If you’ve received a letter or phone call from a company by the name of Lowell Financial Ltd, it likely means you owe a lender money and they’ve passed the debt on to a collection agency to recover on their behalf.

Being contacted by a debt collection agency can be worrying and it’s normal to worry about how it might change any debt arrangement you had with your original creditor. However, it’s important not to panic. Whether you owe the debt or not, you have options.

This guide will outline everything you need to know about Lowell Financial, including where they are based, why they are contacting you, and what you should do when you reach out to you.

Who is Lowell Financial Ltd?

Lowell Financial Ltd (often simplified to Lowell Financial or Lowell) is a debt collection agency based in the United Kingdom. They recover a wide range of debts, including credit cards, store cards, utility arrears, loans, and benefits overpayments.

Part of the larger Lowell Group, which operates across the UK and Europe, Lowell Financial was founded in 2004 and has since grown to become one of the largest businesses within the debt purchasing industry. Today, the Lowell portfolio has over 17 million accounts and nine million customers.

The company purchases unpaid debts from other organisations, such as banks, credit card companies, and utility providers, at a discount and contacts the person who owes the debt to arrange payment. According to their site, they are committed to providing a fair and ethical approach to the debt collection process.

Is Lowell Financial regulated?

Lowell Financial Ltd is authorised and regulated by a number of different organisations to ensure it delivers a high-quality service to millions of clients.

The Financial Conduct Authority (FCA)

Lowell Financial is regulated by the Financial Conduct Authority (FCA). The FCA is the main regulatory body for financial service firms in the UK, responsible for ensuring the country’s financial system is stable and compliant and consumers are protected against unfair treatment.

The Credit Services Association (CSA)

The firm is also a member of the Credit Servives Association (CSA), which is the trade association for the debt collection and debt purchase industries. This means they must adhere to strict guidelines that emphasise ethical conduct and regulatory compliance.

The Financial Vulnerability Index (FVI)

The UK Financial Vulnerability Index (FVI) is a tool designed to track financial vulnerability and resilience in different parts of the country. It was designed by Lowell in collaboration with Opinium and works by combining customer data with publicly available measures to gain insights into the financial wellbeing of UK adults, families, and communities up and down the country, including the percentage of families with access to savings in the event of an emergency.

Where are Lowell Financial based and how can I contact them?

Lowell Financial are based in Leeds, England. We’ve provided their location and full contact details below:

Address:

No.1 The Square

Thorpe Park View

Thorpe Park

Leeds

LS15 8GH

Phone:

0333 556 5550

Email:

[email protected]

Why am I being contacted about a Lowell debt?

If you have been contacted by Lowell Financial, it means they have purchased your debt from a company you owe money to. This can be daunting in any event but especially if you didn’t even know you were in debt.

In most cases, they will send you a letter explaining that they are now the owner of the debt and you should communicate with them going forward. The letter should also explain your next steps, depending on whether or not you agree to owing the debt and how to contact them if you have further questions.

While rare, it is possible that you have been contacted by Lowell Financial in error. If you believe this to be the case, you must contact them as soon as possible and provide any relevant information to prove that you’re not the owner of the debt they are attempting to recover. What should I do when Lowell Financial contact me?

If Lowell Financial contacts you and you agree to owing the debt, there are several steps you can take to kick-start the repayment process:

Verify the debt is legitimate

The first thing you should do when you receive a letter or phone call from Lowell Financial is to check it is legitimate. Fraudsters sometimes pretend to be well-known companies in an attempt to trick you into paying a debt that isn’t yours or paying more than you actually owe.

Simply contact them using the contact details above and quote the reference number on your letter. They should be able to tell you if the debt is legitimate straightaway.

Respond to the letter

It’s important to respond to any letter you receive from Lowell Financial by the contact method specified. Even if the debt isn’t yours, they don’t know that unless you tell them and they will assume you are trying to get out of paying what you owe.

Remember to keep a record of all your communications with Lowell Financial in case you need to refer back to anything at a later date.

Repay the debt in full

If you agree to owing the debt and you’re in a position to repay your balance in full, it’s always a good idea to do so. This will allow you to resolve the debt and put a stop to more communication from Lowell Financial.

You may also be able to negotiate a full and final settlement where you agree to pay less than the full amount owed.

Set up a payment plan

If you’re not in a position to repay your debt in full, you can set up a payment plan to clear your balance in regular instalments over time. It’s important to offer as much as you can without putting yourself in further financial hardship.

Lowell Financial should be happy to accept a payment plan that suits your financial situation, provided they know they will eventually recover full payment of the debt.

What happens if I ignore Lowell Financial?

It can be tempting to ignore a debt collection firm when they contact you in the hope that it makes them go away. However, it’s important to note that this is extremely unlikely and will only make your situation worse in the long run.

The longer you ignore them, the more likely they are to take legal action against you to recover the money owed. As difficult as it is, the best thing you can do is make a plan to deal with your debt head-on.

Here are some of the things that might happen if you ignore Lowell Financial:

A debt collector will visit you at home

If you don’t respond to a letter or phone call from a debt collection firm, their next step will be to send a debt collector to your address to try to recover the debt from you in person.

They are allowed to do this, but there are strict rules they must follow when they carry out a home visit. For example, they can only visit between certain times and must not threaten, harass or intimidate you into making a payment you can’t afford.

Extra interest and fees will be added to your debt

As an unpaid debt ages, interest and fees can be added to account for the extra time and resources spent in getting you to repay what you owe.

This will add to the total amount you already owe, which can make it seem like you’ll never clear your balance.

Your credit score will be damaged further

Ignoring a debt collector can lead to your credit score being damaged further. This is because debt collection companies report unpaid debts to credit reference agencies and they are responsible for updating your credit score accordingly.

Having a damaged credit score will make it difficult to obtain new credit, work in certain roles, and even open a new bank account or take out a new phone contract.

You can be subject to legal action

Lowell Financial might take legal action against you if you continually ignore an unpaid debt. In most cases, they will serve you with a County Court Judgment (CCJ), which is a court order that instructs you to repay a debt in full or in instalments.

Having a CCJ on your credit file can have serious repurcussions for your finances.

How can I avoid further debt?

Dealing with a debt collection agency can make you hesitant to accrue further debt. Thankfully, there are several things you can do to avoid further debt, such as:

Build emergency savings

Building an emergency fund can be easier said than done, but it can be the difference between being able to afford an emergency expense and being forced to borrow money to cover the cost.

It’s recommended to have at least three months’ worth of emergency savings at any time. This should be enough to cover the cost of your essential costs (e.g. rent/mortgage, utilities, groceries, transport) until you get back on your feet.

Use credit cards responsibly

Credit cards can help you manage unexpected expenses but they can be a slippery slope to debt, especially when all the extra interest is added.

To avoid racking up credit card debt, set reminders to pay off your balance in full each month and only use credit cards for things you know you can afford.

Create a budget

Sticking to a budget can help you track your spending and identify areas where you can cut back. This might reveal that you’re spending too much on non-essential items, such as shopping, streaming services, and dining out.

Budgets can also be adjusted over time as your financial situation fluctuates.

Where can I get support and advice about Lowell Financial?

Every day, Lowell Financial help thousands of customers find an affordable way to work towards a debt-free future. If they’ve purchased your debt from your original creditor, they will be happy to work with you to find a solution.

Dealing with debt collectors can be stressful, especially when you don’t know your rights, but you don’t need to face them alone. Whether you’re being threatened with legal action and want to submit a complaint form or you don’t know how to respond to a letter you’ve received, we’re here to help.

One of our friendly debt experts can review your circumstances and advise on the best course of action for you, including any debt solutions you might be eligible for. This can help you regain control of your finances and give you peace of mind that you’re dealing with your debt in a way that’s much more manageable for you.