Final settlement PRA

Have you done a CCA request for this debt to check it is enforceable?

My only experience of settling with PRA was for an unenforceable debt and they settled at 10% of the outstanding balance - which was good for them as technically I could have ignored it completely.

3011gillian wrote: »

I’ve just sent my letter off to PRA with an offer of a final settlement . . . .

Are they likely to ask for more info? Likely to accept? As it’s 40%ish is it more likely they’ll accept? It’s our biggest debt and would mean the £106 could be spread between the others.
Just feeling hesitant �� any advice/support/experience?

I agree with the others that you should send a s 77-79 CCA Request to PRA to see if the debt is enforceable which could increase your bargaining power if it isn't.

Sometimes it makes sense to make a low opening offer and then work up to the maximum you can afford if pushed.

Debt purchasers typically pay 10p in the pound for debts so they have room to manoeuvre and still make a profit.

Who was the original creditor (MBNA or Egg/Barclaycard?) and when did you open the account?

In answer to your question about having experience with PRA, all I can say is that I beat them in court last year (PRA Group (UK) Ltd v Diana Mayhew) so I have a full understanding of their strengths and weaknesses.

I'm glad you're feeling hesitant. Take your time and do your research before parting with your money

Di

I totally understand how you feel, from a moral standpoint. Yes, you borrowed the money and feel obligated to repay it. But as you've said - you want to do that at a 'reduced price' and so you should follow the advice about sending them a CCA request.

This will do two things - give you 'timeout' from your payments to them (they suspend collection activity whilst investigating) which would give you time to build up more money towards that F&F. If it comes back UE - you will have more leverage to get a good discount and can hold out for as long as it takes to get it. If it comes back enforceable, you've lost nothing and can then follow the advice to offer a low F&F and build on that through negotiation if necessary.

I have a UE with PRA and have not paid them anything since they confirmed it (some 6 months or so ago) and the last statement I received about a month ago has now offered me a 65% discount. The other 2 UEs are currently at the 20% discount mark. It's a waiting game -but one worth playing.

3011gillian wrote: »

They have declined the offer unfortunately, what would be the best course from here (as discussed were not doing CCA so can I kindly ask no more suggestions about that). They’ve basically said the full amount is all they’d accept £2700 ish. Is it worth counter offering straight away or shall we switch to another crust or and offer to them? Thanks x

You could go back with a slightly higher offer. However, if they won't budge you are stuck. As you are paying them a nice amount each month, they have no reason to play nice. They might as well have a nice monthly, no arguments payment from you each month than accept a reduced settlement offer. After all they only have to wait 23 or 24 months and they will have the full amount settled. If it were me, that would be a no-brainer to stick with you making monthly payments of £106. They are only going to consider good reduced settlements where people are only paying small amounts in relation to the size of the debt. For example if you were paying £106 pm but you owed £10,000, that is going to take them 7 yrs 10 months to collect - and it may be worth them taking 50% to have the lump sum now.

I know you don't want to hear it, but the only weapons you potentially could have to achieve a decent F&F discount are to either reduce the monthly payments you are making or take the CCA route and hope for an unenforceable credit agreement.