If you’ve received a letter or call from Lowell Financial and you’re feeling anxious, you’re not alone. Lowell is one of the UK’s largest debt collectors, and they contact thousands of people every week about debts that may go back years. Maybe you don’t even recognise the debt they’re chasing. Maybe you thought it was sorted ages ago. Or maybe you just can’t afford to pay what they’re asking.
Whatever your situation, this page explains who Lowell Financial are, what they can and can’t legally do, and your practical options for dealing with them. We’ll cover settlement strategies, your legal rights, when you can tell them to prove the debt, and what happens if you simply can’t afford to pay.
Lowell Financial is one of the UK’s largest debt collection agencies, buying debts from banks, credit card companies, and utilities for pennies per pound then chasing you for the full amount. If you’ve received a letter from Lowell about a debt you thought was forgotten, don’t panic. Here’s what matters: Lowell are NOT bailiffs. They’re debt collectors with no legal power to enter your home or take your belongings unless they get a court order first.
If you owe £6,000+ across multiple debts, an Individual Voluntary Arrangement (IVA) can stop Lowell immediately and write off the remaining debt after 5-6 years.
Who Are Lowell Financial?#
Lowell Financial are a debt collection agency based in Leeds. They don’t lend money themselves. Instead, they buy debts from other companies for a fraction of what you originally owed, then chase you for the full amount. This is their entire business model and it’s completely legal.
Here’s how it works. Let’s say you owe £3,000 on an old credit card with MBNA. MBNA has tried to collect but given up. They sell your debt to Lowell for, say, £300. Lowell now owns the debt and can legally pursue you for the full £3,000. If they collect even half of it, they’ve made a 400% profit. This is why they’re persistent. Every penny they recover is almost pure profit.
The Corporate Structure#
Lowell operates through multiple legal entities, which can cause confusion when letters arrive from different company names. Here’s what you need to know:
Lowell Portfolio 1 Limited (Company number: 04857418, FCA number: 730071) is the entity that purchases debts from original creditors. This is the buying arm of the business.
Lowell Financial Limited (Company number: 04558936, FCA number: 730175) manages those purchased debts and handles collections. This is the company that will contact you.
Both entities are owned by the Lowell Group and operate from the same registered office: Ellington House, 9 Savannah Way, Leeds, LS10 1AB. The group was acquired by private equity firm Exponent in 2011 and has grown aggressively since then.
What Debts Do Lowell Buy?#
Lowell buys all types of unsecured consumer debt, including:
- Credit cards (Barclays, MBNA, Capital One, etc.)
- Personal loans
- Overdrafts
- Catalogue accounts (Very, Littlewoods)
- Mobile phone contracts (O2, Vodafone, EE)
- Utility bills (British Gas, Scottish Power, E.ON)
- Council tax arrears
- Parking fines and penalty charges
- PayPal Credit
- Store cards
They also collect on behalf of HMRC for tax credit overpayments, though they don’t always own those debts outright.
The Notice of Assignment Confusion#
When Lowell buys your debt, they’re legally required to send you a “Notice of Assignment.” This tells you that ownership of the debt has transferred from the original creditor to Lowell. The original company should also notify you, but this doesn’t always happen in a timely manner.
Here’s where people get confused. You might receive letters from both the original creditor and Lowell at the same time. It looks like you owe two debts. You don’t. It’s the same debt, just transferred. The original creditor should stop chasing you once the sale completes, but their systems don’t always catch up immediately.
If you’re unsure whether a debt has been sold, check your credit file. You may see two entries for what appears to be the same debt, but only one should show a current balance. The original creditor’s account should show as settled or defaulted with a zero balance.
How Will Lowell Chase You?#
Lowell uses a systematic escalation process designed to maximise recovery while staying (mostly) within FCA regulations. Here’s what typically happens:
Stage 1: Initial Contact (Weeks 1-2)#
You’ll receive an introductory letter explaining that Lowell now owns your debt. This letter should include:
- The creditor they bought the debt from
- The original account number
- The current balance they claim you owe
- A request for payment within 14-30 days
They may also start calling you. These calls can be frequent, sometimes multiple times per week. Legally they’re allowed to contact you, as long as it’s not harassment.
Stage 2: Payment Demand (Weeks 3-6)#
If you don’t respond, you’ll receive more urgent letters. These often use language designed to worry you, such as “URGENT ACTION REQUIRED” or “FINAL NOTICE.” The letters may mention:
- Late payment fees being added
- Your credit file being affected
- Potential legal action
- Instructing solicitors
At this stage they may also send field agents to your home address. These agents have no special legal powers. They’re there to talk you into making a payment arrangement. They cannot force entry, take your belongings, or threaten you.
Stage 3: Lowell Solicitors (Months 2-4)#
If you continue not to pay, Lowell may instruct their in-house law firm, Lowell Solicitors, to take over your case. This is still part of the same company, just a different department. You’ll receive letters on legal-looking headed paper.
They may also use Overdales Solicitors, which is closely connected to the Lowell Group. Don’t assume these are independent solicitors acting objectively. They work for Lowell’s interests.
At this stage, expect:
- Legal jargon and formal letters
- Threats of court action unless you pay
- Offers of settlement discounts to close the case quickly
- Additional solicitor fees added to your balance
Stage 4: County Court Claim (Months 4-12)#
If you still don’t engage, Lowell may issue a county court claim. You’ll receive a claim form (N1) by post. This is a real legal document and you must respond within 14 days.
If you ignore the claim form, Lowell will likely win a default judgment against you, which becomes a County Court Judgment (CCJ) on your credit file. This damages your credit score for 6 years.
If you want to defend the claim, you need to file an acknowledgment of service and a defence. Common defences include:
- The debt is statute-barred (see below)
- Lowell can’t provide the original credit agreement
- The amount claimed is incorrect
- You never entered into the agreement they’re claiming
Many people successfully defend claims by requesting proof of the original agreement. If Lowell can’t provide it, their claim may be struck out.
Stage 5: Judgment Enforcement (If You Lose)#
If Lowell wins a CCJ and you still don’t pay, they can apply for enforcement action:
- Attachment of Earnings Order: They can ask your employer to deduct money directly from your wages.
- Charging Order: If you own property, they can place a charge against it. When you sell or remortgage, they get paid from the proceeds.
- Warrant of Control: This allows enforcement agents (formerly bailiffs) to visit your home and potentially take goods to sell at auction.
Can Lowell Send Bailiffs?#
This is one of the most common questions people ask, and the answer depends on the type of debt.
For Most Debts: No#
If your debt is for a credit card, loan, overdraft, catalogue, mobile phone bill, or similar, Lowell cannot send bailiffs unless they first take you to court, win a judgment, and then apply for a warrant of control. This requires multiple steps and costs them money. They won’t do it for small debts.
Even if they do obtain a warrant, the enforcement agents who visit have strictly limited powers. They can only enter through an unlocked door. They cannot force entry for the first visit. They cannot push past you. They cannot take items that belong to someone else or that you need for work.
For Council Tax, Parking Fines, and Magistrates Court Fines: Yes#
If the debt is council tax arrears, a parking penalty, or a magistrates court fine, the rules are different. These debts allow enforcement without a separate CCJ. If you owe council tax and the council has passed it to Lowell for collection, bailiffs can be instructed more easily.
In Scotland, the rules are different again. Sheriff officers can enforce debt, but they need a court decree first.
What Bailiffs CAN Do:#
- Visit your home (during reasonable hours: 6am-9pm)
- Enter through an unlocked door
- Take vehicles parked on your property (not on the public road)
- Take goods that belong to you (not to others in your household)
- Clamp your car if it’s on your driveway
What Bailiffs CANNOT Do:#
- Break into your home on the first visit
- Force entry unless they have a separate court order (rare)
- Take goods that belong to your partner, children, or housemates
- Take items you need for work (tools, laptops up to a reasonable value)
- Take essential household items (cooker, fridge, washing machine, beds)
- Take goods on hire purchase or finance that you don’t own outright
- Enter your home if only children under 16 or vulnerable adults are present
- Threaten you, use abusive language, or physically intimidate you
If you keep your doors locked and don’t let them in on the first visit, their powers are extremely limited. They can only force entry on subsequent visits if they’ve already gained peaceful entry once before, and even then it requires court approval.
Your Legal Rights Against Lowell#
You have strong legal protections under the Financial Conduct Authority’s rules and UK debt collection regulations.
1. They Must Not Harass You#
Lowell can contact you, but they must not harass you. Harassment includes:
- Calling excessively (multiple times per day)
- Calling at unreasonable hours (before 8am or after 9pm)
- Using threatening or abusive language
- Contacting you at work after you’ve told them not to
- Discussing your debt with anyone else (neighbours, family, colleagues)
If you feel harassed, put your complaint in writing and keep a record of all contact. You can report them to the Financial Ombudsman Service if they continue.
2. You Can Request Proof of the Debt#
Under FCA rules (CONC 7.14), you have the right to ask Lowell to prove the debt. Send them a “prove the debt” letter requesting:
- The original credit agreement you signed
- Statements showing how the balance was calculated
- Evidence that they legally own the debt (the deed of assignment)
Lowell must provide this information or stop pursuing you. If they can’t produce a properly executed agreement, they may not be able to enforce the debt in court, even though you technically still owe it.
Many older debts don’t have proper paperwork, especially credit cards and loans from before 2007. If Lowell can only provide a copy of the agreement, that may not be sufficient.
3. They Cannot Pretend to Have Powers They Don’t Have#
Lowell cannot mislead you about their legal powers. They cannot send letters that look like official court documents when they’re not. They cannot claim they’ll send bailiffs immediately when they’d need to go to court first.
If a letter looks official, check for:
- A court seal or stamp
- A case number starting with the court’s code
- Instructions on how to respond to the court (not just to Lowell)
If these are missing, it’s just a collection letter designed to scare you into paying.
4. They Must Not Contact Third Parties#
Lowell cannot discuss your debt with:
- Your family members
- Your employer (unless enforcing an attachment of earnings order)
- Your neighbours
- Your friends
If they do, they’re breaching data protection law and FCA rules. Report them immediately.
5. You Can Choose Written Communication Only#
You’re entitled to ask Lowell to contact you in writing only. Send them a letter stating: “I do not wish to be contacted by telephone. All future communication must be in writing to this address.”
They must comply. However, you then need to respond to their letters in a reasonable timeframe. You can’t use this as a way to ignore them completely.
Settlement Strategies: How Much Will Lowell Accept?#
Lowell bought your debt for pennies on the pound. They have massive room to negotiate, even though they’ll never admit this upfront. Here’s what they typically accept:
For Debts Under 3 Years Old#
Lowell will likely want 70-90% of the balance. They paid more for recent debts and they believe you’re more likely to pay in full.
Start by offering 50%. They’ll probably counter with 70-80%. If you can afford it, 65-70% is often where settlements land.
For Debts Over 3 Years Old#
For older debts, Lowell paid very little. They may have bought your debt for 5-15p in the pound.
Start by offering 30-40% of the balance. They’ll likely counter with 50-60%. Most people can settle older Lowell debts for 40-50% if they negotiate firmly.
For Debts Over 5 Years Old (Approaching Statute-Barred)#
If your debt is close to becoming statute-barred, Lowell knows they’re on a ticking clock. They may accept 25-35% just to close the file.
Don’t tell them you know it’s nearly statute-barred. Just offer 30% as a full and final settlement and see what they say.
Full and Final Settlement Wording#
When you make an offer, always use the phrase “full and final settlement.” This means once they accept and you pay, the debt is completely cleared and they cannot chase you for the rest.
Put it in writing: “I am offering £X as a full and final settlement of the account ending [last 4 digits]. If you accept this offer, I will pay within 7 days by bank transfer. Upon receipt, the account will be considered fully settled and no further balance will be owed.”
Get their acceptance in writing before you pay. Once you’ve paid, they cannot change their mind.
Monthly Payment vs Lump Sum#
Lowell strongly prefers lump sum settlements. They’ll offer better discounts if you can pay in one go. If you need to pay monthly, they’re less flexible and may only offer 10-15% discounts.
If you have access to a lump sum (savings, borrowing from family, selling something), use it to negotiate. You’ll save more money overall.
Is the Debt Statute-Barred?#
A debt becomes “statute-barred” after a certain period of time if the creditor hasn’t taken court action. Once statute-barred, the debt is unenforceable in court. You still legally owe it, but they can’t force you to pay.
England and Wales: 6 Years#
A debt becomes statute-barred 6 years from:
- The date of your last payment, OR
- The date you last acknowledged the debt in writing
If you haven’t paid anything or written to acknowledge the debt in 6 years, and Lowell haven’t obtained a CCJ, the debt is likely statute-barred.
Scotland: 5 Years#
In Scotland, the limitation period is 5 years. Same rules: 5 years from your last payment or acknowledgment, and no court action taken.
How the Clock Resets#
Be careful. The limitation clock resets if you:
- Make a payment (even £1)
- Sign an acknowledgment of the debt
- Agree to a payment plan in writing
- Make a written promise to pay
This is why debt collectors often try to get you to make a token payment or sign something. Even a small payment restarts the clock for another 6 years.
If you think your debt might be statute-barred, do NOT:
- Make any payment
- Agree to any payment plan
- Sign anything
- Say in writing that you owe the debt
Instead, write to Lowell stating: “I believe this debt may be statute-barred under the Limitation Act 1980. Please confirm the date of my last payment or written acknowledgment before I respond further.”
If they can’t prove the debt is within the limitation period, don’t engage further. If they take you to court, you can use statute-barred as a complete defence.
What Happens to Your Credit File?#
Lowell reports to all three credit reference agencies: Experian, Equifax, and TransUnion. How they report the debt affects your credit score.
Default#
If the original creditor defaulted your account before selling it to Lowell, that default stays on your file for 6 years from the date it was registered. Lowell can’t add a new default. They simply take over reporting the same account.
The default is the most damaging part. The fact that Lowell now owns it doesn’t make it worse, but it doesn’t make it better either.
Satisfied vs Settled#
If you pay off the debt in full, Lowell should mark it as “Satisfied” on your credit file. This is the best outcome for a defaulted account.
If you negotiate a settlement for less than the full balance, they’ll usually mark it as “Partially Satisfied” or show a zero balance but indicate the account was settled for less. This is slightly worse than satisfied, but not by much. Both are far better than leaving it unpaid.
When Do They Update Your Credit File?#
Lowell updates credit files on the 5th of every month. If you make a payment or settlement, it can take until the next 5th of the month for your credit file to reflect it.
If you’ve settled a debt and it’s not showing correctly after 30 days, contact Lowell and ask them to correct it. You can also raise a dispute directly with the credit reference agencies.
Notice of Correction#
If there’s an error on your credit file, you can add a “Notice of Correction” of up to 200 words explaining the circumstances. This doesn’t remove the default, but it gives your side of the story. Future lenders will see it when they review your file.
Can You Write Off Lowell Debt?#
If you have other debts totalling £6,000 or more, you may be able to include Lowell debt in a formal debt solution that writes off part or all of what you owe.
Individual Voluntary Arrangement (IVA)#
An IVA is a formal agreement between you and your creditors to pay what you can afford over 5-6 years. At the end, any remaining debt is legally written off.
Most people who complete an IVA write off 60-70% of their debt. If you owe Lowell £5,000 along with other debts, you might pay back £1,500 and have the rest cleared.
Requirements:
- £6,000+ unsecured debt to 2+ creditors
- Regular income (work or benefits) to afford monthly payments
- Typically £90-£100+ per month available after essential costs
Benefits for dealing with Lowell:
- They must stop contacting you the day your IVA is approved
- All interest and charges freeze immediately
- They cannot take you to court or instruct bailiffs
- One affordable monthly payment instead of juggling creditors
Check if you qualify for an IVA in 2 minutes.
Debt Management Plan (DMP)#
A DMP is an informal arrangement where you pay creditors reduced monthly payments based on what you can afford. Unlike an IVA, there’s no debt write-off at the end. You’re still expected to repay everything eventually, just at a slower pace.
Lowell often accepts DMPs, especially if your financial situation is genuinely difficult. The advantage is flexibility. The disadvantage is the debt doesn’t get written off, and creditors can technically still take legal action (though most don’t if you’re keeping up payments).
Debt Relief Order (DRO)#
If you owe less than £30,000, have minimal assets, and very low income, a DRO might be suitable. It costs just £90 and writes off all your debts after 12 months.
If Lowell debt is part of your qualifying debt, it gets included and written off. They cannot chase you during the DRO period or after it completes.
Bankruptcy#
If your debt situation is unmanageable and you have no assets worth protecting, bankruptcy might be the quickest solution. Most people are discharged after 12 months, and unsecured debts like Lowell accounts are written off.
Bankruptcy is more severe than an IVA and has restrictions on certain jobs, but for people with no property and no way to repay, it can provide a faster fresh start.
If you’re struggling with debt and want to find out what options are available, use our free IVA calculator to see how much you could write off.
Frequently Asked Questions#
Can I ignore Lowell Financial?#
Ignoring them won’t make the debt go away. Lowell will escalate through letters, phone calls, field agents, solicitors, and potentially court action. If they get a CCJ and you still don’t pay, they can send enforcement agents or apply for an attachment of earnings order.
If you genuinely can’t afford to pay, don’t ignore them. Engage with them, explain your situation, and offer what you can realistically afford. Or speak to a debt advisor about formal solutions like an IVA or DRO that legally protect you.
Will Lowell take me to court?#
They might, especially if the debt is over £1,000 and you’re not engaging with them at all. Court action costs Lowell money (court fees start around £70-100), so they’re more likely to pursue larger debts through the courts.
For debts under £500, court action is less common. They’ll keep trying to collect through letters and calls.
If they do take you to court, respond to the claim form. Don’t ignore it. You may have valid defences (statute-barred, can’t prove the agreement, incorrect amount).
Can Lowell add interest and charges?#
Only if the original credit agreement allowed for post-default interest. Many old credit cards and loans include this clause. Lowell can continue adding interest at the contractual rate, which can be as high as 8-10% per year.
However, if the original creditor already defaulted your account and sold it to Lowell, many agreements don’t allow further interest after default. Check the terms.
You can challenge excessive charges. If Lowell has added hundreds of pounds in “admin fees” or “collection costs” that aren’t in the original agreement, ask them to justify each charge. They often can’t.
What if I don’t recognise the debt?#
If you genuinely don’t recognise the debt Lowell is claiming you owe, do NOT admit to it or make any payment. Instead:
Write to Lowell requesting proof: “I do not recognise this debt. Please provide the original credit agreement bearing my signature, statements showing how the balance accrued, and proof that you legally own this debt.”
Check your credit file. The original creditor should be listed. If it’s there, you may have forgotten about it. If it’s not there, that’s suspicious.
Consider whether it could be fraud. If someone took out credit in your name, report it to Action Fraud and the original creditor immediately.
Do not ignore letters just because you don’t recognise the debt. Respond asking for proof.
How do I complain about Lowell?#
If you believe Lowell has treated you unfairly, follow this process:
Step 1: Complain to Lowell in writing. Send your complaint to their registered office address: Ellington House, 9 Savannah Way, Leeds, LS10 1AB. Explain what happened, when it happened, and what you want them to do about it.
Step 2: If Lowell doesn’t resolve your complaint within 8 weeks, or if you’re unhappy with their response, escalate to the Financial Ombudsman Service:
- Phone: 0800 023 4567 / 0300 123 9123
- Email: complaint.info@financial-ombudsman.org.uk
- Post: Exchange Tower, London, E14 9SR
- Online: financial-ombudsman.org.uk
The Ombudsman is free and independent. If they find Lowell treated you unfairly, they can order them to compensate you and correct their records.
Can Lowell contact me at work?#
Lowell can contact you at work if they have no other way to reach you and they’ve tried your home address and mobile number first. However, if you tell them not to contact you at work, they must stop.
Send a written request: “Do not contact me at my place of work. You can reach me by post at [your home address] or by phone at [your mobile number] between [times you’re available].”
They cannot discuss your debt with your employer or colleagues. If they do, that’s a breach of data protection law.
Will Lowell tell my partner or family?#
No. Lowell cannot discuss your debt with anyone except you, unless you’ve given explicit permission. They cannot tell your partner, parents, adult children, friends, or neighbours about your debt.
If they do, you can complain to the Financial Ombudsman and potentially to the Information Commissioner’s Office for breaching GDPR.
The only exception is joint debts. If you and your partner both signed for a loan or credit card, Lowell can contact both of you about that debt.
If Lowell Financial is chasing you and you have other debts totalling £6,000+, an IVA could write off a portion and stop them contacting you. Check if you qualify in 2 minutes.