What to do with MBNA?

annieapple

Hi All

I have been on a DMP with CCCS for 2 and a half years now. All my creditors initially accepted my offer and my debts are reducing every single month.

However, a few months ago MBNA suddenly started charging me late fees and interest again. They didn’t write me a letter and say that they were going to do this I just noticed on my statement. They kept trying to call my but I didn’t pick up the calls as I know that they will try to bully me and luckily I have moved jobs since going on the plan so they don’t know my work number. I let the CCCS know and they said that they resent my budget but MBNA seem to have ignored this. I received a letter from them a few days ago warning that my account may go into default. I contacted the CCCS again and they offered to resend my budget, warned me not to make over payments as my other creditors might not like it and said that they can’t force creditors to accept an offer. They haven’t actually offered my any advice on how to deal with them and don’t really seem to be fighting my corner at all.

Has this happened with anyone else and if so how did you deal with it? I am very confused as to why NBMA would accept my payments for so long and then suddenly stop – especially since I have since had a small payrise so my offer to them has increased since I started the plan.

RAS

Advise MBNA that you will reclaim the charges? Write to the OFT as they are getting more and more concerned about banks antics. CC in your MP.

mbaz

Hiya MBNA started charging me 3% interest after 2 years with CCCS - I suppose it's to recoup some of what they would have been able to charge. It's not a huge amount so I think it's fair enough and they do have to make money after all. Do you know what % rate they're charging you at?

GeorgeUK

It may just be policy that bad debts are kept interest free for only a year or so. I would answer the phone to them and explain that you are dealing with your debts through CCCS and that they should contact them to discuss repayments. The CCCS details may have been removed from their system. I think it would be best to hear why they are calling and then take it from there.

There are template letters available for you to send if you do not wish to be contacted by phone.

annieapple

Hi thanks for your quick replies.

RAS - I have thought about claming back charges before. However - since I am on a DMP and my interest has been frozen I think it would be pushing my luck a bit. The banks don't legally have to freeze interest and it they refund my bank charges and unfreeze the interest I'll actually end up worse off!

George UK - They have given up on calling me now. If they don't respond to the 2nd letter by CCCS I'll give them a ring

mcjordi

well ive got a payment plan with MBNA for £12 a month on a 1100 quid balance JAN 09 is the year up for me arghh all the 12 quids are gonna end up swallowed by interest

methinks

hello,

The only reason you will be charged a late fee if you are on an arrangment would be that the arrangement has terminated. The main reason for this is mbna has not recieved a payment or the payment was late. The cccs are a good debt management company but they will only review your details once a year. contact mbna and they will tell you the reason your arrangment is terminated, if they do ask for a pymnt just say no but at least you will find out what is going on!! its better to this asap as if interest and charges are going back on it wont take long for your balance to go back up and all the hard work you have done paying your arrangement amount will be for nothing
hope this helps

oscar52

methinks wrote: »

hello,

The only reason you will be charged a late fee if you are on an arrangment would be that the arrangement has terminated. The main reason for this is mbna has not recieved a payment or the payment was late. The cccs are a good debt management company but they will only review your details once a year. contact mbna and they will tell you the reason your arrangment is terminated, if they do ask for a pymnt just say no but at least you will find out what is going on!! its better to this asap as if interest and charges are going back on it wont take long for your balance to go back up and all the hard work you have done paying your arrangement amount will be for nothing
hope this helps

might not actually be the case. MBNA have a habit of terminating agreements if the monthly payment is less than the contractual payment. However, once interest starts to be applied, the montly payment goes above the the minimum payment and charges get added. Then the agreement gets terminated. All you can really do is resubmit the financial statement. However, you might as well claim your charges back. MBNA dont fight, and after the second refund request, give all charges plus contractual interest (i know cos i work there)- at least it would reduce your debt.