Who are Lowell Financial and should I pay a debt if I receive a letter?

Couple Looking at their Bills

Lowell Financial are a legitimate and regulated company that administers chasing debt and purchase debts from other companies; the debts collected can come from a range of originating sources including but not limited to mobile networks, credit cards and mail order accounts.

It’s important not to ignore debt letters even if you cannot afford to pay although I will provide some insight in this article on how to deal with any debts owed, is it always good to speak with a debt charity such as step change or payplan who can help you deal with any debts.

The reason you should not ignore a letter from Lowell is they can in some circumstances where they feel they can collect a debt raise a County Court Judgment which should be avoided as this can have serious detriment to your credit history and can effect your ability to either get a job or in your current profession.

Should I pay the debt if lowell contact me?

Firstly, do you think the debt is actually yours and do you think the amount the amount is correct? Asking a debt collector to prove the debt is yours is a.) a delaying tactic if you need time to pay and b.) important to establish that the debt has not been allocated to you incorrectly and the amount is correct. It always important to check the debt is actually a debt it may have been paid or previously written off as mistake do happen.

Secondly, If a debt is over 6 years old this would be classed a statute barred and you would not need to pay as the UK has a time limit on collecting debt, but you need to establish the date the debt was first defaulted, if the debt is statute barred they are limited to asking you to pay nicely but this cant be attached to your credit report and cannot be escalated via the courts.

Once you have established the facts if the debt is owed, there a several things you can do you can wait to see if they are escalate the debt, in my experience of several debts with Lowell only one I have seen has been escalated to a county court judgment, the others I have seen have gone through various types of collection methods including passing to another 3rd party to collect and various offers to pay reduced amounts if paid in full or a payment is arranged, these offers ranged from 10% to 90% off.

If Lowell have purchased the debt it has likely to have been for a very small of the debt for example they could buy debts of Capital one for £50s each and these debts might be worth £2000s each, so you may consider offering to pay a full and final settlement of a lower amount or setting up a payment plan if they agree to lower amount. They are not obliged to agree but if they feel the offer means they get the maximum amount they think they can get or the offer is good value for money they chose to accept. This is fully dependent on them, one of the main factors they will also consider is the age of the debt, the older the debt the more likely it is the more likely they are to accept a cheeky offer.

If you are struggling with debt such as with Lowell, stepchange and payplan can help. They offer free confidential help as a charities who are funded by the financial industry. They can help set up payment plans, get debt legally written off and negotiate on your behalf. They will discuss the implications of any actions taken, and be able to help by phone or email.

Why shouldn’t I worry about any debts?

At the end of the day debt is not something to be ashamed of and can happen to anyone, but it is not something to be ignored, take careful thought and advice before making any decisions on what to do about any debt.

Remember lowell cannot enter your home to seize debt, use fake court documents, contact your workplace, pretend to have bailiff powers or harass and threaten you in anyway. They also cannot tell anyone about the debt without your permission.

However they can do any of the below :-

  • Report you to credit reference agencies which will damage your credit rating
  • Start court proceedings against you and have a court order to pay the amounts issued
  • Instruct enforcement officers (bailiffs) to visit you at home, if the court says they can
  • Apply for an attachment order to be placed on your earnings or bank account

How do I contact lowell?

Theres a few contact methods listed below:-

Phone number0333 556 5552
PostLowell Financial, PO Box 13079, Harlow, CM20 9TE
Office AddressEllington House 9 Savannah Way, Leeds Valley Park West, Leeds LS10 1AB
Opening hours8am-8pm Monday to Friday, and 8am-2pm on Saturday

Remember to keep a record of any contact.

If in doubt seek advice for free from a charity, never pay anyone to to do this for you. – Money Lad.

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