Hello,

I've got quite amount of debts to barclaycard. I've been saving up and would like to pay it back. This is quite a old debt actually. Just when I've been trying to find out how to pay them back. I've received a letter from lowel financial ltd saying the debt's been sold to them.

I know I've got the debt and am not trying to escape from it. (Made silly mistake when younger).

My question is, who do I pay the debt back? Barclaycard or Lowel financial ltd (I don't really wanna pay to them because of their reputation).

Would be really grateful for any advice.

Many thanks in advance.

Hi,

Thanks for the advice.

I'm going to write them a letter asking for the detailed debt. If I pay in any method, would they send me any signed receipts? I'm really worried that they wouldn't acknowledge my payment. Let's say if I pay by cheque, obviously I would be able to find out if the money has been taken by checking my own bank statement. Would this proof be enough if they come back and say that they've never received any payment?

Thanks again.

STOP!

If the debt is an old debt, then you need to be aware of the Limitation Act 1980 Section 5.

If, for a period of 6 years or over (for unsecured debts), no payment of the debt has been made, and you have not acknowledged the debt in writing, then the debt becomes what is known as "statute barred", meaning that the creditor/debt collection agency becomes unable to take legal action against you to recover the debt.

Check the following link, which explains this legislation in more detail, http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

You need to be very careful in your dealings with the debt collection agency. There is a sample letter available here, http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act#h

As long as you have not acknowledged the debt in writing or made any payments to the debt collection agency, and any written acknowledgement of the debt or payment was made over 6 years ago, then the debt would still be "statute barred" - you would thus be able to write to the debt collection agency using a variant of the sample letter above stating the statute barred legislation - and if the debt collection agency continued to pursue you over the debt, then you would be able to claim harassment contrary to Section 40(1) of the Administration of Justice Act 1970.

Defaults on your credit file should disappear after 6 years, and I believe it is not allowed to record a default on a credit file for a debt which has since become statute barred.

There are also specific guidelines by which debt collection agencies must operate which are laid down by the Office of Fair Trading, please see the following link for more details - http://www.oft.gov.uk/advice_and_resources/resource_base/legal/cca/debt-collection

It is unlikely that Barclays will gain from you repaying the debt to the debt collection agency. The standard model by which many debt collection agencies operate is that they buy debts from creditors (e.g. Barclays) in bulk, usually at a highly discounted price relative to the magnitude of the original debt. When this is done, then Barclays would have essentially "written the debt off". The debt would become the "property" of the debt collection agency, and any payments you subsequently make to the debt collection agency would go towards the profits of the debt collection agency, and not to Barclays.

PhishBlaster is right ... also if you acknowledge the debt now you will incur other charges for admin and them chasing you.

have a look at this ... website :http://www.aladebtsolutions.co.uk/PageDisplay.aspx?cpid=29 it provides more information on the topic.

George

hikaru -- I've been saving up and would like to pay it back.

You guys have missed the original posters question, he was asking for advice on how to pay it back for a change.....not how to avoid paying it, otherwise my advice would have been similar to yours. !

For what its worth, I would never pay a debt collector only the original creditor. If Lowell have bought the debt then they have probably only paid 10% of its face value for it; i.e. £100 for a £1000 debt. I think your course of action should be to CCA Lowell and see if they can get the paperwork together. If they can (and I doubt it) then you should look to make a full and final offer towards the debt value and get the default removed. In reality when they come back without an agreement, without a statement of account showing the unlawful 'referral' fees they add, and without a notice of assignment, you can offer them a full and final settlement of around 10% and get the default removed. That way the debt is cleared and you will have money left over to pay any other debts.

Failing that talk to the original creditor and tell them you have the money sitting there ready and that you will only give it to them. They can buy back debts from Lowell.

The choice is yours but honestly, never pay the debt collector 100% of what's owed without questioning it. It just means they can buy more debts and hassle, abuse and lie to more unsuspecting people.

That's my opinion

TA