Lowell - effect on credit rating if debt unpaid

[maddocks]

Hi,

Elsewhere in here people appear to have had the same letters from Lowell financial that I have: nice letter, nice letter, not so nice letters, silence, then a year or so later they try again. This is debt is 5 years old and it was a consequence of (at the time) undiagnosed brain cooties. I am now medicated and stable, but currently do not have any real income as I'm a full time mature student.

 

This is fairly straightforward compared to other people's problems of mistaken identity. This is my debt, albeit 50% of it being charges and admin fees from Capital One, altogether about £550.

 

My question is simple: if I simply just pay it off, or get an agreement to pay a percentage of it off, what happens to my credit rating? Do they actually mark it off as paid and things start to get better, or are they just profiting from an already "defaulted" debt that they can not do anything positive about?

 

The other half has a much better credit rating and is concerned that this will affect him as the trouble is now at his address as we moved in together about 6 months ago: any ideas on whether it'll affect his rating?

Edited September 30, 2009 by maddocks
added age of debt

[mr.ton]

Once you make payments to a DCA, they then see you as a cashcow & it will also set off sirens in other DCA offices, so you'll start getting other threatograms for money.

They dont give a stuff about credit ratings 1 way or the other - they just want payment.

[maddocks]

Once you make payments to a DCA, they then see you as a cashcow & it will also set off sirens in other DCA offices, so you'll start getting other threatograms for money.

They dont give a stuff about credit ratings 1 way or the other - they just want payment.

 

It's not about whether they care, it's about whether they bother to inform the original debtor (Capital One) that the debt got paid.

 

Is this debt now unable to be cleared properly now it is being handled by Lowell?

[mr.ton]

No, chances are they wont - like i said, they dont give a stuff & just want payment or payments regardless.

[postggj]

if its five years old

 

i would wait as after six years it will be statute barred

 

when was the last time payment or an acknowledgement by letter was done

[maddocks]

No, chances are they wont - like i said, they dont give a stuff & just want payment or payments regardless.

 

Thanks, I'll try to convince t'other half not to get involved, but he seems insistent that we pay them anyway.

 

I've just had a hunt around the sticky posts and FAQ, and can't find anything about trying to resolve the debt: I just want it marked as "resolved" or such in my credit history so I can get on with being able to have a normal life eg rent a flat without a guarantor. How do I do this? Who should I pay?

[silverfox1961]

Hi,

 

Once your credit file is marked it "could" stay there for 6 years

 

You could SAR Crap1 and then reclaim the charges plus interest. This will lower the debt to a more reasonable figure.

 

You could negotiate with the Leeds losers (UGH) to get the bad marks removed in exchange for a F&F settlement.

 

DO NOT talk to them on the phone-EVER

 

Do everything in writing

 

Send all letters by recorded delivery

[maddocks]

if its five years old

 

i would wait as after six years it will be statute barred

 

when was the last time payment or an acknowledgement by letter was done

 

No payments have ever been made. The other half has called them once acting on my behalf but was not authorised by me to act on my behalf.

 

Does being statute barred mean I'll never be able to get a mortgage in the future? Does it stay as "defaulted" on my file?

Edited September 30, 2009 by maddocks
oops, slip.

[postggj]

totally the opposit

 

the debt will be off your credit file for good

the debt will remain but a creditor or dca cant do any enforcement action

 

asta lavista baby

[maddocks]

totally the opposit

 

the debt will be off your credit file for good

the debt will remain but a creditor or dca cant do any enforcement action

 

asta lavista baby

 

Fantastic! Now I just need to convince my partner, which is going to be hard. It would be lovely to be approved for a mobile phone contract again, and other such things.

 

Will it affect his credit rating in the meantime while I wait?

[jed52]

Totally agree with postggj. These twerps wont have a credit agreement for this alleged debt, so they wont go to court. Leave it another year and you wont have to worry about it. Thats what I would do with these clowns.

jed

[postggj]

if you are under the same roof, yes

 

guilty by association ime afraid

 

if your partners credit file is serched, yours will show also as you live together, finances are linked

 

its only a year to wait though

 

make no payment or agree a payment or send a letter as it will restart the limitations act

[maddocks]

if you are under the same roof, yes

 

guilty by association ime afraid

 

if your partners credit file is serched, yours will show also as you live together, finances are linked

 

its only a year to wait though

 

make no payment or agree a payment or send a letter as it will restart the limitations act

 

Ok, from what I can see from above and your post:

 

- Pay, and it stays on my record for another 6 years as a debt, and it also affects my partner's credit rating for that period of time.

 

- Don't pay, get the hassle for a year or so, and it affects my partner's credit rating in the meantime, but not when the year is up?

 

Is this correct?

[postggj]

bit complicated so ill explain

 

in your case, make a payment and it will restart the limitations clock

a dca can still chase you for a further six years

but

 

the default will still be removed as the max time for a default is six years, period

 

 

make no payment or acknowledgement and after six years from the time of last payment

 

the debt is history and a clean credit file

[maddocks]

Right, so the final thing is whether my partner's phonecall "on my behalf" today counted as acknowledgement of the debt.

 

General gist was: "Maddocks has no income, but will within a few months and will contact when she has a payment plan."

 

However, they have not spoken to me nor have I authorised anyone to speak on my behalf.

 

If it did, then I'm better off paying, more for the sanity of my relationship than credit-related reasons. If not, then I just need to visit the CAB and get something that shows my partner what you have told me.

 

Sounds like a good plan to me!

[postggj]

the phone call does not acknowledge the debt

 

payment or acknowledgement in writing does

 

lowells are known as the leeds loosers

 

never give them your phone number

 

just ignore them

[postggj]

all due respect to the cab but you will be better informed on this forum

[maddocks]

all due respect to the cab but you will be better informed on this forum

 

I understand, and that is why I asked here!

 

I just need the "official confirmation" really to convince my partner: the CAB were really helpful by photocopying laws etc for another (non financial) issue despite me already knowing where I stood legally.

 

Thank you for your help, and I will update when I have any more information.

Edited September 30, 2009 by maddocks
removed possible identifying information about myself

[postggj]

mention lowells and sam appears

 

you are worse than andie on the welcome thread:D