Lowell Debt Collector Letters Misleading!

[OliverJames]

Hi all,

I am looking for some advice before i head to the financial ombudsman, as i'm not sure if they really add any value (again, advice welcome!).

I have had an outstanding debt with Orange for some time, and although disputed, it has been sold on to Lowell Group who have now sent me a load of letters, the last of which offered me a 40% discount to clear the debt. This offer was enough for me to get in touch with them to get this cleared up once and for all as it was all getting a little boring and they were threatening to go direct to my employeer and they could take it from my salary.

That aside, I was happy to pay off the debt (now down to £230) and I called them up. I spoke to a young lady and explained that i had received the letter and that i wanted to pay it off, at which point she advised me that the payment i was making was only clearing a balance and that it would not clear the debt from my credit file. This was something i disputed on the call as the letter clearly stated that the payment would "clear the debt" but as they were unable to see the letter on their system they could not confirm whether or not that was the case. Either way they continued the line about it not being removed from my credit report, and as much as i understand that, the letter itself was totally misleading.

She went and put her manager on (Deen Kahn) who couldn't have been more rude, or less helpful if he tried! He got me to the point where i advised i was happy to pay off the debt (including the 40% discount) and at that point i mentioned that i had an intention to take it up with the FSA or Ombudsman at which point he turned extremely arrogant answering back "whatever, do what you want", "yep, yep, yep probably" and "I'm sure you will" which was just another clear sign that they have absolutely ZERO concern about peoples financial situations as they claim on their website, and just want to get paid (obviously).

With the misleading nature of the letter, is there anything I can do, or any grounds for approaching the financial ombudsman to get their business checked out as they are likely to be doing this to more people!

Rant over and I look forward to hearing back from someone!

Ollie

[Nibbler]

Re: Lowell Debt Collector Letters Misleading!

My natural understanding of 'clearing a debt' would be that means it would be 'paid off' and the creditor would agree that no more was owed. i.e it would be settled.

I certainly would not think it meant that it would be removed in it's entirety from my credit files, but would just expect it to be marked on them that it had been settled/satisfied.

To be honest I can't see the authorities or ombudsman looking at it any other way either.

That is without seeing the letter though.

[OliverJames]

Re: Lowell Debt Collector Letters Misleading!

My natural understanding of 'clearing a debt' would be that means it would be 'paid off' and the creditor would agree that no more was owed. i.e it would be settled.

I certainly would not think it meant that it would be removed in it's entirety from my credit files, but would just expect it to be marked on them that it had been settled/satisfied.

To be honest I can't see the authorities or ombudsman looking at it any other way either.

That is without seeing the letter though.

Thanks for the quick response.

During the conversation they advised me that the debt wouldn't be shown as cleared, just a balance paid (if that's the right terminology). That said, i understand it not being removed from my credit report, but by me paying off the balance (not called balance in the letter) i would expect it to show to future lenders as a ZERO balance, and if possible i would then be able to get it removed down the line.

I just feel that they were misleading with their letter, but maybe I am looking too deeply in to it and being a little too defensive because they were so rude on the call.

Thanks again

[Nibbler]

Re: Lowell Debt Collector Letters Misleading!

So it's not the letter that is misleading, but the staff you spoke to on the phone.

What they are probably referring to is it being marked with a partial settlement flag.

That is per ICO guidelines.

http://www.scoronline.co.uk/files/sc...ment_final.pdf

Your record should be closed and marked as partially settled if:

• The lender accepts final settlement of the account for less than the balance outstanding
• Your account is included in an insolvency such as a bankruptcy or IVA which is discharged / completed and less than the full amount is paid

Would still show that the debt had been paid off or 'cleared', but just that you did it by paying less than the full amount. Any remaining balance, if shown at all, should be zeroed.

In the end most of Lowells staff are barely trained, and are just repeating a script and using terms they have no real knowledge of. That applies to their managers as well.

So have you paid this now or not?

[OliverJames]

Re: Lowell Debt Collector Letters Misleading!

No, they wouldn't accept the credit card i wanted to transfer the balance on to. Not such a bad thing as i wanted to get some 3rd party advise before moving forward, as it may be worth me clearing the entire debt and having no more comeback from it?

[Nibbler]

Re: Lowell Debt Collector Letters Misleading!

It's up to you. They are obliged to mark it as at least a partial settlement with any outstanding balance cleared, no matter what any ignorant little twit may claim on the phone. If they didn't you could complain and have it corrected.

[OliverJames]

Re: Lowell Debt Collector Letters Misleading!

Ok great, thanks for the advice. I have no problem clearing the debt, just want to make sure I'm not playing into their hands by doing so, and not going to come unstuck by paying off the reduced amount.

Thanks again

[wales01man]

Re: Lowell Debt Collector Letters Misleading!

A debt on a CRA should be marked as Satisfied when paid off Staying for 6 years is a detterent for debtors to not get into debt!

By removing all mention of a debt from a file after someone bothers to clears it would make a nonsense of the effect of a debt filed .
Only if the file is wrong should the CRAs remove it this seems to be the problem in many cases

[Don Quixote]

Re: Lowell Debt Collector Letters Misleading!

Personally, I’d continue the dispute regarding the original account. If Orange sold it on with the dispute still live, and marked your credit report, you’d have every right to complain, as well as seek redress and clearing of your credit file (subject to us knowing the facts of the case, of course). Lowell bought the rights and responsibilities as well as the balance! Tell us the nature of the dispute.

What is more alarming is that you claim they were threatening to go directly to your employer. In what way did they do this? In writing? What exactly did they say?

They cannot approach your employer unless they have a judgment in their favour and a court order for an attachment of earnings. To state otherwise would fall foul of every guideline going. It’s a lie.

And please, never talk to a DCA or debt buyer unless you record the call!

[Nibbler]

Re: Lowell Debt Collector Letters Misleading!

Very true. I was focusing on the credit file aspect of it.

[wales01man]

Re: Lowell Debt Collector Letters Misleading!

For the OP to get better advice they need to tell all the letter may say an Attachments of earnings is possible if a judgement is obtained as stupid as Lowells are hard to believe they would make threats they cannot carry out.
We have many letters from these Aholes every threat can be carried out but after due process

[Nibbler]

Re: Lowell Debt Collector Letters Misleading!

http://fshandbook.info/FS/print/FCA/CONC/7/11

CONC 7.11.8

01/04/2014
FCA

A firm must not suggest or state that it will commence proceedings for a warrant of execution or an attachment of earnings order when a court judgment has not been obtained, or that it will take any other enforcement action before it is possible to know whether such action will be permissible.

[Don Quixote]

Re: Lowell Debt Collector Letters Misleading!

For the OP to get better advice they need to tell all the letter may say an Attachments of earnings is possible if a judgement is obtained as stupid as Lowells are hard to believe they would make threats they cannot carry out.
We have many letters from these Aholes every threat can be carried out but after due process

Indeed. We know they’ll say more on the phone than in a letter...

[wales01man]

Re: Lowell Debt Collector Letters Misleading!

Hope they recorded the call from Lowells although advice has always been don't phone them they might hear big words they cannot understand if you call them

[Don Quixote]

Re: Lowell Debt Collector Letters Misleading!

http://fshandbook.info/FS/print/FCA/CONC/7/11

CONC 7.11.8

01/04/2014
FCA

A firm must not suggest or state that it will commence proceedings for a warrant of execution or an attachment of earnings order when a court judgment has not been obtained, or that it will take any other enforcement action before it is possible to know whether such action will be permissible.

As said, these kind of ‘implications’ tend to be verbal, rather than written, which is why I always advise recording calls.

We know they write their letters in such a way that the recipient takes in the nasty bits rather than the whole. They rely on ignorance of the law. The most insidious type of statement is ‘When we gain judgment, we shall...’ – fortunately, this is becoming less common, but replacing ‘When’ with ‘If’ is lost on most people who are simply scared of the implications.

Will be interesting to hear more from Oliver.