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Lowest Payment To Offer Lowell

Blade3377 asked:


My friend has currently received a letter from Lowell with an attached credit agreement after sending them a letter before action done by Tiggy, which has took them 2 months for them to send btw, I’m currently in another thread in the process of getting the agreement they sent uploaded to see if she should pay.

But my question is this, in general if any DCA comes up with sufficient evidence that the person in question owes the debt, what would be the lowest Payment amount to offer each month? Would they have to accept your offer, or can they refuse it and ask for more?

And lastly what would be the best way to offer and pay them the amount each month?

I know 100% phoning would be out of the question, but I’ve noticed Lowell have an online system in which to pay off a debt.

Would this be a viable method? Or would same rules apply to this and do it strictly through letters?

If so what would you put in that letter?

Thank you.

Faljay replied:


I would not advise anyone to pay unless they were taken to court and lost, and especially not Lowell. But should your friend decide to pay, she can offer as little as £1.00 a month and they can reject it, but then they go without any payment at all.

If you can post the agreement up I can tell you if it’s enforceable or not.

The main crux with the DCA’s is the Deed of Assignment, not the agreement, because without a deed, they have no legal rights to even contact your friend, let alone demand money.

Take Care.


Blade3377 replied:

Hi thank you for your reply, what happens if they reject a payment offer ? Can they still take her to court? And what would be the best way to offer payment thank you. Also the agreement is here.

Blade3377 replied:

The other 2 pages, also I’ve noticed they have sent 2 copies of the same agreement.

Faljay replied:


What year is the agreement?

If it’s post April 8 2007, then condition 20 is incorrect as from the above date, they have to have your permission to increase the credit limit, or lower it.

It all seems correct, however, Lowell need a Deed of Assignment to take legal action, though that won’t stop them, but if the judge requires sight of the deed and they cannot produce one, which is usually the case, they may dismiss their claim.

But as I said it’s up to you if you wish to pay. Yes they can refuse your offer of repayment, but they must give a valid reason why and cannot dismiss it out of hand.

If you do want to pay them you can use this letter, if you wish:



Reference/Account Number:

FAO: customer Services Manager

Dear Sir/Madam,

I am writing in regard to the above account.

At the moment I am experiencing financial difficulties and can no longer afford to pay the minimum amount each month. I therefore request you accept token payments of [whatever amount you can reasonably afford], until such times as my situation improves.

Under FCA regulations, the following applies:

Dealing fairly with customers in arrears or default.

7.3.2: When dealing with customers in default or in arrears difficulties a firm should pay due regard to its obligations under Principle 6 (Customers’ interests) to treat its customers fairly.

Forbearance and due consideration.

7.3.3: Where a customer under a regulated credit agreement fails to make an occasional payment when it becomes due, a firm should, in accordance with Principle 6, allow for such unmade payments to be made within the original term of the agreement unless:
(1) the firm reasonably believes that it is appropriate to allow a longer period for repayment and has no reason to believe that doing so will increase the total amount payable to be unsustainable or otherwise cause a customer to be in financial difficulties; or
(2) the firm reasonably believes that terminating the agreement will mitigate such adverse consequences for the customer and before terminating the agreement it explains this to the customer.

7.3.4: A firm must treat customers in default or in arrears difficulties with forbearance and due consideration.

7.3.5: Examples of treating a customer with forbearance would include the firm doing one or more of the following, as may be relevant in the circumstances:
(1) considering suspending, reducing, waiving or cancelling any further interest or charges (for example, when a customer provides evidence of financial difficulties and is unable to meet repayments as they fall due or is only able to make token repayments, where in either case the level of debt would continue to rise if interest and charges continue to be applied);
(2) allowing deferment of payment of arrears:
(a) where immediate payment of arrears may increase the customer’s repayments to an unsustainable level; or
(b) provided that doing so does not make the term for the repayments unreasonably excessive;
(3) accepting token payments for a reasonable period of time in order to allow a customer to recover from an unexpected income shock, from a customer who demonstrates that meeting the customer’s existing debts would mean not being able to meet the customer’s priority debts or other essential living expenses (such as in relation to a mortgage, rent, council tax, food bills and utility bills).

7.3.6: Where a customer is in default or in arrears difficulties, a firm should allow the customer reasonable time and opportunity to repay the debt.

7.3.7A: (1) If a customer is in default or in arrears difficulties, the firm should, where appropriate:
(a) inform the customer that free and impartial debt advice is available from not-for-profit debt advice bodies; and
(b) refer the customer to a not-for-profit debt advice body .
(2) A firm may refer the customer to a not-for-profit debt advice body by, for example, providing the customer with a copy of the current arrears information sheet under section 86 of the CCA, or with the name and contact details of a not-for-profit debt advice body or the Money Advice Service; or directly transferring the customer’ s call to a not-for-profit debt advice body .
(3) In addition, the firm may provide the customer with the name and contact details of another authorised person who has permission for debt counselling, provided that to do so is consistent with the firm’s obligations under the regulatory system.

7.3.8: An example of where a firm is likely to contravene Principle 6 and ■ CONC 7.3.4 R is where the firm does not allow for alternative, affordable payment amounts to repay the debt due in full, where the customer is in default or arrears difficulties and the customer makes a reasonable proposal for repaying the debt or a debt counsellor or another person acting on the customer’s behalf makes such a proposal.

7.3.9: A firm must not operate a policy of refusing to negotiate with a customer who is developing a repayment plan.

7.3.10: (1) to pay a debt in one single or very few repayments or in unreasonably large amounts, when to do so would have an adverse impact on the customer’s financial circumstances;
(2) to pay a debt within an unreasonably short period of time; or
(3) to raise funds to repay the debt by selling their property, borrowing money or increasing existing borrowing.

7.3.13: A firm seeking to recover debts should have regard, where appropriate, to the provisions in the Common Financial Statement or equivalent guidance.


7.3.14: (1) A firm must not take disproportionate action against a customer in arrears or default.
(2) In accordance with (1) a firm must not, in particular, apply to court for an order for sale or submit a bankruptcy petition, without first having fully explored any more proportionate options.

7.3.15: A firm should not make undue, excessive or otherwise unfair use of statutory demands (within the meaning of section 268 of the Insolvency Act 1986) when seeking to recover a debt from a customer.

Enforcement of debts.

7.3.18: A firm must not threaten to commence court action, including an application for a charging order or (in Scotland) an inhibition or an order for sale, in order to pressurise a customer in default or arrears difficulties to pay more than they can reasonably afford.

Thank you for your time and attention and I look forwards to your favourable response.

Yours faithfully,

Take Care.


Blade3377 replied:


Thank you for your reply, the year was 2013.

I think she is just going to offer them a repayment each month as she really doesn’t want it to go to court and as you said although they usually need the Deed of Assignment that doesn’t bother Lowell.

1) A few questions (which might be obvious but I just want to make sure so sorry for asking lol): On the letter where it says “I can no longer afford the minium repayment” would she still include that in the letter, as she isn’t currently paying anything for it at the moment.

2) Also if both parties agree to the repayment offered can Lowell add anymore charges, interest ect onto the debt? What are token payments?

3) What would be a offer they’d likely accept as I’ve seen people only paying them £1 a month lol

4) And lastly with you saying they can’t dismiss it out of hand does this mean they can’t just deny the offer and go straight to court they would have to let her know 1st?

Again sorry for all the questions and thank you for your help 🙂

Faljay replied:

1) No, remove that part.

2) Only if the agreement allows them to, which is unlikely.

3) You can offer £1.00 per month, but if she can afford more they will expect her to pay a bit more than that, if she cannot afford more, then that’s what you offer Lowell.

4) Yes, FCA regulations state they must not refuse out of hand – see the letter I posted up.

Don’t be sorry, the only way we learn is by asking questions.

Take Care.


Blade3377 replied:

That is brilliant thank you! 🙂

She is thinking of offering them £5 a month as that is all she can reasonably afford atm.

However she is hoping sometime in the future when things get abit more on track to pay the remaiming balance in full would this be okay?

Also do they need to see proof of her current financial situation?

And lastly she has asked if she could go online and just offer them the £5 a month on the payment system online?

I think shes worrying that they won’t receive the letter in time with her offer of payment and take her to court, I have told her letters are always best but I think shes just getting really worked up over it and worrying to much (as I have done myself with debts so I know how she feels) and just wants it sorted ASAP.

Again thank you 🙂

Faljay replied:


Only a court/judge – if legal action was taken and Lowell won – can order her to fill in an income/expenditure form, so no, they can try, but she is not legally obliged to do so.

Yes she can make the offer online and then back it up with a letter.

If she wishes to make a full and final settlement offer in the future, she can, but should begin by offering 30% of the outstanding amount and if not accepted, work up to NO MORE than 50%, and again, they cannot reject any offer out of hand.

Take Care.


Blade3377 replied:

Okay that is great thank you for your fast replys and all your great help 🙂 this might sound cheesy lol, but you and everyone else on this site not only save people money but also save lives and help stop people going down and dark and long road of depression.

You help people stand up to these DCA and their bullying tactics.

Again thank you and thank everyone on this site that’s helped so many people :D.

Faljay replied:


You’re very welcome and as a diagnosed clinical depressive, I know those dark paths and helping others helps me.

Take Care and All the Very Best.