A reader asked:
I had an old credit card debt from Vanquis, the last payment was made in 2018. It dropped off my credit file last week. I have just received a letter from Lowell saying they have bought the debt and have to contact them.
Will I have to pay, just as I thought I was getting out of the woods with old debt? If I do, will it reappear on my credit file?
At the time I was in a terrible situation with a gambling problem and had other debts that I was hoping I would never hear from again that I haven’t heard anything from as yet, fingers crossed.
The simple answers are:
Yes, you have to make a payment arrangement in this situation.
But No, this won’t cause the debt to reappear on your credit report and harm your credit score. When a debt has dropped off 6 years after the default date, it will never reappear.
Old debts can still be enforceable in court
You may be hoping this debt is too old to be enforceable in court. But it isn’t the age of the debt that matters here. The problem is that you were making payments up to 2018 – and something doesn’t become statute-barred until at least 6 years after your stop paying.
A debt that is no longer on your credit record is still usually enforceable in court if you have made payments in the last 6 years so you could get a CCJ if you ignore the debt collector and don’t set up a payment arrangement. That would wreck your credit score for another 6 years. See Debts that are no longer on your credit record for more about this.
But not always…
I said “usually”… there is an exception here if the debt collector can’t produce the Consumer Credit Act (CCA) agreement for the debt.
Asking for the CCA agreement only applies to loans, credit cards and catalogues. Not to overdrafts or utility bills.
So this is relevant for your Vanquis debt. If Lowell can’t produce the CCA agreement when you so them, the debt is not enforceable in court and you don’t need to pay them.
Read Why, when and how to ask for the CCA agreement for a debt for more about this as there is some specific wording you should use and you need to send a payment of £1 when you make this enquiry.
Was the Vanquis debt affordable?
In your case, there could be another possible route that may help.
Did Vanquis increase your credit limit too high when you were already in a mess and only making minimum monthly payments?
If they did, then you may be able to win an affordability complaint against Vanquis. See How to ask for a refund from credit cards and catalogues for more about these complaints, with a template letter you can use.
Only making minimum payments for a long period is one sign of problems. Another is gambling. You can’t use a credit card for gambling anymore, but back in 2018 you could. If you had used the Vanquis card for gambling, then Vanquis should have seen those transactions and not offered you any credit increases.
As you had other debt problems at that time, I think you should look now at whether you can make any affordability complaints about each of them.
It is going to be several more years before these debts become statute barred if you last made a payment in 2018. Crossing your fingers and hoping for this is not a good plan – you may be contacted by a lot more debt collectors over the next couple of years
See Affordability refunds for a list of my articles about different types of credit – not just credit cards but loans and overdrafts as well. There is also an article there that looks at the role of gambling in these complaints.
If a lender rejects your complaint, you can send the complaint to the Financial Ombudsman. This can be slow, so it’s best to start these complaints as soon as possible, not wait until you are being threatened with court.
Can you stop using credit cards?
Is your energy DD not just high but wrong?
Tackling maxed out credit cards
Christine says
Hi I need advice I had a number of loans with morses which I put in an un affordability claim all the little ones were wrote off but the big ones remained by this time the debt had been sold to lowell I appealed this but was rejected and told the loans stood I forwarded my case to the financial ombudsman in March through resolver in which time lowell froze the account I have still had no reply from the financial ombudsman regarding it and now lowell are hounding me to pay off the debt or threatening court action I’m now stuck at what to do lowell are just not interested and just want paying.
Sara (Debt Camel) says
Can you offer them a low payment amount while the FOS case goes through?
Darren Jackson says
I’m sorry but the advice you have been given is incorrect. If you haven’t made any payments for 6yrs then this is statue barred. Do not enter into any arrangements with them whosoever. This is what they rely on, people not knowing their legal rights.
The Limitation Act 1980 sets out the rules on how long a creditor (who you owe money to) has to take certain action against you to recover a debt. The time limits do not apply to all types of recovery action. Also, the time limits are different depending on the type of debt that you have
It’s a credit card so time is up.
Sara (Debt Camel) says
In the question at the start of the post, it says the last payment was made in 2018. So 4 years ago – it’s not statute barred.
Brian Rose says
If the reader doesn’t make any contact with Lowell would the debt become statute barred 6 years after the reader made the last payment to Vanquis? And, if the reader made ANY contact with Lowell, even if that’s just to ask for the CCA agreement, would the 6 years start again from the date of the contact with Lowell? Perhaps the best course of action for the reader right now is to sit tight and not contact Lowell. Lowell might threatened legal action but if the reader doesn’t get a “letter before action” then the reader need not worry. On the other hand if Lowell does send a “letter before action” then I think one can assume that Lowell does have a CCA agreement and then the reader would have to contact Lowell to ask for the CCA agreement. And, at this point, the reader should set up a payment plan with Lowell. If the reader is really struggling financially ( because of the present cost of living crisis) the reader could perhaps just make a £1 per month token payment until such time as the reader’s finances improve.
Sara (Debt Camel) says
would the debt become statute barred 6 years after the reader made the last payment to Vanquis?
Possibly but not 100% certain, read https://debtcamel.co.uk/statute-barred-debt/ for details.
But there is virtually no chance Lowell will sit back and let this go statute barred. There is no point in hoping this will happen, better t9 get on with an affordability complaint now.
If the reader has major final problems at the moment, then they should take debt advice on their full situation. Token payments or a debt management plan can be good options while affordability complaints go through.
Tom Riley says
Lowell are pretty easy to deal with. They are usually buying really old debts for pennies on the pounds. So your debt will owe them far less than what they are chasing you for.
My personal advice would be to setup a token payment of £1 a month and don’t ever miss it.
Just let that £1 keep ticking away.
Then in the future when you have enough money, offer them a 25% final settlement.
This is exactly what happend with my Littlewoods account sold to Lowell.
Value was £1000
Paid £1 a month for 2 years. (£24)
Then had a £250 settlement with them to clear it in full.
My debt was also off of my credit file.
Roy says
I love you debt camel, not sure why this showed up in my internet search but it did and I’ve just got a letter from a loan I had 15 years ago which I haven’t heard of anyone for a long time and it appears to be sold on. I’ve done the following up reading on statute barred. Again debt camel your a life saver especially in these times, thank you thank you and thank you again for all the previous help and this information
Sara (Debt Camel) says
Talk to National Debtline on 0808 808 4000 – they have a template letter you can use.
Khan says
Hi Sara hoist send me some sort of documents from Barclaycard could you please give me your email I can send it to you
Sara (Debt Camel) says
Did you ask Hoist to supply a copy of the CCA agreement for the debt? If you did, then this page https://debtcamel.co.uk/ask-cca-agreement-for-debt/ says what to do if you are not sure you have been sent the right document. I am sorry but this isn’t something that I will give an opnion on.
Chloe says
Hi Sara,
If a debt is sold onto a debt collector but the original company no longer exists as it went into administration (sunny), am I still liable to pay the debt?
Sara (Debt Camel) says
yes you are. Did you make a claim to the administrators?
Chloe says
Yes I did on the online portal but I never heard back from them
Frank says
Hi Sara
I received a letter in 2022 from a debt collection company saying I owe a debt on an abbey national credit card . I did have an abbey national credit card and my last contact with them was in 2006 . I am not sure if I had a ccj on this debt as it was that long ago, if I did have a ccj it would have dropped of my credit file at least 8 years ago , so I’m not sure if is statute barred or not , could you please give me some advice on how to approach this
Thanks
Sara (Debt Camel) says
did the letter say there was a CCJ?
Frank says
Hi Sara
Thanks for getting to me , no it didn’t mention a ccj . It just said it was abbey national no account number just a reference number that I presume it is their reference who sent the letter but as you are aware that closed years ago . The last time time I had any correspondence with abbey was in 2006 . I didn’t use credit with anyone after that until 2016 , so if I did have a ccj it was definitely off my credit file by 2016 . But there might have been one before 2016
Sara (Debt Camel) says
Then I wouldn’t worry about a CCJ at this point as you have no way to find out about it.
Talk to National Debtline on 0808 808 4000 – they have a template letter you can send to the debt collector if it sounds as though the debt is statute barred.
Frank says
Thanks Sara
mel says
Hi
I really need help. I have been ravaged by covid and am still fighting. I am very very slowly making progress to keep a roof over my family. Kearns solicitors have issued ccj’s on behalf of their client Lc asset 2sarl who purchased credit card debt from Halifax group. I have poured my heart out and saying that a CCJ doesnt make any sense as I want to pay debt and Covid is not my fault. I have suffered immensly with finances and health. I have a couple of days to put in a defence or respond to the court. I have just heard of CCA’s so need to know if its too late to ask, what I can do, any help at all. Anything I should not do?
Please help. Much appreciated in advance
Sara (Debt Camel) says
Talk to National Debtline on 0808 808 4000 about what to do.
Mac says
Hi Sara , I posted recently reference for friends who are in DMP with Payplan ..
It seems all debts are with DCA , except one that is still with Santander circa 15 years old ?
They are in process of requesting Credit agreements as advised , do these need to be originals etc .. lastly what’s your view on Santander account is this normal ?
Sara (Debt Camel) says
The agreements don’t usually have to be originals – a true cope is good enough.
It is odd that Santander haven’t sold this. If it was a loan or a credit card, I suggest they too are asked to produce the CCA agreement
Mac says
So to not ruffle creditors feathers , what would be a reason for requesting the agreements ?
I think Santander ones are bank accounts , does this make a difference ?
Sara (Debt Camel) says
You don’t need a reason, it is your right to request the CCA agreements. Creditors feathers won’t be ruffled, this is a normal part of being a debt collector.
As my page on CCA agreements explains, they are not relevant for overdrafts.
Mac says
Is is same for bank accounts also ?
It seems all debts sold except Santander ones , though Moorcroft are acting on their behalf .
We now wait for replies reference credit agreements, one thing I find strange when my friends mentioned this to Payplan case officer they didn’t seem keen to promote this approach ?
Sara (Debt Camel) says
you can’t ask for a CCA agreement for a bank overdraft.
I don’t know why Payplan are never interested in telling people about this. But if a debt collector says they can’t produce the agreement after a couple of months, just tell Payplan to remove the debt from your DMP.
Mac says
Thank you for reply ..
It is very strange I agree , Payplan have not
once advised them to ask for CCA .. . I can only assume payplan perhaps know some of the debts at least are not enforceable due to this …. ??????? lost revenue for DCA …
Sara (Debt Camel) says
No, Payplan does not have asking for CCAs on its radar at all. This is NOT an indication that your creditors will not be able to produce them.
Mac says
Carrying on from previous posts regas .. so Santander have not sold credit card debt even though
It was defaulted in 2008 it is managed by wescot who apparently don’t purchase debts .
Do we request all CCA for others that are owned by DCA now and leave Santander one for moment or all in is the best approach .
Why would they retain a default debt for so long ?
Sara (Debt Camel) says
This debt is very old so you could ask Santander to produce the CCA. I have no idea why they haven’t sold the debt and there is little point in speculating.
Don’t ask for the CCA for an overdraft debts.
It’s your decision what CCAs to ask for.
Donna says
Hi I’ve received 3 letters from lowell about a littlwoods debt that’s over 20 years old …they haven’t been in contact all this time …they have bought my debt and are now hounding me for it …..I suffer with mental health and this is really getting to me now..I cleared what debts I thought I had years ago …where do I stand I won’t be in contact with them for them to say …well you contacted us you now have to pay …I got a dryer off them when my daughter was 3 she’s 23 next please take off my surname thanx 😊
Sara (Debt Camel) says
I suggest you talk to National Debtline on 0808 808 4000 about whether these debts are likely to be statute barred – that is too old to be enorced in court. If National Debtline agree they are, they have a template letter you can send Lowell saying this.