PRA Group (Loan Default) Advice

lost_jock

Hi,

Been reading the forum for a few days but not able to get a clear picture in my head for my predicament and would be really grateful for any advice.

My wife and I allegedly took out an unsecured loan (with a building society) for home improvements in 2008 and due to financial difficulties in 2013 we defaulted, with around £14k remaining.

The original lender never registered the default on our credit files as far as I'm aware (via noddle).

PRA Group got in touch with me about 2years ago about this and I agreed to pay £200p/m, which I have been doing without fail.

Last month PRA added the default to my credit file (shown as registered since 2013) and destroyed it, despite continuing to paying the £200p/m.

Spoke to PRA and they told me it only showed up due to their review of the account and that I had been lucky it hadn't shown up for the last few years.

Asked for a settlement figure and they only knocked-off £1k (to around £9k).

I have been thinking about asking them to 'prove it' with the letter available here OR should I just keep paying?

Any help appreciated.

Thx

FireWyrm

The problem is, a Prove It is only useful if you have never paid anything and a debt just suddenly crawls out of the woodwork with no warning. The truth is, they dont need to prove anything, you have been paying and therefore tacitly agreed the debt existed. It seems you are stuck in this case. Is there any mileage in appealing to higher authority at the lender, perhaps. The damage is done after all and a default registered which started the clock on your trashed credit file. What is done is done. Any chance you could pay it off faster?

dieselv2

But can they sell a debt that hasn't been defaulted?

lost_jock

Thanks for the response Fire (and Diesel)

Never contacted the original lender as PRA told me they own the debt now, would it be worth getting in touch with them?

FireWyrm

Everything is worth a try until you get a 'get lost' from them, but the debt was evidently sold and you tacitly agreed to it's existence by paying. When the debt was sold would have been the point at which to argue, but that boat sailed two years ago.

National_Debtline

Hi

Technically the original lender should have added the default to your credit file after several missed payments. As long as the date of the default PRA have added is correct they can add it. It will come off your credit file 6 years after the original default date.

You could still make a full and final settlement offer yourself in writing. It might be considered by a different person with more discretion. There is a factsheet on full and final settlements here which goes into more detail:

www.nationaldebtline.org/EW/factsheets/Pages/fullandfinalsettlementoffers/lumpsumoffers.aspx

James
@natdebtline

lost_jock

Thanks again guys

What would be an acceptable full and final settlement 25% / 50% / 75%

I guess I don't have any options if they reject the offer, other than to keep paying or tell them to do one (which I feel like doing out of principle for screwing my credit rating)!

MrsTinks

Let's be fair though - THEY didn't "screw" your credit rating, they updated the credit file with the correct details to show they now owned the debt. That it hadn't been registered before is not really their fault, it sounds like it's been registered with the correct default date and it IS a defaulted debt. You may be sticking with the repayment plan, but you broke the actual loan agreement - what I'm trying to say is that they haven't done anything wrong as far as your file is concerned.

If you stop paying them with the outstanding amount I would bet you a half decent cake that they will seek a CCJ and they would be granted it.

Right now they have no incentive to haggle more because you're paying up. If you drop your payments they are more likely to consider a CCJ vs settling. Should they go for a CCJ you would be stuck with that for 6 years on your file from judgement date and unless you can manage to pay it off in full within 1 month there is no way of removing that.

Obviously worth making your own F&F offer if you can rustle up the cash - start at 50% and see what they say...

lost_jock

Thanks Tinks

Agreed it was me/my financial situation that screwed my credit rating, just annoyed they added it to my file after 2 years of paying a debt they bought for less.

Will have a pop at 50% and see how it goes,