We have created a complete guide on Prac Financial and what to do if they contact you about unpaid debts. Our post includes solutions and answers to the most common debtor questions.

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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.

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Who Are Prac Financial?

Prac Financial label themselves as a niche debt purchaser. What this means is they buy debts from other companies and then chase the people that owe the debt, making a profit in the process.

They make a profit because the company that the debtor owes the money to doesn’t want to chase the debt, so they sell it for much less than its value. Sometimes, Prac Financial could buy a debt for 25% of its worth and then chase 100% of the money.

Don’t worry, here’s what to do!

You could get rid of debt collectors by writing off some of your debt.

There’s 7 debt solutions in the UK, choosing the right one can take years off your debt, but the wrong one can be expensive and drawn-out.

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This 4 question debt calculator will tell you if you’re eligible.

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Who Do Prac Financial Collect Debt for?

Prac Financial state that they collect corporate debts, i.e. debt between businesses. But that isn’t all they collect for, as this forum user points out.

“BW Legal and PRAC (PRAC bought the debt) have been chasing me for a defaulted account with Money Shop for over 1 year now. I have asked them several times to provide documents.”

[Legal Beagles Forum]

As the forum user discusses, they are being chased for an unpaid personal loan debt. The poster does the right thing by requesting documents – we’ll talk more about this soon.

Received a Prac Financial Debt Letter?

If you have received a Prac Financial debt letter, you are not alone. Prac Financial try to contact all of their debtors by sending them letters requesting payment. Sometimes these letters can be daunting because they might talk about court action. Prac Financial are trying to scare you but they could really go to court to recover the debt.

Feeling like Chandler?

how to debt

Is all this information starting to feel overwhelming? Don’t panic! I’ve put together a 4 question calculator so you can quickly and easily find the best debt solution for you.

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Ignoring Prac Financial Debt Letters

And that is exactly why you should not ignore a Prac Financial debt letter.

If you fail to communicate with them, they may go to court to get a CCJ which forces you to pay. If you don’t pay, then they could then ask a bailiff to come to your home.

But there are lots of ways to stop this from happening simply by responding to the letter. Keep reading if you want to know the best way to respond to a debt collection agency.

Can Prac Financial Take My Possessions?

Only if Prac Financial get a CCJ for the debt and you continue to fail to pay could they employ a bailiff. This professional will come to your home and ask for the payment. If you cannot pay they will look to repossess items that belong solely to you and are not being financed.

This means they could take vehicles and your most expensive electronics to pay off the debt.

But remember!

This only happens if you continue to ignore the Prac Financial debt and after legal action. Prac Financial themselves cannot come inside your home and they must never pretend to be the same as a bailiff.

If they do, you should complain to the debt collector ombudsman.

Stop Nuisance Prac Financial Debt Calls

Your situation may be made worse if Prac Financial keep on calling or texting you asking you to pay. Getting on with everyday life is a lot more difficult with the constant fear that Prac Financial will call every hour.

But it doesn’t have to be this way.

By sending Prac Financial your contact preferences, you can stop those nuisance calls from happening throughout each day. Prac Financial must adhere to debtors’ communication preferences and if they don’t you can again make a formal complaint.

Not complying to your preferences is harassment.

Make Sure Prac Financial Prove the Debt

Earlier in our guide, the forum user stated that they asked for documents after being contacted by Prac Financial.

This is the right thing to do.

If you receive a letter from Prac Financial asking for money, simply reply by requesting proof that you owe the debt. If they don’t provide proof, then you do not have to pay.

Your letter should clearly state the current laws and that without any proof you will be reporting them for harassment.

But we have made this easy for you and created our own prove the debt letter to send to Prac Financial.

Simply use this letter, add your own details and pop it in the post. You might not hear from Prac Financial again.

Prac Financial Debt Solutions Are Available!

But what if you do hear from Prac Financial again? What if they send proof that you owe the debt?

Well, the news you probably don’t want to hear is that there is no way out of paying (unless the following section applies!). The better news is that you probably won’t have to pay the full amount in one go if you can’t afford to.

Prac Financial can offer repayment plans to spread the cost of the debt and make it more affordable in line with your personal circumstances.

On top of that, many other debt solutions exist, including IVAs and DROs.

Don’t Pay Prac Financial If This Applies!

There is one way that you will never have to pay Prac Financial even if you do owe the debt. And that is if:

  • The debt is six or more years old
  • A CCJ has never been issued
  • You have not acknowledged or paid some of the debt in the last six years

Debt that tick all of these boxes are legally unenforceable because they are too old to be considered in court. If your debt is all of these things, you need to send a statute barred letter back to Prac Financial.

These letters can be found on debt charity websites.

Make a Prac Financial Complaint

To make a complaint about Prac Financial and their conduct, you can do so by complaining to the Financial Ombudsman. They work without bias to identify mistreatment towards debtors.

For further support at tackling this debt collector, consider using some of the exceptional UK debt charities.

About the author

Scott Nelson

Scott Nelson is a financial services expert, with over 10 years’ experience in the industry, including 6 years in FCA regulated companies. Read more
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