PRA Group 23k debt is enforceable, what to do next?

cheekykid

I recently checked the enforceability of a 23k unsecured loan I took back in 2013 from Lloyds and unfortunately PRA Group replied very quickly (within a week of them acknowledging receipt of my request) with the credit agreement. 

I had  been paying them for £1 a month for 4 years or so and recently decided to stop paying. I am tired of them and I don't want to be held captive to an unsecured loan forever.


This defaulted debt is off my credit file but I worry of a possible CCJ. Should I keep paying them £1 or just ignore them? From my experience what I have noticed is that CCJ's are usually more likely for smaller debts that are more likely affordable to eventually be paid back than big ones however my worry is another tarnished credit score. I am currently on benefits due to an illness and I don't want a CCJ that could come with an attachment of earnings and affect my ESA&PIP payments.

Thaisparrow

For the sake of £1 per month is it not just worth continuing, although they may not go for a CCJ, it’s a bit of a gamble for £1 per month on an enforceable debt. 

fatbelly

A ccj doesn't come out of the blue. There has to be a court claim, which you can respond to. Before that there has to be a pre-action letter with standard reply form giving you 30 days to request information.

You pretty much know now that if you request info, PRA will provide it.

If they stop receiving payments from you, they have six years from the last payment to start a court claim. Would they do it? We don't know, and the size of debt doesn't make a lot of difference even though this is a large one - as you correctly say.

You misunderstand how a ccj can be enforced. They cannot attach to benefits but could attach to earnings. If you do not work, don't own property and they don't know where you bank (please tell us you don't bank with Lloyds) then that leaves bailiffs. In your case, as the rules stand, they must use the county court bailiffs as this is a consumer credit act debt. The court bailiffs do not generally cause problems as they are employees of the court. They attend, ask a few questions then return the account to the creditor. You could always ask the court to set an instalment arrangement that you can afford, though as you correctly say a ccj would create a fresh mark on your credit file that would last 6 years

I hope that gives a bit of info to help you decide whether to continue with the token payments or not

kldubbleu

cheekykid said:

I recently checked the enforceability of a 23k unsecured loan I took back in 2013 from Lloyds and unfortunately PRA Group replied very quickly (within a week of them acknowledging receipt of my request) with the credit agreement. 

I had  been paying them for £1 a month for 4 years or so and recently decided to stop paying. I am tired of them and I don't want to be held captive to an unsecured loan forever.


This defaulted debt is off my credit file but I worry of a possible CCJ. Should I keep paying them £1 or just ignore them? From my experience what I have noticed is that CCJ's are usually more likely for smaller debts that are more likely affordable to eventually be paid back than big ones however my worry is another tarnished credit score. I am currently on benefits due to an illness and I don't want a CCJ that could come with an attachment of earnings and affect my ESA&PIP payments.

If you're unlikely to return to work and earning a good wage, you could ask PRA to write off the debt due to ill health. Write to them and provide evidence of your illness, the Debt Camel website has more information about this here: https://debtcamel.co.uk/debt-options/less-common/write-off/