MBNA Settlement

deth999

Hi Guys,

I have had a settlement agreed on my MBNA credit card. My current balance is about £11,300 and they have agreed to accept £8000. Can someone tell me how I go about getting it marked as a full and final settlement? When I last spoke to them to request the agreement in writing, they told me it will show as a short settlement on my credit file? Does anyone know the implications of this, and how I can get them to accept my payment as full and final.

Many thanks

speedbird1973

If you pay them £11,300 it will show up as settled! any less is a partial settlement. That's what will show on your report.
"Full and Final" you need in their offer letter to you, it confirms they won't chase you for the extra.

You can't expect a clean credit report for not fulfilling your contract.

deth999

speedbird1973 wrote: »

If you pay them £11,300 it will show up as settled! any less is a partial settlement. That's what will show on your report.
"Full and Final" you need in their offer letter to you, it confirms they won't chase you for the extra.

You can't expect a clean credit report for not fulfilling your contract.

I'm not expecting a clean credit report, but I need to know that they won't chase me for the rest. How negative is a partial settlement on a credit file? I know I didn't explain the situation, but they upped my 2.9% APR to 34.9% APR when I missed a payment because I lost my job. Nearly £2300 of the 'extra' is interest they have applied since.

Morglin

MBNA won't chase you for any more money, but it will show on your file as a 'short settlement', which may affect your credit rating.

Lin

speedbird1973

It will affect your credit rating, but that will already be affected if they're considering such an offer.

The key to the "full and final settlement" is you need it in writing to make sure they can't chase you for the rest. If they do you have that letter from them.

deth999

They have refused to give me our settlement agreement in writing, although they do have records of it on my notes. They say they don'y do these things in writing and it is all verbal agreements. I am calling them from a recorded line though and I am informing them I am doing exactly that

BigNige

deth999 wrote: »

They have refused to give me our settlement agreement in writing, although they do have records of it on my notes. They say they don'y do these things in writing and it is all verbal agreements. I am calling them from a recorded line though and I am informing them I am doing exactly that

thats utter rubbish, of course they can do it in writing. Be careful. If they are saying that they may "change their mind" or lose your file.

My question to the others is what happens if they agree not to chase you for the remainder but then sell the debt on? Surely the new company is not bound by the same agreement, leaving them free to chase you for the debt?

izools

The difference between a "Satisfied" and a "Partial Settlement" default is negligible.

Both will reflect as having a £NIL outstanding balance, which is what is important.

You need to make sure you get it in writing from MBNA that they will accept the £8,000 as "Full and Final" settlement before parting with any money, or you will most likely get burned.