Owe money to PRA Group? Read this before you call them back

If a letter or text from PRA Group has arrived for a debt you may not even remember opening, it usually means an old credit card, loan, mobile-phone account or catalogue balance has been sold on. PRA does not normally lend money — it buys portfolios of consumer-credit accounts that have been classified as bad debt by the original creditor.

This guide explains who PRA are, what they can legally do, and how to decide what to do next — including how an IVA can legally stop them and write off the unpaid balance.

Who PRA Group are

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PRA Group is a US-listed debt purchaser (NASDAQ: PRAA) with operations in North America and Europe. The UK arm — usually trading as PRA Group (UK) Limited — sits within the European business and acquires non-performing consumer-credit portfolios from UK and Irish lenders. Their footprint includes credit cards, store cards, personal loans, mail-order debt, telecoms and short-term lending.

PRA Group are regulated by the Financial Conduct Authority and must comply with the FCA’s Consumer Credit Sourcebook (CONC). They are also members of the Credit Services Association.

A relevant historical note: PRA Group acquired the European debt-purchase business of Aktiv Kapital in 2014, so accounts originally placed with Aktiv Kapital are usually now held by PRA. If you have a letter referring to “Aktiv Kapital”, you can treat it as a PRA Group debt for negotiating and dispute purposes.

Why PRA are contacting you

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PRA buys portfolios of accounts that the original lender has already given up on as bad debt. When they bought your account, the original lender sold all the data — your name, last known address, agreement, balance — and Cards-on-the-table: PRA paid pennies in the pound for it.

That economic reality matters. PRA’s profit is the difference between what they paid for the portfolio and what they recover. They have no emotional stake in the original debt and can settle for a fraction of the face value if it’s commercially attractive.

What PRA Group can and cannot legally do

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PRA are debt collectors, not bailiffs. They can:

• Write to you and phone numbers the original creditor had on file
• Issue a county-court claim if they believe the debt is genuinely enforceable
• Once they have a CCJ, apply for enforcement (attachment of earnings, charging order on a property, or High Court Enforcement)

They cannot force entry to your home, take goods, threaten arrest, or add fees that were not in the original credit agreement.

The first two checks worth running

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Before you discuss any payment plan, run two quick legal checks:

1. Section 77/78 CCA request. Ask in writing for the original signed credit agreement, the deed or notice of assignment from the original lender to PRA, and a current statement of account. Enclose £1. The debt is unenforceable until they supply the paperwork.
2. Statute-barred check. If the last payment or written acknowledgement is more than six years ago in England and Wales (five years in Scotland) and there has been no CCJ, the debt is statute-barred and cannot be enforced through the courts.

Do not make any “goodwill” payment before these checks — a single payment can reset the limitation clock.

How PRA tend to operate

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PRA’s UK operation is built around portfolio efficiency: they buy in bulk, contact in bulk, and litigate the small minority of accounts where it is cost-effective. That has practical implications:

• Their first letters often offer a settlement discount of 20–40% off the balance for a one-off payment. These offers can be negotiated; ask in writing for a deeper discount with a clear “in full and final settlement” clause.
• They send a high volume of CCJ claims through the Northampton bulk centre. If a claim form arrives, respond within the timeframe printed on the form.
• After a CCJ, they typically pursue an attachment of earnings or apply for a charging order on a homeowner property, rather than instructing High Court Enforcement Officers.

What happens if you ignore PRA

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PRA’s escalation pattern is fairly predictable:

1. Letters and texts — initial contact, often with settlement-discount offers
2. Phone calls — increasing in frequency, sometimes from withheld numbers
3. Pre-claim letter (Letter Before Action) — formal warning of intent to issue court proceedings
4. County-court claim form — issued through Northampton; you have 14 days to acknowledge service and 28 to file a defence
5. Default judgment (CCJ) — entered automatically if you don’t respond; sits on your credit file for six years
6. Enforcement — attachment of earnings against employed debtors, or a charging order against homeowners

The window in which you have the most leverage is before a CCJ is entered. Once a default judgment is in place, getting it set aside is technically possible but legally difficult and time-pressured.

Routes out — pay, partially pay, or formal solution

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If the debt is genuine and enforceable:

• Settle in full with a discount, in writing.
• Affordable repayment plan based on the Standard Financial Statement; PRA must consider what you can genuinely afford.
• IVA to bundle PRA with all your other unsecured debts into a 5–6 year arrangement that writes off the balance at the end. Eligibility starts at around £5,000 of total unsecured debt.
• Debt Management Plan if total debt is smaller and you can clear it within a reasonable timeframe.
• Debt Relief Order if total debt is under £50,000 and your spare income is very low.
• Bankruptcy if no realistic payment is possible and you accept the consequences.

Pitfalls when dealing with PRA Group

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• Don’t ignore court paperwork from Northampton. A defended claim is treatable; a default judgment is much harder to set aside.
• Don’t pay through a number from a text without verifying the line through PRA’s official channels.
• Don’t treat the first settlement offer as the best one. Counter in writing — PRA’s pricing model assumes negotiation.
• Don’t engage in stressful phone calls if the company hasn’t proven the debt is yours yet — write to them, keep records.

Frequently asked questions

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Are PRA Group bailiffs? No. They are debt collectors. They can write and call and take court action. They cannot force entry or take goods without a CCJ followed by enforcement officers.

My old letter says Aktiv Kapital — same company? Effectively yes for UK debt — PRA Group acquired Aktiv Kapital’s European business in 2014, so historic Aktiv Kapital accounts now sit with PRA.

Can PRA add interest to the debt after they bought it? Only if the original credit agreement permitted post-default interest. They cannot invent fees or interest that the original agreement did not allow.

Will an IVA cover my PRA debt? Yes. PRA debt is unsecured consumer credit and goes into an IVA on the same basis as any other creditor. Once approved, PRA must stop contact and cannot enforce the included balance.

Related guides

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• Lowell Financial — another major debt purchaser
• Do debt collectors give up?
• How long can I be chased for a debt?
• How do I apply for an IVA?
• Can debt be written off?