Dealing with debt collection agencies can be a stressful experience, especially when you are unfamiliar with the process.
If you are in the UK and have been contacted by PRA Group debt collectors, it’s important to understand your rights and options.
PRA Group is a regulated debt collection agency that may take legal action if you fail to repay your debt.
In this article, we will provide tips and guidance on how to handle PRA Group debt collectors, including how to communicate with them, what to expect if legal action is taken, and how to protect yourself from any predatory practices.
Who is the PRA Group?
PRA Group is a debt collection company that purchases and collects debts from financial institutions, such as credit card companies, banks, and other lenders.
The company operates globally, with a presence in several countries including the United Kingdom, United States, and Spain.
In the UK, PRA Group debt collection purchases unpaid debt accounts and then works to recover the outstanding balances from the individuals who owe the debts.
PRA Group insists that they don’t add interest to any outstanding debts they’re attempting to collect, and offer assurances that they do their best to assist debtors in arranging manageable repayment schedules.
Are they a regulated debt collection agency?
Yes, like most major organisations in the UK debt collection industry, PRA Group is regulated by various UK laws and industry bodies.
Consumer Credit Act
As a regulated debt collection agency in the UK, PRA Group is required to adhere to the Consumer Credit Act.
The Consumer Credit Act is a set of laws and regulations that govern the behaviour of companies that lend money or offer credit to consumers, as well as those involved in debt collection.
These regulations require debt collection agencies to treat debtors fairly, provide accurate information about the debt, and follow specific procedures when attempting to recover the debt.
Financial Ombudsman Service
Given that PRA Group are expected to adhere to the Consumer Credit Act, anyone with a complaint about PRA Group’s debt collection practices can take their case to the Financial Ombudsman Service (FOS) for an independent review.
The FOS has the authority to investigate and make decisions on disputes between consumers and regulated financial firms like PRA Group.
Where is the PRA Group based?
As a UK-wide debt collection company, the PRA Group has several offices around the UK, however its main UK office is in London.
According to their website, the address for the UK head office of the PRA Group is as follows:
PRA Group UK Limited
Level 11 Riverside House,
2A Southwark Bridge Road,
London,
SE1 9HA
Why would a debt collection company like PRA Group contact me?
PRA Group may contact you if you have an outstanding debt with a credit card company, bank, or other lender, and that debt has become non-performing.
Nonperforming loans are debts that have gone into default, meaning that the borrower has failed to make payments as agreed.
When this happens, the lender may choose to sell the debt to a debt collection company like PRA Group, which then takes over the responsibility of collecting the outstanding balance from the borrower.
PRA Group may contact you to inform you that they now own the debt and are responsible for collecting it.
Do you have debt with PRA Group debt collectors?
How much debt do you have?
Can the PRA Group take court action against me?
Yes, PRA Group can take legal action against you if you fail to repay your debt.
County Court Judgement (CCJ)
If you have not made any effort to pay off the debt or have not responded to their attempts to contact you, PRA Group may choose to take the matter to court.
They can apply for a County Court Judgement (CCJ) against you, which is a court order requiring you to repay the debt within a certain timeframe.
Further legal action
If you do not comply with the CCJ, PRA Group may take further legal action against you, such as sending bailiffs to your home to seize your assets in order to raise funds. PRA Group could also request legal powers to have your employer deduct repayments from your wages.
It’s important to note that legal action should always be considered a last resort, and you should make every effort to communicate with PRA Group and work out a repayment plan before the situation escalates to this level.
Can a PRA Group debt collector come to my home over unpaid debt?
PRA Group debt collectors can come to your home to discuss your unpaid debt, but they do not have the same legal powers as bailiffs. This means that they cannot force their way into your home or take your possessions as payment for the debt.
If a PRA Group debt collector comes to your home, you are not obligated to let them in, and you can ask them to leave if you feel uncomfortable.
It’s important to remember that debt collectors are not allowed to use threatening or intimidating behaviour, and they must follow certain guidelines when contacting you about your debt.
Can unsecured debt damage my credit rating?
Yes, unsecured debt can damage your credit rating if you fail to make payments on time or default on the credit agreement.
Credit agreements for unsecured debt, such as credit cards or personal loans, are typically reported to credit reference agencies, and these agencies compile a credit file that tracks your credit history.
If you miss a payment or default on the credit agreement, this information will be recorded on your credit file and can negatively impact your credit rating. The negative impact can last for up to six years, making it difficult for you to obtain credit in the future.
It’s important to keep up with your debt payments to avoid damaging your credit rating and to seek help from a debt advice organisation if you are struggling to manage your debt.
How to deal with debt to PRA Group
If you owe money to PRA Group, there are several ways to deal with the debt:
Ask for proof of that you owe money
Before making any payments, ask PRA Group to provide you with proof that you owe the money. You have a legal right to receive this information, and any official debt letter should include details of the original creditor and the outstanding balance.
Repay PRA Group upfront
If you have the means to do so, you may choose to repay the debt in full upfront. This can help you avoid any additional interest charges or fees that may be added if you choose to pay the debt off over time.
Arrange a gradual payment plan
If you are unable to repay the debt in full upfront, you can work with PRA Group to arrange a gradual debt repayment plan.
This involves making regular payments over a period of time until the debt is paid off. Be sure to only agree to a payment plan that you can realistically afford, and keep in mind that interest charges and fees may still be added.
What if I can’t afford to repay the debt owed?
If you cannot afford to repay the debt owed to PRA Group, there are still options available to you:
Seek free debt advice
There are several free debt advice organisations available in the UK, such as StepChange Debt Charity and National Debtline.
These organisations can provide you with guidance on your rights and options, as well as help you negotiate with PRA Group to find a solution that works for you.
Consider a Debt Management Plan (DMP)
A Debt Management Plan involves making affordable payments to your creditors over a period of time, and can be set up by a debt advice organisation. This can help you repay your debt to PRA Group without putting too much strain on your finances.
Consider formal debt solutions
If you are unable to repay your debt even with a debt management plan, you may need to consider a formal debt solution such as a Scottish Trust Deed or a Debt Relief Order (DRO).
A Trust Deed is the most popular debt solution in Scotland and involves making reduced payments to your creditors over a period of time – usually four years – after which any remaining unsecured debts will be cleared.
Each formal debt solution has its own particular eligibility criteria and potential drawbacks, so it’s important to seek guidance from a debt advice organisation before pursuing these options.
How can I protect myself from predatory finance companies?
Managing debt and dealing with debt collectors can be overwhelming, which is why seeking expert guidance is essential.
Carrington Dean is a debt advice company that provides customised debt solutions. Our experienced advisors can help you determine the best course of action for your individual needs and offer the support you need to get back on track.
You don’t have to face the challenges of dealing with debt collectors alone. By contacting Carrington Dean, you’ll get reliable advice and access to repayment plans that allow you to overcome your debt on your terms.
