5 year debt now with Lowells

[minky72]

I took out a bank loan for £9000 in May 2007. I then found myself in the very difficult situation when my business failed and I stopped making payments at the beginning of April 2008 (I stopped making willing payments earlier than that, but the bank still paid the DD's to themselves despite my Bank account being overdrawn).

 

I then had zero contact regarding the debt since the April 2008 payment, until a few weeks ago when Lowells started sending me letters asking for £8500. I didn't pay much attention to them because at the time I miscalculated that the debt must be statute barred very soon. Last week someone called in person at the house when I wasn't in, but as my boyfriend didn't like the look of him, he told him that I no longer lived here - I presume that visit was something to do with this debt.

 

Today I received another letter from Lowells saying that they have checked my credit file and can see I own the property, and they might take me to court and that it could lead to a charge on my house or bankruptcy. I bought my house in 2007 for £120k with £20k equity, but the houses on my road are now selling for £100k, so there is no real equity in the house. I've been unemployed for the last year and my mortgage is interest only with the payments currently being paid by the DSS. I'm more than skint so unless I found a job very soon, I'm not in a position to offer them anything.

 

From reading the forums, it looks like I'll be getting letters from Hamptons soon. I'm not too stressed about it yet as I know these companies like to spam threats, but I am a little worried about where this might lead. What's my best course of action right now?

[citizenB]

It could lead to a charge on your home if they issue a claim properly through the courts rather than a Statutory Demand using the insolvency courts.

 

You should start to collect as much information as you can - send a Subject Access to the original Lender and a CCA request to Lowells - drafts of both requests can be found in the CAG library.

 

You will need to enclose £10.00 statutory fee with the SAR and £1.00 statutory fee with the CCA request.

 

Please be warned, Lowells are very litigatious and have been issuing Stat Demands like confetti.

 

Do you own the property in your own name or is it joint ?

 

Was there any Payment Protection Insurance on the Loan - if so, then it could have been mis sold and you will be able to reclaim this.

 

Are there any default/penalty charges - you will be able to reclaim these back.

 

You must get the CCA request off as soon as possible, if they are unable to comply then this should prevent them issuing a Stat Demand at the very least, as the account will be in dispute.