MBNA - Default Notice query

katymags

Hi - I am on a DMP with the CCCS and have been paying creditors for some time now. Today I received a default notice from MBNA for my credit card debt saying that unless I pay the outstanding balance (I can't) then they are taking further action and one paragraph says if i have difficulty paying, I can apply to the court for more time.

They did call me several times over the last few weeks to advise me that unless I paid the monies owing, they would pass my account to a debt collector and they would then own the debt so I was expecting a letter to that effect not one talking about Courts.

Is this a standard letter do you think before debt being sold to a collector or are they missing that out and going for the kill at a Court?

So worried now, thought all my creditors were happy to receive what was sent to them, no others have made any moves as this.
Your advice would be very welcome please. Thanks.

climbingoutoftheabyss

Its a fairly standard route during a DMP

Basically, at the start of a DMP creditors may do this, issue a default but then not act on it. As long as you are paying your monthly amount there is nothing to be concerned about.

Pass the letter through to CCCS and they will file it in their paperwork.

But other than that, I doubt MBNA will follow it through to court action. The worst thing is that it affects your credit rating - but as you are on a DMP and won't be apply for credit it won't make a difference.

mallard

Hi Katymags

Yep this is standard MBNA behaviour. They will do their utmost to harrass and threaten you even if on a DMP. I was in the same situation and they sent default letter after default letter....god help the trees!! You often find they are full of rubbish...for example 'applying to the court' statements. Well if you have never been to court why would you apply to a court. This is part of their tactic to hassle you..

As long as you keep paying what you can with the DMP you are doing the right thing. One warning though is that they do sell on debts to a company called Link Financial - if this happens watch them. There are plenty of posts about them here and on CAG

Good luck

Mallard

katymags

Thank you both aabove for your replies - that puts my mind at rest. Thanks also for the warning about Link Financial - one of my current debts is with 1st Credit so assuming they conduct themselves in a similar manner........................;)

fermi

I don't think I can remember any case of MBNA going to court themselves.

They will just send threatening letters until they eventually sell the debt on. Perfectly normal. :rolleyes:

The "apply to the court" of the letter is probably referring to a 'time order' which you can apply to the court for on your own initiative. They are not of much use for unsecured debts by all accounts, so don't worry about that bit.;)

As said, just advise CCCS and send the paperwork to them if they want it.

Deep_In_Debt

1st Crudit and Link are fairly similar in their tactics. If you've experienced the lovely Worst Crudit then you will be prepared for the lovely Link!

MBNA issued me with a default notice in April. I've been on my dmp with CCCS since January and this is the only contact I've had with them. I've just filed the letter with all my other stuff. They've not been in contact with me since.

GeorgeUK

Are you reclaiming charges on the account? I believe if you can show that the amount required to remedy the breach is wrong, then the default notice is invalid.

Also, did you keep the envelope? What was the date on it?
Also did they specify a date on the letter, or 14 days - a date is required or it does not meet the prescribed terms.
As you should have 14 days to remedy the default, it is important to check the date on the envelope - if you had less than 14 days then the default is void.
(All info taken from CAG site - thanks to Edz11, tomterm8 and pt2537)

Edit: Not sure the above really makes much difference unless you are trying to get the default removed from a settled debt as they may probably just issue another. I still think that if you are reclaiming charges that a default shouldn't be issued though.

katymags

Thanks to you all.

GeorgeUK - I am not reclaiming charges on the account. Did not keep envelope but they did specify in letter to remedy this breach they must receive payment by 21/10/08. Their letter is dated 3rd October and I received it today - the 7th. The debt is about £7,000 which I am paying (amongst others) via CCCS and MBNA say the amount I pay this way each month is not enough and they want more (an extra £40 per month) which I cannot afford.

I have not missed any CCCS payments but MBNA say what I pay them is not enough and unless I pay them an extra £40 on top each month, they will sell the debt on (this is what they told me over phone anyway) then this letter arrived. Assume they will either carry on accpeting what I am currently paying or sell debt on.

inamess200

I had default notices for my MBNA cards last week - strange thing is I have already had one a couple of years ago and debts were sold onto 3rd party - the third party sent a letter with the default saying don't worry about this default just keep paying the agreed amounts - all very strange!!