What happens if you ignore debt collectors?

What is a debt collector?

A debt collector is someone who gets in touch with individuals to ask for money that hasn’t been paid back. This could be money owed to a company, a bank, or another person.

Sometimes, the company owed money (called a creditor) will ask a debt collection agency (DCA) to help collect the debt for them, which is commonly known as outsourcing. In other cases, the company may sell the debt to a debt collection company. When that happens, the debt collection company becomes the new owner of the debt.

Not all debt collectors work in the same way. Some are solely hired to collect debt for others. 

Is Lowell a debt collector?

Lowell is a group of companies that includes Lowell Portfolio I Ltd (LPI) and Lowell Financial Ltd (LFL). LPI is a debt purchaser. LPI purchases a debt and then passes it to its partner LFL to manage it on LPI’s behalf.
That means we become the new owner of the debt, and we work with you directly.

Our goal is to help you take control of your Lowell debt at your own pace. We’ll never ask you to pay more than you can afford. Instead, we work with you to set up a payment plan that fits your budget.

We have helpful tools, like our Budget Calculator, to help you see what money you have coming in and going out.

To learn more about who we are and how we work, you can visit our About Us page.  

What happens if my debt has been passed to Lowell or another debt collector?

If the creditor passes or sells your debt to a debt collection agency, they will contact you to explain the next steps in the process.

If your debt has been purchased by Lowell, we’ll let you know in writing. You’ll get a letter that tells you that the original company has sold the debt to us.

This is called a ‘Notice of Assignment’, sometimes called a ‘hello’ letter. It’s a legal obligation for Lowell to send this notice.

Once you hear from us, you don’t need to deal with the original company anymore. From this point on, Lowell will work with you to understand your circumstances, explain the next steps, and help establish an affordable payment plan.

For more on this, you can look at our guide on what to expect in the debt collection process.

What happens if I ignore debt collectors?

At Lowell, we understand that it can be difficult to take the first steps towards resolving your outstanding debt. That’s why some people think it’s easier to ignore it but doing nothing can make things harder in the long run.

Here are some things that may happen if you ignore debt collectors in the UK:

• You may get more letters, calls, text messages, or emails asking you to get in touch.^[1]
• Extra charges or interest could be added to your balance.^[2]
• You could receive a default notice, or your agreement may be terminated if no payments are being made (you can read our default guide for more information on this).^[3]
• In some cases, legal action may be taken. Legal action may include a County Court Judgment (CCJ), which when enforced, could result in bailiffs (enforcement officers) getting involved.^[4]

Please note this is a non-exhaustive list and just provides some examples of what may happen. For further information, please refer to the communications that you have received or contact the debt collection agency directly.

1 Debt Collection Agency Contact. Free Advice. StepChange
2 Debt Collection Agency Contact. Free Advice. StepChange
3 Ignoring Debts. Consequences & Your Rights. StepChange
4 Debt Collection Agency Contact. Free Advice. StepChange

Not sure if the debt is yours?

That’s ok, it’s important to check.

Our guide on how to recognise if a debt is yours explains how we can work together to understand if you’re responsible for the debt.

If you’re a Lowell customer, we’re here to help, no matter what your situation is. Please get in touch, and our team will listen and help find the best way forward for you.

You can also manage your Lowell account in your own time using our handy mobile app. It lets you check your balance, see your account history, and even access your credit score. We’ve partnered with TransUnion so you can check your credit file for free and see what factors are impacting your credit score.

Can I ignore Lowell? What happens if I ignore Lowell?

We understand that if you start receiving letters from Lowell, you may feel concerned or overwhelmed.

However, at Lowell, we want to work with you to understand your circumstances and to agree an appropriate solution. To do this, we may use our Budget Calculator tool to get a better understanding of your finances and what you can afford to pay.

If you’ve got any concerns or questions about your Lowell debt, we’ve got a team in place who are patient and mindful of your situation. They are there to listen to you and try to find the best next steps based on your circumstances.

If you do not get in touch or ignore Lowell letters, we’ll continue to try to reach out to you through methods like calls, texts, and emails. In some situations, we might work with third parties to help us get in touch with you. For example, we may ask another debt collection agency that will work with us to contact you about your debt.

It may feel easier to just ignore letters from Lowell, but this could end up causing serious consequences in the future, including us potentially taking legal action which is explained in more detail below. 

Lowell and legal action

If we reach out to you repeatedly and you choose not to respond to Lowell letters and other contact methods, we may instruct our solicitors to take legal action on our behalf. This could start with a Letter of Claim, sent as part of the pre-action protocol. If the debt still isn’t resolved, it could lead to a County Court claim.

We would always prefer to work with you and start helping you to repay your Lowell debt through an affordable payment plan. If your debt is with Lowell, you can get in touch with us and discuss starting a payment plan.

If your debt has been passed on to one of our third-party partners, such as a solicitor, you will need to contact them directly. Their contact details will be on any letters or emails they’ve sent you.

If you’re concerned about legal action or want impartial guidance on your options, there are organisations who can provide advice and support, including:

• Citizens Advice – guidance on debt, court claims, and legal rights
• StepChange – free debt advice and budgeting support  
• National Debtline – confidential debt advice and practical tools

These organisations can help you understand your rights, explore debt solutions, and decide on the best next steps. 

What is a Letter of Claim?

A Letter of Claim is a formal letter that a debt collection agency or solicitor may send before starting court action.

You might get a letter like this if the company hasn’t been able to reach you, and they’re thinking about taking the next step. It’s not the same as a County Court Judgement (CCJ), but it’s part of the process that could lead to one.

The rules around sending a Letter of Claim vary across the UK, so the process may differ slightly depending on your location.

In England and Wales, this kind of letter is sent as part of something called the pre-action protocol (or PAP for short). This means the company must give you clear information and time to respond before any legal claim is made.

A pre-action protocol letter will include:

• Guidance on how you can respond to the letter.
• Details about how long you have to respond.
• Details about exactly how much debt is outstanding.
• Information on how you can pay, including how you can set up a payment plan.
• Contact information, so that you can speak to someone about your account and find out what options you have available.
• Information about independent and impartial organisations you can speak to for free advice.
• Details about what happens if you ignore the letter.

If you ignore a ‘Letter of Claim’, or pre-action protocol letter, legal action might follow, such as a County Court claim being issued against you. But you can still take action before it gets to that point.

If you’ve received a letter like this from Overdales Solicitors or one of the other law firms we work with, and you’re unsure about its meaning, we recommend getting in touch. We're here to explain your options and help clarify what the next steps might be.

What powers does Lowell have?

If you don’t respond to letters from Lowell or our solicitors, we may take legal action.

This usually starts with a Letter of Claim (also known as a pre-action protocol letter). If there’s still no response, a County Court claim could be made against you.

If the court agrees that the money is owed, it may issue a County Court Judgment (CCJ). This means the court has made a formal decision that you need to pay the debt.

A CCJ will tell you:

•    How much you owe 
•    How to pay (this could be in full or in instalments) 
•    When the payment is due
•    To whom the payment should be made

This could mean that the amount you need to pay to settle your debt increases with interest, fees, and court costs. It can also potentially negatively affect your credit score. For more information about County Court Judgments in England, you can read our guide to CCJs and how they can impact you.

But it’s important to know that it’s never too late to engage and set up an affordable payment plan, whether a CCJ has been obtained or not. If Lowell has been in touch, you can start getting your debt under control by responding to Lowell or the instructed solicitors.

Will Lowell take me to court?

Even if a County Court claim is issued, it doesn’t always mean you’ll need to attend court or defend your case in a courtroom.

Many claims are dealt with digitally or by telephone. The court will issue instructions regarding the nature of the hearing, whether your attendance is required, the location, and the scheduled time.

If, for example, you don’t think you owe the money and choose to raise a defence to the claim, our solicitors will aim to resolve the matter before a hearing is needed. This might be done through court-led mediation, or through more traditional methods such as written correspondence, or speaking with you directly.

If you want to know more about County Court Judgements and how Lowell will work with you if a claim has been entered against you, check out our helpful guide on the impact of CCJs for more information.

Can Lowell take me to court in Scotland?

Scotland has a different legal procedure from England and Wales. This means that some of the steps and processes we take will be different.

In Scotland, if a debt remains unpaid, legal action may result in a decision or decree – these are both types of court judgments used to recover unpaid debts. A decree is the Scottish equivalent of a County Court Judgment (CCJ) in England and Wales. It can be issued through the Sheriff Court or the Court of Session, depending on the amount owed and other factors.

Once issued, a decree is recorded on a public register and can remain there for six years, which may affect your credit file during that time.

If you’re based in Scotland and have received a letter from solicitors acting on Lowell’s behalf, it’s best to contact them directly to understand your options or next steps.

For further guidance, you can read National Debtline’s guide on Sheriff Court action or visit the Money Advice Scotland website. 

What happens if you’re unable to work with Lowell?

If you’re unable to work with Lowell or don’t want to contact us and set up a payment plan, it could result in legal action being taken by solicitors acting on our behalf. The legal action that can be taken will be outlined on correspondence that we send to you.

Lowell would always rather work with you and help you create a payment plan that works with your circumstances. Even if you’re not in a position to pay right now, we’re here to listen and understand your circumstances.

If you’re struggling with your finances, you’re not alone, and there are always options available. You can read our guide to different types of debt solutions to learn about ways to manage or resolve debt that might suit your situation.

You may also want to speak with a free, independent debt advice organisation, such as:

• StepChange (stepchange.org)
• National Debtline (nationaldebtline.org)
• Citizens Advice (citizensadvice.org.uk)

Do I legally have to pay Lowell? What happens if I don’t pay my debts?

If you ignore Lowell letters or ignore a pre-action protocol letter from our solicitors, a County Court claim may be issued against you. This could result in a County Court Judgment (CCJ) being made.

This would mean that a court has ordered you to pay back the money owed to Lowell. A Judgment can have a negative impact on your finances by increasing the debt you owe through additional fees or interest. It can also impact your credit score, which may affect your ability to get credit in the future.

If the Judgment is ignored and payment isn’t made, enforcement action may be taken, such as court enforcement agents being instructed to recover the debt. If you have questions about enforcement agents (previously known as bailiffs) you can read more in our guide to dealing with enforcement agents.

It’s important to remember that at every stage, Lowell will be happy to work with you and support you in clearing your debt, with an affordable payment plan. We’re here to help, listen to your situation, and understand how we can support you during the debt collection process if you have a Lowell debt.

If a solicitor has contacted you on behalf of Lowell, please get in touch with them directly using the details provided in their letter.

For more information about how Lowell works with our customers and other debt-related topics, check out our Debt Hub guides.