'settled'. So frustrating! How does having a default marked as 'settled' affect your report in comparison to having it outstanding? I'm trying to apply for a loan but am getting nowhere with this thing on my report!