PRA Group UK Debt Letter: Who They Are and What to Do

Who is PRA Group UK?

PRA Group describes itself as one of the UK's largest debt purchasers and collectors. It trades as a name of PRA Group (UK) Limited, a subsidiary of the US-listed PRA Group, Inc. According to its own website, it buys accounts from lenders, typically after they have defaulted, and PRA Group (UK) Limited manages them for PRA Group UK Portfolios Ltd, which owns the accounts.

That matters because, once a debt is sold, the new owner can ask you to repay it. The original lender can no longer chase you for that account. Our guide to a notice of assignment explains what the sale means and what the notice should say.

Is PRA Group UK authorised?

PRA states on its website that it is authorised and regulated by the Financial Conduct Authority and gives its firm reference number as 718645. It also says it is a member of the Credit Services Association. Do not simply take any firm's word for this. Search the name and number yourself on the FCA register and check that the details match your letter.

What PRA says about paying

PRA's website invites you to contact it to talk about payment plans that it describes as sustainable and affordable. It also says that it does not add interest or fees while you are working with it on your account. These are the company's statements, so ask for any arrangement to be confirmed in writing, including whether interest and charges are frozen.

Before you agree, work out what you can afford. Do not promise more than your budget allows. Missed payments on a plan can make things worse, and the creditorHow to Deal with Creditors: Communication and NegotiationPractical advice on communicating with creditors, negotiating affordable repayments, and understanding your rights when dealing with the companies you owe.Read more → may then consider a court claim.

Before you pay: check the debt

• Which lender did the debt come from, and is the account one you recognise?
• How much was the debt when it was sold, and how has the balance changed?
• When did you last pay, or last acknowledge the debt in writing? This decides whether it may be statute-barred
• Is there a copy of the agreement? You can ask for one under the Consumer Credit Act. See how to request your credit agreement
• Is the person named on the letter you?

Other companies using the PRA name

PRA's website says that if another company contacts you about an account, you should check whether it appears on the list of agents PRA has appointed. If it does not, or you have other concerns, contact PRA directly. Use the contact details published on its website rather than those in a message you were unsure about, and be cautious if someone pushes you to pay quickly to a personal account.

A simple plan for your first week

A calm, ordered response protects you better than a quick phone call.

1. Read the letter and write down the original lender, the reference and the balance
2. Check PRA on the FCA register and match the details
3. Look through your own records for the account, old statements or emails
4. Write to PRA asking for proof of the sale, a statement and, if regulated, the agreement
5. Draw up a budget of income and essential costs so you know what you could offer
6. Hold off on a payment or a direct debitDirect debitA Direct Debit is an instruction to your bank to let a company collect varying amounts from your account on agreed dates.Read more → until you have the answers

What if you ignore the letters?

Ignoring a genuine debt rarely makes it disappear. A debt purchaser may keep writing, add other contact, or eventually pass the case to solicitors. Under the Pre-Action Protocol you should normally receive a letter of claimLetter Before Action for Debt: What It Means and What to DoReceived a letter before action for a debt? Learn what it means, how long you have to respond, how to check it and your options before court.Read more → and 30 days to reply before court action. Our guides to the letter before action and final demand letters explain those stages. A court claim form is more urgent, and has its own short deadlines.

If you cannot pay

Tell PRA what you can afford, supported by a simple income and spending list. If you have several debts, a free adviser can look at them together and negotiate for you. Free, independent advice is available if you are unsure what to do. Citizens Advice, MoneyHelper, StepChangeStepChange Explained: What It Does and How It WorksWhat the debt charity StepChange offers, how its free debt advice and debt management plans work, who it suits and what to expect when you contact them.Read more → and National DebtlineNational Debtline: How It Works, When to CallWhat National Debtline is, who runs it, what it can help with, how to get free advice by phone, webchat or online tools, and what to expect.Read more → will not charge, and they can contact a debt purchaser for you. The priority and non-priority debts guide helps you decide what to deal with first.

Vulnerability and support

If illness, disability, bereavement, job loss or another change makes it hard to deal with a debt, tell PRA specifically what help you need and ask for it to be recorded. A firm can only act on what it knows. Providing evidence, such as a letter from a doctor or adviser, helps, and a free debt adviser can make the request for you.

If you want to complain

Complain to PRA first and keep copies. If you are not happy with the reply, or have had no final answer after 8 weeks, you can take it to the Financial Ombudsman ServiceHow to Make an Insurance Claim and What to Do If It Is RejectedStep-by-step guide to making an insurance claim in the UK, what evidence to gather, what insurers must do, and how to complain to the Financial Ombudsman.Read more → free of charge, usually within six months of the final response. If a collector is harassing you, our guide to debt collectors that will not stop calling sets out what the rules allow.