Dealing with debts purchased by Lowell

At Lowell, we’re committed to being open and transparent with our customers. We know it can be confusing to hear from a new company, so it’s natural to have questions about how we’ve come to own your debt.

If you fall behind on payments towards your debt, the original creditor may choose to recover the balance in one of two ways:

• • They might use a debt collection agency.
  • Or they may decide to sell your debt to a specialist debt purchaser, such as Lowell Portfolio I Ltd (LPI), [referred to throughout this guide as simply ‘Lowell’].

If we’ve contacted you and you’re unsure why Lowell is now the legal owner of your debt, this guide helps to explain how debt purchasing works by addressing the following questions:

• • What is debt purchasing?
  • Is it legal for companies to sell debts?
  • Do Lowell buy debts?
  • What's the difference between a debt collector and a debt purchaser?
  • Do I have to pay a debt that has been sold?
  • What happens if Lowell buys my debt?
  • What happens if you don't recognise the debt?
  • How can Lowell help you?
  • What happens if I have problems with my debt?

This content is intended to be an impartial guide regarding debt purchasing, specifically referring to how this works at Lowell. Lowell Financial Ltd does not offer financial, legal, or debt advice. You can find out more about the organisations you can contact in our guide on debt help and support.

What is debt purchasing?

Debt purchasing is a common part of the UK debt process.

It’s when one company (the debt purchaser) buys unpaid debts from another company (the original creditor).

Creditors often choose to sell debts to specialist debt-purchasing companies because it is often cheaper and easier than continuing to collect payments themselves.

Is it legal for companies to sell debts? 

Yes, It’s completely legal for creditors to sell debts.

StepChange explain that this is standard practice in the UK debt industry and happens with thousands of debts every day.

If you fall behind on payments, your debt can be “assigned” or legally transferred to another company like Lowell, which then becomes the new owner of the account. If you’d like to understand more about how Assignment of Debt works, you can visit our FAQs.

Do Lowell buy debts?

Yes. Lowell is made up of different companies, each with a different role.

Lowell Portfolio I Ltd (LPI) is the specialist debt purchaser within the Lowell Group. Once a debt is purchased by LPI, it’s managed by Lowell Financial Ltd (LFL), which is a debt collector, and the part of Lowell that contacts customers and works with them to find an affordable payment plan.

For more information about Lowell Financial Ltd (LFL), you can read our guide explaining who we are. 

What’s the difference between a debt collector and a debt purchaser? 

Although the terms can sound similar, the key difference between a debt collector and a debt purchaser is who owns the debt.

Debt purchaser

A debt purchaser buys unpaid debts from original creditors.

Once the debt is purchased, they become the new legal owner of the account and collect payments directly, keeping any money repaid.

Debt collector (or debt recovery agent)

A debt collector, on the other hand, works on behalf of the creditor. They don’t own the debt themselves — instead, they act as an agent, recovering payments for a fee while the creditor remains the owner.

As mentioned above, Lowell is both the owner of the debt and the company that manages the account, unlike collection agencies that only collect payments on behalf of other creditors. To learn more about what this means and how we work with customers, you can read our guide on the debt collection process at Lowell.

Do I have to pay a debt that has been sold?

Yes, you’re still legally responsible for paying a debt that’s been sold. 

When a debt purchaser like Lowell Portfolio I Ltd (LPI) buys your debt, the only thing that changes is who you owe the money to.

If a creditor is owed money, they usually have a contractual right to sell the debt to a specialist debt purchaser like Lowell.

What happens if Lowell buys my debt?

If Lowell purchases your debt, we carry out checks to make sure the information provided by the original creditor is accurate and up to date, so we have the correct details to get in touch with you.

However, we understand that hearing from a new company about a debt can feel worrying. If you’re unsure what to do next, you can visit our guidance on what happens after receiving a letter from Lowell to understand your options and next steps.

Our focus is on treating customers fairly and offering support that’s right for your situation. You can learn more about who we are and how we work on our about Lowell page.

What happens if I don’t recognise the debt?

If you’ve been contacted about a debt that you don’t think is yours, please get in touch with us.

You might find it helpful to read our guide on recognising if a debt is yours, which includes information on whether you may be liable for a debt and the steps you can take to verify it. 

How can Lowell help you? 

If Lowell has bought your debt, we’ll work with you to set up a payment plan that’s affordable and works for your situation.

We accept a variety of payment methods, including direct debits, debit cards, and standing orders. Find out more on our Ways to Pay page.

Prefer to manage things online? Register for a Lowell account to set up payments, view your balance, and manage your payment plan anytime – no phone calls needed.

What happens if I have problems with my debt?

If you’re going through a difficult situation, please let us know. We can help you get in touch with free, independent debt advice services that can provide impartial guidance like StepChange or Citizens Advice.

If you’ve received a letter or call from us, please get in touch with us today so we can support you.

Need more support?
•    Read our debt support guide for information on the help we offer.
•    Visit our Debt Guidance Hub for helpful resources. 

Last updated: 22nd May 2026