MBNA CC settlement advice

Willnus

Hi.

I have had an MBNA credit card for some years now, a couple of years ago I was going through a bad patch and the balance of the card got up to £1900 (with a limit of £1500), as I was getting charged late payments, over limit payments etc...

I am in the process of trying to get those charges back, I sent the first letter a couple of weeks ago... but I have another couple of questions I hope people can help me with regards settling the account...

1) If I wanted to make an offer to them to settle the account, what kind of % should I offer? the balance is currently around £1200 and I am paying off a Direct Debit of £50 a month, should i offer them half of it, and see what they say?

2) How would a settlement affect my credit rating? Is it better to get the settlement and get rid of the card, or keep the payment plan I have going...

3) Should I wait until I get the charges sorted before approaching with the settlement?

Any help greatly appreciated.

mrburns_2

Whilst ever you are under your limit (£1200 on a £1500 limit) and paying your monthly payment they will not entertain a settlement figure as they are making money out of you. Plus MBNA are bad at any settlements even if you are in dire straits.

Best advice is pay as much as you can each month and any settlement off the charges can be directed towards your account.

Willnus

Sorry, I forgot to mention the card has been defaulted...

It did occur to me that they might be quite happy taking the £50 I am paying. When the card was originally defaulted, I agreed to pay £25, but a few months back put this up to try and clear it quicker..

mabski

when was the credit card taken out? was it before 2007
if so have you sent them a cca request?

M_Thomson

How about entertaining a new and eye opening concept. Paying back your bill in full. :rolleyes: Even if you can only manage £50 a month, you should still pay it.

Any

If you can afford to pay the card and bills in general then they will not entertain any idea of settlement.

And if they did you would seriously screw up your credit rating. I can assure you of that.

Hopefully you will get your charges back and pay off one big lump sum.

YorkshireBoy

Any wrote: »

And if they did you would seriously screw up your credit rating.

The account has been defaulted, so the OP's credit rating is 'screwed' already because the default will be visible for a period of 6 years from the last activity.

The issue now centres around damage limitation, ie does the OP want an unsatisfied/partially satisfied default or a satisfied default on their credit report? The former would prevent access to mainstream credit for 6 years, whereas the latter may allow access (a little?) earlier.

Any

YorkshireBoy wrote: »

The account has been defaulted, so the OP's credit rating is 'screwed' already because the default will be visible for a period of 6 years from the last activity.

The issue now centres around damage limitation, ie does the OP want an unsatisfied/partially satisfied default or a satisfied default on their credit report? The former would prevent access to mainstream credit for 6 years, whereas the latter may allow access (a little?) earlier.

Apparently the OP has no problem of paying £50 a month... I take it that the default was some time ago from what he was saying...

we would need to know more info (is he employed? has he defaulted on other things? would they agree he is in financial difficulty?) to advice whether it's worth it to ask for settlement, but as far as I can see from here now I seriously doubt it.

mabski

M_Thomson wrote: »

How about entertaining a new and eye opening concept. Paying back your bill in full. :rolleyes: Even if you can only manage £50 a month, you should still pay it.

so what your saying is the guy should pay in full even through the charges added to his account are now deemed as unfair.
why exactly would anyone do that when he can walk away without paying a penny and get the default removed

Any

mabski wrote: »

so what your saying is the guy should pay in full even through the charges added to his account are now deemed as unfair.
why exactly would anyone do that when he can walk away without paying a penny and get the default removed

NO, you are mistaking terminology.
The amount charged is unfair, not the fact that he was charged.

He still did go over agreed limits and he still did not pay the card on time.

Hopefully he will get part of his charges repaid and will be able to pay one off lump sum.

jamesey07

i would try and get out of paying any off it back, your credit rating is gonna be ruined for 6 years anyway with the default on it, so save yourself the £50 a month and tell them where to shove it, i done the same to mbna and now that they know they aren't getting a penny back of me they rarely contact me now