Statute Barred Mobile Phone Debt (?). Expert help needed urgently.

[Musella]

Hello. I am new to this site, and after some advice re 3, red and Lowell.

Back in 2009 out of the blue I received a call from Red DCA regarding O2 outstanding balance. I was told that the final amount I owed was only £10. I paid the debt by debit card. I did not hear from them until October 2010.

October 2010. First letter arrives

 

We are Red DCS and Lowell Portfolio I has asked us to collect the money you own them on their behalf.

You must now pay us £300 in full or set up a payment plan”

Original Creditor: 3

Original Balance: £310

Balance Outstanding : £300:???:

I believe that I was totally misled and tricked by Red/Lowell in 2009. As you can see, the original balance differs from the outstanding one. I presume the £10 debt collected by Lowell in 2009 did not go towards the final O2 bill at all. It served as a trap in order to restart my soon-to-be Statute Barred Debt with 3. (A few years ago I had an account with 3. I used to pay them with cheques. Last time I issued a cheque for them on 18 March 2005. The cheque bounced due to my financial difficulties and the account was terminated).

November 2010. Threats

 

Contact us within 7 days or risk legal action. Unless we hear from you about repayment within 7 days of the date of this letter, we will obtain a copy of your credit file and review it so that we can gain a better understanding of your finances (is this legal?).

Your credit file will help us understand:

▪ What assets you have

▪ Other financial commitments, such as credit cards and other borrowing

▪ Your ability to repay

My response (within required time)

 

I sent them “Prove it letter” and a request they proved that I was indeed the party contractually obligated to pay off the debt by attaching the following documents:

▪ Agreement with their client that authorises them to collect on this alleged debt

▪ Agreement/contract that bears name and signature of the alleged debtor where he promises to pay the original creditor

▪ Complete payment history on this account, such as billing statements to prove that the amount they wish to collect is accurate

I asked them to provide me with the above documents and the original statements of the account showing exactly how the amount claimed has been calculated within 12 days of receipt of this letter.

November 2010. Lowell’s response:

“We are now looking into your enquiry and will be in touch shortly with an answer.

We can’t give you an exact date, as we may have to get information from other departments and outside companies. But we will get back to you as soon as we can”

December 2010. Lowell’s extra response:

“When you originally opened your account with 3, you were notified that as a condition of doing business, your account details and performance will be shared with credit reference agencies and that data shared by other lenders will be used in the assessment of your application and in the management of your account going forward. Lowell, as a debt purchaser, updates the credit reference agency and is therefore entitled to access the data.

We note your request to be provided with a copy of the original agreement as evidence of this outstanding account. However, any agreement that you signed would have been provided by the retailer at the point of sale and not 3. Therefore, it would be in your own interest to make contact with the original retailer in order to obtain a copy of any agreement that you may have signed.

However, we would point out at this stage that due to the age of this account the agreement if any may no longer be available.

It is written into the agreement that you are required to adhere to the terms and conditions for the minimum term set out by 3. Within this period, if you breach the terms and conditions of the contract you can become liable to pay up to full cost of the remaining line rental and handset.

Even though you may not signed a contract, you have agreed to be bound to the terms and conditions of the contract: 1.Confirming your consent to the sales person 2. By inserting the SIM card into the hand set 3.By using the handset to make and receive calls”

At present, with information we have from 3, we believe this balance to be due. However, we are currently in the process of obtaining statements from 3 to support our claim. Please be advised that your account is on hold in the mean time.”

March 16, 2011. New threats

 

“ We write in respect of the above debt which, as previously notified in writing we have purchased from 3. We are now entitled to receive payment of the balance of £300 from you and enclose a copy of your statement as requested. Neither 3 nor ourselves are aware of any reason for non-payment.

Please make payment of the outstanding debt or contact us within 7 days of the date of this letter, failing which we reserve the right to instruct our solicitors to issue legal proceedings against you without further notice.”

The only “document” they attached was a mobile phone final statement/bill (no “3” headings):

 

Your Final Bill £310

 

Bill Date: 14 April 2005

 

Last bill 22/03/05

Unpaid cheque 25/03/05

 

There is a warning on SAFE (Struggle Against Financial Exploitation) that “anyone thinking of settling an account with Lowell who has other similar debts should remember that to pay only one of them makes it a ‘Preferential’ payment and could cause more problems.”

Please, can anyone advise me what I should do next?

I would really appreciate your help.

M.

[rebel11]

Hi mus

 

Welcome to CAG

The guys will advise as soon as they are available.

 

Heres Guidance on debt collection from the OFT:- http://www.consumeractiongroup.co.uk/forum/content.php?416-The-OFT-Debt-collection-guidance

[dx100uk]

i would ignore them totally.

 

dx

[sploits]

I agree with DX. Lowell seem to be hitting a lot of people with made up 3 debts. As advised IGNORE

[247orbital]

But keep an eye on credit reports for table 1 searches and default listings.

[hennessy13]

Had Red chase me a few months back for a statute barred T-Mobile debt. It was a more clear cut episode than yours; a template letter fixed it.

 

Red actually sent me a letter of apology.

 

Have some faith mate, these guys will sort you out if at all possible.