Finiancial trouble agreement MBNA trouble

willid12345

Hi, I am new here, so I apologise if this has been covered before.
I have fallen into financial difficulty and have visited the CAB to create a common financial statement for my creditors. I am still waiting on responses from them all (although so far UK based ones have responded favourably). However, MBNA have advised that, as they are governed by US legislation, in order for them to accept a long term payment reduction agreement I must offer at least 0.8% of the balance. This is currently not feasible for many reasons that I won't bore you with, but my questions are:
a) Can they legally force me to comply to their "US regulations"?

b) My original (CCA) agreement with them was issued by MBNA Europe and does not mention this clause / limitation. Can I use this in discussion with them?

c) Do I have a leg to stand on? I ran up the debt after all, do I just have to "toe the line" or suffer the consequences?

Any advice will be more than gratefully received.
Thanks
Will

oscar52

willid12345 wrote: »

Hi, I am new here, so I apologise if this has been covered before.
I have fallen into financial difficulty and have visited the CAB to create a common financial statement for my creditors. I am still waiting on responses from them all (although so far UK based ones have responded favourably). However, MBNA have advised that, as they are governed by US legislation, in order for them to accept a long term payment reduction agreement I must offer at least 0.8% of the balance. This is currently not feasible for many reasons that I won't bore you with, but my questions are:
a) Can they legally force me to comply to their "US regulations"?

b) My original (CCA) agreement with them was issued by MBNA Europe and does not mention this clause / limitation. Can I use this in discussion with them?

c) Do I have a leg to stand on? I ran up the debt after all, do I just have to "toe the line" or suffer the consequences?

Any advice will be more than gratefully received.
Thanks
Will

Morning, and welcome to the boards.

Before I go on, I need to say that i Actually work for MBNA.

What they have told you is, in a nutshell bullsh**

Whilst thay are an american owned company, they operate in UK under UK financial laws - american laws have nothing to do with it. I think I rememebe this from before that the debt has to be paid in ten years. They are pulling a fast one - it may be a US a law, but is certainly not a UK one.

willid12345

Many thanks Oscar! That's what I guessed.
Do you or anyone else out there know where I should go from here and what my chances of securing a better agreement is?

Should I contact the FSA or some other body?

It's so soul destroying to feel so helpless against the "big boys"

Will

thewad

I'm with MBNA and they have pushed my interest rate up to around the 32% point and won't budge on it.
Furthermore they have now decided to suspend my account.
How can I get this rate down, it's slowly grinding me down.
I owe just shy of 10 grand.
Need to try and do it without it affecting my credit worthiness.
They are being totally ruthless in my opinion.
Especially when my wife got 0% offer from them.

John

Innocent_Guy

thewad wrote: »

I'm with MBNA and they have pushed my interest rate up to around the 32% point and won't budge on it.
Furthermore they have now decided to suspend my account.
How can I get this rate down, it's slowly grinding me down.
I owe just shy of 10 grand.
Need to try and do it without it affecting my credit worthiness.
They are being totally ruthless in my opinion.
Especially when my wife got 0% offer from them.

John

Are you in the position to obtain another card possibly at 0% and balance transfer?

thewad

Not really at the mo.
Not the way business is at this time.
The phone is not ringing like it used to.

John