Friend accepted 70% discount offer by lowells on 2 mobile+1 store card debt.....

[whitelist]

Not my debt, colleague from work asked for advice

 

She has just received a letter of discount from one of the big debt collection agencies. From what I can tell it is three accounts with different financial companies sold to this DCA merged together with a total liability about 4k. Two accounts will be time barred in 12 months, the largest in about two years.

 

They have offered 70%  discount payable over 12 months @ £100 a month.

 

1/ Call me cynical but why are they willing to stand a 4k loss?

2/ Is it a ploy to get her to acknowledge the debt in extending the Limitations Act? 

3/ Is the formal letter of discount received a contractual obligation (Offer/Acceptance) if she goes on line and sets up a payment account?

4/ On setting up the account, is it wise to ask her to make a debit card payment of say £10.00 immediately to show Consideration thereby a legal contractual agreement secured?

5/ Take it these accounts will still drop off her credit file with recorded default date from the original creditors, and not from when these payments start extending the Limitations Act? 

 

What it does say:

 

We want to help you settle your accounts by offering you a 70% discount if you clear the discounted balance within 12 months. If you are unable to repay the discounted balance within 12 months of accepting the offer, the discount offer may be withdrawn and the full outstanding balance will then be due. 

 

If something is to good to be true, it normally is.

 

 

[dx100uk]

1, yes its about 2

3.yes

4. no dont pay anything

5. correct.

 

this will be lowells.

what are the debts ,. mobile accounts?

 

has she moved since taking each out, and never informed the original creditors nor the DCA of her correct and current address?

 

dx

 

[whitelist]

As far as I am aware still at original address these accounts were taken out. Got into debt after havng a baby and simply stuck head in sand. Two are mobile debts the other store card.

 

She is worried if she does nothing they will apply for a CCJ in the future for the full amount

 

The question to ask?

Should she take up this offer or not?

[dx100uk]

god no!!

 

lowells i will guess?

 

dx

 

[whitelist]

Why should she not take up the offer>

 

In 12 months prospect of being debt free with no chance of future court action for the full amount?

 

Realise there is a scam in this as they do not make offers  out of the goodness of their heart.

 

[dx100uk]

because it runs the SB date to infinity and she doesnt even know if she even legally owes the debts.

99% of mobile debts are made of the monthly contractual payments due till end of contract = FAKE. ofcom has ruled they are unfair and lowells drop/lose/discontinue most court claims if defended properly , there are 100's of them here.

 

the card debt needs to be questioned by a CCA request but NOT until they send a letter of claim. which they must now.

 

its a phishing letter wanting to find MUGS. there is no discount, it's just had what they know they cant enforce knocked off.

[whitelist]

You make a valid point, but the card debt is most of the total debt, just under 4 k and still has four years under the Limitations Act left running.

 

What happens if they substantiate the contract with an agreement, etc AFTER they have instigated an N1 claim for the full amount say in two years' time? She does not have 4k in her bank balance. They will screw her credit rating for another six years and have the opportunity now to get rid of all these accounts, paying £100 a month for one year.

 

It sticks in my throat having to pay a DCA but saving 3k and be free in 12 months seems to good an opportunity to miss.

 

What she needs to know is if she makes contact and sets up an account with this DCA online (No human contact) Can they renege on this offer sent to her in writing after the repayment account activated? 

 

Have to tell her something. She just wants it gone and her decision to make to either settle, or continuing making no contact running the debt clock down.

Edited October 21, 2022 by whitelist

[unclebulgaria67]

Up to your colleague really. Agree about DCA's, as they are known for trickery

 

If your colleague does settle at £100 per month over 12 months, what the DCA will do, is that once the last payment has been made, they will record partial settlement on the credit records. Further letters will the follow about poor credit record, damage to rating due to partial settlement.

 

And if your colleague misses 1 payment or is late, they will issue Court claim going for the full £4k.

[whitelist]

Thanks for the advice. What really concerns her is a future claim for the full amount.

After one year it is ended and she can live with her credit record tarnishhed for a further four years until the default drops off

[dx100uk]

They go after the rest, they always do after they get the debt acknowledged.

 

Await if/when she get a letter of claim 

 

Dx

[whitelist]

dx100uk

 

You mention that ofcom has rulled demanding sums for the total contractual term is unfair and that Lowell discontinue the majority of claims with mobile phone contracts?

 

Can you be so kind as to link a thread that has used the ofcom statement and Lowell as having difficulty locating due to the vast data and threads on this forum.

 

This is just for my own education and understanding.

 

Will also update this thread when I speak to my colleague this evening if she contacted lowell as accepted their discount.

[dx100uk]

Just about any Lowell claimform mobile or telecom thread.

 

Use our enhanced Google search box or legal successes forum off financial legal issues.

 

Dx

[whitelist]

Just an update to end the topic.

 

Spoke to her last night at work and she has accepted the 70% discount on the total debt and paid over 12 months via standing order.

Agree with that decision myself.

 

She was worried they would come back in a few years for the full amount and issue a CCJ as the card debt still had four years left to run before becoming time barred..

 

Knowing she has a light at the end of the tunnel and not take that opportunity with the discount was just too much of a gamble.

 

If it had been me, would have held out as they must be aware the debts were unenforceable to offer the discount.

[dx100uk]

The only thing these people don't realise and make far worse for themselves but more importantly others, is it funds the DCA to then harass 10'000 of others 

 

It's free money to them nothing goes off any notional debt. Nor do any original creditors see a penny 

 

Dx

 

[lookinforinfo]

Whitelist you do realise that Lowells etc buy these debts for something like 10% of the original debt. And that debt would have included probable unlawful penalties throughout the term of the contract.

 

So ask yourself why the debtor buyer would give away 70% of the amount they could claim if they felt that they could make £4000+. Yes it would take more time but the rewards would be much greater. 

 

Your colleague MUST ensure that if they adhere to their side of the offer, that at the end of the year the rest of the debt is written off and will not be sold on to another debt buyer.

 

Perhaps if we had known you were going to go ahead we would have advised you to ask for a lower amount. After all a £4000  debt would have cost probably no more than £400 and they are asking £1200.

 

By pleading poverty but being willing to pay around half might have got them to agree especially if your colleague started talking about how many debt cases fail in court.

 

I am not sure you did them any favours.

[dx100uk]

could always cancel as its a 12mts agreement.

 

no doubt before month 11 lowells will issue a court claims for each debt for the remaining amount, dangled carrot eaten, debts acknowledged...

 

On 21/10/2022 at 00:54, whitelist said:

In 12 months prospect of being debt free with no chance of future court action for the full amount?

[whitelist]

This is not my debt and it will be wrong to make any decision on her behalf. You have to respect her choice

 

Lowell have agreed a contract in writing to be debt free in 12 months as long as payments are maintained

[dx100uk]

 

 

and how is that legally enforceable and what protections are in place if they turn around and say a payment was xx late and the agreement is off??

and where is there a signed agreement by both parties on EACH DEBT ( not just a balance concerning all 3) that they WILL write off the remaining balance of EACH DEBT upon completion..............

 

 

 

.

 

 

[whitelist]

Lowell made an offer in  writing

She accepted that offer in writing

consideration made with repayment schedule over 12 months.

Legal undertakings established.

 

A contract can be oral.

Edited November 1, 2022 by whitelist