MBNA Credit Card - Legal Bullyboy Tactics??

Debtstressed_2

Hi everyone - I've read some of the posts on this site and wondered if anyone could offer some advice on my current situation.

My partner lost his job in November last year and has been unable to get another permanent job so far. We have managed to pay bills etc using my income and our savings as a top up. Our savings dried up and we became unable to meet the minimum payments on credit cards and a loan.

We took advice from CAB and they helped us to draw up a financial statement detailing income against expenditure, and then shared our disposable income among our creditors in proportion to the overall amount owed.

To their credit, all except one have accepted the situation and have agreed to our request for a temporary period of reduced payments, reviewing the situation in six months time.

Virgin (MBNA) have not accepted our proposals and keep asking for additional payments, despite the fact they can see all our income and expenditure. They seem to be of the opinion that someone else should get less so they can get more.

Because we are now more than two months in arrears (other than the token amount we have been paying) they have set their in-house Management Co (Global Vantage) on to us who insist on ringing us relentlessly demanding payment of arrears. We receive about four callls each day at home and mobile.

We have written to them on the advice of CAB requesting that all contact be made in writing and not by phone, but no joy so far.

They have now concluded that they are unable to assist us further, citing that they are regulated by FSA and OCC (american) regulations, and are trying to force us into a payment arrangement over either five or ten years, which would then leave us blacklisted for an additional six years after it is paid off. They say that our only other option is for a full and final settlement for a reduced figure.

We owe them £3000, original minimum payment was about £80. Our payment offer is £34 for six months.

Any useful tips please?? Can they really refuse assistance by quoting OCC regs? They say they are not only governed by UK rules but US too - it is the US element that they are blaming for the lack of help available.

incesticde

Debtstressed wrote: »

Hi everyone - I've read some of the posts on this site and wondered if anyone could offer some advice on my current situation.

My partner lost his job in November last year and has been unable to get another permanent job so far. We have managed to pay bills etc using my income and our savings as a top up. Our savings dried up and we became unable to meet the minimum payments on credit cards and a loan.

We took advice from CAB and they helped us to draw up a financial statement detailing income against expenditure, and then shared our disposable income among our creditors in proportion to the overall amount owed.

To their credit, all except one have accepted the situation and have agreed to our request for a temporary period of reduced payments, reviewing the situation in six months time.

Virgin (MBNA) have not accepted our proposals and keep asking for additional payments, despite the fact they can see all our income and expenditure. They seem to be of the opinion that someone else should get less so they can get more.

Because we are now more than two months in arrears (other than the token amount we have been paying) they have set their in-house Management Co (Global Vantage) on to us who insist on ringing us relentlessly demanding payment of arrears. We receive about four callls each day at home and mobile.

We have written to them on the advice of CAB requesting that all contact be made in writing and not by phone, but no joy so far.

They have now concluded that they are unable to assist us further, citing that they are regulated by FSA and OCC (american) regulations, and are trying to force us into a payment arrangement over either five or ten years, which would then leave us blacklisted for an additional six years after it is paid off. They say that our only other option is for a full and final settlement for a reduced figure.

We owe them £3000, original minimum payment was about £80. Our payment offer is £34 for six months.

Any useful tips please?? Can they really refuse assistance by quoting OCC regs? They say they are not only governed by UK rules but US too - it is the US element that they are blaming for the lack of help available.

the next time they ring tell them you are recording all calls now for evidence (something along the lines of "Before we start I am required by law to tell you that I am recording this conversation and that this recording may be used against you and/or your company in legal proceedings. You are of course entitled to a copy of the recordings upon production of a Subject Access Request and payment of the SAR fee of ten pounds."

If they are still on the line after that tell them that you have quite clearly said in a letter that all communications should be by letter only and then HANG UP.

REPEAT ad nauseam for all phone calls

Re : hey say they are not only governed by UK rules but US too - it is the US element that they are blaming for the lack of help available

boll!!cks You live in the uk and the united states has no juristriction here at all

Stick to your guns and keep paying them what the CAB have suggested, the chances of a court finding in their favour whilst you are making these payments is virtually zero

In the meantime you'll need to send the no phone call letter again... I'll search one out for you

incesticde

this will do you, send it by recorded delivery and keep a copy for yourself.

Quote the letter and date of letter each time they phone.after you have done that hang up!


Your Street
Town
City
Postcode
DATE HERE

Company Name
Road
Town
City / County
Postcode


Dear Sirs,

Harassment by telephone

Account Number: XXXXXXX

I am writing in relation to the quantity and frequency of telephone calls that I have received from your company, which I deem to be personally harassing.

I have verbally requested that these stop, but I am still receiving calls. (Delete if necessary)

I now require all further correspondence from your company to be made in writing only.

I am of the view that your continued harassment of me by telephone puts you in breach of The Consumer Protection from Unfair Trading Regulations 2008, and the Protection from Harassment Act 1997.

If you continue to harass me by telephone, you will also be in breach of the Communications Act (2003) s.127 and I will report you to OFCOM, Trading Standards and The Office of Fair Trading, meaning that you will be liable to a substantial fine.

Please treat this also as a formal complaint, and send me a copy of your company complaints procedure.

Be advised that any further telephone calls from your company will be recorded. (**Even if you don‘t yet have recording equipment!!**)

Yours faithfully,


(type don't sign)

creditcritter

i am having the same problem with harrasment from MBNA how can i proceed legally & what compensation can be gained as ia am suffering stress related to there telephone harrasment .

milliemonster

creditcritter wrote: »

i am having the same problem with harrasment from MBNA how can i proceed legally & what compensation can be gained as ia am suffering stress related to there telephone harrasment .

see above posts for what you need to do

Chrisblue1962

Hi Debtstressed,
Sorry that Virgin are giving you so much grief. At the end of the day, If you can only afford £34.00 a month (or whatever), thats all you can afford. As far as I'm aware,assme even if they took you to court, they will have to disprove that you can afford more than £34.00 a month.

The advice by Incesticide seems to be excellent - Thank You Incesticide, I may have to use such a letter soon but hopefully not.....see my own DFW posts!

Getting phoned day and night by the collection company is a disgrace...it amounts to threatening behaviour and harrassment...shame on them :mad:.

Good Luck, we are all gunning for you here on MSE.

Ames

Also, there are rules about how many times and during what times they're allowed to phone you, I'm sure someone will know how to find the info. If they're breaking those rules you can report them.

dfh

Keep on paying the minumum you can afford.As for US rules,this is the UK and only Uk rules apply in this country.Keep a copy of the letter where they have said this.If it goes to court,I am sure the Judge will be interested in that bit !

Have a read through the following leaflet

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf

dfh

creditcritter wrote: »

i am having the same problem with harrasment from MBNA how can i proceed legally & what compensation can be gained as ia am suffering stress related to there telephone harrasment .

Have a read through the following case scenerio

Whenever there is a downturn in the economy there is one industry that never feels the pinch. Along with the rise in debt collection agencies there has been upturn in the number of debt collection harassment complaints. Not all debt collection agencies use fair methods as this case study shows.
Debt Collection Agencies and Buying Debts

When Michael Daly, 45, lost his job due to the closure of a company he worked he could not longer afford payments to the one credit card he had. He contacted the credit company and made them aware of non payment until he had regained employment. Two months later Michael received a phone call from a debt collection agency informing them that they had been instructed to recover this debt. Michael’s debt had actually been bought by a debt collection agency and they were now trying to pursue this debt.
Debt Collection Harassment By Telephone Calls

Michael informed the agency that he would not be able to honour this debt at present but would when he found employment. “The agency just wouldn’t accept this.” Said Michael. “They demanded that I paid at least £200 per month towards this debt. When I refused they lowered the amount to £100. I refused again and they started threatening legal proceedings and even mentioned bankruptcy.”
In the end Michael hung up on the debt collector but over the next few weeks was subjected to constant phone calls throughout the day. In one day alone the debt collection agency called Michael’s home 11 times.
Debt Collectors and Legal Letters

Within two weeks Michael had been sent a letter from a legal office regarding his debt. The letter was written in a threatening manner and mentioned court proceedings and the possible outcomes including bankruptcy. “I decided to stop burying my head in the sand at this point and contacted a friend who worked at a debt advice centre.”
This was the first step towards stopping the debt collection harassment, and Michael was informed of some of the disreputable practices used by certain debt collection agencies.
Getting the Facts on Debt Collection Agencies

“I was completely unaware of how debt collection agencies worked,” said Michael. “My friend soon informed me of the many tactics used by these agencies to harass people into paying money.” The legal letter that had been sent to Michael was actually not from an official legal office. It was a well known tactic used by debt collection agencies to scare people into paying when threatened with legal proceedings. “I found out it’s the same company sending the legal letter. They simply change the heading, address and wording to make it look more legally official and threatening.”
Why Debt Collection Agencies Buy Debts

Another fact Michael found out was that debt collection agencies buy debts at an extremely low cost. “I was informed that the £2000 debt that I owed had probably been purchased for around £300 or even as low as £120.” Debt agencies buy debts for around sixteen pence in the pound but they can be purchased for as low as six pence in the pound. They will then pursue debtors not for the amount that they purchased the debt for but for the full amount. This is how debt collection agencies make their profits and why they harass debtors until they pay.
Beating Debt Collection Harassment

After taking debt advice Michael contacted the debt collection agency. “I informed the agency that I was aware of my consumer rights and that if the phone calls continued I would report them to the Office of Fair Trading.” Michael also offered a very low monthly payment and informed the agency that if they did not accept then they were free to use court proceedings. “Once I had shown that I would not put up with their harassment and threatened to report them their attitude changed. They accepted the offer I made and that was the end of the matter.”
Debt collection harassment should never be tolerated and should always be reported to the Office of Fair Trading. The strongest asset towards beating debt collectors who practice harassment is for consumers to assert their rights. Debt collectors prey on the debtor’s lack of consumer rights awareness. Those in debt should always seek advice through debt help agencies such as the Citizens Advice Bureau or the Consumer Credit Counselling Service.

PNPSUKNET

creditcritter wrote: »

i am having the same problem with harrasment from MBNA how can i proceed legally & what compensation can be gained as ia am suffering stress related to there telephone harrasment .

You seem to be a compo person, think you should be moving towards paying them which you lent from them.

Debtstressed_2

Thanks everyone for your advice.

Incesticde - thanks for the template letter - i'll type it up and get it in the post straight away. Should I send one each to MBNA and Global Vantage? It is Global that we are getting the hassle from - but MBNA that are telling us about the US laws restricting them from helping us. I suppose I should ask for confirmation of this in writing from them as so far, they have only confirmed verbally about the OCC regs.

dfh - thanks for the leaflet which I have found very informative - I can hardly wait for Global to call me back now!!