Requesting Settlement figure with PRA Group

shaun196809

Good Evening Everyone!

This is my first post so new to this!!

I've had a debt management plan for the past 9 years and currently have 4 creditors with an outstanding debt of around £42k.

Over the past week I have been requesting a full settlement figure and so far had two responses from creditors willing to accept 40% of the original figure.

However, PRA Group will only give a 20% reduction which I was slightly surprised as the debt is over 8 years old and still £9k outstanding. I have written and spoke to them today by phone but no movement.

I was left a small amount of money following a family bereavement.

Any suggestions or do I have to keep paying through my DMP and try again in 6 months?

Many thanks
Shaun

sourcrates

Hi,

You are familiar with a CCA request ?

Have you CCA'd all the relevant accounts to see if they have compliant paperwork ?

That should be your first move.

shaun196809

No I haven't - excuse my ignorance but what are CCA requests?

Thanks for responding so quickly - much appreciated.

sourcrates

shaun196809 wrote: »

No I haven't - excuse my ignorance but what are CCA requests?

Thanks for responding so quickly - much appreciated.

It's a request for a copy of your original credit agreement (or recon version) without it, an account can be unenforceable in court.

Can be a deal breaker when making settlement offers on accounts with no paperwork.

Information and template letter here :

https://www.nationaldebtline.org/EW/sampleletters/Pages/Information-about-your-agreement-under-the-Consumer-Credit-Act-%28sole-name%29.aspx

fatbelly

You can do this for any consumer credit act debt - so loans, catalogues, credit cards, HP agreements.

shaun196809

So effectively what you're saying is that if they can't provide the credit agreement I could just walk away? But wouldn't they still harass for the outstanding debt?

sourcrates

shaun196809 wrote: »

So effectively what you're saying is that if they can't provide the credit agreement I could just walk away? But wouldn't they still harass for the outstanding debt?

Yes that's correct, but it could also help you reach a smaller than normal settlement with them, which is what you are aiming for.

shaun196809

Okay great - I'll get on to that in the morning! Again, really appreciate your advice.

I have another account with Capital One for £13k, any advice for these? Obviously it hasn't been taken on by a debt agency.

sourcrates

shaun196809 wrote: »

Okay great - I'll get on to that in the morning! Again, really appreciate your advice.

I have another account with Capital One for £13k, any advice for these? Obviously it hasn't been taken on by a debt agency.

Well same advice applies really, although usually the older a debt is the less chance of there being paperwork, sometimes creditors can't produce paperwork for newer debts either.

It's always worth finding out, if they produce it fine, if not it strenthens your position whilst negotiating.

shaun196809

Thanks again for your advice.

January2015

If agreement is unenforceable PRA will offer to settle at 10% of the outstanding balance. Worth considering because although the account may be unenforceable (i.e. they cannot force you to pay it), you will still owe the money. There is the potential the debt could get bounced around from DCA to DCA in the hope one of them can squeeze some money out of you. You have to evidence every time this happens that it is unenforceable. However, if you opt to settle for a low % of the balance then your credit file gets marked to show the account has been partially settled and closed - and no-one else will harrass you.

Of course, Sourcrates is right and you do not have to pay unenforceable accounts at all....this information just gives you something to else think about