PRA Group - settlement offer woes

zappra · 30 November 2018 at 2:12PM

Hi!

I have two MBNA credit card accounts that went into default, and the debt is now owned by PRA Group. The total outstanding balance is around £18k, £15k on one account and £3k on the other. I've been making modest monthly payments of around £45 towards these debts since around September 2016.

In around March this year, I wrote to them with a very optimistic settlement offer of around 50%. Very much to just see what they'd say. They wrote back saying they couldn't accept that, but could accept an amount roughly equal to 95% of the outstanding balance.

About 2-3 months later I received another letter from them, thanking me for my continued payments, and offering to accept 60% on the larger debt, with a time limit of 1 month.

Unfortunately I wasn't in a position to accept this, lacking the lump sum at the time, but my situation changed a couple of months ago so I wrote to them again, referencing their previous letter, and offering the 60% sum.

They wrote back saying no, can't accept that, we can only accept 95%, all our settlement offers are time limited.

I'm very frustrated! Is there anything I can do here?

Thanks
z

sourcrates · 1 December 2018 at 2:43PM

Hi,

Companies such as this throw offers at you from time to time, unfortunately i am not privee to there internal procedures.

You still have options here though, you can send CCA requests, see what they can or can`t produce, lower your payments to an absolute minimum, that sometimes induces settlement offers.

zappra · 1 December 2018 at 7:53PM

Thanks

It's daft, my payments are already pretty low, at the current rate I'll pay off the debt in about 30 years!!

I guess I'll just sit and wait and see if they make another offer

Just_Di · 3 December 2018 at 11:20AM

zappra wrote: »

I have two MBNA credit card accounts that went into default, and the debt is now owned by PRA Group. The total outstanding balance is around £18k, £15k on one account and £3k on the other. I've been making modest monthly payments of around £45 towards these debts since around September 2016.

How long ago did you open these two MBNA accounts and were they assigned direct to PRA by MBNA or might they have been assigned to someone else before that such as Aktiv Kapital?

I agree with sourcrates that sending a s 78 CCA Request to PRA for each debt may put you in a stronger bargaining position since the debts would become unenforceable in court if they can't/don't comply within the statutory time-frame.

Di

kelly_p · 15 September 2020 at 10:29PM

Hi I have tried several times to get a settlement figure from the Pra group several times but they always want near the full amount owing. I've been paying them a small monthly fee for the 5K debt for around 5 years now.
After reading some posts here I requested a copy of my original credit agreement with them and been told in writing they do not have the paperwork.
They say they can't take legal action but can still ask for payment, Pass on the debt to another agency and continue to report debt with credit reference bureaux.
My earlier offers to settle (before this info came to light) were around £1500 to settle in full which they refused and wanted over 4K.
How do I proceed? I will continue to pay my monthly fee but may ask to reduce this.
Any advise before I reply in writing would be appreciated.
Regards Kelly

sourcrates · 15 September 2020 at 10:49PM

They will still want a return on there investment, regardless of enforceability.
Walk away if you want, no agreement means they cannot enforce their rights against you.

Suseka97 · 15 September 2020 at 10:51PM

Take heed at the advice given by Sourcrates and Just_Di. Both have a lot of experience of such matters.
It's always worth sending off CCA requests, even if they come back with the required paperwork - it gives you time to continue to save for your F&Fs, because it takes time for them to find, or hopefully not find, what's required.
In the meantime you just stop paying and see what happens next.
I've had 3 x UE accounts with PRA for 2 1/2+ years and it took a good 2+ years before their discount offers reached 65% and they are still holding out on that figure, even though they can't take me to court. Suffice to say I'm continuing to ignore them

kelly_p · 15 September 2020 at 11:05PM

Thanks so should I write and make another offer now I know there is no paperwork available from them?
It sounds like a waiting game but I don't really want the debt sold on to another agency although would anyone buy it if its not enforceable?

sourcrates · 16 September 2020 at 12:24AM

They sell it anyway, no paperwork ever changes hands, there’s no honour amongst thieves, it’s unenforceable so you just rinse and repeat with any new owners.

kelly_p · 16 September 2020 at 8:03AM

Thanks for the reply and information.
ok so what if any is by best way forward to settle this? Should I stop paying as Suseka has?

I was thinking of paying but seriously dropping the amount
Should I offer another affordable settlement I suppose all they can say is no!
Sounds like it might be a long battle.

DebtHurricane · 16 September 2020 at 9:03AM

Stop paying them. That’s the best way for them to eventually agree a low settlement offer. If you’re paying them- why would they feel the need to settle when they’ve got a regular (be it small) instalment coming in from you?! Wait 3/4 months then approach again.

PRA Group - settlement offer woes

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