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    • 3011gillian
    • By 3011gillian 14th Sep 18, 1:29 PM
    • 36Posts
    • 16Thanks
    3011gillian
    Final settlement PRA
    • #1
    • 14th Sep 18, 1:29 PM
    Final settlement PRA 14th Sep 18 at 1:29 PM
    Hi, Iíve just sent my letter off to PRA with an offer of a final settlement to be paid in dec when we are gifted £1000 from a relative to help towards our debt.
    The total debt with them would be £2500 at that stage so itís a good chunk (currently paying £106 a month to them from a total of £456 a month in total to all creditors). Are they likely to ask for more info? Likely to accept? As itís 40%ish is it more likely theyíll accept? Itís our biggest debt and would mean the £106 could be spread between the others.
    Just feeling hesitant 😬 any advice/support/experience? Thanks
Page 1
    • January2015
    • By January2015 14th Sep 18, 1:41 PM
    • 2,194 Posts
    • 5,349 Thanks
    January2015
    • #2
    • 14th Sep 18, 1:41 PM
    • #2
    • 14th Sep 18, 1:41 PM
    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.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    • sourcrates
    • By sourcrates 14th Sep 18, 2:12 PM
    • 15,242 Posts
    • 14,340 Thanks
    sourcrates
    • #3
    • 14th Sep 18, 2:12 PM
    • #3
    • 14th Sep 18, 2:12 PM
    Hi, I’ve just sent my letter off to PRA with an offer of a final settlement to be paid in dec when we are gifted £1000 from a relative to help towards our debt.
    The total debt with them would be £2500 at that stage so it’s a good chunk (currently paying £106 a month to them from a total of £456 a month in total to all creditors). 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? Thanks
    Originally posted by 3011gillian
    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.
    Originally posted by January2015

    Good advice above, always CCA the debt purchaser first before making or accepting settlement offers, if they don`t or cant`t provide necessary paperwork, they will most likely accept a lot less to clear the debt, or, you could quite legally just walk away.


    Link to CCA letter here :


    https://www.nationaldebtline.org/EW/sampleletters/Pages/Information-about-your-agreement-under-the-Consumer-Credit-Act-%28sole-name%29.aspx
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
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    • Just Di
    • By Just Di 14th Sep 18, 3:38 PM
    • 54 Posts
    • 20 Thanks
    Just Di
    • #4
    • 14th Sep 18, 3:38 PM
    • #4
    • 14th Sep 18, 3:38 PM
    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?
    Originally posted by 3011gillian

    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
    Last edited by Just Di; 14-09-2018 at 4:12 PM. Reason: typo
    I am a Litigation Executive at Joanna Connolly Solicitors a firm which specialises in consumer credit. Any posts I make are for information and discussion purposes only and shouldn't be seen as legal advice. Any advice I provide on the forum is without liability. If you're unsure please seek formal legal guidance
    • 3011gillian
    • By 3011gillian 14th Sep 18, 4:09 PM
    • 36 Posts
    • 16 Thanks
    3011gillian
    • #5
    • 14th Sep 18, 4:09 PM
    • #5
    • 14th Sep 18, 4:09 PM
    Thanks all, I know there are various loopholes and letter systems we can go through but tbh we borrowed the money (mostly interest free too) so My concience wants to pay it back albeit with a reduced offer! The stress of debts has weighed us down for too long and fingers crossed we’re in a position to hopefully pay it off within the year. We’re currently paying £456 a month via a debt management plan so making our way through it £15k paid already £18k to go ��
    • Suseka97
    • By Suseka97 15th Sep 18, 7:49 AM
    • 407 Posts
    • 527 Thanks
    Suseka97
    • #6
    • 15th Sep 18, 7:49 AM
    • #6
    • 15th Sep 18, 7:49 AM
    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.
    LBM Apr13: 14 Creditors / £85k+ owed / £11k outstanding (3 x UE / 3 x outstanding)
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