Worrying letter from PRA Group about a debt from 2012

caravan_girl

Hi Everyone

I've just had a letter drop through my door from PRA Group, regarding a debt I had with a payday company, in 2012.  Back then I had some unmanaged mental health issues and took out a number of payday loans that I couldn't afford to pay back, ruining my credit rating in the process.

They have sent me a letter about an amount of £390, with a page which states that they could take legal action against me, which is making me feel quite stressed out.

Over the last year or so I've been getting life back on track, come off my antidepressants, and now have a new permanent job so I'm working on fixing my finances.  I have plans in place for everything and all going to plan I will have paid off anything that's not defaulted by September.  I made the decision to set up smaller long term payment plans for the defaults on my credit file, because paying them off more quickly isn't going to fix my credit rating or remove them.

I'm a member of MSE's credit club which I've been using to keep an eye on things, so I have a good understanding of what debt I have, and I don't recognise this amount as being on my credit file any longer.  Given that the debt is from 2012, knowing that I never paid it and that it would have defaulted, it's my understanding that it will have dropped off my credit file.  

It's my understanding that the debit is now statute barred, as it's been more than five years, and I live in Scotland.  I've looked this up online and apparently PRA Group shouldn't be chasing me for the debt because it is statute barred.  Does this mean that they can't take me to court, as they suggest they can in their enclosed leaflet?

I know that part of the debt being statute barred means that I can't have acknowledged that the debt exists, so would it be better just to ignore the letter, rather than to write to them informing them that they shouldn't be chasing me for the debt?

Any advice or information about this would be very much appreciated.  I am so keen to make things right but in all honesty, I had hoped that I could just disregard anything that's dropped off my credit file.

Thank you so much for reading.

fatbelly

I think as they have written you could respond in writing.

Make sure you use a Scottish template as the law is different and this debt has now been 'extinguished'

https://www.nationaldebtline.org/sample-letters/time-has-run-out-recover-debt-s/

sourcrates

Debt purchasing companies such as PRA Group, often buy up large portfolios of old debts, in the full knowledge that some, or all, will either be statute barred, or unenforceable in some other way.

They rely on the debtor not being aware of the Prescriptions and Limitation act, or the Limitation act (In England & Wales) and hope you will just pay up without any fuss.

Sending the above letter should be the end of the matter, as debts are extinguished in law in Scotland after 5 years, so no longer exist, the Scots give it a lot more clarity than we do south of the border.

So relax, you have nothing to be stressed about.

caravan_girl

Thanks both, I really appreciate the help, and the link

caravan_girl

Just a quick update, I emailed a PDF version of the template over to PRA, and they responded within an hour confirming that it was statute barred and that they would no longer be pursuing it.  What chancers.

sourcrates

Excellent news.

Suseka97

A great outcome and a lesson for everyone else to never 'believe' what you are told by a DCA.... always challenge and get them to work for their money.  Well done  

MaryLongstaff

sourcrates said:

Debt purchasing companies such as PRA Group, often buy up large portfolios of old debts, in the full knowledge that some, or all, will either be statute barred, or unenforceable in some other way.

They rely on the debtor not being aware of the Prescriptions and Limitation act, or the Limitation act (In England & Wales) and hope you will just pay up without any fuss.

Sending the above letter should be the end of the matter, as debts are extinguished in law in Scotland after 5 years, so no longer exist, the Scots give it a lot more clarity than we do south of the border.

So relax, you have nothing to be stressed about.

Perfect!

[For current/future readers of this thread]:

Researching exactly how to respond to PRA group and other debt collectors should be your first step when you receive a debt letter.

Sourcrates hits the nail on the head when stating that debt companies like PRA "rely on the debtor not being aware" of the Limitations Act. Therefore, you should arm yourself with knowledge and understanding of how you should respond so that you're not pressured into paying a debt you're not legally obliged to pay.

The above link is one among many that covers the step by step process and all outcomes when dealing with PRA group, whether that be asking for proof of debt, claiming statue barred debt or simply communicating with debt companies. 

fatbelly

But bear in mind that this thread relates to Scottish law and England/Wales are different - also that information and resources are better coming from an impartial source such as National Debtline

WilfredB

MaryLongstaff said:

sourcrates said:

Debt purchasing companies such as PRA Group, often buy up large portfolios of old debts, in the full knowledge that some, or all, will either be statute barred, or unenforceable in some other way.

They rely on the debtor not being aware of the Prescriptions and Limitation act, or the Limitation act (In England & Wales) and hope you will just pay up without any fuss.

Sending the above letter should be the end of the matter, as debts are extinguished in law in Scotland after 5 years, so no longer exist, the Scots give it a lot more clarity than we do south of the border.

So relax, you have nothing to be stressed about.

Perfect!

[For current/future readers of this thread]:

Researching exactly how to respond to PRA group and other debt collectors should be your first step when you receive a debt letter.

Sourcrates hits the nail on the head when stating that debt companies like PRA "rely on the debtor not being aware" of the Limitations Act. Therefore, you should arm yourself with knowledge and understanding of how you should respond so that you're not pressured into paying a debt you're not legally obliged to pay.

The above link is one among many that covers the step by step process and all outcomes when dealing with PRA group, whether that be asking for proof of debt, claiming statue barred debt or simply communicating with debt companies. 

Yep, Fatbelly is right if you're looking for an impartial scottish source, rather that using the site mentioned you should use StepChange, they're a debt charity who also offer debt advice for scottish residents.