PRA Group full and final settlement

NicolaElize

I've just had a letter through the door from PRA group re a defaulted credit card debt of approx £6.5k - I've previously offered something like 20/30% full and final settlement which they declined so I've since just ignored the letters - I've had a letter through the door which is a statement of what I owe, then at the bottom it says about paying a settlement of approx £650 to have settle it and have it marked as partially settled with an expiry date of the offer. The amount is exactly 10% of the debt. It also says it supersedes any previous offers made.

I cannot believe they would offer me a 90% discount- can this be right?

A further question is if I do it and it's marked as partially settled, what difference does it make compared to if it's marked as setttled? I know settled is better but if I'm getting 90% off, I'm guessing I'm
Not in a position to argue over that. Will it still drop off after 6 years and will anyone chase me for the remainder? My credit file is wrecked anyway and not going to be able to afford a mortgage etc any time soon so if it's only around for 6 years it won't make that much difference as long as I won't be further pursued etc.

I will phone later on to check but wanted to check here first. Very excited as this would wipe approx 50% of my overall debt.

Thanks in advance

alianza

Maybe it is a totally unenforceable debt so have decided 10% is better than nothing. Have you done a CCA request as when I did for 2 of my PRA debts they admitted one was unenforceable.

NicolaElize

Thankyou for your reply. No I don't recall ever asking for an original agreement. I will have to have a google to find a template, thankyou!

January2015

I wouldn't bother asking for the original agreement if they are offering you to settle at 10%. It is very likely the account is unenforceabe and PRA know it.

The important thing to realise is that if the debt is unenforceable it doesn't mean you don't owe the money. What it means is that if they took you to court it could not be enforced by the court. You still owe the money but they can't make you pay it. However, what can (and does) happen is that unenforceable debts get passed around from debt collection agency (DCA) to DCA. Each one will hassle you and you have to go through the process of providing evidence to show the account is unenforceable. Your credit reference agency files will continue to be marked as nil payments and default. You will continue to owe the full balance of the debt.

However, if you snap their hand off and settle at 10% - that's it. Account updated on your credit reference files to show as partially settled. Matter closed. No-one can chase you. You officially no longer owe any more money on the account.

We've recently settled an account just like this - it was a decision we made to put the matter to bed once and for all and not have it hanging over our heads for years to come.

NicolaElize

January2015 wrote: »

I wouldn't bother asking for the original agreement if they are offering you to settle at 10%. It is very likely the account is unenforceabe and PRA know it.

The important thing to realise is that if the debt is unenforceable it doesn't mean you don't owe the money. What it means is that if they took you to court it could not be enforced by the court. You still owe the money but they can't make you pay it. However, what can (and does) happen is that unenforceable debts get passed around from debt collection agency (DCA) to DCA. Each one will hassle you and you have to go through the process of providing evidence to show the account is unenforceable. Your credit reference agency files will continue to be marked as nil payments and default. You will continue to owe the full balance of the debt.

However, if you snap their hand off and settle at 10% - that's it. Account updated on your credit reference files to show as partially settled. Matter closed. No-one can chase you. You officially no longer owe any more money on the account.

We've recently settled an account just like this - it was a decision we made to put the matter to bed once and for all and not have it hanging over our heads for years to come.

Thankyou for your feedback, you're right I believe I will settle, it's a great opportunity.

What is my next step? Do I just ring up and pay or do I need to demand an agreement in writing then send a cheque? Is there a template to accept an offer of a settlement?

Thankyou again

January2015

NicolaElize wrote: »

Thankyou for your feedback, you're right I believe I will settle, it's a great opportunity.

What is my next step? Do I just ring up and pay or do I need to demand an agreement in writing then send a cheque? Is there a template to accept an offer of a settlement?

Thankyou again

I would write back, thank them for their offer of £650 as full and final settlement of the outstanding balance of £6,500 (put in the exact figures though).

Then I would request written confirmation this payment would be made on the clear understanding that, if they accept it, neither they nor any associate company will take any other action to collect or enforce this debt in any way and that you will be released from any liability. In addition, if they accept the money will be paid on these terms, please could they confirm they mark your credit reference agency file to show that the above account has been paid and closed.

I've adapted the wording from the National Debtline template letter where debtors offer full and final settlements. In your case you have been offered one, so I changed the words slightly.

They may already have confirmed this information in the original letter they sent you - in which case you can just make the payment and wait for 2 to 3 months for your credit reference file to be updated. All good from here on in.:j

Edit: you can send a cheque, or make payment through your online banking. Either would be fine.