Lowell Financial

[IQBAL1610]

Hello

 

Does anyone know who they are? They say they have bought an old debt, two old debts, of mine.

I recognise one but not the other. The name is mine, and date of birth, but not the address.

Does anyone know which letter I should send them? Would special/recorded delivery make a difference? They have not replied but keep sending more letters saying I must not ignore them, and saying they will send someone to my home. Are they likely to do this? My mother is very old and at home always so I fear for her health if they come when I am not here.

 

How do I go about finding out why they have this debt against my name? I do not wish to call them though. What happens should I ignore their letters?

[Rich44]

Ive just had a letter from them fishing which I have ignored for the moment, will wait and see if they actually send a "proper" letter before I jump in and admit I am here and who they think I am

[IQBAL1610]

I have written to them but they seem to have ignored my letter and are sending letters saying they will visit. Is this true? I am worried that they will pester my mother who lives with me and is old and I don't want to worry about this. Also, should I ignore the letters or try and find out what the debt is, as I dont recognise it and it is very large. What if I move? I am looking for my own place. Should I just ignore the letters and move? Does anyone know a helpline as I can't get through to citizens advice.

[IQBAL1610]

Have replied to a DCA about debt not recognised. Now they have just adjusted their letters to my correct name- similar to one they gave earlier-and are writing to me threatening action.

Is it best to ignore letters? I understand if there has been no contact for 6 years, it is time barred anyway.

I am worried about ID fraud as the address they gave for me was a 'virtual address' with a mailing company I used years ago when I was working abroad. Possibly someone has run up a debt in my name and now I am being chased for it- what to do? Please help, anyone!!

They have also written to me about a debt which was mine, and I replied to that,offering to pay, but having read this site I realise that they purchased the debt for about 12% of its value so why should I pay them the whole amount of the debt. Should I offer them a small percentage of it intstead or send a letter asking for the consumer credit agreement to be sent within 30 days, as in the letter library here?

[nathal]

contact fsa and complain to them

[IQBAL1610]

Thanks

 

I have also read a few other similar posts about credit agreement letters etc. If I do not recognise the debt, should I write with £1 postal order asking for the credit agreement letter anyway? The wait for the 30 days,as someone has suggested?

[nathal]

cca request- seliver it recorded to the legal owners of the debt.

 

they are allowed 12 workind days and one calender month thereafter to provide the signed agreement.

uother wise un enforceable

 

the debt is five years old and if it reachs 6years it cant be collected as the statues of limations forbids it

[IQBAL1610]

Thanks for that- invaluable advice! I'm so glad I found the sight as I can never get through to CAB when I try to ring.

 

Sorry to ask yet more questions, but if they send a credit agreement and it is less than 6 years ago, what do I do?

 

If the debt has added up because of charges, is there a template of what kind of letter I could send offering only a small amount for the debt? Do I have to prove that my circumstances are dire in order to offer only a small amount?

 

I have read on this site that credit companies usually would sell a debt to a DCA for only about 10-12%, so would it be fair to offer them only 12% plus a bit extra to cover costs and how could I go about doing this? ie. Does anyone know any consumer legislation to quote to back this up? Th debt is large and I cannot afford to pay it, and would rather settle it and clear it all up, if I can,but worried that I have to prove my circumstances first.

[IQBAL1610]

Hello

 

Can anyone tell me on what basis I can make an offer for a debt bought by a DCA, given that a DCA would buy a debt from a credit card company for only about 10-12% of original debt. As I cannot afford it, do I have to prove this- and how?

 

Also, is there a letter template I can use to make an offer, stating any laws or quoting any credit act? Or can I say that as I know they bought the debt for only a fraction of the original amount, I am only offering them a small percentage plus extra for costs? It seems unfair, for instance that I pay £5000 when they might have bought it for less than £1k.

 

Thanks if anyone can help please!

[nathal]

doesnt matter how much they bought it for, they have the intention of collection the full amount.

there are template letters though

[nathal]

Offer Letter with alternate Payment Strategy

Company Name:

Address:

Date:

Re: Account No.

Dear Sir/ Madam,

I am presently going through some financial difficulties and fear that I will not be able to meet my monthly payments to you. I do not want to declare bankruptcy and want to try and work out an alternate payment plan, so that I don’t have to default on this debt.

I would like to suggest a strategy if it is acceptable. If you could close my account, waive the interest payments and accept a new balance of [50% or whatever you propose] of what I currently owe, I can afford to make a monthly payment of $__________

(Relate your financial trouble, only as much is required for official purposes).

I am sure you will agree to the situation, which has caused this fallout. Please feel free to have one of your representatives call me and work out the final strategy. If you feel, you can’t adjust the payment plan. I would be forced to default on this account. I intend to pay creditors who can work for me.

Thanking you,

Sincerely,

Your Name

Your Address

[nathal]

if they can produce the paperwork then the debt is enforceable and you are liable for it.

 

For a company to reduce payment you have to make it visible that you cannot afford to pay(which may take 6months)

 

arrange an underpayment plan with them to pay off less, and further down the line request for interest to be frozen.

[IQBAL1610]

Thanks again for the advice. I now just face the task of proving something was not mine from years ago. Hopefully, if they do produce the contract there will be something which will be able to prove it was not set up by me, as I am sure this is not something I took out.

[IQBAL1610]

Thanks Nathal.You certainly know your stuff!

[LondonPam]

You don't have to prove anything, they do! Good luck.

[IQBAL1610]

Thanks for the encouragement!!!

[andrew1]

All great stuff this with dca's ! Firstly, are you sure the dca owns the debt? Have you done a CCA request on them to see if they are the true owners. If you are paying the money to the wrong people and they don't own it you may as well pay it to me

 

By all means follow the advice above, it's good advice if you are sure they own it. Which dca is it?

 

Many do not have the original documentation, deed of assignment or the agreement and under the CCA request( + £1.00 P.O.) they would have to provide that within 12 working days or they will need to have a court order to enforce it. After a fourther month and they don't supply the correct documents they have commited a criminal offence and the debt becomes unenforceable until they come up with the documents. Most DCA's do not have this info and badger you into paying. Let them prove they own the debt, then go into negotiation.

[IQBAL1610]

Hi Andrew

 

Thanks

I have sent the letter and postal order and am waiting with fingers crossed! One of the debts I recognise, one I don't, so I am hoping that there will be no contract with both, or at least I can clear up why they have assigned a debt to me that I am sure I didn't take out...

 

I have also saved the template letter for after the 30 days, asking them to take the default off- assuming, and I am hoping, that they can't produce anything.

[andrew1]

Well done. It's not so much that you recognise these debts, I think most of us recognise that we had the loan/credit card or account at some time in the past, but it's what happens to them after a period of 'quiet' when you either move addresses a number of times of life just gets so bad you shut off from the consequences. The debt doesn't die, it's just that often the banks will chase for a period until they get fedup/lazy or just find it easier to chase those people they can get hold of. However, the debt remains there on their system and will be live for 6 yrs. Sometime during that period someone will take up on the ledger and find out what has happened to the debt and it all starts again.

 

Some institutions like Egg for example do not sell their debt in the first or even second instance. They just pass it to a collection agent to collect so sending a cca request to the dca is almost pointless. However even Egg give up after a while and like many others they then sell the debt to a collection agency for a fraction of the cost. That's when the legal bits on here become very handy because the agents, in the main, are a bunch of first class *******s. The reason the bank sells the debt is two fold. One is that if things get heavy or dirty to collect they do not want their name dragged through the papers - let the dca take the brunt of it. Second is that they actually get at least some return for the outstanding debt and cut their losses.

 

So thats why it's so important to find out who actually owns the debt and the Consumer Credit Act (CCA) provides procedures which must be followed but have until CAG got out of it's box, been abused. Now they are paying the price for thier sins. The Data Protection Act Subject Access Request to the original bank/ CC company will provide you with all the statements from where you can establish all the charges on your account which you won't get from the DCA.

 

Keep us posted on the results. Good luck with it anyway.

[IQBAL1610]

Hi

Can anyone tell me what to do after sending a DCA a letter requesting the original CCA request (after being told they had 'bought' a debt), and getting what looks like a stalling letter back saying that they have asked the credit card company to supply it.

 

Does this mean I have written to the wrong company, and that they therefore don't own the debt?

Do I then have to send a recorded letter asking the same request for CCA of the original credit card company? Or do I allow the 30 days regardless of who should be sending it?

 

And is this a good or bad sign?

 

Please help! Anyone? I would appreciate advice on what to do now.

 

Also, a second letter asking for CCA was sent on the same day, recorded delivery, and no reply has been received. Shall I assume they have it, and have just not got around to answeiring this yet?

 

Thanks

[zootscoot]

If the debt is in the hands of a DCA the original agreement is likely to be ended. So there is no obligation for any one to supply the original agreement. S.77/8 only applies during the currency of agreements.

 

To determine who owns the debt you should write to the origianal creditor and ask them who they sold it to or write to the DCA asking for a copy of the deed of assignment. There is no legal obligation to provide the deed of assignment but if you are unsure of who owns the debt then you are entitled to ask them to prove ownership. The original creditor should have informed you that a change of ownership of the debt has taken place.

 

Hope this helps

 

Zoot

[IQBAL1610]

Hello

 

Thanks for the reply, but I am confused. Sorry to be dim.

 

I wrote a post asking for advice about a DCA which said they had bought a debt from a credit card company, and I was directed to a letter asking for the original consumer credit agreement, which many people had talked about on this sight.

 

I was told that if the original credit agreement could not be produced within 30 days of my request in writing (recorded) using the wording that is one of the letter templates, quoting the consumer credit act (section 78, I think), then I could write another letter saying that the debt would then have to be written off, as legally this must be produced.

 

Is this not correct then? A lot of people seem to havebeen advised to send this CCA request letter, and it features heavily on this sight.

 

Having been sent a letter by the DCA saying that they have asked the original credit card company for the credit agreement, I am now confused as to why they don't have it, if they have bought the debt from them, and what I do now? Does my letter request for the CCA still apply, and therefore, is the clock still 'ticking' for the 30days from when I sent it, or should I also have sent this letter to the credit card company as well, even though the DCA told me in writing that they now 'owned' the debt?

[zootscoot]

There is a lot of confusion on this site about the affect of a CCA request. Unfortunately it only operates to render an agreement unenforceable not the debt. Also it only applies during the currency of agreement and as your debt is with a DCA the original agreement will be terminated.

 

If you are satisfied that the DCA does own the debt then you should start making plans for a payment arrangement. There are template letters and budget planners in the stickies at the top of this page you can use.

 

Hope this helps

 

Zoot

[martinpar]

This has got me confused as well. I am helping someone out by sending a CCA request to a company for a debt which they claim to now own. From what I have read on this site it doesn't matter who owns the debt, they still have to produce evidence of the original agreement. It makes sense to me- after all anyone could invent a debt and sell it on if they are not obliged to provide proof of the debt.

 

I'm sure the thread I'm thinking of involved a debt which was originally to Citi and ultimately got written off because they couldn't produce evidence of the agreement.

[martinpar]

Woops. My post crossed with your reply Zoot.

 

That's upset my plans!