Lowell Portfolio I Ltd has misplaced its FCA authorisation, however this doesn’t imply your debt is wiped. Right here’s what the change truly means, why your repayments nonetheless matter, and what to do in case you’re uncertain.
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When you’ve noticed posts flying round Fb about Lowell Portfolio I Ltd dropping its FCA authorisation, you’re not alone.
From 18 August 2025, the corporate can now not present regulated actions or merchandise. That’s triggered loads of panic, with individuals questioning if they’ll cancel their Direct Debits or if their money owed have been written off.
The brief reply? No, your debt hasn’t disappeared.
Who Lowell Portfolio I Ltd truly are
Lowell operates a number of corporations underneath the identical group.
It may well get complicated, however right here’s the straightforward breakdown:
- Lowell Portfolio I Ltd – this firm buys and owns money owed.
- Lowell Monetary Ltd – this firm manages and collects these money owed from clients. (This a part of Lowell remains to be authorised and controlled by the FCA.)
- Overdales Authorized Ltd – their in-house solicitors who take care of court docket motion if money owed aren’t repaid.
So, whereas Lowell Portfolio I Ltd itself is now not FCA-authorised, the collections and enforcement aspect may be very a lot nonetheless working.
Are you able to cease paying Lowell?
In virtually each case, the reply is not any, you shouldn’t cease paying.
- In case you have a reimbursement plan arrange, whether or not by Direct Debit, standing order, or one other methodology, you continue to owe the cash.
- When you cancel your funds with out an settlement in place, you may face:
- Further charges or penalties.
- Harm to your credit score rating.
- Attainable authorized motion, together with a County Court docket Judgment (CCJ).
The money owed owned by Lowell Portfolio I Ltd are nonetheless legally enforceable. When you’re ever doubtful, get written affirmation from Lowell earlier than making any modifications.
Skint Dad says…
“There’s loads of noise on social media about Lowell dropping its FCA authorisation, however this isn’t a get-out-of-debt-free card. When you owe them cash, you continue to must take care of it as ignoring it might make issues worse.”
Why Lowell misplaced FCA authorisation
This isn’t about Lowell “going bust” or money owed being wiped. At a guess, it’s possible an inside restructuring:
- Some corporations within the Lowell Group maintain the money owed (like Lowell Portfolio I Ltd).
- Others gather the money owed (like Lowell Monetary Ltd).
- If an organization doesn’t instantly take care of shoppers, it doesn’t at all times want FCA authorisation.
The important thing takeaway is that the enterprise hasn’t stopped accumulating money owed; they’re simply dealing with it by way of their different FCA-regulated corporations.
What to do in case you’re fearful
When you’ve seen the information and aren’t certain what it means for you:
- Don’t panic – dropping FCA authorisation doesn’t imply your debt is wiped.
- Hold making funds – except Lowell tells you in any other case in writing.
- Examine who you’re paying – your statements ought to present if funds are going to Lowell Monetary Ltd.
- Ask for written affirmation – you might have the correct to request a press release of account displaying:
- Who owns the debt.
- How a lot is owed.
- Who’s accumulating on their behalf.
- Get free debt recommendation – converse to StepChange, Nationwide Debtline, or Residents Recommendation in case you’re struggling.
Naomi is aware of the burden of dwelling on little or no and have become debt free by following her personal cash saving suggestions and tips. She is an skilled on saving cash on the grocery store and aspect hustles.