Debt Sold to Lowell? Here’s Exactly What to Do UK (2026)

A letter arrives. The name at the top isn’t your bank. It’s not your phone provider. It’s Lowell.

Your stomach drops. You don’t fully recognise the debt. Or you do, but you thought it was gone. Either way, you’re not sure what to do next.

Don’t pay anything yet. Don’t call them. Don’t panic.

Lowell is one of the UK’s largest debt collection companies. They buy unpaid debts from original creditors, banks, telecoms, utility companies, usually for a fraction of what you originally owed. Then they contact you to collect the full amount. This is entirely legal. But so are your rights, and most people don’t know what they are. For every debt option available to you, visit our UK Debt Help hub.

Below is exactly what to do, step by step.

First — understand what has actually happened

When your original creditor sells your debt, legal ownership transfers to the buyer, in this case Lowell Portfolio I Ltd, which purchases the debt itself, while Lowell Financial Ltd (FCA number 730175) manages the actual collection activity and is who your letters and calls will come from. They become the new legal owner of the debt and have the same right to pursue repayment as the original creditor did.

What does not change: the amount you legally owe. Lowell cannot add interest or charges beyond what was in your original credit agreement unless those terms specifically allowed it. They cannot invent new fees. They cannot demand more than what was owed to the original creditor.

What also does not change: your rights. The same FCA regulations that governed your original creditor now govern Lowell Financial Ltd. The Consumer Credit Act 1974 and the FCA’s Consumer Credit sourcebook (CONC 7) apply in full.

To understand what happens more broadly when any debt is sold in the UK, read our guide: Debt Sold to a Collection Agency UK — Your Rights.

Step 1 — Do not acknowledge the debt yet

This is critical and most people get it wrong.

If the debt is old, particularly if it’s been several years since you last made a payment or contacted the original creditor, acknowledging the debt in writing or making any payment, however small, can restart the limitation clock.

In England and Wales, most unsecured debts become statute barred under the Limitation Act 1980 after six years from the last payment or written acknowledgement. A statute barred debt still legally exists, but Lowell cannot take you to court to enforce it. They cannot get a CCJ against you. Under FCA rules, it’s considered unfair for a collector to continue demanding payment once they know a debt is statute barred and you’ve stated you won’t pay.

Before you do anything else, check whether your debt might already be statute barred. Use our free Statute Barred Checker, it takes 60 seconds and tells you immediately whether Lowell can legally enforce this debt.

Step 2 — Send a prove it letter

Under FCA rules (CONC 7.14), you have the right to ask Lowell to prove the debt before you pay anything. This is called a “prove it” or “debt validation” request.

Send a written request, post, not phone, asking Lowell to provide:

• The name of the original creditor
• The original account number
• A full breakdown of the balance including how it was calculated
• A copy of the original signed credit agreement under Section 77–78 of the Consumer Credit Act 1974 (a £1 statutory fee applies to this specific request)
• Proof that Lowell is the legal owner of the debt (the deed of assignment)

Lowell has 12 working days to respond to a Section 77–78 request. If they don’t provide the agreement within that time, the debt becomes unenforceable in court until they do, though it doesn’t disappear, and going a full calendar month without responding is itself a criminal offence on their part. Send everything by recorded delivery and keep copies. Never communicate with debt collectors by phone if you can avoid it, written communication creates a paper trail that protects you.

Step 3 — Know what Lowell can and cannot do

Most people assume debt collectors have more power than they actually do. Under FCA CONC rules 2026:

Lowell cannot:

• Enter your home, debt collectors have no right of entry whatsoever
• Seize your belongings, only court-appointed bailiffs with a valid warrant can do this
• Contact you at unreasonable hours or with excessive frequency
• Misrepresent their legal powers or pretend to be a court officer
• Send letters designed to look like official court documents when they are not
• Add charges or interest beyond what your original agreement allowed
• Pursue a debt they know to be statute barred once you’ve told them you won’t pay

Lowell can:

• Write, email, or call you to request payment
• Visit your home, but you are under no obligation to open the door or speak to them
• Apply to court for a County Court Judgment (CCJ) if the debt is valid and not statute barred
• Register a default on your credit file if one hasn’t already been registered

If a debt collector visits your door, read our full guide: Debt Collectors at the Door UK — Your Rights. And use our free Know Your Rights Generator for your personalised rights.

Step 4 — Assess your options and what you can afford

If the debt is valid, not statute barred, and Lowell has proved it correctly, you have several options. The right one depends on your full financial picture.

Option A — Negotiate a settlement

Lowell bought your debt for a fraction of its face value, often 10–30p in the pound. This means there is real room to negotiate. A full and final settlement offer of 40–60% of the balance is often accepted, especially on older debts.

Any settlement must be agreed in writing before you pay a penny. Get written confirmation that the settlement clears the debt in full and that no further action will be taken. Use our Debt Settlement Calculator to see a realistic offer based on your balance.

Option B — Set up an affordable repayment plan

You are never legally required to pay more than you can afford. Work out what you can genuinely spare each month after priority bills, rent, council tax, energy, food, and offer that amount. Lowell must consider your circumstances. Even £1 per month token payments are legally valid if that’s genuinely all you can afford.

Use our Minimum Payment Calculator to understand exactly how long repayment will take at different monthly amounts before you commit to anything.

Option C — Explore formal debt relief

If Lowell is one of several creditors and the total debt is unmanageable, formal debt relief may be more appropriate than dealing with each collector individually. A Debt Management Plan, IVA, DRO, or Breathing Space could stop all collection activity and restructure everything in one place.

Our free Bankruptcy and DRO Checker tells you which formal options you qualify for in 2 minutes. You can also explore every UK debt relief route on the UK Debt Help hub.

What if you think the debt isn’t yours?

This happens more often than people realise. Debts are sometimes assigned to the wrong person due to shared addresses, similar names, or administrative errors.

If you do not recognise the debt at all, send a written dispute to Lowell stating clearly that you do not believe this debt belongs to you and requesting full documentation. Do not say anything that could be interpreted as acknowledging the debt.

If after investigation the debt genuinely isn’t yours, Lowell must stop pursuing you and correct any incorrect entries on your credit file. If it is your debt but you dispute the amount, request a full account statement and compare it against your own records.

What if you don’t respond to Lowell at all?

Ignoring a valid, enforceable debt rarely ends well. If you don’t respond, Lowell can, and often will, apply to court for a CCJ. A CCJ stays on your credit file for six years, makes credit almost impossible to obtain, and gives Lowell enforcement powers they didn’t have before, including attachment of earnings and bailiffs.

Use our Stop Paying Simulator to understand the specific consequences for your type of debt before making any decision to ignore correspondence.

Ignoring statute barred debt is different, if the debt is genuinely statute barred, write to Lowell stating you will not be paying as the debt is statute barred. Keep the letter brief, factual, and in writing only.

How to complain if Lowell behaves unfairly

If Lowell contacts you excessively, uses threatening language, misrepresents their powers, or continues pursuing a statute barred debt, you can complain.

• Step 1: Complain in writing directly to Lowell’s complaints team. They must respond within 8 weeks.
• Step 2: If unresolved, escalate to the Financial Ombudsman Service (financial-ombudsman.org.uk), free and independent.
• Step 3: Report FCA rule breaches to the FCA at fca.org.uk/consumers/report-financial-scam-or-firm.

Frequently asked questions

AI Debt Payoff Planner

Get your exact debt-free date free.