Lowell debt collection: what to do if Lowell contacts you

A letter from Lowell often turns up months or years after you stopped paying the original account. The name may mean nothing to you. That’s normal. Lowell doesn’t usually lend money itself: it buys debts that other companies have stopped collecting, then tries to collect them.

Why Lowell is writing to you

Lowell is a group of companies. Its website explains that Lowell Portfolio I Ltd buys the debts and Lowell Financial Ltd manages them on its behalf, so you may see both names on your paperwork. The debts it buys usually come from:

• banks and lenders: credit cards, loans and overdrafts
• energy and water suppliers
• mobile phone, broadband and TV providers
• retail and mail order, including catalogue accounts

The first letter is normally a notice of assignment. It tells you the account has been sold and that you should pay Lowell from now on. The original company often writes as well. Lowell’s own guidance says the only thing that changes when a debt is sold is who you owe the money to.

If the debt started as an energy bill, read energy debt: what happens and what to do.

Can Lowell send bailiffs?

Not straight away. Lowell is a debt collector, and debt collectors have no power to come into your home or take your things. Before bailiffs could ever be involved, Lowell would have to take you to court, get a judgment, and you would then have to miss the payments the court ordered. Read debt collectors vs bailiffs.

You may also hear from Overdales Legal. Lowell’s website describes Overdales as a law firm in the Lowell group that deals with accounts going through the legal process. A letter from Overdales is a sign that court action is being considered or has started. Reply by any deadline it gives.

Check the debt before you pay

Details can go wrong when debts are sold. Before you agree to anything:

1. Match it to your records. Do you recognise the original company, the account number and the rough balance? Your credit file can help.
2. Ask for a copy of the agreement. For credit cards, loans and catalogue accounts covered by the Consumer Credit Act 1974, you can write asking for a copy under sections 77 to 79, with a £1 fee. While a valid request isn’t met, the agreement can’t be enforced through the courts. Phone, broadband and energy bills usually aren’t credit agreements.
3. Ask for a statement of account showing how the balance was worked out, including any charges.
4. Tell Lowell in writing if you dispute it. The FCA’s rules say a firm should suspend recovery while it looks into a dispute raised on valid grounds.

Use the contact details printed on your Lowell letter, and keep copies of everything you send.

Could the debt be statute-barred?

Under the Limitation Act 1980, a creditor in England and Wales usually has six years to start court action on an unsecured debt. If that time has passed with no court action, and you haven’t made a payment or acknowledged the debt in writing in that period, the debt is likely to be statute-barred. Lowell can still ask you to pay, but it can’t win a court case for it.

Check your dates before you pay or sign anything. A payment made before the six years are up restarts the clock. Read statute-barred debt explained.

What happens if you ignore Lowell

The letters, calls, emails and texts will carry on, and the default stays on your credit file for six years from the default date. Lowell may decide to take court action. If you ignore a county court claim, you will usually end up with a county court judgment (CCJ). That can lead to bailiffs, deductions from your wages or a charging order on your home.

If a CCJ was made and you never knew about the claim, read how to set aside a CCJ.

Your options if you owe the money

Agree a payment you can afford. Work out a budget first, putting rent or mortgage, council tax and energy ahead of Lowell. Read priority debts. Under the FCA’s rules on arrears and debt recovery (CONC 7), Lowell must treat you fairly if you’re in financial difficulty and consider what you can realistically pay. Get any plan confirmed in writing.

Get some time. Breathing Space pauses most creditor action and freezes most interest and charges for 60 days while you get advice.

Deal with all your debts together. If Lowell is one of several creditors, a debt management plan puts them into one monthly payment. If you can’t repay in a reasonable time, an IVA or a Debt Relief Order can write off what’s left. Lowell accounts can be included like any other unsecured debt.

Not sure which fits? Get free, impartial debt advice before you commit.

How to complain about Lowell

Complain to Lowell first, in writing. Say what went wrong and what you want it to do. If you don’t get a final response within eight weeks, or you’re unhappy with the answer, you can take it to the Financial Ombudsman Service. It’s free to use.

Frequently asked questions

Is Lowell a scam?

No. Lowell is a genuine debt purchaser authorised by the FCA. Scammers do copy debt collectors, though, so never use a link from an unexpected text or email to pay.

Do I have to pay Lowell if I never had an account with them?

If Lowell bought a valid debt that isn’t statute-barred, yes. The debt moved to Lowell when it was sold. You can still check it first and offer only what you can afford.

Can Lowell take money from my wages?

Not on its own. It would need a county court judgment and then a separate court order. Read attachment of earnings orders.

Who are Overdales?

Overdales Legal is a law firm in the Lowell group that handles accounts going through the legal process. If you hear from Overdales, reply promptly and get advice.

Sources

• Lowell, Who is Lowell? FAQs
• Lowell, How debt purchasing works at Lowell
• FCA, Financial Services Register
• legislation.gov.uk, Limitation Act 1980
• Financial Ombudsman Service, Debt collecting