PRA Group 23k debt IS enforceable, what to do next?

[Archetype]

I recently checked the enforceability of a 23k unsecured loan I took back in 2013 from Lloyds and unfortunately PRA Group replied very quickly (within a week of them acknowledging receipt of my request) with the credit agreement.

I had been paying them for £1 a month for 4 years or so and recently decided to stop paying. I am tired of them and I don't want to be held captive to an unsecured loan forever.


This defaulted debt is off my credit file but I worry of a possible CCJ. Should I keep paying them £1 or just ignore them? From my experience what I have noticed is that CCJ's are usually more likely for smaller debts that are more likely affordable to eventually be paid back than big ones however my worry is another tarnished credit score.

[atticus]

Do you own property, not least where you live?

[Archetype]

Do you own property, not least where you live?

No, I do not (currently).

[atticus]

Thanks.

You would be unwise to assume this will go away. I was thinking maybe this bank would seek a charging order over property to secure payment on an eventual sale or your death.

If you stop paying they may treat it as a 'put up or shut up' challenge. The limitation period for bringing a court claim will expire 6 years after the date of the last payment, so it will be a while before you know.

[Archetype]

Thanks.

You would be unwise to assume this will go away. I was thinking maybe this bank would seek a charging order over property to secure payment on an eventual sale or your death.

If you stop paying they may treat it as a 'put up or shut up' challenge. The limitation period for bringing a court claim will expire 6 years after the date of the last payment, so it will be a while before you know.

Would you say the risk for a CCJ is lower for a larger balance? I have only seen personally ccj from mobile companies or for relatively small debts. Even if they CCJ me tomorrow I won't be paying a dime and just wait it out 6 years. Can they, after 6 years since the ccj, still do a charging order against my house if I have one then?

Lastly, the limitation period for bringing a court claim would be 6 years after the date of the last payment not 6 years since the last contact made initiated by me? Would calling them to enquire reset the 6 year period?

[atticus]

Q2: yes

Q3/4: Given all that you have said, why would you want to make any contact? Beware of resetting the limitation clock back to the beginning.

[Archetype]

Q2: yes

Q3/4: Given all that you have said, why would you want to make any contact? Beware of resetting the limitation clock back to the beginning.

If they were to force on me a CCJ they wouldn't at that point accept a 90% settlement offer however if I called them and they accepted 90% off the balance owed then perhaps I can get out of this debt. Would just calling them reset the clock? I think I read somewhere it has to be written to count.

[atticus]

An acknowledgment must be in writing and signed by the person making it: s30 Limitation Act 1980. NB that this can include email and other electronic communications.

[echat11]

Did they provide a copy of the 'varied' Consumer Credit Agreement?, no doubt Lloyds increased the APR at certain times through out the period of the loan.

If they haven't provided that, then they haven't met your CCA request (I'm not saying they can't, but you could write back and say they haven't, see what they do).

https://www.handbook.fca.org.uk/handbook/CONC/13/1.html

[Archetype]

Did they provide a copy of the 'varied' Consumer Credit Agreement?, no doubt Lloyds increased the APR at certain times through out the period of the loan.

If they haven't provided that, then they haven't met your CCA request (I'm not saying they can't, but you could write back and say they haven't, see what they do).

https://www.handbook.fca.org.uk/handbook/CONC/13/1.html

The template I used had no mention of the varied consumer credit agreement. It only requests the cca agreement and statement for the account in question. I attach the CCA agreement that I received plus I also received a statement of transactions of the loan account.

How should I phrase my new reply? Should I say to them that the CCA request is not complete until 'varied' Consumer Credit Agreement is received? Is there a 'varied' Consumer Credit Agreement for sure? The period of the loan only lasted a few months before I defaulted. Would there be a 'varied' Consumer Credit Agreement for a period of a few months?

[echat11]

The template I used had no mention of the varied consumer credit agreement. It only requests the cca agreement and statement for the account in question. I attach the CCA agreement that I received plus I also received a statement of transactions of the loan account.
How should I phrase my new reply? Should I say to them that the CCA request is not complete until 'varied' Consumer Credit Agreement is received? Is there a 'varied' Consumer Credit Agreement for sure? The period of the loan only lasted a few months before I defaulted. Would there be a 'varied' Consumer Credit Agreement for a period of a few months?

As it's a couple of months, I'm not sure sending that's going to help. Normally they 'hike' interest rates annually, plus yours is 'fixed'.

I would just carry on paying the £1 or ask them to 'write off the debt' if 'personal circumstances' warrant it. Yes it's a nuisance but you are worried about a CCJ.

[Archetype]

As it's a couple of months, I'm not sure sending that's going to help. Normally they 'hike' interest rates annually, plus yours is 'fixed'.

I would just carry on paying the £1 or ask them to 'write off the debt' if 'personal circumstances' warrant it. Yes it's a nuisance but you are worried about a CCJ.

I am a cancer patient and has been for the past 5 years. Do you think this could realistically make them write the debt off?

[echat11]

I am a cancer patient and has been for the past 5 years. Do you think this could realistically make them write the debt off?

I hope you are making strides forward against the illness, wish you best on that front.

Yes that is a circumstance that they should strongly consider. It needs to be framed correctly, letter with medical evidence, GP / Consultant backing that up. Have a read of the following:

https://nationaldebtline.org/fact-sh...d%20help%20you.

You can amend add / remove to suit your circumstances the following template:

https://www.citizensadvice.org.uk/de...debt---letter/