If you’ve been contacted by a debt collection company by the name of PRA Group, it’s important to know what that means for you and what you should do next.
Receiving a debt collection letter can be a stressful experience, especially if you didn’t know your debt had been sold to another company. However, in most cases, the only thing that will change is who you should make payment to.
This guide will explain everything you need to know about dealing with PRA Group, including who they are, where they are based, and how to protect yourself against mistreatment.
Who is PRA Group?
PRA Group is one of the largest buyers of ‘non-performing loans’ in the UK. Incorporated in 2001, they purchase outstanding debts from a wide range of reputable companies at a discounted rate and retain full payment.
Some of the organisations they buy debts from include credit card companies, financial institutions, banks, payday loan providers and other creditors.
As ‘debt solution specialists’, they work with customers to help them resolve their unsecured debts in a way that works for them and, more importantly, in a way that fits around their budget. To do this, they strive to stick to an ethical code of conduct.
The firm operates globally with offices in the UK as well as the US, Spain, Sweden, Finland, and Luxembourg.
Is PRA Group a legitimate debt collection agency?
Yes, PRA Group is a legitimate debt collection agency. They are authorised and regulated by the Financial Conduct Authority (FCA), which is the biggest independent regulator of financial service companies in the UK.
This means that they must adhere to strict guidelines outlined by the FCA as well as the Consumer Credit Act (1974). The Consumer Credit Act provides a series of protections for consumers in credit agreements, regulates how businesses lend to consumers, and outlines consumer rights when borrowing.
Because they must adhere to the Consumer Credit Act, anyone who wishes to complain about PRA Group can escalate their case to the Financial Ombudsman Service (FOS). They have the authority to conduct an independent review into the complaint and inform you of the outcome of their investigation.
Where is PRA Group based?
PRA Group is based in Kilmarnock, Scotland. We’ve provided their full contact details below:
Address:
PRA Group (UK) Limited
Halo Enterprise & Innovation Centre
Hill Street
Kilmarnock
KA3 1HA
Website:
Call:
Email:
Why has a company like PRA Group contacted me?
If PRA Group has contacted you over an unpaid debt but you have no recollection of ever owing them money, the most likely scenario is that they have recently purchased your debt from your original creditor.
In most cases, a creditor will sell a non-performing debt to a debt collector or debt purchaser because it’s gone unpaid for some time and they don’t have enough time or resources to continue chasing payment.
Once a debt has been sold to a collection agency, they will contact you to let you know that they are the new owner of the debt. This means that you should communicate with them and make any payments to them going forward, not your original creditor.
It’s important to note that once a debt collection company purchases a debt, they are free to apply interest and late fees as they see fit. This means you could end up owing much more than you would have if you had repaid your original creditor.
How should I respond to PRA Group?
How you should respond to contact from PRA Group depends on whether or not you agree to owing the debt you’re being ask to pay.
If you owe the debt
Even if you’re confident you owe the debt, it’s always worth verifying who your original creditor is and the total amount you owe. This can reassure you that you’re taking the correct action to deal with your debt and you’re not paying more (or less) than you should.
Once you’ve confirmed the debt, you can pay your outstanding debt in full by agreeing on a settlement offer, making a lump sum payment, or negotiating a payment plan where you make regular instalments towards what you owe. Most debt collectors are happy to accept flexible repayment plans if you can’t afford a one-time payment.
If you owe the debt but the amount is wrong
If you agree to owing the debt but you believe the amount you’re being asked to pay is incorrect, you should contact PRA Group to request evidence of the debt (e.g. the original credit agreement and statement of account) as soon as possible.
PRA Group will investigate the discrepancy and work with you to resolve the problem. If you’re unsatisfied with the outcome of the dispute, you can file a formal complaint with the Financial Ombudsman Service (FOS).
If you dispute the debt
If you don’t think you owe a debt or it’s already been paid, you have a right to formally dispute it with the debt collection company. PRA Group must then investigate your claim before proceeding with collection efforts.
Remember to keep copies of all communication when you dispute a debt with a debt collector in case you need to refer back to it at a later date.
Can PRA Group take legal action against me?
Yes, while a debt collection agency doesn’t have any legal powers of their own, they can still pursue you through the courts for an unpaid debt. This will ultimately lead to them serving you with a County Court Judgment (CCJ).
A CCJ is a court order issued by the County Court in England and Wales. If a debt collector successfully applies for a CCJ against you, the court will write to you to instruct you to settle your debt in full (CCJ forthwith) or in monthly payments (CCJ by instalments).
This will place a black mark on your credit report for six years from the date it is issued, which will have a negative impact on your credit rating. The only way to get a CCJ removed before this date is to repay your balance in full within 30 days.
If you receive a CCJ, you should seek professional debt advice immediately.
Can debt collection companies like PRA Group visit my home to collect an unpaid debt?
PRA Group can visit your home over an unpaid debt, but it’s important to note that they don’t have the same legal powers as bailiffs (enforcement agents). This means that they can’t force their way into your home or seize your belongings to repay a debt.
Some debt collectors use threatening language or intimidation tactics to pressure you into paying a debt you can’t afford, but it’s important to be aware of your legal protections and rights during the debt recovery process.
For example, they must clearly state who they are and who they are representing when they visit you. They can also only visit between certain hours and must leave when asked.
However, while you may be able to keep PRA Group debt collectors away from your property for a short while, the only way to stop further action altogether is to settle your debt or negotiate a repayment plan to settle it in regular instalments.
Debt Solution Finder
What should I do if I can’t afford to repay PRA Group?
If you want to settle your debt with PRA Group but you’re in serious financial hardship and can’t afford to do so, it’s important not to panic.
There are several debt solutions available in the UK that could help you deal with your debt in a way that’s more manageable for you, including:
Individual Voluntary Arrangement (IVA)
If you owe one or more creditors, have at least £6,000 worth of debt, and live in England, Wales, or Northern Ireland, you might qualify for an IVA.
During an IVA, you’ll make monthly payments based on what you can afford for five or six years and your creditors won’t be able to contact you. Once you’ve made your final payment, any remaining debt not repaid through the IVA will be written off.
To get your creditors to agree to an IVA, you’ll need to suggest a reasonable offer of payment (around £100 a month).
Debt Relief Order (DRO)
If you have debts of £50,000 or less that you’re unable to pay and you live in England, Wales, or Northern Ireland, a DRO might be suitable for you.
During a DRO, you don’t have to make any payments towards your unaffordable debt and your creditors will be instructed to stop contacting you. If your financial situation hasn’t improved by the time your DRO period concludes (usually after 12 months), all remaining debts will be written off.
A DRO can give you a fresh start from which to start rebuilding your finances.
How can I protect myself against debt collectors like PRA Group?
Dealing with debt collectors can be stressful, but being too scared to deal with it to the point where you’re ignoring all letters or phone calls about the debt can make your financial situation worse and will only put you at further risk of serious legal issues.
At UK Debt Expert, we can discuss your options with you if you’ve been contacted by a debt collection agency. When you reach out to us, a debt advisor will review your financial circumstances and explore your repayment options, including any debt plan you might be eligible for, such as an Individual Voluntary Arrangement (IVA) or a Debt Payment Programme (DPP).
We know how difficult it can be to live with unaffordable debt, but you don’t have to face it alone. Whether you want more information about your rights as a debtor during the repayment process or are still curious about how debt repayment works, there’s always help available. The sooner you reach out for expert debt help, the sooner you can work towards a healthier financial future.