Mbna Offering Partial Settlement?

FieryBlondeScot

hi all
i sent a letter offering full and final settlement to mbna (approx 50% of the balance)
today recieved the following....

'please be advised that ifan offer of settlement is accepted, it would be accepted as a partial settlemnt and not in full and final payment of the outstanding balance. therefore the remaining balance would register as a partial settlement (and a default)with the credit reference agencies. however we d onot take any action to recover the outstanding balance.'

:eek: i made what i thought was quite a fair offer given that i have just lost my job!!

what should i do now?:rolleyes:

boredofbeingathome

Make the offer again and state it has to be 'full and final' on the report,and you are only willing to offer it on those circumstances, also reiterate your circumstances, lost job etc.

Burlesque_Babe

Basically what they are saying is if they accept your offer, the matter is closed and they won't chase you for the rest. However, your credit file will be marked with partially satisfied rather than satisfied with the remaining balance staying on there for 6 years.

If you want to take this route - ensure you get a letter which says they will not take any further action. MBNA by all accounts can be devious bar-stewards.

Deep_In_Debt

Hi
MBNA are well known for this - they always say they will only accept partial offer. I would write to them to say that it is in full settlement and that they mark your credit files as full settlement - or they can bog off! They might not take any action to recover the outstanding amount but they may sell the debt on and a third party might. Keep at them.

I'm still trying to negotiate with them. They told me they can't mark records as full settlement as it is illegal (or words to that effect) and that's complete tosh!

FieryBlondeScot

thanks
my first concern would be that although THEY wont pursue the remainder, they could sell it onto a DCA at some point, am so suspicious of the banks now!

FieryBlondeScot

out of interest, deep in debt, how long have you been negotiating with them over this? it has taken them nearly 3 weeks to reply to my letter! i also wanted my credit file marked satisfied so may just re-send my original letter again until i get the answer i need!

Deep_In_Debt

I've been to'ing and fro'ing with them for the last couple of months. It's a pain in the rear but I am going to keep on at them as they are crafty so and so's. I'm in a similar situation as you, I lost my job of nearly 12 years back in August and am using my lump sum redundancy to try and clear my debts as much as possible. I've told them that I am out of permanent work (although currently temping - but not told them this!) so if they don't agree to my terms then I will offer it to another creditor. I'm just waiting for their response to this.

Deep_In_Debt

I got home from work today to find a letter from them. I'm on a dmp with CCCS at the moment so I rang CCCS to discuss it. It seems to be good news as MBNA wrote to say that they were accepting my reduced payments indefinitely and will adjust my account to reflect that the payment I am making is the minimum required on the account.

I was a little confused about this since the minimum had been about £120pm before my dmp and they are getting £70 on my dmp. CCCS seemed to think that due to the credit crunch they are "tidying" up their accounts to look good for shareholders etc who would rather see that than it being listed as a "bad debt". So maybe this will be a better negotiating tool for me now.

FieryBlondeScot

i just cancelled the DMP when my job went and wrote to all the creditors to explain, i do think the current economical climate is a tool for us at the moment too and hadnt thought of saying to them that if they do not accept my offer i will re-distibute it among the other creditors so may put that in a letter too. it will be soooo good to get out of this debt thing..its been a painful process the past few years facing up to it all and living on a DMP i dont think i will ever get a credit card again after all this!:beer:

FieryBlondeScot

CMC collections on behalf of BARCLAYS (usually a nightmare t deal with) on the other hand wrote today to say they accept my offer and word it as follows.

'our clients are prepared to accept your offer of 69.56 in full and final settlement of the debt (126.08) providing payment is made by 26 nov.'

no mention of my credit file, so should i write back insisting its marked as settled? i thinkit is currently marked as 'default'?

i'm getting there! :beer:

Deep_In_Debt

Hi FBS, me again!

Yes I would write and say you will only pay the money is they mark your file as satisfied.

I think with the credit crunch creditors are panicking a bit - so we could be in the driving seat.

It's hard work all this F&F stuff, but do keep at it, as it does pay off in the end. If they don't want your money then offer it someone else and let them know your intentions, if they want your money, they'll take it.

I worked in Financial services before my redundancy and the company is in chaos so any money coming in would probably be a bonus and as CCCS suggested, they want to "tidy up" their accounts.