PRA Repayment and Credit Impact

SpeshKham

Hi all,

First time posting. Looking for some advice.

12 years ago I defaulted on a MBNA credit card debt of about £12k. The debt was brought by PRA group and I agreed a debt repayment plan. 

I’ve been paying it off since £5k paid off £7k left. I’m currently paying £20pm.

The default dropped off my credit report 6 years ago. 

Now the questions.

1. If I ask PRA for the Credit agreement am I asking for the MBNA one or PRA one?
If they can’t produce it can I reclaim the money paid to PRA?

2. Whilst the default is off my credit report I’ve just been turned down for a re-mortgage because of it. The lender doesn’t lend to anyone with a debt management plan. My mortgage advisor claims that the lender does additional checks beyond credit file? Is this true or could they have just spotted the payment on my bank statements. 

Any help would be much appreciated.

Thanks.

sourcrates

SpeshKham said:

Hi all,

First time posting. Looking for some advice.

12 years ago I defaulted on a MBNA credit card debt of about £12k. The debt was brought by PRA group and I agreed a debt repayment plan. 

I’ve been paying it off since £5k paid off £7k left. I’m currently paying £20pm.

The default dropped off my credit report 6 years ago. 

Now the questions.

1. If I ask PRA for the Credit agreement am I asking for the MBNA one or PRA one?
If they can’t produce it can I reclaim the money paid to PRA?

2. Whilst the default is off my credit report I’ve just been turned down for a re-mortgage because of it. The lender doesn’t lend to anyone with a debt management plan. My mortgage advisor claims that the lender does additional checks beyond credit file? Is this true or could they have just spotted the payment on my bank statements. 

Any help would be much appreciated.

Thanks.

Your agreement was always with MBNA, and they will always retain that agreement (for a certain length of time anyway) even when a debt is sold.

You can make the CCA request to PRA, and they are obliged to refer the matter back to the original creditor.

No, you cannot reclaim anything, lack of a compliant credit agreement only removes their right to take legal action, nothing else, the debt is still owed, it just cannot be enforced through the courts.

A DMP is an informal arrangement and won`t in itself, show up on your credit file, it is possible if they have seen your bank statements, that they have picked up on the PRA payment, as they will likely be well aware of the nature of there business.

SpeshKham

Thanks Sourcrates that’s helpful. If they can’t produce the CA and I stop paying them, am I right in thinking that nothing will appear on my credit report?

sourcrates

SpeshKham said:

Thanks Sourcrates that’s helpful. If they can’t produce the CA and I stop paying them, am I right in thinking that nothing will appear on my credit report?

That is correct, the entry has long since vanished from your credit report, and won`t be back under any circumstances.

inminniesroom

Hi sourcrates I asked for CA and PRA sent a generic unsigned copy . Is this still an enforceable debt . Thank you 

kaMelo

The chances of them still having the original paperwork are probably zero but an accurate reconstituted copy of the agreement is acceptable.

If that is what they have sent you then yes, the debt is still enforceable.

sourcrates

As kaMelo mentions, the financial details must be accurate, it must contain your name and address, but a signature is not required.

inminniesroom

Thanks kamelo and sourcrates the credit agreement contains no amounts no name no address ? How can this be enforceable? Thanks 

sourcrates

inminniesroom said:

Thanks kamelo and sourcrates the credit agreement contains no amounts no name no address ? How can this be enforceable? Thanks 

From what you have said, if its just a generic copy, it sounds like it is not compliant then.

This is the FCA take on this -

The copy agreement

CONC 13.1.4G01/07/2014RP

1. (1) 

   The copy of the executed agreement should be a 'true copy' of the original. However, as confirmed in the case of Carey v HSBC Bank plc [2009] EWHC 3417 (QB), in this context the term 'true copy' does not necessarily mean a carbon, photocopy, microfiche copy or other exact copy of the signed agreement. There is no obligation to provide a copy which includes a copy of the signature.

2. (2) 

   The firm can reconstitute a copy. It can do this by re-populating a template of the relevant agreement form with the details of the specific agreement taken from its records. If the firm does provide a reconstituted copy, it should explain that that is what it has done, to avoid misleading the customer that this is a contemporaneous copy.

3. (3) 

   The terms and conditions should be those applicable at the time the agreement was executed. The name and address at the time of execution must be included.

4. (4) 

   The reconstituted agreement should contain a heading prescribed by the CCA and any relevant cancellation notice.

5. (5) 

   If the reason why no copy is given in response to a request under these sections is that there never was an executed agreement, the firm should acknowledge this in its response.

6. (6) 

   If the agreement has been varied, the duty is to provide not only a copy of the agreement as originally executed but also either:

   1. (a) 

      a copy of the latest variation given in accordance with section 82(1) of the CCA relating to each discrete term of the agreement which has been varied; or,

   2. (b) 

      a clear statement of the terms of the agreement as varied.

7. (7) 

   Further, section 180(1)(b) of the CCA and regulation 3(2) of the Consumer Credit (Cancellation Notices and Copies of Documents) Regulations 1983 expressly allow certain matters to be omitted from the copy. There may be excluded from the copy of the executed agreement to be provided under these sections:

   1. (a) 

      any information relating to the borrower, hirer or surety, or information included for the use of the lender or owner only, which is not required to be included by the CCA or by any regulations made under the CCA as to the form and content of the agreement;

   2. (b) 

      any signature box, signature or date of signature;