Lowell Debt Letter: Who They Are and How to Respond

What does Lowell do?

In a published Financial Ombudsman ServiceHow to Make an Insurance Claim and What to Do If It Is RejectedStep-by-step guide to making an insurance claim in the UK, what evidence to gather, what insurers must do, and how to complain to the Financial Ombudsman.Read more → decision involving Lowell, the ombudsmanFinancial Ombudsman Service (FOS)The Financial Ombudsman Service is a free, independent service that resolves complaints between consumers and financial firms.Read more → describes the company as a debt purchaser that had bought debts from the original lenders and so owned them and could ask for repayment. The same decision explained that a complaint about how the original lender sold or handled the account belongs with that lender, not with the buyer.

That is a useful distinction. If you are unhappy about how the account was run before the sale, such as lending that was unaffordable, the original lender is the firm to raise it with. If you are unhappy about how the new owner treats you, complain to Lowell. Our guide to a notice of assignment explains the sale step in more detail.

Check that the letter is genuine

Debt letters are copied by scammers, so verify before you act.

• Look up the company name on the FCA register and check that the details match the letter
• Check that the letter names the original lender and gives an account reference you recognise
• Use a phone number and website you find yourself, not those in an unexpected text or email
• Never pay by gift card, cryptocurrency or transfer to a personal account

Ask for the paperwork

You are entitled to ask questions before you pay. Write to Lowell and ask for:

• Proof that the debt was sold to it and a copy of any notice of assignment
• A statement of account showing how the balance is made up
• A copy of the credit agreement, if the debt was regulated credit. A £1 fee applies and the firm normally has 12 working days to respond. See requesting your credit agreement

Tell Lowell how to contact you

You can ask a firm to contact you by a method that suits you, such as email, and you can tell it about circumstances that affect how you manage a debt. The Ombudsman decision notes that a firm can only respond to needs it knows about, so be specific about what support you need. For example, say if you have a health condition that makes phone calls difficult, and ask for written contact. If the contact becomes constant or distressing, our guide to collectors that will not stop calling covers the rules.

If you dispute the debt

If you say a debt is not yours or the amount is wrong, a firm should explain its position, and after it has given its answer it may continue to contact you about a balance it says is owed. So set out your reasons clearly and keep the evidence. Our guide to what to do if you do not recognise a debt lists the steps.

What a good first reply says

Your first reply does not need to be long. Quote the reference on the letter, say whether you recognise the account, and list what you want: proof of the sale, a statement of account and, if relevant, the agreement. If you want to repay, say you will propose a plan once you have seen the figures and ask them to hold collection while you get advice. Keep a copy and use a postal method you can prove. Avoid admitting the debt in writing until you know it is not statute-barredStatute-Barred Debt: The Six-Year Rule and UK Time LimitsIs your debt too old to be enforced? Learn the UK time limits, what restarts the clock, how it differs from your credit file and what to do before replying.Read more →.

If a court claim follows

If Lowell or a firm acting for it starts a county court claim, the claim form is a different matter from a collection letter. In England and Wales you generally have 14 days to respond and a further period to file a defence, and a missed deadline can lead to a default judgmentCounty Court Judgments (CCJs) ExplainedWhat a County Court Judgment is, how to respond to a claim, how to pay or set one aside, how long a CCJ stays on your record and how it affects credit.Read more → and a CCJ that stays on your file for six years. Our guide to CCJs explains the process and how to pay or challenge a judgment.

An old debt

Check when you last paid or acknowledged the debt. In England, Wales and Northern Ireland a creditorHow to Deal with Creditors: Communication and NegotiationPractical advice on communicating with creditors, negotiating affordable repayments, and understanding your rights when dealing with the companies you owe.Read more → generally cannot win a court claim six years after that point, and in Scotland the usual period is five years. A sale does not restart the clock, but a payment or written acknowledgement may. If in doubt, speak to an adviser before replying. See statute-barred debt for the detail.

If you cannot afford to pay

Offer an amount you can keep to, backed by a list of your income and essential spending. A free adviser can negotiate on your behalf and look at the whole picture. See the comparison of free debt advice charities to choose between MoneyHelper, Citizens Advice, StepChangeStepChange Explained: What It Does and How It WorksWhat the debt charity StepChange offers, how its free debt advice and debt management plans work, who it suits and what to expect when you contact them.Read more → and National DebtlineNational Debtline: How It Works, When to CallWhat National Debtline is, who runs it, what it can help with, how to get free advice by phone, webchat or online tools, and what to expect.Read more →.

Complaints

Complain to Lowell first. If you are not satisfied, or you have not had a final answer after 8 weeks, the Financial Ombudsman Service can look at the complaint for free. Data protection concerns can go to the Information Commissioner's Office, while questions such as whether behaviour amounts to harassment are for a court, so legal advice may be needed.