PRA Group: Should I repay them?

If you’ve received a letter or phone call from the PRA Group recently demanding that you repay money, you may be confused. It’s possible that you’ve never heard of PRA debt collectors before, or aren’t quite sure how debt repayment works.

In this guide, we’ll explore who PRA Group are, whether they’re a legitimate debt collection company, and what you should do if they get in contact with you about unpaid debts.

Who is the PRA Group?

PRA Group UK Limited is the UK branch of PRA Group, a US-based debt collection company that oversees an international group of debt collection agencies.

While the wider group has offices all over the world, the head office for PRA Group UK is in Bromley, South London.

According to their website, PRA Group UK strives to ‘work with customers to help them resolve their debt in a way that works with their budget’.

Are they a legitimate debt collection agency?

Yes, PRA Group is a legitimate debt recovery company. They’re authorised and regulated by the Financial Conduct Authority (FCA), which is the biggest independent regulator of financial services companies in the UK.

Given they’re regulated by the FCA, PRA Group debt collection practices need to adhere to the FCA guidelines, as well as the Consumer Credit Act 1974.

That means they aren’t allowed to harass debtors, contact you outside certain hours of the day, send bailiffs to your home without a court order, or force entry onto your property during a home visit.

PRA Group debt collection is not to be confused with the Prudential Regulatory Authority (PRA), another financial regulatory body that exists in the UK.

Where are PRA Group based?

The main PRA Group office in the UK is based in Bromley, South London.

The full address is as follows:

Level 11,

2A Southwark Bridge Rd,

London,

SE1 9HA

Why would a debt collection company like PRA Group contact me?

If PRA Group contacts you over unpaid debt, but you have no reason to believe you owe them money, the most likely explanation is that they’ve purchased your debt from another creditor.

Often debt collection companies like PRA Group are acting on behalf of other creditors who you do owe money to, whether that’s credit card companies or your mortgage lender.

They take ownership of debts like yours at a discounted rate, then attempt to recover the debt in order to turn a profit. Once they purchase a debt, they have the right to attempt to recover it using all available legal means.

Can the PRA Group take court action against me?

Yes. While a debt collection agency like PRA Group don’t have any legal powers of their own, it is possible for them to pursue you through the courts for unpaid debt.

This legal action will usually take the form of a County Court Judgement.

County Court Judgement

A County Court Judgement (CCJ) is a court order issued by the County Court in England and Wales. It’s the most common court order issued to debtors over unpaid debts.

If a debt collector like PRA Group successfully applies for a CCJ against you, the court will order you to repay the sum in question over a set period of time.

A CCJ will remain on your credit report for a period of six years after it’s issued. Failure to repay a debt after receiving a CCJ will only make your financial situation worse, and could lead to even more serious legal issues.

If you receive a CCJ you should seek professional debt advice immediately.

Can PRA Group debt collectors come to my home over unpaid debt?

If you ignore a CCJ or fail to repay in the allotted time, it is possible a PRA Group debt collector will be sent to your home in an attempt to recover the debt.

If the PRA Group sends bailiffs, they may be empowered to take away certain possessions from your home. These can then be sold at auction and the funds raised will be put towards your unpaid debts.

Remember, a bailiff or debt collector doesn’t have the right to enter your home. If a bailiff does attempt to force entry, acts inappropriately, or uses methods of intimidation, you should lodge a complaint with the Financial Ombudsman Service.

Can unsecured debt damage my credit rating?

If you fail to repay unsecured debt owed to debt collectors like PRA Group, it will have a negative impact on your credit rating.

Whether it’s a missed payment to a credit card company, or an overdue utility bill, any defaulted payment will be listed on your credit report, usually for a period of six years.

Your credit report is a matter of public record and will be looked at by lenders. Having a black mark like this on your credit file will make it more difficult for you to do things like open certain bank accounts, get a new credit card, or be accepted for a mortgage.

What if my credit agreement is more than six years old?

If your debt was not settled or PRA Group debt collectors have not been in touch for a period of six years, your debt may have become ‘statute-barred’.

When a debt becomes statute-barred it means the creditor or lender has lost the legal right to pursue you for it.

The time for a debt to become statute-barred is different depending on where in the UK you live. In Scotland, a debt can become statute-barred after five years, after which the debt will be extinguished and no longer legally exists.

In England and Wales, a debt becomes statute-barred after six years. So long as PRA Group hasn’t made contact or attempted to pursue you for payment for a period of six years, they are unlikely to recommence the debt recovery process.

Should I agree to a payment plan with PRA Group UK?

Whether you should agree to a payment plan with PRA Group depends on your financial circumstances, your overall debt level, and your ability to pay back what you owe in a reasonable amount of time.

If you can afford to repay your debt

If you have the means to repay your debts upfront, it’s the quickest way to end the debt recovery process and put the threat of debt collectors behind you.

There are various ways to repay PRA Group, including:

• Paying via the PRA Group website (here)
• Making a payment over the phone (Number: 0808 196 5550)
• Posting a cheque to their UK business address (Level 11 Riverside House, 2A Southwark Bridge Road, London, SE1 9HA)

Even if you don’t have the means to repay your debt upfront, PRA Group may be open to a longer-term payment plan (where you repay in full over time), or a settlement offer (you repay a portion of your debt and PRA agree to write off the rest – although it’s important to note the debt will remain on your credit report for six years).

If you don’t have the money to repay what you owe

If you can’t afford to repay PRA Group, there are several debt solutions available in the UK that could help you deal with your unaffordable debt.

Individual Voluntary Arrangement (IVA)

If your total unsecured debt exceeds £6k and you owe money to more than one creditor, you may qualify for an Individual Voluntary Arrangement, also known as an IVA.

An IVA combines all of your unsecured debts and transforms them into a single monthly payment that is based on what you can afford.

You make a monthly payment towards your debts for five or six years, after which your creditors (including PRA Group) will agree to write off any remaining debt.

You can find out more about IVAs here.

Debt Relief Order (DRO)

An IVA requires that you have a steady income and can afford to pay at least £90 per month towards your debts. If you can’t afford this level of contribution, you could be better off with a Debt Relief Order.

A Debt Relief Order is a debt solution designed for people in debt who have very little income. It freezes your debt for 12 months, allowing you more time to improve your financial circumstances.

If you do improve your circumstances during that time, you can make arrangements to pay towards your debts. If your situation remains unchanged after 12 months, your debts will be written off.

How can I protect myself from debt collectors and other predatory finance companies?

It’s never fun having to deal with debt collectors. Being scared to pick up the phone or answer a knock on your door can place you and your family under severe stress.

At Creditfix, we have years of experience dealing with companies in the debt collection industry. Our expert advisors can give you the help you need to deal with companies like the PRA Group, and even give you advice on debt plans that can help you write off your debts.

For free debt advice to help you protect yourself from debt collectors, give us a call today on 0800 0431 431.