DMP Mutual Support Thread - Part 7

Chillimonster

jasperconran wrote: »

Still getting harrassed daily by barclaycard, some people just dont listen do they!!!

heres hoping things settle down and fast!

I think its the usual case of left hand not knowing what the right hand is doing.

We all go through it at the start. some fall lucky and have relatively few problems, and others seem to be hassled for ages.

I seem to be in the former group. I was paying minimums for a couple of years then went straight into a DMP with PayPlan 2 months ago.

In total we (its a joint DMP with my OH) have had the following.

Next have rang once and written once (then accepted DMP) MNBA have written once, requesting i ring them, which i did then they stopped interested and charges, TSB have rang once, and then wrot to say they will not stop charges and interest but would accept reduced payments.

The remaining 6 creditors have all rolled over and played ball with us.

Just keep plugging away and it'll all settle down eventually. Just make sure that you have the DMP reference number to hand when they ring and don't be bullied by their calls.

smcshane

pinkpower wrote: »

I have just received a letter from Opus who have taken over the Citibank account. They have asked me to clear the arrears on my account (no amount specified, in letter or on my last citibank statement). Has anyone else had one of these? I had naively assumed that the DMP would carry over, but do I need to start again?

Hi.
Did you not receive a letter from citi saying the account was being transferred? I did about 2 mnths ago and informed cccs that they would have to change who the payment wentto from nov, which they did. So my Dmp has just carried on as normal with them. Opus are not a DCA just another company who have bought some of citi's accounts. from what I can remember they are owned by bank of Scotland. Maybe give them a ring just to clarify the situation.

Regards
Sx

fermi

MBNA slammed over unfair debt collection tactics

Credit card lender MBNA has been slapped on the wrists for its poor treatment of customers struggling to make repayments.

The Office of Fair Trading (OFT) has threatened it with a £50,000 fine if the company fails to implement new measures for dealing with those in financial difficulties (see the Debt Problems guide).

An OFT investigation found MBNA's debt collection arm was not always making it clear it would accept token payments from those in the mire.

It also bypassed customers' appointed representatives, such as debt charities and debt management firms, even though its policy allows them to handle enquiries.

MBNA has therefore been ordered, from 1 January, to:

• Make it clearer in letters to customers in financial difficulty that it will accept token payments.
• Only contact customers with appointed representatives if the borrower or third party has given permission; or if no payment has been made and MBNA has tried, but failed, to contact the representative.

Ray Watson, from the OFT, says: "Our investigation found problems with the way MBNA communicates with customers in financial difficulties.

"MBNA has agreed that it will make its debt collection letters clearer and clarify its policies and procedures for dealing with appointed representatives."

fermi

Full text of the OFT press release.

http://www.oft.gov.uk/news-and-updates/press/2010/136-10

OFT requires MBNA to improve debt collection practices

14 December 2010

The OFT has imposed requirements on credit card lender MBNA to secure improvements to the way its in-house debt collection arm deals with customers in financial difficulties.

An investigation was launched by the OFT after Citizens Advice raised concerns about MBNA's practices when dealing with consumers in financial difficulties or their appointed representatives.

The OFT found that the company was not being sufficiently clear when communicating with customers in financial difficulty who were offering token payments, and was in some cases failing to follow its own policy or procedures by bypassing customers' appointed representatives.

MBNA has cooperated fully during the investigation and is in the process of addressing the issues. As a result of the requirements, which take effect on 1 January 2011, MBNA must:

• make it clearer in letters sent to customers in financial difficulty that it will accept the repayment amount they have demonstrated they can afford to pay, and
• maintain its policy of only contacting customers who have appointed a representative to act on their behalf if the customer or the representative has given permission or confirmed that the representative no longer acts for the customer; or the expected payment has not been made and MBNA has made reasonable efforts to contact the representative without success.

The requirements do not preclude MBNA from sending statements of account or other communications in accordance with statutory obligations.

Ray Watson, Director of the OFT's Consumer Credit Group, said:

'Our investigation found problems with the way MBNA communicates with customers in financial difficulties. MBNA has agreed that it will make its debt collection letters clearer and clarify its policies and procedures for dealing with appointed representatives.'
NOTES

1. The full name of MBNA is MBNA Europe Bank Limited. Download the requirements imposed on MBNA (pdf 61kb).

fermi

The requirements.

REQUIREMENTS IMPOSED BY THE OFFICE OF FAIR TRADING ('OFT') PURSUANT TO SECTION 33A AND SECTION 33D(4) OF THE CONSUMER CREDIT ACT 1974 ('the Act')

REQUIREMENTS RELATING TO:

MBNA Europe Bank Limited (Consumer Credit Licence Number 363167),
registered office address: Stansfield House, Chester Business Park, Chester, Cheshire CH4 9QQ

THE OFT REQUIRES AS FOLLOWS:

That as of the 1 January 2011

1) MBNA Europe Bank Limited shall:

a) maintain its policy that when MBNA Europe Bank Limited has established that a customer is in financial difficulties it accepts the amount that they have demonstrated that they can afford to pay and will improve its confirmation letter ('Confirmation Letter') to make this clearer; and

b) improve the clarity of its Confirmation Letter to advise of the steps that may be taken, including the fact that MBNA Europe Bank Limited sends a notice of impending default at least 30 days before it is registered with the credit reference agencies (if such notice has not already been given).

2) MBNA Europe Bank Limited shall maintain its policy that if a customer has requested all future communications should be made to an appointed representative, including a debt management company, it will deal with the representative and not the customer. Under this policy, from the 1 January 2011, MBNA Europe Bank Limited shall only contact the customer directly in the circumstances described below (which will be communicated to the customer upon the representative's appointment):

a) MBNA Europe Bank Limited may contact the customer directly if:

i) the appointed representative has given permission or informed MBNA Europe Bank Limited that it is no longer acting as the customer's representative

ii) the customer has informed MBNA Europe Bank Limited that he or she wishes MBNA Europe Bank Limited to contact him or her directly, or that the appointed representative is no longer acting for him or her

b) MBNA Europe Bank Limited may also contact the customer directly to confirm whether their representative is still acting if all of the following apply:

i) the expected payment has not been made

ii) MBNA Europe Bank Limited has attempted t o contact the appointed representative at least three times since the expected payment was not made; and

iii) no response has been received from the appointed representative and at least 14 days have passed since the initial attempted contact.

c) MBNA Europe Bank Limited may continue to send directly to customers statements of account and any other communications that MBNA Europe Bank Limited reasonably believes it is obliged to send directly to the customer under applicable law or regulation.

ANY FAILURE TO COMPLY WITH THE ABOVE REQUIREMENTS WILL RENDER MBNA EUROPE BANK LIMITED LIABLE TO FURTHER FORMAL ACTION BY THE OFT. THIS COULD INCLUDE THE IMPOSITION OF FINANCIAL PENALTIES PURSUANT TO SECTION 39A OF THE ACT AND/OR THE REVOCATION OF MBNA EUROPE BANK LIMITED'S CONSUMER CREDIT LICENCE PURSUANT TO SECTION 32 OF THE ACT.

Authorised signatory on behalf of OFT

(Ray Watson - Director of Consumer Credit)

ianmak

Surely that should apply to all Creditors, if it doesn't already...

fermi

ianmak wrote: »

Surely that should apply to all Creditors, if it doesn't already...

It does.

However, the OFT imposing requirements is sort of like them issuing a "final warning".

Plus, giving that to MBNA sends a message to other creditors who may have been behaving in a similar way.

Hopelessly_Hopeful

Woop woop to DMPers.

Thanks for that Fermi. Yes Ian they are recommendations from OFT but as far as I know not legally binding.

Have to say MBNA have been good with me but as we all know it's pot luck which straw you draw.

Hope everyone OK

HHX

fermi

Hopelessly_Hopeful wrote: »

Thanks for that Fermi. Yes Ian they are recommendations from OFT but as far as I know not legally binding.

A bit more than that.

As it says above:

ANY FAILURE TO COMPLY WITH THE ABOVE REQUIREMENTS WILL RENDER MBNA EUROPE BANK LIMITED LIABLE TO FURTHER FORMAL ACTION BY THE OFT. THIS COULD INCLUDE THE IMPOSITION OF FINANCIAL PENALTIES PURSUANT TO SECTION 39A OF THE ACT AND/OR THE REVOCATION OF MBNA EUROPE BANK LIMITED'S CONSUMER CREDIT LICENCE PURSUANT TO SECTION 32 OF THE ACT

In other words, the OFT could fine them. Up to £50,000 per individual breach I think?

Or even revoke MBNA's consumer credit license. Admittedly, that is hugely unlikely as it would put MBNA out of business.

Hopelessly_Hopeful

Appreciate that Fermi. But track record. Implemented? Binding?!!!!! More of an aspiration than a practicality. Still I hope I am wrong!


HHx