Everything you need to know about the PRA Group
Getting a letter from a debt collector can be quite overwhelming. You have to confirm who instructed them, what your rights are, and work out how to manage your debt before the situation escalates. The PRA Group is one of the many debt collectors, across the UK, that you may hear from if you owe money to banks and other credit card providers.
At NDH Financial, we work with our clients to help them deal with debt collectors and resolve their debts, consolidating them into one monthly available payment through an Individual Voluntary Arrangement. To find out more about how we do this, contact a member of our team today.
Who are the PRA Group?
Based in Kent, UK, PRA Group is a debt solution specialist company that purchases debts from high street banks and creditors across the country. They state that they do not add interest to their payments and work with their customers to repay their outstanding balance.
PRA Group UK first came into existence in 1996 under the name Recovery Associates. They can also be found on the Nasdaq stock market under the name PRAAA.
What types of debt do PRA Group recover?
The PRA Group purchases debts from a range of lenders.
- Payday loan companies
- Instant cash loan companies
- Barclaycard bank
- Lloyds bank
- TSB bank
Can the PRA Group send me to jail?
In most cases, debt collectors such as the PRA Group do not hold the power to be able to send you to jail. If you did end up in jail as a result of your debt, it would be due to refusing to pay the below debts and would be out of the PRA Group power.
- Criminal fine debt
- Council tax debt
- Unpaid child maintenance debt
- Unpaid tax - debt owed to HMRC debt
Get in touch today
NDH Financial can help free you from the shackles of your debt.
Call us on 0800 002 9051 or apply below.
Can the PRA Group enter your home?
Yes. There are many ways in which debt collectors can collect their money. One way is to pay a visit to your home. However, you are able to refuse them entry and unlike bailiffs who are appointed by the courts, the PRA Group does not have to provide a warning for visiting your home.
They do, however, have rules and regulations they have to uphold when making their visit:
A debt collector is able to speak to you directly about your debt and discuss a repayment plan with you. They are not able to speak to others about your case. This includes family, friends, neighbours and colleagues. While they can visit you at home, they are not able to approach you in the workplace.
What should you do if the PRA Group visits you at home?
The first thing to do is make sure the debt collector is who they say they are. All debt collectors will carry some form of ID, so it is important to check and confirm their identity before letting them in your home.
Once you have determined who they are, it is up to you if you want to let them into your home. It is within your rights to refuse them entry and discuss the matter at the door. If you feel uncomfortable, you have the right to tell them you will discuss the debt over the phone or email.
If you choose to speak to them, make it explicitly clear what you can and cannot afford. If you have evidence to prove this, such as a budget plan, show this to them during their visit.
We might be able to help
Worried about the PRA group entering your home? Contact one of our debt consultants today.
Can debt with PRA Group be written off?
In the UK, it is not possible to have your debt written off per se. Saying this, there is a statute of limitations in place.
The statute of limitations for debt repayment is 6 years. If the debt has not been acknowledged or repaid within this period, lenders, such as the PRA Group, cannot pursue you for payment.
Importantly, this statute of limitations is only if you have not made any payments towards the debt.
For example, if they contact you before the six years have gone by and you have paid even a penny towards the debt, they are entitled to chase you for the remaining debt and your debt will not be statute-barred.
The only guaranteed way to get your debt written off is by entering into a legally binding debt solution scheme, such as an Individual Voluntary Arrangement, bankruptcy or Debt Relief Order.
What is an Individual Voluntary Arrangement?
An Individual Voluntary Arrangement or IVA enables you to put all your debts into one monthly affordable payment. The duration of the IVA depends on your circumstances; however, it is usually five years. If, after the end of the five years, you still have outstanding payments, the debt will be written off and lenders like PRA Group are unable to contact you requesting payments.
Some debts cannot be included in an IVA, such as child maintenance arrears, court fines, or secured debts, and you would still be required to make payments towards these.
Get in touch - we may be able to help
If you are interested in applying for an IVA or have been approached by the PRA Group after you have taken out an IVA, our debt consultants are able to provide you with the information you need.
What happens if PRA Group wants to take you to court?
Debt collectors like the PRA Group cannot just take you to court. They must first justify their reason for doing so.
Before initiating court action, the PRA Group will have to give you sufficient warning and allow you an adequate length of time to make your repayments.
They will first issue a letter, known as a default notice, which will alert you that the debt collector has been instructed to deal with your account and seek payment from you.
Once the debt collectors are ready to take you to court, they will issue you with a claim form. This form is to notify you that court action will be taking place. The letter should include:
- The amount of debt you owe
- Information about the missed payments
- Information about the agreed payment plan (if one was made)
If the PRA Group takes you to court and no agreement is made or you fail to attend court, they will issue a County Court Judgement. This is a court-mandated order outlining a payment plan - whereby you repay your debt in full or in instalments.
You have 14 days in which to respond before further action is taken.
If you are unable to make the court-mandated payments, you can request the payment plan be reviewed. In order to do this, you will have to give information regarding your financial circumstances.
You can also dispute it if there is a mistake with the amount they claim you owe.
Can NDH help?
However, before it comes to this, if you have received either a default notice or a claims form and would like some assistance, contact a member of our team today. Alternatively, find out more about how Individual Voluntary Arrangements can help you come debt-free* today.
What to do if you receive a default notice?
If you have received a default notice, it is important to address it as soon as possible.
You can contact your creditor to discuss your situation. Be frank and honest about your situation during this discussion and see if they can work with you to come up with a repayment plan you can afford.
Contact us today
If you are truly struggling to make ends meet and require more than guidance and support, contact us today. Our debt consultants have experience dealing with a range of financial situations, including handling debt collectors.
Get in touch with NDH Financial today for a free consultation about your debts.
Call us on 0800 002 9051 or apply below.
How do you make a complaint about the PRA Group?
If you feel you have been threatened or harassed by the PRA Group, it is within your rights to make a formal complaint. When making a complaint, it is important to provide as much information as possible. This includes your reference number which can be found on your correspondence with the PRA Group, so they can find your file as well as any evidence you may have of misconduct.
You can make a complaint via the following methods:
Using the form on their website
Contact them by phone or post
Make sure you have a copy of the complaint, including the date you sent the complaint. As the PRA Group is regulated by the Financial Conduct Authority, this means if you do not hear back from them or you are unhappy with how they have dealt with your complaint, you can report them to the Financial Ombudsman Service. You can find contact details for the Financial Ombudsman here.
What will the Financial Ombudsman Service do with your complaint?
Start the process
If you have filed a complaint to the Financial Ombudsman Service, they are duty-bound to begin an investigation. This includes gathering evidence so they have proof that the PRA Group acted outside of the Consumer Credit Act.
During the process, the Financial Ombudsman Service may contact you to ask you questions in regard to the investigation. The time of the investigation will vary depending on the severity of the complaint, but you should hear back from them within ten working days. You will also be assigned a case handler who will be your point of contact during the process.
The outcome of your complaint
Once the Financial Ombudsman Service has made their decision, they will confirm with you how your case will proceed. If the ombudsman votes in your favour, they will contact the PRA Group and get them to rectify the situation. This may include compensation, which can go towards your debt repayments.
Is the PRA Group able to take your vehicle?
Unlike bailiffs, it is very hard for the PRA Group to be able to seize your assets on unsecured debts where there is no collateral which includes your vehicle.
The PRA Group can only seize your car in the following circumstances:
- The debt specifically relates to the car you have purchased - for example, you have defaulted on your car loan repayments
- There is a County Court Judgement out against you
What happens if I am dealing with a personal situation?
Everyone has their own unique situation. From having to deal with mental health issues to grieving the loss of a loved one. You may find dealing with the PRA Group or creditors a traumatic experience.
These situations can implicate your capabilities to deal with your debts. In this situation. The best thing you can do is contact the PRA Group directly. (You can do this via email if making the call is too intimidating). They should take this into consideration and provide you with additional support.
Can an Individual Voluntary Arrangement help me deal with the PRA Group?
If you are unable to make the payments as requested by the PRA Group, an Individual Voluntary Arrangement (IVA) may help you deal with them.
Firstly, an IVA will enable you to consolidate all your debts into one monthly affordable payment. Not only will this help you deal with one debt but all of your debts. That one payment will then be distributed by your insolvency practitioner to all your creditors on your behalf. This means won’t have to deal with the PRA Group directly.
Get in touch with NDH
If you are interested in applying for an Individual Voluntary Arrangement, book a no obligation consultation with one of our debt consultants today.
How NDH Financial can help you with your debts
If you are worried about having to deal with the PRA Group or other debt collection agencies, our debt consultants can talk you through your debt repayment options.
We specialise in Individual Voluntary Arrangements and, depending on your circumstance, will be able to determine the best way in which to tackle your debts.
*Once the IVA is completed, all outstanding debts that are included are written off. There are some unsecured debts that will be excluded, such as court fines, child maintenance arrears and Student Loans, and you will need to make separate payments to these. As the IVA will only cover unsecured debts, you will need to continue making payments to secured creditors both during and after the IVA.
Do You Have Any More Questions?
Our IVA Learning Hub Can Help
We know you might have questions and that’s fine.
We can answer most of those on our call.
But we’ve also built our learning hub so that you can learn more about an IVA and see if one is right for you.
Click below to check it out.