Settlement figures!!

bigt777

I have £10k outstanding on an MBNA card, have bin paying £1 token payments for last 6mnths, yestarday out of the blue they called to say i either pay £80 a month or they would accept a 35% settlement(£3500) also said if i didn't do one or the other in next 2wks they would pass my debt to a third party! Does this figure seem reasonable? They said this was the first offer and they may accept a lower settlement! How will all this affect my credit rating??

fermi

bigt777 wrote: »

How will all this affect my credit rating??

No much.

If you have been paying £1 per month then you will have defaulted anyway.

Short of a CCJ etc, that will already have effected your credit record as much as is going to happen.

bigt777

Could anyone please tell me what's the lowest possible settlement figure i could hope for??

DarkConvict

I'm shocked MBNA has gone that low, from previous posts on here they usually want the 90-100%, or just pass it onto a DCA.
Original creditors are usually in the 70-100%
DCAs are more 30-70% settlement offers,
although on a few occasions its gone as low as 20%.

MBNAs offer is very good in my opinion.

bigt777

The person i spoke to said they would accept 35% but would possibly go lower, she said i should think about it and make them an offer! Wonder if i should offer 20% and see what they say any thoughts??

fatbelly

The usual advice is to start low - you can always go higher.

Remember to post the result here.

But as a note of caution I did help someone who was a bit slow to respond to an MBNA offer (I think it was 35%) and MBNA did what they said they would do - sold the debt after a couple of weeks to a third party. Might have been Lowells but MBNA use a few dcas and I can't be sure on that. Anyway, the third party would not do a deal on full & final.

So I think you should act quickly and make sure you get confirmation in writing. You'll need to keep that letter for six years.

Me_Myself_2

I've agreed 32.6% today. Waiting for my confirmation letter now.

MM

DarkConvict

Ensure you check the confirmation, that it is in full and final settlement and that they nor a 3rd party will chase you for the remainder, and also your credit file will be updated to show the account balence is nil/£0.

fatbelly

Me_Myself wrote: »

I've agreed 32.6% today. Waiting for my confirmation letter now.

MM

I think that's a good deal and thanks for letting us know the result.

Hope the letter says what you need it to say.

bigt777

That's good news well done!!

MBNA are phoning me back tomorrow at 8pm!

So basically I should start low was thinking 15%(worst thing they can say is no!!) does this sound right?

Will make sure it is full and final settlement and ask for written confirmation, will also ask my parents to send the cheque as read somewhere this is best.

Am hoping for a 20% settlement but would be happy with 25-30%, fingers crossed eh!!

bigt777

bigt777 wrote: »

I have £10k outstanding on an MBNA card, have bin paying £1 token payments for last 6mnths, yestarday out of the blue they called to say i either pay £80 a month or they would accept a 35% settlement(£3500) also said if i didn't do one or the other in next 2wks they would pass my debt to a third party! Does this figure seem reasonable? They said this was the first offer and they may accept a lower settlement! How will all this affect my credit rating??

Settled on 20%!! on monday (£2000), really pleased!! Just waiting on written confirmation now. Parents willing to give me an iterest free loan so hoping to settle with all my creditors then will just have one monthly payment.