PRA Group Full & Final settlement

Toffster83 · 24 November 2016 at 12:49PM

I was on a debt management plan for a number of years and took voluntary redundancy. This allowed me to pay off the majority of my debts but I have one outstanding debt with PRA Group for approx £2800. I have £1500 left from my redundancy which I was looking to use to pay off this last debt, however I have twice went to them and asked for a settlement figure, the first time they offered 80% to settle and the second time offered 90%!

The debt in question is a Barclaycard from 2006, it wouldn't be statute barred as I was paying it through my DMP with stepchange and also have been paying it monthly myself now since I took my redundancy.

I was considering stopping making payments in the hope they would pass the debt on to someone who would settle for £1500 but obviously the worry with that is if they then issue a CCJ.

What option is best going forward? Keep paying £20 a month as I am doing and make settlement offer every year, pay the £1500 into the debt, get the balance down and continue making the £20 payments or stop making payments and hope debt is passed on?

Has anyone else had any dealings with getting good settlements from PRA Group?

PS I am not a homeowner.

MrsTinks · 24 November 2016 at 1:44PM

Don't ask them for a settlement figure. Write them and tell them you can raise a small amount of cash from family/friends and as a result you would like to offer them say 30% to settle the account in full.

Given the age of the debt have you made sure it's enforceable? Not my forte, but hopefully Sourcrates or one of the other more legal beagle posters will be along shortly with the details on that

National_Debtline · 24 November 2016 at 1:45PM

Hi there,

All of the choices have a risk of further action and whilst your offer is over 50% (which is a good offer), it is always up to the creditor whether they accept or not.

You could write back once more and dictate to them what you can afford (as Mrs Tinks says) and also highlight that if they refuse it this time you have other intentions for this money (essential items for the house) and the £20pcm instalments will mean this debt will go on for another 11.5years. They must accept all of your terms of payment in writing before you send the money.

If they refuse then you can save this money for another attempt in the future or pay it off as a lump sum and reduce the payment term from 11.5years to 5.5 years - but is that worth it? Do you have an emergency fund?

Laura
@natdebtline

Toffster83 · 24 November 2016 at 3:08PM

Thanks for the replies.

Sorry Mrs Tinks, I meant to say that I made the offer of £1500 to PRA Group and they came back saying that they would not accept it but would accept 80% of the debt.

I believed it is enforceable as by making regular payments I would be acknowledging the debt?

Laura, I will write back and advise that I will make an offer which if not accepted I will use the funds for other means. I have a small emergency fund but could put the £1500 into it and make another offer further down the line if they dont accept it.

MrsTinks · 24 November 2016 at 3:15PM

You misunderstand

There are other ways debts can be unenforceable.

You are referring to statute barred - this is where the 6 years of no contact comes in. As your credit agreement is fairly old they may or may not be able to actually produce a copy of the documentation they need to for the debt to be legally enforceable. In which case you can tell them to do one

This is however NOT my area of expertise... But I will try to find the gumph for you... Sourcrates posts it regularly so I shall scour his posts

MrsTinks · 24 November 2016 at 3:29PM

CCA request

There is a template letter in the sticky - send them that. At least if they can't find the paper work they are far more likely to take a low full and final

As I say it's NOT my area - but basically they should be able to produce the relevant documents or enforcing the debt becomes a bit of an iffy area. Rather than fight over it THEN, if they can't produce it, make a F&F offer of say 20% and they will be far more likely to accept

If you search for Sourcrate and CCA then you should find a load of posts through the years

Toffster83 · 24 November 2016 at 3:42PM

Thanks for the info Mrs Tinks, I'll try that!

PRA Group Full & Final settlement

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