How does a discount work with debt?

In some situations, Lowell may be able to offer you a discount on your debt. It's not always possible, but if you've received a letter offering a discount on your debt, sometimes also known as a debt discount, this guide offers more information about what that means for you and your debt.

Do Lowell write off debts?

Because of the range of options that we can offer to help you manage your account, it’s unlikely that we would write off an account. However, in some cases, we may be able to offer a discount on the debt on your account.

Getting a discount on your debt isn’t always possible and will vary from case to case depending on your debt. You may have heard an offer of a discount on the balance of your debt described as a ‘Lowell debt discount’ or ‘Lowell settlement offer’, but we’ll usually just refer to it as a discount, or as an offer of a discount on your balance.

We understand that having debt can be worrying. If you have a debt that's been purchased by Lowell and you're not sure what to do next, we have a helpful guide to your next steps which will explain how we'll work with you if you're unable to pay or if your circumstances have changed.

Do Lowell offer discounts?

Not all accounts will qualify for a discount, so we can't guarantee that you'll receive a discount offer from Lowell. If you're concerned about your debt, get in touch with us. Our helpful team is trained to be considerate of your situation and we'll always take the time to listen and understand.

We can assist you in setting up an affordable payment plan, and if you're having a difficult time we'll give you time to get things back on track. If you want to know how we'll work with you, check out your next steps. We may also be able to put you in touch with independent organisations who can offer free and impartial debt advice. 

If your debt has been purchased by Lowell, the easiest and most manageable way to clear your debt as soon as possible is by working with us to create a payment plan.

What does a Lowell discount offer mean for my credit file?

If you accept a discount on your debt and clear your balance with it, if your account is showing on your credit file as a default the account will be marked on your credit file as ‘partially satisfied’, instead of ‘satisfied’.

This will be the same whether you used a payment plan to clear the discounted balance or if you paid it all in one go.

This shows potential lenders that the debt was cleared, but for less than the full amount. This could affect the decision if you apply for credit products like credit cards or mortgages.

What should I do if I receive a Lowell debt discount offer?

In some situations, we may be able to offer you an opportunity for a discount on your debt. The amount of discount that we offer can be different from case to case.

In order to accept the discounted offer, you'll need to get in touch with us within the given time frame. You'll need to agree to either set an affordable payment plan, or if you're able to, clear the discounted balance in one payment. You can do this over the phone, or by making an easy payment to your Lowell account online. 

Can I wait to start making payments once I accept a discount?

No. The offer can only be accepted if you set a plan or pay the discounted amount in one payment.

We can agree when you want to start paying, so that it fits in when you have funds, but a payment will need to be made in a reasonable time frame, such as within 30 days.

The discount can only be applied to your account while setting a plan with us, or while we’re arranging your one-off payment.

How do I accept a Lowell debt discount?

If you've been offered a discount on your debt by Lowell, you can accept it by getting in touch with us and advising us that you want to accept the discount. You can also accept the discount online when setting up your payment plan. The discount will automatically show on your online Lowell account.

In either case, if you decide to start a payment plan to clear the remaining balance of the debt, you can still work with us to make sure that the payments you make are fair and reasonable for your budget. You can talk through this with us on the phone or use our easy budget calculator to work out an affordable payment plan. 

Are there any conditions to a Lowell discount offer?

If you've received a letter offering you a discount on your debt with Lowell, there will usually be a time frame given on the letter.

If you want to accept the discount, you'll need to get in touch within that time and either set a payment plan, pay the balance, or arrange an upcoming payment to work around when you know you'll have funds available.

If you try to accept the discount offer after the time frame given on the letter, the offer may have expired.

What happens if I accept a Lowell debt discount offer and can't keep up with payments?

When you choose to accept a discount offer from Lowell, you can decide to pay the remaining discounted balance through a payment plan. If you're unable to make payments, it's possible that the plan may be cancelled or broken due to those missed payments. If this happens, the discount will no longer be applied to the balance.

If you do miss a payment, you should try to get back in touch with us. If you speak to one of our helpful team members you should make them aware that you had a discount on your account.

If your circumstances change, or if you're worried that you might miss payments, contact us and let us know. We're here to help, so if you're going through a tricky time, we may be able to help by pausing payments or helping you get in touch with independent organisations that can offer financial advice and debt support.

Receiving a discount offer on your debt can make it easier for you to start your journey towards becoming debt-free with your Lowell debt. But even if it's not possible for you to receive a discount, arranging a payment plan with Lowell is a simple and affordable way for you to begin clearing your debt.

For more help and guidance on debt and how working with Lowell can help you, head to our debt guidance hub.

First Published: 29th April, 2021