PRA Group UK Limited Debt – Should You Pay? 

Receiving a debt letter from PRA Group UK Limited can be worrying, but you’re not alone. More than 170,000 people visit our website each month for help with debt issues. You might be wondering where the debt came from and if you should pay it. You might also be worried about whether PRA Group is a real company and what happens if you can’t afford to pay.

We understand your concerns, and we’re here to help. Our team has a lot of experience with debt collectors, so we know how you feel. In this article, we will:

• Explain who PRA Group UK Limited are and why you’ve received a letter from them.
• Discuss how you can check if the debt is really yours.
• Guide you on how to deal with PRA Group.
• Provide options if you’re unable to pay, including writing off your debt.
• Show you how to stop PRA Group from chasing you.

Remember, it’s important not to ignore a debt letter. Stay with us and learn more about dealing with PRA Group UK Limited and your debt.

Why Have I Received a Debt Letter from PRA Group?

If PRA Group debt collection sent you a letter, which is the primary way they track people down, they have probably bought a debt in your name and you now owe them money.

Never hide!

There is a chance that they have sent the letter to the wrong person because the real debtor used to live in your home or through an admin mistake. 

One way to check if you really owe the money it to access your credit file – but this is not a sure-fire way to know as your credit file might not be accurate. 

If you contest ownership of the debt, you should send a letter that asks for proof you owe it, such as a credit agreement with the original lender. To do this, follow this get them to prove it guide!

Could you write off some PRA Group debt?

• Affordable repayments
• Reduce Pressure from people you owe
• One simple monthly payment

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PRA Group Unenforceable Debts

There are several situations where your debt may be unenforceable. This should mean that PRA Group cannot secure a CCJ against you. However, even their own website suggests that it won’t stop them from trying to chase the debt by letter or phone. It’s also worth noting that unenforceable debt can still impact your credit score, so you may wish to still deal with it.

Is My Debt Statute-Barred?

If it has been 6 years – or 5 years in Scotland – since you last made a payment towards your unsecured debts and you have not written to your creditor about your debt during this time, it is statute-barred.

This means that the debt is not enforceable. It still technically exists, and you still technically owe the money, but there is no legal way for you to be forced to pay or for the debt to be enforced.

Keep in mind that not all debts become statute-barred!

Any HMRC debts, for example, will stay enforceable for decades. Any debt that had a County Court Judgement (CCJ) attached to it during the 5 or 6-year window will always be enforceable. 

But sometimes, debt collection companies make a mistake or push their luck! Take this example:

Writing to a company asking them to prove that you owe the debt is not going to restart the 5 or 6 year timer for statute-barred debts. Especially not for a debt that old!

PRA Group Debt Collection Proved My Debt

It might take some time, but the staff at PRA Debt Collection could hunt down your initial credit agreement and use it to prove you are the owner of the debt. 

This would give them an almost certain chance of winning in court, so you should not ignore this proof or further requests for payment. 

If you cannot afford to pay the money, you are allowed to assess your options without interruption from PRA workers. 

One of these options is a repayment plan directly with PRA. But there are many more options that could make repaying your debts cheaper. 

Read about debt solutions here!

Can PRA Group Take You to Court?

Yes, the PRA Group can take you to court. If they prove the debt is yours and you refuse to pay or decline a repayment plan, they could take you to court. At the court, they will request that the judge issues a County Court Judgement (CCJ) that forces you to pay the debt. This business decision may be determined by the amount you owe and if it is worth going to court, so it might not happen in every single scenario.

Can PRA Group Send Bailiffs?

If you ignore a County Court Judgement issued by a judge, PRA Group can then ask for permission to employ bailiffs to come to your property and repossess your valuables.

These are then sold at an auction to generate the money you owe. However, PRA Debt Collection cannot use bailiffs before a CCJ has been issued or carry our bailiff work themselves.

Portfolio Recovery Reviews

Reviews for the PRA group are predominantly negative. Many people have reported harassing or ‘scamming’ behaviour. However, the PRA group has responded to most negative reviews, offering to attempt to rectify the situation.

Portfolio Recovery Scam Calls

Some people have received harassing phone calls from someone claiming to work for Portfolio Recovery. These people often have no outstanding debts.

If you believe that you are receiving Portfolio Recovery scam calls, you should request that the debt collector provide their information, including their name, company, address, telephone number, and professional license number. You can also demand that the company proves that you owe the debt in writing.

Will Debt Collectors Like PRA Write Off Debt?

You may be able to write off some of your unsecured debts that you owe PRA.

From my experience, there are two main ways of doing this – negotiating, or a fromal debt solution. Unfortunately, financial hardship and debt collection go hand in hand so you may benefit from some financial advice if you are considering a debt solution or settlement offer.

Settlement Offer

You may be able to pay off some of the debt, but not all of it, in one go. If this is you, you could try a to make a settlement offer.

Not all companies will accept these, and you are more likely to have it accepted the more you offer.

You may find that your offer is accepted if you negotiate it with a repayment plan. Just make sure that you only agree to pay what you can realistically afford!

Individual Voluntary Arrangement (IVA) or Trust Deed

An IVA is a formal agreement between you and your creditors. You agree to pay a monthly sum that is distributed amongst your debts, and your creditors agree not to contact you during your IVA.

IVAs typically last for 5 or 6 years, and any outstanding debt is wiped off when it ends.

Keep in mind that IVAs are not suitable for everyone. You need to owe several thousand pounds to more than one creditor to be eligible. You also need to demonstrate that you have some disposable income every month.

If you are in Scotland, you will need a Trust Deed. These work in the same way as an IVA.

Debt Relief Order (DRO)

A DRO is a good option for those facing financial hardship with no assets and little income.

For 12 months, you make no payments, but your creditors freeze your interest and don’t contact you.

If your finances haven’t improved during this year, you may be able to write off your unsecured debts.

Bankruptcy

If you have debts but no realistic possibility of ever paying them off, you may need to declare bankruptcy.

Bankruptcy has an unfair stigma attached to it as it may be your only way of getting a financial fresh start. That said, it is a serious financial situation that should not be taken lightly.

Sequestration

Sequestration is the Scottish version of bankruptcy.

If you have little income and not valuable assets, you may be able to apply for a minimal asset process bankruptcy (MAP). A MAP is a quicker, cheaper, and more straightforward version of sequestration so worth considering.

If you are considering a debt solution or making a settlement offer, you can contact a debt charity for some advice. I have linked some organisations that offer free debt advice services towards the bottom of this page.

How Do I Complain About PRA Group?

If you think that PRA Group has been unreasonable or behaved inappropriately, you can make a complaint. You can also make a complaint if you feel that they have broken any of the Financial Conduct Authority’s (FCA) guidelines.

Make your first complaint to PRA Group so that they have the chance to sort out the issue themselves. If you feel that they have not taken your complaint seriously enough or have not addressed your issue properly, you can escalate matters.

You can make any secondary complaint to the Financial Ombudsman Service (FOS). They will investigate and, if your complaint is upheld, Arvato may be fined. You could even be owed compensation.

The PRA Group Debt Recovery Contact Details

PRA Group Debt Collection FAQs

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References

CONC 7.3 Treatment of customers in default or arrears (including repossessions): lenders, owners and debt collectors

CONC 7.9 Contact with customers