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MBNA final settlement offer

Hi everyone - Happy New Year!
Thanks to this thread 2009 looks like we'll be well on track to reducing our debts.

We're 9 months into a dmp with Payplan and pay MBNA 28 per month. they contacted us in December and said that they would write off 75% of our debt if we paid them the remaining 25%. The alternative was that if we didn't agree then they would add charges for the 9 months arrears and sell the total debt to a DCA.

We discussed it with Payplan who agreed that because the sum being written off was so large, we should go ahead if we could.

MBNA then said that we would have 6 months to pay off the 25%, so we agreed and paid them the first 100. (my pound sign doesn't work, sorry).

We are on track to be able to pay them the remaining 1500 by the end of Feb (I've sold almost all my jewellery to 'we buy old gold' and ebayed loads of other stuff that was nice but not essential. I've done masses of overtime and am due to do masses in January plus we're paring every living expense down to the bone.)

However! We haven't had the offer from MBNA in writing. I'm worried that having had the 1500, they will say that we obviously can afford to pay the remaining debt as we've been able to find this money.

I wish we could find this every 2 months or so, but our sellable stuff is now all gone and extra hours at work are due to end next month (for good reasons as my mate comes back after long term sick leave). :smiley:

Sorry for the long intro - but has anyone else had this sort of offer from MBNA and if so, how did it go?
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Comments

  • just read your post please don't pay them this amount until you have got it written down that this is full and final settlement. I am alos having dealings with mbna myself and when they are asked to put it down in writing they quite often go back on what they have just said. I have read of people paying them the money as they had agreed over the phone full and final settlement only for them to continue chasing for the rest of the debt.

    have you also looked into whether the debt is enforceable if they can't produce a valid cca then they cant enforce the debt
    Make £5 a day in May total so far £2
  • edinburgher
    edinburgher Posts: 13,494 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    That offer sounds somewhat fantastic (both good fantastic and oh really? ;) fantastic). I very much agree with badgerbread and think that you should hound them for written confirmation that this is full and final settlement/partial settlement. The main thing is that you get them to confirm:

    a) The debt will cease to exist after you pay the 25%
    b) That it won't be sold on to a DCA and that nobody else will be looking for it further down the line.

    I'm glad you've managed to remain motivated to raise the extra funds and wish you all the best with getting this sorted. Keep us posted as to how it all pans out.
  • Miggie
    Miggie Posts: 125 Forumite
    Thank you both - I must admit that I've been feeling 'if it's too good to be true then it probably is...'

    I'll write to MBNA and ask them to confirm everything in writing, then let you know what happens.

    Badgerbread, what is a CCA? Do I just ask MBNA to send me a copy?

    It might be useful for others who get this offer too.

    Happy New Year and thanks again!
  • edinburgher
    edinburgher Posts: 13,494 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    It's a consumer credit agreement. They should be able to provide a copy when requested to prove that your debt is regulated by the Consumer Credit Act (can't remember the year!)

    There's loads of posts (and stickied posts too, no doubt) on this. Please use the search facility and see what comes up.
  • this is the thread where I have got lots of my information from hope this helps
    it's called
    Cca Requests Updates Please
    there is a lot of info to read through
    Make £5 a day in May total so far £2
  • Miggie
    Miggie Posts: 125 Forumite
    Thank you again. I'll read through and then write to them.
    I appreciate you taking the time to reply to my posts.
  • bookadict
    bookadict Posts: 254 Forumite
    I had the same letter from them and rang up MBNA to find out more where the lovely person advised that even if I did pay what they were asking, there was no certaintly that they wouldn't hound me in the future for more payments. So as you can imagine they must be desperate for money.

    cx
    Sealed pot challenge 2009 - target £750. Dec - April £275

    April NSD - 15/20
  • edinburgher
    edinburgher Posts: 13,494 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Thanks for the warning bookadict! Miggie should take extra care to make sure that everything is done in writing (making use of standard letters etc. to avoid the risk of 'creative misinterpretation' by MBNA).
  • MBNA often offer a settlement as they stand more of a chance of getting a bit more of the bad debt back rather than selling it to a debt collection agency for less.

    They aren't the fastest when it comes to correspondence. They often get their wires crossed and their correspondence can relate to a confirmation for something not requested. So they need to be chased and you need to be clear as to what you need to see in writing.

    Don't make any payments until you have something in writing. Apparently when the payment is made it will show on credit reports as a partial payment.
  • mallard
    mallard Posts: 267 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Having dealt with MBNA for the last two years i wouldn't trust anything they say verbally. They will hound you if you do what they want...anything to squeeze the last penny out of you regardless of your circumstances. They repeatedly phoned me and wanted all amounts of money and with different time limits to pay etc etc.

    It might be worth just continuing to pay the £28 and put any extra into a savings account. Don't give MBNA anything more unless you have everything in writing from them (and make sure their letter has signatures on them!). Even though you are paying them they still might pass on your debt to a DCA (they tend to use Link who are a right bunch!!) and then the process starts all over again.

    As the others have said it is worth sending a CCA request in but in the meantimejust pay the 28 and make them wait until they come up with a proper agreement for paying a settlemount amount. However it is worth being somwhat cycnical with MBNA so......

    Hpe that helps and good luck

    Mallard
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