MBNA allowed payment on card cancelled in 2005

liubeliu

Dear All

I applied for a new mobile phone contract and got declined. Checked Experian and all was clear, checked Equifax and noticed an outstanding debt on an MBNA card registered at an address I moved out of in 2006.

Called MBNA and it turns out that CPP had made a request in Oct 2009 therefore a debt of £35 was added to account. The balance is now £120 and now have 6 missed payments on my Equifax record. Lady was confused as card was cancelled by me in 2005. She said I had to contact CPP to request that they refund the £35 to the account and then write to MBNA to request that they update my credit file.

Shouldn't MBNA be more pro-active as they allowed a payment to be added on a card that was cancelled 5 years ago? Is there anything I can use i.e. consumer credit act to make them sort it out.

Also how soon will any correction show up on my Equifax record? Will the six missed payments still show and a comment made or will they be wiped off?

Many thanks in advance

YorkshireBoy

Did you have a contract, in whatever form, with CPP?

If so, where were the premiums previously paid from?...because £35 sounds like an annual premium.

liubeliu

This is the confusing bit, I cancelled the CPP cover before 2005 as my bank included credit card protection into my current account. But MBNA are insistent that I need to contact CPP to get them to refund the payment they took last October. She even had their number to hand.

YorkshireBoy

Based on what you've said I'd raise formal* complaints in writing with both institutions...CPP for taking a premium some 5 years after you cancelled, and MBNA in order that, whilst the late payments were accurately reported, the debt shouldn't have existed in the first place.

* That way you're guaranteed a resolution within 8 weeks or you can take the complaint to the FOS.



Just to be clear...CPP haven't been taking annual premiums from 2005 to 2008 from another card you hold (and that they 'protect' on the policy) and you've missed them on your statements?

liubeliu

No as I only have one credit card (or two as it seems) and one debit card. Surely they would need to give a valid expiry date?

dzug1

liubeliu wrote: »

No as I only have one credit card (or two as it seems) and one debit card. Surely they would need to give a valid expiry date?

Yes - an expiry date that was valid when you originally authorised the transactions. Not one tha's valid now.


CPP are the real culprits in this

liubeliu

CPP now admit they have made mistake.

However MBNA are now saying as they are in the right and I have missed 6 payments I will need to write and appeal even though closed account is registered at an address I moved from in 2006 and therefore unlikely to have mail redirection still active. They have waived the interest and late payment charges but must write to request appeal on the 6 missed payments effectively meaning I am at delinquent status!!!

I have been told if I am not aggressive and lay out the facts there is every chance they will correct my CRA entries. But it is so unfair I have to do this.

emmilee

Have just found myself in almost exactly the same situation.
Card protection payment not taken for a number of years then suddenly £70 5 months ago, which like you I only discovered when I got declined for something else.

Turns out my Dad had a random £70 charge to his Debenhams card too last Summer - which fortunately is a live card and he picked up on his statement straight away. Not linked to my incident as I live at a different address and have a different name, but, seems to be something we all need to be vigilant about.

peterbaker

It's a joke isn't it? Card Protection Plan or CPP do nothing of the sort in these cases. They in fact do the opposite and cause you all this hassle.

I have never purchased "insurance" from CPP or from Sentinel despite being bombarded with their wares over the years. I have been given free protection with them a few times by various banks or credit cards, but never used it I suppose some people might see a potential benefit in it but I never have. The three supposed benefits are:

1) If you use your wallet full of cards/passport/drivers license, they will cancel them and get replacements issued pronto (as long as you have registered each and every one with them first.

2) They offer some kind of "fraud" indemnity

3) They offer some kind of short-term emergency cash loan

Its a matter of personal preference and vulnerability I suppose, but I prefer to manage 1 and 3 myself.

In respect of 2, the money will be refunded by the banks/credit cards anyway.

You have succeeded in getting CPP to agree they made some kind of mistake. That's good, but the "mistake" might be slightly more complex than you imagine. Did MBNA act as intermediary when the CPP product was offered and arranged? If so they are likely to have received a handsome proportion of that notional £35 "premium" as an annual commission and will have had no incentive to cancel it.

I would throw the whole problem most decidedly back into MBNA's lap and insist they fix it all urgently covering all the loose ends or you will go to FOS. That might not tempt them to actually do the work that has to be done, but at least you'll have the satisfaction that it will cost MBNA several hundred pounds mandatory complaint fee with the FOS for incurring your wrath.

emmilee

I contacted experian to put a note on my credit report explaining the circumstances leading to my defaulted payments. I also wrote to CPP and MBNA explaining my concerns regarding their actions. Experian have contacted MBNA and they have agreed to amend my credit record. CPP refunded my fee and MBNA have refunded all the charges. I think it definitely helped getting Experian involved

jago25_98

Sorry to resurrect a dead thread but just to say thanks. I am cancelling my CPP in the cooling off period due to hearing this - thanks! :-)

Is it even possible to close a really credit agreement once open?