Full & Final or...?

jm_abroad · 27 March 2009 at 4:46PM

In regards to a CC debt, I got this via email from MBNA regards an outstanding debt...

"In relation to your conversation on the XXXXX I am pleased to inform you that we have provisionally accepted your offer of XXXXX. MBNA are prepared to accept this payment as a full and final amount for your balance outstanding. In return MBNA will not take any further action and the account will not be pursued further. Remember this will report on your credit file as being fully settled which would be more favourable for future applications for credit."

Reading this line... "Remember this will report on your credit file as being fully settled "

Will this likely appear on my credit file? And as what?

OK, there have been a few missed payments, so I can expect to see that, but will this mark as a partial settlement? That is what we'd previously discussed, but now it seems to say full settlement.

I got it via email, so will wait for the proper hard-copy letter before taking any actions, but I want to go back to them verbally asap if possible.

Also, do I need to get them to re-word at all?

And, FYI, this is about 35% of current outstanding amount.

Thanks in advance for any help and advice.

JM

cifpower · 27 March 2009 at 4:48PM

If MBNA say they will mark your credit file as "fully settled" it will just show on your report as "settled". It will in no way further trash your credit file

Robert_Sterling_3 · 27 March 2009 at 5:05PM

If that is the case it is totally unfair to potential lenders.
How are they to distinguish between a person who has an unblemished record and someone with a less than perfect record. I can't believe that can be the case.
They have clearly accepted a partial payment as they have given up any hope of getting any more than the amount offered. What they are saying is they will not chase up the rest of the amount owing.

cifpower · 27 March 2009 at 5:07PM

Ask for the offer to be sent to you in a letter so you have it in writing

kaisersoze_2 · 27 March 2009 at 5:07PM

It does appear that MBNA are doing you a massive favour if they are going to show the account as settled on your credit file for 35% of the remaining balance, most would put partial default i would have thought.

I would smile and snap their hands off

jm_abroad · 27 March 2009 at 5:07PM

Thanks...

I have a cordial relationship with the contact at MBNA, so I am going to call first, and then I am going to send the following via email and recorded delivery.... (based on National Debt Line's template)

yadda, yadda, yadda, Without prejudice.....

"I write with reference to the money which you are claiming on the above account.

I confirm that I am unable to offer to pay the money which we owe in full. .

However, I can raise XXXX and I want to offer this an ex-gratia payment in full and final settlement of the account. This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that we will be released for any liability.

I also request that, if accepted, you will make an entry on a credit reference agency file relating to the above account as "satisfied" in full.

Payment can be made immediately within 2 weeks of receiving your written agreement of this offer and method of payment."

I hope this will clear any ambiguity, and as long as their intentions were clear, there shouldn't be an issue.

Will keep the forum updated with any further feedback...

jm_abroad · 27 March 2009 at 5:20PM

They are doing me a huge favour. The majority of the remainder 65% but is relating to their charges etc, and both they and I want to get this sorted.

But, I too am doing them a favour. I have left the country, have no plans on coming back permanently, so couldn't give a hoot about CCJs, DCAs, defaults etc. But if there is a chance to keep it clean, then I would prefer that.

And regards it being fair to other lenders? !!!!!!? What planet are you from? How fair are lenders to consumers usually? How fair have international finance markets and corporate greed been to the average consumer lately?

I would recommend to anyone in a similar situation. Get on the phone to your debtors, ask them for a breakdown of what were charges they incurred, i.e. cash, purchases etc, v what was interest, charges etc. And make them an offer for somewhere in between....

jm_abroad · 27 March 2009 at 5:28PM

They've confirmed verbally that it's Full Settlement and will be marked as satisfied. Wow!

They must be as desperate for money as I am!

cifpower · 27 March 2009 at 5:28PM

jm_abroad wrote: »

They've confirmed verbally that it's Full Settlement and will be marked as satisfied. Wow!

They must be as desperate for money as I am!

I would still get it in writing. Just in case.