Dealing with PRA Group

Onebrokelady

fatbelly said:

Onebrokelady said:

Thanks for the advice 😊I thought the debt was just removed from your credit file after 6 years but you still have to pay it back 🤷‍♀️ I owe over £11,000 so I'm not sure they would write that off to be honest. 
Good luck to you too 😊

Broadly speaking, correct. The entry drops off your credit file six years after being defaulted or settled, whichever happens sooner

The status of your actual debt is separate from that. If you've been paying and/or corresponding over the years, then you remain liable.

If you stopped paying & corresponding before the default was registered then the debt would become statute barred around the same time that it dropped off your file, assuming no court claim had been started in the meantime.

As for write-offs, you don't know till you try. A 30-year repayment period is not regarded as 'reasonable' so it's always worth asking, and backing this up with evidence of ill health.

Sorry I didn't see this reply 🙄thanks for the advice I will certainly look into it.

Onebrokelady

stymied said:

Have you applied for your single occupant council tax discount too?

Hi yes I've got the single person discount 😊

Onebrokelady

(Removed by Forum Team)

Thanks I did think the advice was a bit out there 😊 I've had an email today from SC recommending bankruptcy which is not an option for me because of my house. I will try and post another SOA too.
I forgot to say I am just starting the process of claiming my NHS pension which will include a lump sum payment. I will be using some of this to pay off the last bit of my mortgage which would leave an amount that would be enough to clear my debt so that is an option. It takes 6 months for them to sort out so I could just keep up with my DMP until then 

Onebrokelady

InAPickle76 said:

Onebrokelady said:

I'm currently on year 5 of a DMP with Stepchange paying £90 a month and not due to finish until 2034🙀🙀 all my debts are now with PRA and are defaulted. I am now struggling massively to pay the £90 because I've had to reduce my hours at work due to ill health and all my bills have gone through the roof. I contacted SC  two months ago to do my annual review where they realised I will have more going out than coming in so they cancelled that months payment while I sorted out my finances. I was hoping to claim Universal Credit but it turns out I'm not entitled to it. I'm now going to go self managed but can only offer £40 a month has anyone had dealings with PRA that can tell me how helpful or not that they are. I'm also worried they will restart adding interest so how likely is that to happen. I'm going to phone SC tomorrow to tell them I'm going self managed and I will also phone PRA to tell them the same and let them know how much I can afford 

We have 4 debts with PRA and email them every year with an updated income and expenditure form. We have reduced how much we pay them over the years due to the financial pressures first with the pandemic then with current cost of living. We have never had a problem - they have accepted the reduced payments with no squibbles and even asked if we are definitely sure we are able to afford it. Never had a phone call or threatening letter - find them very helpful and understanding. Good luck x

Hi sorry I didn't see your reply 😊
Thanks for the info that's good to know. I am going to contact them because SC have recommended bankruptcy which really isn't an option for me as I'm a home owner ( shared ownership) 
I didn't realise I could email them 😬 so will have a look. Thanks again 

fatbelly

Stepchange should not be recommending a course of action that will see you lose your accommodation.

If you've got time, you should file a complaint.

Onebrokelady

fatbelly said:

Stepchange should not be recommending a course of action that will see you lose your accommodation.

If you've got time, you should file a complaint.

I was very surprised as its on my account that I have a mortgage. They have said it's because I will take 24 years to pay it off and this isn't realistic. They also mentioned equity release too and remortgaging my house 🤷‍♀️

fatbelly

I slightly shocked by how poor that advice is.

I agree there is no 'ideal' solution. But sometimes it's about finding the least worst one.

If you have secure owned accommodation I would say that it's a priority to try to limit the danger of losing that.

Except in limited circumstances, bankruptcy would be a threat to your house, given that the OR has 3 years to deal with property and none of us have a crystal ball on house prices. So even if you had no equity now, you may have in 3 years and the OR must seek to access that for the benefit of your creditors.

Your house would be safe with equity release but that would only be realistic if you are aged over 60 (pref over 65) and have significant equity. It's the sort of strategy that should be considered with the help of an Independent Financial Adviser because there are lots of other implications. A debt adviser would not be allowed to advise on that.

Converting unsecured debt to secured (remortgaging) is such a fundamentally bad idea that I wouldn't know where to start.

fatbelly

PRA group have a history of being stubborn on full & final settlement deals.

If you come into a lump sum and are thinking of paying them off, check first that the debt is enforceable.

If it's a consumer credit debt then you have the right to see a copy of the original agreement and if they cannot do that the debt is unenforceable until they do.

It's referred to as a CCA request

Onebrokelady

fatbelly said:

PRA group have a history of being stubborn on full & final settlement deals.

If you come into a lump sum and are thinking of paying them off, check first that the debt is enforceable.

If it's a consumer credit debt then you have the right to see a copy of the original agreement and if they cannot do that the debt is unenforceable until they do.

It's referred to as a CCA request

I was thinking of using some of my lump sum payment from my pension to pay it off. I am taking semi retirement in 6months time so can access it then 

fatbelly

I'm not saying you shouldn't try a settlement deal - in fact you should - but PRA are well known for being inflexible.

Checking they have a proper copy of the original agreement may give you a bit of leverage