Barclaycard and MBNA Full Final Settlement

minab_2

Hello there

Well i posted a couple a weeks ago to say that i had offered Barclaycard £1800 as offer for a £3k debt and MBNA £1200 for a £2k debt. Due to being regular payers on a monthly payment plan ive a feeling this is why or offers were rejected. I sent 2 letters directly to the creditcard companies, explaining the financial hardship we are in due to the accident my partner was involved in at work. I also mentioned that this offer, was due to being lent some money from a friend to clear the debt. We have defaulted several times before agreeing to the payment plan, however we are struggling to find this every month. Would it be advisable to keep holding off from paying anything so we default and get referred to the debt collection agencies, and see if we get any where with them?

Many thanks in advance.

carol01

hiya minab
cannot really help but didn't want to read and run
but is your credit rating already trashed?
if so how old are the debts and are they bankaccounts or credit cards

minab_2

Hi Carol01

Thanks for your reply. Yes credit rating is already trashed, we defaulted several times and the payment plan was set up through the debt collection agencies, although our account is now back with with the credit card companies. These debts are around 4 years old and they are credit cards.

Deep_In_Debt

I'm a bit surprised at MBNA not accepting...I've read they've apparently been offering people massive discounts on F&F's... However, they've been good with me and accepted vastly reduced payments for the last 2 years so I guess I shouldn't complain.

Personally, I'd let the debt go to a DCA as they buy the debts for pennies in the £ so you will probably be able to negotiate quite a low settlement although be prepared for a bit of to'ing and fro'ing.

minab_2

Yes i read on here that people had good results from MBNA, so was quite surprised when we received a letter saying the offer was too low. I do think this is because we have been paying every month for a while and the account is back with the credit card company.

minab_2

Does anyone else have any advice or had any experience dealing with these companies and the best route i should take?

Many thanks

rennuz

Seems like you might have offerred MBNA too much and they are thinking they can get more from you. Your offer should show that you are in hardship elsewhere i.e. you can only afford £1 per month as a token payment but your family/friend etc has offerred you £500 to pay it all off, if they dont want that amount then you will pay them £1 a month going forward.

Make sure any offer comes in writing, you will find it will only be classed as a partial payment. The letter should state that they will not pass it on or ever chase you in the future for the rest of the debt. You have to then make a judegement on whether you want to go with the offer.