Barclays sold debt to PRA Group - Advice

I'm helping a friend with their debt settlement as they may have a lump sum to pay off the debt and they are having a hard time dealing with organising it.

Last year they were offered a settlement of 7k from a balance of 12k. However, they didn't have the funds at the time.

About 10 months ago they received a letter saying the debt was sold to the PRA group and there would be no change in payments etc for the time being.

They called PRA but they said it's now 10k left but would accept 9k, 2k more than Barclays offered last year and the debt is now 2k less in total.

I've heard people suggesting to contact PRA to see if they have the credit agreement as it may not be legally binding without it.

I'm happy to put all the letters together and manage the paying of it off but I need some advice.

What is this Credit agreement legally binding thing?
Is there leverage in terms of the original offer? Are Barclays out of the picture now?

Thanks in advance.
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Comments

  • sourcrates
    sourcrates Posts: 28,549
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    Hi,

    It's called a "CCA Request", under the consumer credit act, you have the right to ask for a copy of your original credit agreement.

    If a creditor cannot produce it, the debt may be unenforceable.

    Depends on when your account was originally opened, as to what constitutes a correct response, I suggest you do some research first before sending anything.

    Just for your Information, you should always ask for proof of a debt when it's been sold on, as these accounts are never sold with any paperwork.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Photogaz
    Photogaz Posts: 37
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    Thanks, can you elaborate on the correct response to when the account was opened. It was opened in 2009 I think and I believe she is still sending payments to Barclays which are then being forwarded on to PRA.
  • sourcrates
    sourcrates Posts: 28,549
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    Photogaz wrote: »
    Thanks, can you elaborate on the correct response to when the account was opened. It was opened in 2009 I think and I believe she is still sending payments to Barclays which are then being forwarded on to PRA.

    Ok,

    The law was changed April 2007, after that date a "reconstituted" copy was deemed acceptable, dosent have to be signed, and can be made up of information held on other files.

    However, they have to send you something, they can't simply make one up, failure to respond in itself makes the account temporarily unenforceable until they do respond.

    They will have to go back to the original creditor, and can take a couple of months.

    Template letter here :

    https://www.nationaldebtline.org/EW/sampleletters/Pages/Information-about-your-agreement-under-the-Consumer-Credit-Act-%28sole-name%29.aspx
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Photogaz
    Photogaz Posts: 37
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    I've been told it's two different cards. One was Egg bought by Barclays and one was a Barclay card. Should I write separate letters?
  • fatbelly
    fatbelly Posts: 20,241
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    Photogaz wrote: »
    I've been told it's two different cards. One was Egg bought by Barclays and one was a Barclay card. Should I write separate letters?

    Yes, two separate letters.

    Sent to PRA if they own both accounts and so you will need two £1 postal orders.

    Also stop sending payment to Barclays. If they have sold the debt they are nothing to do with this now.
  • Photogaz
    Photogaz Posts: 37
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    Thanks. Some people suggest saying start the letter with saying you're unaware of how you owe PRA money as the agreement is not with them. The default template doesn't have that. Worth including?

    Also, should these be sent Signed for Delivery?
  • Anthorn
    Anthorn Posts: 4,362
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    To do with whether you agree the debt is yours and you agree with the balance. If you don't agree they have to prove it usually by providing the original agreement and account statements.

    If I claim that you owe me £1000 for two striped moggies are you going to just pay me or are you going to dispute it? Do the same with them.

    BUT if an agreement to pay is done and the debt is sold you can expect to continue the agreement with the new owner of the debt.
  • fatbelly
    fatbelly Posts: 20,241
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    Photogaz wrote: »
    Thanks. Some people suggest saying start the letter with saying you're unaware of how you owe PRA money as the agreement is not with them. The default template doesn't have that. Worth including?

    Also, should these be sent Signed for Delivery?

    You're doing a formal s77-9 CCA request. Stick to the standard wording and yes send it recorded.
  • sourcrates
    sourcrates Posts: 28,549
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    Egg were/are notorious for not keeping credit agreements for many of there credit card accounts.


    Remember these accounts are sold on without any formal paperwork changing hands, no proof the debts are legally collectable, and they are not required to show you one ounce of proof, unless you ask for it !!!!
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Photogaz
    Photogaz Posts: 37
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    So they've written back but so far only to one of the accounts (the egg card). They said they will need to obtain the information and it only has to be a reconstituted copy. Is that correct?
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