PRA Group MBNA unenforceable debt

[Joanna Connolly Solicitors]

the last payment was made in March last year when account was still with mbna. Thanks

So the debt will not be Statute Barred until at least March 2024 or more likely June 2024 if the Default date is accurate.

Maybe it'll be wise for your husband to not 'rock the boat' with confrontational correspondence over a Default which may be accurate especially if PRA are currently in default of his s 77 - 79 CCA Request.

He should send a Subject Access Request to MBNA to get the full history of the account prior to its assignment to PRA last year.

Di

[KB11]

Hi, the last payment was made in March last year when account was still with mbna. Thanks

[Joanna Connolly Solicitors]

not paid anything towards PRA as of yet and they have just written back to say it is unenforceable but can still chase. The figure is 7K we are wondering how likely they would be to remove the default if we pay them an amount but not the full amount?

At a guess I would say they are highly unlikely to remove the default because under ICO rules they must report accurately - so if the account was defaulted in June 2018 then that is what it will say on the CRA files until six years have gone by (i.e. June 2024).

Obviously if the default was not in June 2018 then that information would be inaccurate, and should be corrected.

If any payments are made/accepted by PRA then the account may be marked 'settled' or 'part settled' if not the full sum, but the default would remain.

I asked when your husband had last made a payment to see whether the debt would be Statute Barred or nearing SB status. So when would his last payment to MBNA have been?

Di

[KB11]

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

Hi

My husband had not paid anything towards PRA as of yet and they have just written back to say it is unenforceable but can still chase. The figure is 7K we are wondering how likely they would be to remove the default if we pay them an amount but not the full amount?
Thanks for all your help.

[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

[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]

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]

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.

[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.

[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

[The Tech Clerk]

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

[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

[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?

[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]

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.