PRA Group MBNA unenforceable debt

[KB11]

Hi I wonder If I could have some advice please. PRA Group are chasing for a debt for MBNA. I wrote to PRA asking for information Sections 77-79 CC Act 1974 and got the following response " I Refer to your request for copy documentation regarding the above account. Please find enclosed documentation received to date (nothing was sent); we are awaiting further documents in order to complete your request. (This letter is dated Feb this year). They go on to say we currently deemed this debt as unenforceable which means we are not able to take court or further enforcement action against you to recover the outstanding balance.... They go on to say it is not written off but they legally are entitled to keep contacting me, pass details on to a third party collection agency, and continue to report on my credit file. They have now put a default on my account dated June last year. I dont know when the debt was sold but I was only contacted by them in Nov. Can they put a default on for an unenforceable debt? I want to get this removed from my credit file so want to know the best way to go, should i offer a token payment?

Many Thanks

[Timewilltell]

It is my understanding that a default can only show on your credit file once, so when did the account originally default, it may be that the mbna had already put the default on your file and it has subsequently come off as it has been 6 years or more? Alternatively it may just have transferred to PRA group if within the 6year period from original default?

[Joanna Connolly Solicitors]

PRA Group are chasing for a debt for MBNA. I wrote to PRA asking for information Sections 77-79 CC Act 1974 and got the following response " . . . . we are awaiting further documents in order to complete your request. . . .we currently deemed this debt as unenforceable which means we are not able to take court or further enforcement action against you"

. . . They have now put a default on my account dated June last year. I dont know when the debt was sold but I was only contacted by them in Nov. Can they put a default on for an unenforceable debt? I want to get this removed from my credit file

Hello

First of all if an account has defaulted then the creditor may register the default with the Credit reference Agencies, although the date must be accurate. Is it possible that MBNA defaulted you in June 2018 then assigned/sold the debt to PRA in November 2018?

If a debt owner cannot comply with a s 77-78 CCA Request then they cannot enforce the debt in court. This doesn't mean the debt has been extinguished. It still exists but they can't enforce it in court. It's then up to you to decide whether you wish to continue to pay towards the debt or not.

This situation continues until or unless the debt owner does comply with your request which can be up to a year later, sometimes even longer. During that time the debt is in limbo legally speaking. This doesn't mean that the debt owner should remove the default from your CRA file. It will be removed automatically six years after it was put on - in fact the whole account entry vanishes at that point.

Can you add a little more information such as how much is the outstanding balance, when (what year) did you open the account, when did you last pay anything towards the account, and was it assigned direct from MBNA or was it assigned to another debt purchaser before that such as Aktiv Kapital?

Di

[KB11]

Hello

First of all if an account has defaulted then the creditor may register the default with the Credit reference Agencies, although the date must be accurate. Is it possible that MBNA defaulted you in June 2018 then assigned/sold the debt to PRA in November 2018?

If a debt owner cannot comply with a s 77-78 CCA Request then they cannot enforce the debt in court. This doesn't mean the debt has been extinguished. It still exists but they can't enforce it in court. It's then up to you to decide whether you wish to continue to pay towards the debt or not.

This situation continues until or unless the debt owner does comply with your request which can be up to a year later, sometimes even longer. During that time the debt is in limbo legally speaking. This doesn't mean that the debt owner should remove the default from your CRA file. It will be removed automatically six years after it was put on - in fact the whole account entry vanishes at that point.

Can you add a little more information such as how much is the outstanding balance, when (what year) did you open the account, when did you last pay anything towards the account, and was it assigned direct from MBNA or was it assigned to another debt purchaser before that such as Aktiv Kapital?

Di

Hi, MBNA did not put the default on it was PRA Group, The account was opened in April 2005, the last payment made by myself was March 2018. It was assigned directly from MBNA to PRA Group in August 2018, the default was put on in June 2018 by PRA and not MBNA and shows under PRA on my credit file MBNA have never put anything on my file. The balance left is £7,169.35.

[KB11]

Hello

First of all if an account has defaulted then the creditor may register the default with the Credit reference Agencies, although the date must be accurate. Is it possible that MBNA defaulted you in June 2018 then assigned/sold the debt to PRA in November 2018?

If a debt owner cannot comply with a s 77-78 CCA Request then they cannot enforce the debt in court. This doesn't mean the debt has been extinguished. It still exists but they can't enforce it in court. It's then up to you to decide whether you wish to continue to pay towards the debt or not.

This situation continues until or unless the debt owner does comply with your request which can be up to a year later, sometimes even longer. During that time the debt is in limbo legally speaking. This doesn't mean that the debt owner should remove the default from your CRA file. It will be removed automatically six years after it was put on - in fact the whole account entry vanishes at that point.

Can you add a little more information such as how much is the outstanding balance, when (what year) did you open the account, when did you last pay anything towards the account, and was it assigned direct from MBNA or was it assigned to another debt purchaser before that such as Aktiv Kapital?

Di

Hi, MBNA did not put the default on it was PRA Group, The account was opened in April 2005, the last payment made by myself was March 2018. It was assigned directly from MBNA to PRA Group in August 2018, the default was put on in June 2018 by PRA and not MBNA and shows under PRA on my credit file MBNA have never put anything on my file. The balance left is £7,169.35.

[The Tech Clerk]

MBNA default BUT when sold to PRA they change heading to PRA from MBNA/// but the date stays at the original date did you get a default notice from MBNA???

[KB11]

MBNA default BUT when sold to PRA they change heading to PRA from MBNA/// but the date stays at the original date did you get a default notice from MBNA???

Hi No nothing, this is my husbands but he is not tech savy so I am doing it for him. Nothing was ever on his credit file for MBNA it only ever appeared once sold to PRA then the default appeared with a June date. Can they do that?

[Joanna Connolly Solicitors]

MBNA did not put the default on it was PRA Group, The account was opened in April 2005, the last payment made by myself was March 2018. It was assigned directly from MBNA to PRA Group in August 2018, the default was put on in June 2018 by PRA and not MBNA and shows under PRA on my credit file MBNA have never put anything on my file.

The default date discrepancy may indicate assignment issues for PRA if the account wasn't properly defaulted before it was terminated and assigned to them.

Was your last payment to MBNA in March 2018 a full contractual payment (i.e. the minimum monthly payment due under the account's Ts & Cs) or were you on an Arrangement To Pay or in a Debt Management Plan etc at that point?

Di

[The Tech Clerk]

so it would seem PRA did in fact put the default on there

[Joanna Connolly Solicitors]

Nothing was ever on his credit file for MBNA it only ever appeared once sold to PRA then the default appeared with a June date. Can they do that?

There are a lot of posts crossing on this thread so I'll pop back tomorrow to avoid any confusion.

Di

[KB11]

The default date discrepancy may indicate assignment issues for PRA if the account wasn't properly defaulted before it was terminated and assigned to them.

Was your last payment to MBNA in March 2018 a full contractual payment (i.e. the minimum monthly payment due under the account's Ts & Cs) or were you on an Arrangement To Pay or in a Debt Management Plan etc at that point?

Di

Hi the last payment made was more than the minimum payment then payments were stopped due to money issues, then no contact until went to MBNA in Nov.

[KB11]

so it would seem PRA did in fact put the default on there

Yes, and also back dated the date. I have just checked the credit files and nothing on from MBNA at all then suddenly on 11/11/18 PRA group appear with a default saying credit card and that default is back dated back to June. Nothing on the credit file states it is MBNA the only thing that links the two is the letter received in Nov from PRA.

[Joanna Connolly Solicitors]

the last payment made was more than the minimum payment then payments were stopped due to money issues, then no contact until went to MBNA in Nov.

You say the last payment was in March 2018, and then all payments stopped.

So it seems likely/possible that the account would have been defaulted by MBNA after two missed payments (i.e. April and May 2018) which would have been in June 2018, which you say is the date the default is showing as registered on your husband's credit file.

This suggests the default date is accurate so your concern is that it was put on there by PRA (who were assigned the debt in November 2018) not MBNA, not that it's inaccurate?

Di

[KB11]

You say the last payment was in March 2018, and then all payments stopped.

So it seems likely/possible that the account would have been defaulted by MBNA after two missed payments (i.e. April and May 2018) which would have been in June 2018, which you say is the date the default is showing as registered on your husband's credit file.

This suggests the default date is accurate so your concern is that it was put on there by PRA (who were assigned the debt in November 2018) not MBNA, not that it's inaccurate?

Di

Yes it looks that way but how come MBNA have never put anything on my credit file and then suddenly the first thing on there is from PRA Group and they have put the default on there yet the account was not recorded or put as default under MBNA. Is there any way I could try to get this removed as he is self employed and this affects his business having it on there. Have they been known to remove them as good will if payment is made. Can they also issue a default in there name prior to the account being assigned to them? Thank you for your help this is a mind field for me.

[Joanna Connolly Solicitors]

how come MBNA have never put anything on my credit file and then suddenly the first thing on there is from PRA Group and they have put the default on there yet the account was not recorded or put as default under MBNA. Is there any way I could try to get this removed as he is self employed and this affects his business having it on there. Have they been known to remove them as good will if payment is made. Can they also issue a default in there name prior to the account being assigned to them?

I think you you need to look at this situation from a different angle.

PRA are chasing your husband for an unpaid debt. You’ve sent a s 77-79 CCA Request to them.

They’ve told you that the debt is currently unenforceable, but that doesn’t necessarily mean it will remain unenforceable for ever if they eventually source the credit agreement from MBNA or are able to reconstitute a credible one.

I wouldn’t do anything now that could provoke PRA to try harder to comply with your CCA Request, and then decide to issue legal proceedings against your husband.

Your focus should be on managing the debt, so can you say how much is the balance outstanding, is your husband still paying PRA, and if not when was his last payment towards this debt ?

Di