Have you received a scary debt letter from PRAC Financial Debt Collection? Or maybe even a debt letter from BW Legal?
We’ll clear up any confusion surrounding these debt letters and provide stellar advice on how to deal with them best.
Stick with our guidance to understand the debt collection process – and maybe even avoid having to pay your debt with PRAC Financial Debt Collection altogether.
It’s not your fault. Complaints to the Financial Ombudsman have risen this year from 830 to 2,006, so it’s safe to say that you’re not alone.
Deal with your debt today and feel better tomorrow.
PRAC Financial Limited, Who Are They?
PRAC Financial Limited is a debt collection group that chases people and business for unpaid debt. But they also work alongside a company by the name of BW Legal.
Your debt letter may have come from either of these companies. It has been known for individuals to receive a debt letter from BW Legal ‘acting on behalf’ of PRAC Financial.
Don’t worry, here’s what to do
You could get rid of debt collectors by writing off your debt. I’ve put together a 4 question debt calculator which will tell you if you’re eligible:
PRAC financial limited Are a “Niche” Debt Collector
PRAC Financial Debt Collection regard themselves as a niche type of debt collection agency. On their official website they state:
“PRAC Financial is a niche debt purchaser. We have a particular focus on acquiring commercial/corporate debts and debts which benefit from our background in legal analysis and recoveries. We work with customers to ensure a fair and appropriate outcome, taking into account all relevant circumstances”.
This means they buy debts from others, but they focus on debt between commercial businesses. However, it also states that they collect debts that their legal team (BW Legal) specialise in, which ultimately broadens the scope of their debt collection.
One area of debt collection that they are known to work in is recovering unpaid debt on payday loans.
PRAC Financial Payday UK Recoveries
An example of this comes from an internet forum where one user thinks PRAC Financial Debt Collection is chasing them because of an old payday loan.
“I’ve just had an alert from ClearScore about a new account about to be added to my credit file. It says it is for PRAC Financial regarding a pay day/short term loan. I’ve done some searching and it appears they are buying up old Payday UK accounts. Now I did have a Payday UK account back in 2011 which would have been statute barred in 2017 and subsequently dropped off my credit files.”
[Money Saving Expert Forum]
The poster mentions that this loan is statute barred. We’ll cover what this means further down or guide. It could save you from having to pay!
Find your best debt solution (in 1 minute!)
Is all this information starting to feel overwhelming? Don’t panic! I’ve put together a 4 question debt calculator so you can quickly and easily find the best solution for you. If you’re eligible for the new government scheme, you could write off up to 85% of your debt! Answer the four questions now.
Contact PRAC Financial Ltd
There are different ways to contact PRAC Financial Debt Collection, but they are not based at the same office as BW Legal. The former is in Barnsley and the latter is not so far away in Leeds.
To contact PRAC Financial Debt Collection, you can use the customer number on 0333 023 0124 or send an email to Info@Prac.co.uk.
To get in touch with BW Legal, it is best to use this number: 0113 323 4497
But If you want to contact them to discuss the debt letter they have sent, you can take action in other ways than speaking with their agent. We discuss the details later in this guide.
Do PRAC Financial Debt Collection Ever Make Mistakes?
Debt collection groups have a difficult task at locating the people who owe them or their clients the debt. For this reason, they often revert to scattergun tactics by sending debt notification letters to lots of people in the hope that someone will owe up and pay.
This can work, but it also leaves people who do not owe the debt with threatening and scary letters. You may have received a PRAC Financial Debt Collection by mistake if:
- You have the same or a similar name to the real debtor
- You now live or used to live at the same address as the real debtor
- Administration errors occurred
Is It Okay to Ignore PRAC Financial Debt Collection?
You may believe you have fallen victim to these scattergun type methods, but even in this case, it is not okay to ignore the debt letter from PRAC Financial Debt Collection.
In fact, nobody should ever ignore a debt letter. Taking action is always the best option.
That also is the case if you know you cannot pay the amount that PRAC Financial Debt Collection is asking for. We’ll tell you why shortly.
Should I Pay PRAC Financial Debt Collection?
But reacting to your debt letter does not mean having to pay the money they are asking for now. You can use your rights and the debt collection process to delay having to pay, and in some cases, even avoid having to pay at all.
Where Can My PRAC Financial Debt End Up?
If you choose not to reply to the PRAC Financial Debt Collection debt letter or ignore it, the situation could escalate.
These letters are asking you to pay or PRAC Financial Debt Collection will take further action. This “further action” in most cases means going to the courts to get a court order for the debt. With a court order, PRAC Financial Debt Collection can then use an enforcement agent to come to your home and request payment (or a payment plan).
If you cannot pay what they ask or refuse the plan, they will start removing your personal items to be sold at an auction. The money raised at the auction will then be used to pay off your debts. Be aware that the agent may not even give you the option of a payment plan at this stage – and they don’t have to!
Sound scary? It certainly can be – but it doesn’t have to get this far even if you cannot afford to pay the PRAC Financial debt.
Will I Lose My Home or Possessions to PRAC Financial Ltd?
The process mentioned above means you could lose your possessions, and in exceptionally rare cases, lose your home.
However, you should also know that any worker for PRAC Financial Debt Collection or BW Legal does not have the right to come into your home, even if a CCJ has been issued from the courts. Only enforcement agents have this power after legal proceedings have taken place.
But there are even things that enforcement agents won’t take from you. Learn what those things are in this enforcement agent guide.
How to Stop PRAC Financial Debt Collection from Calling
You cannot completely stop all letters and calls from PRAC Financial Limited. They must have some way of contacting you if you owe money to them or their client.
But you are able to request their communications at certain times of the day. And they are not allowed to call you repeatedly or at your place of work.
You should contact PRAC Financial Debt Collection to make your preferences known.
They Keep Calling, Can I Report PRAC Financial Debt Collection?
If they ignore your references and continue to call repeatedly or during hours you asked them not to, you could report PRAC Financial Debt Collection to the Financial Conduct Authority (FCA).
The FCA will then investigate the matter and PRAC Financial Debt Collection could end up with a hefty fine or other type of punishment.
The Best Way to Reply to PRAC Financial Debt Collection
There is no one best way to reply to PRAC Financial Debt Collection. The way you need to respond will depend on the circumstance of your debt.
Send PRAC Financial Limited a Prove the Debt Letter
PRAC Financial Debt Collection must provide concrete proof of your debt. It is their bonus to do this, and without proof you will have a much better chance of winning in court (if it goes that far).
Sometimes debt collection agencies will not provide proof because they are using the scattergun approach to find the real debtor mentioned earlier. And because most people do not know their rights in these situations.
So, if your letter from PRAC Financial Debt Collection did not include proof, it’s time to ask for it!
How to Request Proof of Your Debt
To request proof, you must reply to their letter and ask for proof. You can use prove the debt letter templates from debt charities and respected debt blogs like Money Nerd. When using these, you just have to add a few details to make the letter applicable to your situation.
A letter of this kind should specifically state that without proof all future communications are harassment and will be reported.
Tell PRAC Financial Debt Collection Your Debt Is Statute Barred
You should never send a prove the debt letter if your debt is statute barred. These types of debts do not have to be paid back, so you would tell PRAC Financial Debt Collection that the debt is statute barred instead, using a different type of letter.
But What Even Is a Statute Barred Debt?
Statute Barred debts are the older debts that the courts won’t entertain because they are too busy with more recent cases. As a result, you never have to pay a statute barred debt back because it can never receive a court order.
For your PRAC Financial debt to be statute barred, it must be:
- At least six years old
- Not have been paid in the last six years
- Not have been acknowledged by the debtor in the last six years
- Without a court order issued on it during the whole debt’s existence
Sending PRAC Financial Ltd a Statute Barred Letter
The same debt forums, blogs and charities also provide templates for these types of letters. You can easily find professional statute barred letter templates online.
Keep a copy of any letter you send to PRAC Financial Ltd.
What Happens If PRAC Financial Prove My debt?
If your debt does not meet the criteria to be statute barred and PRAC Financial Debt Collection has proved the debt, now is not the time to start ignoring them.
You will have to agree a way to pay off the debt. Thankfully, many options are available for most people.
Ways to Pay Your Debt
Make an Agreement with PRAC Financial Debt Collection
The easiest debt solution is to agree on a payment plan directly with PRAC Financial Debt Collection. On their website, they have some words that may make you feel more comfortable:
“Your debt has been sold to us. We now have the authority to agree a repayment arrangement which is fair and takes into account all of your circumstances. This is an opportunity to resolve matters.”
Whatever you decide, never agree to more than you can afford. Doing so may create even more debts down the road.
To avoid this, you should work out how much disposable income you have left each month and inform PRAC Financial Debt Collection if your situation changes, such as gaining or losing employment. Debt charities – mentioned at the end of this guide – can help you calculate your disposable income.
Explore Other Debt Solutions
Just because a payment plan is the easiest option, does not mean it is the best debt solution for you. Some debtors, usually those with multiple debts, could save money and stress by using another method.
One of the best alternative methods is an Individual Voluntary Arrangement (IVA). These are similar to payment plans but are professionally made by a third party to consolidate multiple larger debts. You will have to pay more each month, but after five years all your debt is cleared no matter what.
Learn more about the benefits of an IVA to see if it is right for you!
Don’t Deal with PRAC Financial Debt Collection Alone!
Dealing with debt letters from PRAC Financial and BW Legal can be stressful and have significant effects on your health and relationships. But support is available across the UK thanks to a wealth of caring debt charities.
If you want further support, start searching for the following groups today:
- Citizens Advice
- Step Change UK
- National Debtline
- Christians Against Charity (even if you’re not religious!)