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  • FIRST POST
    • 3011gillian
    • By 3011gillian 14th Sep 18, 1:29 PM
    • 59Posts
    • 19Thanks
    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
    • 2,308 Posts
    • 5,488 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
    • 15,762 Posts
    • 14,820 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.
    For Free Legal advice see : http://legalbeagles.info/
    • Just Di
    • By Just Di 14th Sep 18, 3:38 PM
    • 180 Posts
    • 82 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
    • 3011gillian
    • By 3011gillian 14th Sep 18, 4:09 PM
    • 59 Posts
    • 19 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
    • 476 Posts
    • 602 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 April 2013 £85k /14 Creditors
    SC DMP May 2013 - July 2017 (£74k repaid)
    SM DMP July 2017 current £9k / 4 outstanding / 3 x UE, 1 not UE
    • 3011gillian
    • By 3011gillian 22nd Sep 18, 9:51 AM
    • 59 Posts
    • 19 Thanks
    3011gillian
    • #7
    • 22nd Sep 18, 9:51 AM
    • #7
    • 22nd Sep 18, 9:51 AM
    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
    • January2015
    • By January2015 22nd Sep 18, 10:17 AM
    • 2,308 Posts
    • 5,488 Thanks
    January2015
    • #8
    • 22nd Sep 18, 10:17 AM
    • #8
    • 22nd Sep 18, 10:17 AM
    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). Theyíve basically said the full amount is all theyíd accept £2700 ish. Is it worth counter offering straight away or shall we switch to another crust or and offer to them? Thanks x
    Originally posted by 3011gillian
    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.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    • 3011gillian
    • By 3011gillian 22nd Sep 18, 10:23 AM
    • 59 Posts
    • 19 Thanks
    3011gillian
    • #9
    • 22nd Sep 18, 10:23 AM
    • #9
    • 22nd Sep 18, 10:23 AM
    Thank you yes I can see that. Our thinking was start with the highest debt and work down but I can see how £106 would be a lot to them. We’re on a dmp so everything is budgetted and we’re paying £456 a month(basically everything I earn and we’re living on hubby’s salary) we’d not easily be able to offer less each month as it’s deemed what we can afford..
    We only have a set amount to offer so offering more isn’t really feasible do you think it’s worth trying our lowest amount approx £8 monthly payment on £1700 debt?
    Last edited by 3011gillian; 22-09-2018 at 10:27 AM.
    • 3011gillian
    • By 3011gillian 22nd Sep 18, 10:25 AM
    • 59 Posts
    • 19 Thanks
    3011gillian
    We wanted to start with the highest one so the £106 could then spread between the others and clear debt faster but if we’re clear the lowest ones it only gives an extra £8 to spread between the others �� not sure wether to save more and keep trying PRA or just to start with the lowest (just seems the slowest way to clear debts!)
    • January2015
    • By January2015 22nd Sep 18, 11:06 AM
    • 2,308 Posts
    • 5,488 Thanks
    January2015
    I am confused - how are you paying £8 pm on a £1700 debt and £106 pm on a £2500 debt?

    On a DMP you are supposed to treat all creditors equally and therefore each should get a percentage of your available funds in relation to the balance owed. In this way all creditors will be paid off in the same time frame.

    If you are paying £8 pm to a £1700 debt then it will take almost 18 years to clear, whilst the one you are paying £106 pm to for a debt of £2500 will clear in less than 2 years.

    I may have made an incorrect assumption that you are in a DMP - apologies if this is the case, but it would be good to know how your payment percentages to each creditor was worked out.

    In answer to your question, you are likely to have more luck with a settlement offer on the £8 pm / £1700 debt as it is going to take the creditor a long time to recover the money.
    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 22nd Sep 18, 12:48 PM
    • 15,762 Posts
    • 14,820 Thanks
    sourcrates
    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 conscience wants to pay it back albeit with a reduced offer!
    Originally posted by 3011gillian
    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).
    Originally posted by 3011gillian

    Hi,


    A request for information under sec 77/79 CCA 1978 is not a loophole, or a letter system, and i dislike that terminology, as it paints a false picture, it is a part of your statutory rights, that you agreed to, when you signed the credit agreements for the debts which you now have.

    What you are saying does not make much sense, you want a settlement, but you deny yourself the chance of the tools to obtain one, really your conscience has no place in business negotiations, you should leave that at the door, as your creditors undoubtedly will.

    You have the right to a copy of your credit agreement, at any time, as long as a balance remains on the account.

    You asked "what would be the best course (of action) from here" well that would be it, other than that, you are at there whim unfortunately.

    Your creditors will use every piece of legislation at there disposal, and you should do the same, PRA will of paid around 10p in the pound for your debt, so your original creditor has already been paid back, they will also of benefited from tax relief on the debt, so they are happy, I would recommend you research how debt purchasing companies actually work, and how little they actually buy your debts for.


    I wish you well in your negotiations .
    Last edited by sourcrates; 22-09-2018 at 12:55 PM.
    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.
    For Free Legal advice see : http://legalbeagles.info/
    • 3011gillian
    • By 3011gillian 22nd Sep 18, 1:06 PM
    • 59 Posts
    • 19 Thanks
    3011gillian
    You’re right I don’t know how it was worked out! This is the set up below:

    PRA (originally with MbNA) owe £2800 paying £106
    Link (originally Barclaycard) owe £2800 paying £48
    Wescot (was Halifax) owe £2500 paying £32
    PRA (was mbna) owe £2300 paying £48
    Hoist (was Tesco) owe £1700 paying £8
    Capquest (was virgin money) owe £1500 paying £8
    Plus two bar lays overdraft still with them so not passed on totalling £2k

    Total owed just over £18k paying £456 a month estimated debt free Jan 2022.
    • 3011gillian
    • By 3011gillian 22nd Sep 18, 1:18 PM
    • 59 Posts
    • 19 Thanks
    3011gillian
    I guess it’s so they are all paid off at the same end point so the heighest debts got more each month which seems to de the case other than the Link/barclaycard one oddly!
    • 3011gillian
    • By 3011gillian 22nd Sep 18, 1:24 PM
    • 59 Posts
    • 19 Thanks
    3011gillian
    [QUOTE=Suseka97;.

    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.[/QUOTE]

    See this just sounds like massive stress, we have a dmp in place so they are automatically paid each month, if we don’t pay it will just complicate things with our dmp arrangement. I’d like to continue to pay our set amounts while it’s investigated is that possible???
    Last edited by 3011gillian; 22-09-2018 at 1:27 PM.
    • 3011gillian
    • By 3011gillian 22nd Sep 18, 1:39 PM
    • 59 Posts
    • 19 Thanks
    3011gillian
    Hi,


    A request for information under sec 77/79 CCA 1978 is not a loophole, or a letter system, and i dislike that terminology, as it paints a false picture, it is a part of your statutory rights, that you agreed to, when you signed the credit agreements for the debts which you now have.

    What you are saying does not make much sense, you want a settlement, but you deny yourself the chance of the tools to obtain one, really your conscience has no place in business negotiations, you should leave that at the door, as your creditors undoubtedly will.

    You have the right to a copy of your credit agreement, at any time, as long as a balance remains on the account.

    You asked "what would be the best course (of action) from here" well that would be it, other than that, you are at there whim unfortunately.

    Your creditors will use every piece of legislation at there disposal, and you should do the same, PRA will of paid around 10p in the pound for your debt, so your original creditor has already been paid back, they will also of benefited from tax relief on the debt, so they are happy, I would recommend you research how debt purchasing companies actually work, and how little they actually buy your debts for.


    I wish you well in your negotiations .
    Originally posted by sourcrates
    Thank you I understand what youíre saying. With the CCA option Iíd be worried (as above poster explained) about them stopping payments as were contacting them outside of our DMP. Iíd rather the payments carried on until itís settled is that possible? Then I could inform our debt management company that the debt has been settled and to redistribute the money we were paying to them.
    • sourcrates
    • By sourcrates 22nd Sep 18, 1:47 PM
    • 15,762 Posts
    • 14,820 Thanks
    sourcrates
    Thank you I understand what you’re saying. With the CCA option I’d be worried (as above poster explained) about them stopping payments as were contacting them outside of our DMP. I’d rather the payments carried on until it’s settled is that possible? Then I could inform our debt management company that the debt has been settled and to redistribute the money we were paying to them.
    Originally posted by 3011gillian

    Once you make a CCA request, you are not obliged to make repayments, until its been satisfied, but there is nothing stopping you continuing with your DMP payments, should you wish to, you do what you see fit.


    They must still comply with your request.


    On another point, you refer to your "debt management company" this sounds suspiciously like its a paid for service you are using, and that would also account for the erratic amounts you pay to each creditor, can you confirm who you are using to mange your payments ?
    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.
    For Free Legal advice see : http://legalbeagles.info/
    • 3011gillian
    • By 3011gillian 22nd Sep 18, 1:50 PM
    • 59 Posts
    • 19 Thanks
    3011gillian
    Just looking at the list the two barclays overdrafts are now closed accounts (but not passed to anyone else)
    £1593 paying £38
    £572 paying £75
    We were going to leave these as they’ll pay themselves off soon enough. But I guess we could use £500 and pay off the smaller one or save a bit more to pay them both off if we can) so the £75/£38 gets redistributed to the others which would bring them down a bit quicker???
    • 3011gillian
    • By 3011gillian 22nd Sep 18, 1:52 PM
    • 59 Posts
    • 19 Thanks
    3011gillian
    Once you make a CCA request, you are not obliged to make repayments, until its been satisfied, but there is nothing stopping you continuing with your DMP payments, should you wish to, you do what you see fit.


    They must still comply with your request.


    On another point, you refer to your "debt management company" this sounds suspiciously like its a paid for service you are using, and that would also account for the erratic amounts you pay to each creditor, can you confirm who you are using to mange your payments ?
    Originally posted by sourcrates
    Thank you no itís not paid for itís Stepchange.
    If we sent the CCA would they not automatically stop payments though?? Do they reply first with their findings and then leave it up to me to tell them Iím stopping or carrying on with payments?
    • sourcrates
    • By sourcrates 22nd Sep 18, 2:06 PM
    • 15,762 Posts
    • 14,820 Thanks
    sourcrates
    Thank you no itís not paid for itís Stepchange.
    If we sent the CCA would they not automatically stop payments though?? Do they reply first with their findings and then leave it up to me to tell them Iím stopping or carrying on with payments?
    Originally posted by 3011gillian

    Firstly, i`m relieved to see its stepchange your using, secondly, you mis-understand the CCA process, allow me to elaborate for you.


    You send the CCA request to each creditor, individually, this has nothing at all to do with stepchange, you do not need to tell them, and your payments can continue as normal, nothing will change, all the creditor does is put collection activity on hold, whilst its been dealt with, all that means is they wont contact you for payment during this time, as you are already paying, that is irrelevant to you anyway.


    It can take anything up to two years to find correct paperwork, depending on how old the debt is, if they can supply you with what is required, then they will do so, if they can`t, they should tell you that as well.


    If they can, all well and good, you've only lost a pound for the privilege, if they confirm they cannot supply compliant paperwork, then that gives you options.
    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.
    For Free Legal advice see : http://legalbeagles.info/
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