PRAC Financial appearing on credit file

[Deleted User] · 22 February 2019 at 3:28AM

I've just had an alert from ClearScore about a new account about to be added to my credit file. It says it is for PRAC Financial regarding a pay day/short term loan.

I've done some searching and it appears they are buying up old Payday UK accounts. Now I did have a Payday UK account back in 2011 which would have been statute barred in 2017 and subsequently dropped off my credit files. I can also confirm it is no longer on my files but it looks like it is making a return under PRAC Financial.

I've had no letters regarding this yet either.

How can this be allowed?

I've been working really well to clean my files up counting down the clock until various things drop off etc, including no longer having any accounts listed as pay day loans, then things like this that are years old come crawling out the woodwork.

Sometimes I just feel like chucking the towel in and giving up.

Suseka97 · 22 February 2019 at 8:47AM

From time to time we hear of DCAs who purchase debts in bulk from lenders, many often statute barred and they go about chasing the original debtor. If you do a search on this forum about statute barred debts and a company called PRA group - you'll find a few other posts on this topic. You should expect to receive some sort of letter, assuming they have your correct address - or some other form of contact (phone calls, if your records with the payday lender included that). If you receive a letter - you can then dispute the debt by sending a 'prove it' letter or 'statute barred one'. If you don't hear anything and the record is placed on your file then I think there's a way you can dispute the entry, via ClearScore.

fatbelly · 22 February 2019 at 9:38AM

What does the entry specifically say?

As I understand it, you're not denying there is a debt owed, just whether it should appear on the report.

The debt buyer should keep the same default date as the original lender, and the entry disappear from the credit file six years after that date.

If they have put a fresh default on it you should complain to PRAC, Equifax and ultimately the ICO.

[Deleted User] · 22 February 2019 at 2:16PM

Not sure what it actually says as ClearScore says that it will be added when my next report is available to view (which is 26th Feb). Just shows PRAC Financial, part of an account number which I don't recognise, and that it's a pay day loan/short term loan and the creditor being a debt collector.

If they add the default date as the original default date then it shouldn't be on my credit file at all as it's well over 6 years.

Yes I'm not denying the debt but if debts are statue barred after 6 years meaning they can't commence court action, then why do they come back out the woodwork under a new disguise potentially threatening court action?

fatbelly · 22 February 2019 at 2:23PM

Deleted_User wrote: »

Not sure what it actually says as ClearScore says that it will be added when my next report is available to view (which is 26th Feb). Just shows PRAC Financial, part of an account number which I don't recognise, and that it's a pay day loan/short term loan and the creditor being a debt collector.

If they add the default date as the original default date then it shouldn't be on my credit file at all as it's well over 6 years.

Yes I'm not denying the debt but if debts are statue barred after 6 years meaning they can't commence court action, then why do they come back out the woodwork under a new disguise potentially threatening court action?

Whether this is statute barred and whether it should appear on your report are two different questions but the default date is relevant to both.

So you'll need to see what is on your report - it's worth checking Experian too

https://www.experian.co.uk/consumer/statutory-report.html

[Deleted User] · 22 February 2019 at 2:30PM

I've checked my Experian report on MSE Credit Club and it's not showing anything as yet but it doesn't get updated until 28th Feb.

sourcrates · 22 February 2019 at 2:34PM

Deleted_User wrote: »

but if debts are statue barred after 6 years meaning they can't commence court action, then why do they come back out the woodwork under a new disguise potentially threatening court action?

Its only statute barred if you write and tell the creditor its statute barred, and as such you wont be paying it, under sec 5 limitations act 1980.

This does not happen automatically in England and Wales, unlike Scotland, where debts are extinguished after 5 years, and no longer exist, the law here is not as cut and dried unfortunatly.

PRA will still try to collect on this, until you lodge a dispute that time has run out to collect on it.

[Deleted User] · 2 March 2019 at 8:34PM

Update: I emailed PRAC the statute barred letter and they have replied via a letter in the post on 'BW Legal' headed paper confirming that the account is closed and that no further action is being taken.

Now concerning my ClearScore Equifax report, it now lists PRAC Financial Limited under closed accounts with an account start date of 28th January 2011 (which was the date I took out a Payday UK loan). It also states an account updated date of 18th February 2018 (the date it re-entered my credit file) and a balance of £0.

Should PRAC remove this entry? As previously stated the original Payday UK loan account was statute barred and substantially dropped off my credit files in 2017.

CQuinn79 · 2 September 2019 at 1:24AM

I'm replying to an old post I know.
Prac financial and bw legal Rachael withers is director of both companies.
My aim is to get 1000 people with genuine complaints to register a complaint with the financial ombudsman they get charged £550 for each complaint they get the first 50 free per year and charged there after.
Let's bankrupt them don't fear them they are jokers who bully people.
Spread the word.

WhenIam64 · 2 September 2019 at 11:04AM

Let's bankrupt them don't fear them they are jokers who bully people.

Prac/BW are well financed by others. They've not only solid backers but their profitability is well up year on year. Any financial disturbance will not make a great deal of difference unless it meant BW missing the financial guarantees given to their backers.

Losing a licence will have more effect so FCA/SRA complaints are more effective.

[Deleted User] · 2 September 2019 at 11:08AM

CQuinn79 wrote: »

I'm replying to an old post I know.
Prac financial and bw legal Rachael withers is director of both companies.
My aim is to get 1000 people with genuine complaints to register a complaint with the financial ombudsman they get charged £550 for each complaint they get the first 50 free per year and charged there after.
Let's bankrupt them don't fear them they are jokers who bully people.
Spread the word.

I don't fear them. I'm just not happy about them putting an entry on my credit file for an account that was already dropped under a new name.

PRAC Financial appearing on credit file

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