If you’re receiving letters from a company called PRA Group (UK), the first thing to know is: you’re not alone and you have lots of options to deal with them.
The most likely reason you’re receiving letters from PRA Group is because you owed money to another company, and PRA has bought the debt off them. This means you now owe your debt to PRA Group. Companies like PRA Group buy debts from a lender at much less than their original worth. They then pursue the debtor for the full amount, in the hopes that they’ll make a profit.
PRA Group will use a variety of methods to encourage you to repay as much of your debt as possible. These include sending computer generated letters asking you to arrange a payment, and then writing to you and threatening to visit your home. Don’t worry – we’ve included a comprehensive list of things that PRA Group are not allowed to do (including harassment and intimidation), so that you know your rights.
The feeling of being weighed down by debt and chased by debt collectors can be devastating. The good news is, there are lots of ways for you to manage your debt, and deal with PRA Group debt collectors for good.
How do I deal with PRA Group debt collectors?
You can deal with PRA Group debt collectors by getting your debt partly or wholly written off through an Individual Voluntary Arrangement (IVA) a Debt Relief Order (DRO), or by agreeing to a debt repayment plan that works with your finances.
You can get support with your debt through a debt management company or charity, who will communicate with your creditors for you.
Lets look at the options for dealing with PRA Group debt collectors in detail, so that you can work out which is best for you.
Check if you actually owe the money
The first thing to do when you’re contacted by PRA Group (UK) or any other debt collection company, is to establish:
- Whether you actually owe the money
- Where the debt has come from, and the original amount that was owed
Check whether you recognise the debt itself, as PRA Group could be chasing a former tenant or roommate for the debt, and not you. Sometimes, PRA will take the unethical approach of sending out letters to several people with the same name, hoping that somebody will fall for it and pay the debt. This is obviously a forbidden tactic that you should report straight away to the Financial Conduct Authority (FCA).
You should also establish the original amount that you owed, as PRA Group Debt Collection may have included a number of charges, as well as adding interest. You should write to PRA Group and ask them to send you a copy of your original credit contract. If they can’t give you this information, you have no obligation to make any payments to them. It is unlawful for any debt collection service to demand more than 8% interest on a debt that is owed.
Your options for help
So, you’ve checked, the debt is yours and you can’t afford to pay it off. This can feel really stressful, but don’t despair – you have a wide range of options to deal with debt in a way that protects the wellbeing of yourself and your family. Let’s dive right in.
Individual Voluntary Arrangement (IVA)
An IVA is a formal agreement between you and the people you owe money to (in this case, PRA Group). An IVA allows you to pay back a small percentage of what you owe, in affordable instalments. Your debt should never take away from your fundamental household needs (food, warmth and electricity), so the amounts will always be based on what you can afford. After the fixed-term of your IVA is over, your remaining debt is written off.
IVA Advice offer free, qualified advice on securing an IVA solution, and solving you debt problems for good. With IVA Advice, you can check for free whether you are eligible for an IVA, and stop all contact from debt collectors straight away.
You are likely to qualify for an IVA if your total debt is £5,000 or more. You’ll get help dealing with your creditors and stopping creditor contact. Getting an IVA will stop debt collectors like PRA Group from using legal action to recover money from you, allowing you to protect your home, vehicle and employment, and get on the path to a debt-free life.
Debt Relief Order (DRO)
If you owe less than £20,000 in total and you have very little spare cash delivery and assets, you could get a Debt Relief Order. This is a personal insolvency process which gives you legal protection from PRA Group and any other creditors, and writes off your debt after one year.
Debt Management Plans
Debt Management Plans can be really useful ways of dealing with PRA Group debt collectors. They prove that you have taken action on your debt (ignoring your debts could mean that creditors like PRA Group would take you to court in an attempt to recover any money). A Debt Management Plan will arrange for you to make reduced payments to PRA Group and ask them to stop adding interest to your accounts, on the basis that you are having financial difficulties and need support.
If you arrange a Debt Management Plan with a debt management company, you’ll get a debt adviser who will look at your essential expenses, and calculate what you can actually afford to repay to PRA Group. The great thing about a Debt Management Plan is that your advisor will deal with PRA Group on your behalf, taking the stress and anxiety off your shoulders. PRA Group will stop contacting you with demanding letters, as you’ve arranged a solid and manageable repayment plan. Charities like Christians Against Poverty will help you arrange a repayment plan and deal with your creditors on your behalf, setting you on the path to freedom.
Declaring Bankruptcy
In cases of extreme debt to PRA Group or anywhere else, you may wish to declare bankruptcy. This isn’t a decision to be taken lightly, and you should always consult a free debt adviser about bankruptcy first. If your petition for bankruptcy is accepted, your debts will be written off.
However, there is an application fee of £680 to declare bankruptcy. While this fee can be paid in instalments, you cannot declare yourself bankrupt until the fee has been paid in full, which means that bankruptcy is often not an option for many people, as they can’t afford the fee.
When you are made bankrupt, your assets will be taken from you, except for household necessities and tools you need for work. If you own your own home, you could lose it. Bankruptcy is a very dramatic option for resolving debt, and it’s important to consider all options for dealing with debt and debt collectors, to discover which works best for your situation.
If they haven’t received any communication from you or your debt manager, PRA Group could possibly try and make you bankrupt. However, they are much more likely to pursue other methods to encourage you to pay your debt. The methods above, for example, arranging a debt management plan or securing an IVA will ensure that PRA Group don’t try to make you bankrupt.
Who can you turn to?
We understand that dealing with PRA Group debt collectors is a very stressful and isolating experience. Your instinct may be to feel hopeless, or ignore them in the hopes that they will stop contact. However, the most important thing you can do is to take action with options such as an IVA or Debt Management Plan, because you will feel so much calmer and in control. There are a number of debt advice charities which offer free advice and support around dealing with debt collectors like PRA Group.
Christians Against Poverty (CAP)
CAP works with churches across the UK and offers free help, advice and debt management support. If you’re in debt to debt collectors like PRA Group, CAP will take all communications off your hands, and help you work out a budget so that you can pay off your debt while also meeting your necessary expenses. Anyone of any faith or no faith at all can get in contact with a CAP worker and receive support.
StepChange
Step Change UK is a debt charity that is funded through the government, UK banks and other donations. They offer a truly comprehensive, three-step process to evaluate your financial situation and will help you set up a debt solution with PRA Group and any of your other creditors.
Business Debt Line
If you’re self-employed and in debt to PRA Group, it might feel almost impossible to work out a repayment plan when your income may be inconsistent. Business Debt Line offers free debt advice to help you work out a budget where you can start to pay some of your debt off, while also meeting your reasonable expenses.
Your rights against PRA Group debt collectors
All debt collection agencies, including PRA Group, have to abide by regulations set by the Office for Fair Trading (OFT). In the past, debt collection agencies have used unfair, coercive and illegal means of pressuring debtors into paying money. It is important that you know what PRA Group are not allowed to do, and the laws that exist to protect you. If PRA Group goes against any of these regulations in their contact with you, report them straight away to the Financial Conduct Authority (FCA)
PRA Group are not allowed to:
- Call you at work
Calling you at your place of employment, or letting anyone at your workplace know that you have a debt, is strictly against OFT laws. The debt collectors who use this tactic want to embarrass you into paying up, and you should report them immediately.
- Contact you on any social media platform
If PRA Group debt collectors contact you via any of your social media accounts (Facebook, Twitter, Instagram etc.), keep a copy of the communication and report them.
- Contact you outside of 8am-9pm on working days, or at all on weekends and holidays
PRA Group debt collectors can only contact you within these specific hours. If any of them contact you outside of these hours, mark it down and report them.
- Reveal the details of your debt to family members or friends
Similarly to calling you at your place of employment, debt collectors may try and put psychological pressure on you to pay them by revealing details of your debts to your family or friends. This is illegal and any debt collector who does this is in breach of both the laws established by the OFT, and privacy laws too. You should report them immediately.
- Add additional costs onto the debt that were not specified on the debt repayment contract.
Under UK debt collection regulations, the maximum interest that a debt collection agency can add to an account is 8%. If PRA Group try to add more, refuse to pay it – you know your rights.
- Give false allegations or misleading information of any kind, for example, pretending that they have legal powers which they do not possess.
In the past, debt collection agencies have created documents which look like official court documents, or have lied to debtors and told them that the debt has already been through court, and that they are sending bailiffs to seize the person’s property. In fact, only the court themselves can send bailiffs, not a debt collection agency, so any debt collector who threatens this is breaking the law.
- Operate in a way that is considered threatening or abusive
If you feel physically or psychologically threatened or harassed by a debt collector of bailiff, you have the right to call the police. Any of the behaviours above come under the description of harassment by creditors, according to Citizens Advice Bureau.
Busting your fears
There are a lot of myths around PRA Group debt collectors that can keep us up at night. Here are a few common fears that are untrue, and why.
“PRA Group can send me to prison”
This is not true. It isn’t a criminal offence if you can’t afford your debt repayments. You can only go to prison for refusing to pay council tax in England or criminal fines, and this is only as a last resort. If any PRA Group debt collector threatens you with criminal proceedings or imprisonment, report them.
“PRA Group can send bailiffs to my home”
No creditors, including PRA Group, are allowed to send bailiffs to your home. Only the courts have the authority to instruct bailiffs to visit you to collect debts. As long as you haven’t defaulted on a County Court Judgement (CCJ), bailiffs have no power to enter your home or take any of your possessions. If you haven’t responded to PRA Group debt collectors, either yourself or through a debt management organisation, PRA Group might apply for a CCJ against you. This is why it is important to organise the repayment and / or writing off of your debts through either an IVA, DRO or debt repayment plan.
Nobody deserves to live in unhappiness, dread or depression because of debt. While dealing with PRA Group debt collectors can feel really debilitating, we hope this article has empowered you with the knowledge to start freeing yourself from debt, and also to protect yourself against any unscrupulous behaviour from debt collectors. Debt has a way of making us feel ashamed, but you are absolutely not alone. The average personal debt in the UK is almost £32,000 per adult.
Nothing is more important than your mental health. If you’re feeling depressed, anxious or suicidal about debt, you can call the call the following helplines:
- Samaritans (116 123)
- NHS (111 in England and Wales)
- NHS 24 (111 in Scotland)
- Lifeline (0808 808 8000 in Northern Ireland)
