MBNA Credit Card - Partial Settlement Agreement

chris.hoops78

I recently agreed with MBNA to make 3 x £500 payments against an outstanding debt of roughly £3k (i.e. 50% repayment approx.)

The letter i got from them basically says the above deal is a partial settlement, but that they will not take action to recover the remainder.

I have asked them for confirmation in the final letter that they will not sell the debt on to a third party, and that they will not continue to add interest or default charges to the balance.

It remains to be seen wether or not they will use these terms in the final letter.

They have added default charges to the account since i made the agreement (beginning of December) - making me very suspicious that they will allow the interest/charges to accrue again before selling the debt on to a DCA, or even just pursuing it themselves.

Are they currently under legal obligation to honour this agreement, or will I get clobbered in 6 years for the outstanding plus interest, plus whatever charges they care to add??

Some advice would be appreciated.

RAS

Even more of an issue, given that this is MBNA, is the legal paperwork enforceable?

When did you get the card?

chris.hoops78

To be honest with you, I'm not concerned by that. I would rather just get the account closed and out of my life.

chris.hoops78

Anyone else care to comment?

telboy99

Hi Chris.hoops78,
The key thing here is that you make sure you have a letter from MNBA with the statement that they will not pursue the debt further and that the payment you make is in full and final settlement of the total debt.
No letter along these lines-my suggestion no payment.
cheers,

talbot_3

Partial settlement is exactly what it says patial.
They may not chase you but they will sell it to a DCA, anytime up to six years.
You want a full and final not partial.

suewiththeblues

i am also at the same point as you chris. they will not confirm that nobody else will chase me down the line, or that my credit file will be marked as satisfied or that the amount offered will be in full and final settlement -its driving me nuts as they continue to phone every day and send threatening letters etc.

my next move is to write and say that unless they confirm all the above then i will divide the money among my other creidtors and theywill get nothing!

chris.hoops78

Well, the last payment goes out tommorrow, after which I expect to receive a letter stating the account is closed, and will not be pursued for remainder of balance etc.

All I can do is wait and see what's in the final letter. If i'm not satisfied i may take it to a solicitor or debt counsellor and either attempt to get further clarification in writing, or else offer to pay the rest of the balance off.

I asked them on the phone about this and was advised "MBNA are not a fly by night company" and "we wouldn't do that" and "we have a reputation to uphold.", but i can't say i'm 100% convinced.

stapeley

They are seeing this as away of getting a nice lump sum from you . If you can afford this amount , why can you not keep up with the high payments ? That would be there thinking . It will also show up for six years as "part settlement" on credit file . Not really too big a deal if you do not plan to buy a car or a house for six years .

stapeley

chris.hoops78 wrote: »

Well, the last payment goes out tommorrow, after which I expect to receive a letter stating the account is closed, and will not be pursued for remainder of balance etc.

All I can do is wait and see what's in the final letter. If i'm not satisfied i may take it to a solicitor or debt counsellor and either attempt to get further clarification in writing, or else offer to pay the rest of the balance off.

I asked them on the phone about this and was advised "MBNA are not a fly by night company" and "we wouldn't do that" and "we have a reputation to uphold.", but i can't say i'm 100% convinced.

Remember a phone statement like that is not worth the paper its written on !

chris.hoops78

"They are seeing this as away of getting a nice lump sum from you . If you can afford this amount , why can you not keep up with the high payments ? That would be there thinking . It will also show up for six years as "part settlement" on credit file . Not really too big a deal if you do not plan to buy a car or a house for six years ."

Ok - so what would you advise me to do?