MBNA Partial Settlement

fermi

WRINKLES wrote: »

IF a debt is still with the original creditor they are unlikely to accept a full and final

MBNA are one of the few who often will consider it. Depending on the debtor's circumstances of course.

Seen quite a few over the last few years.

As said, they do normally insist on marking the CRFs as partially settled. As long as they also confirm in writing that you are not liable for the remainder, and you are not bothered about your credit record, then that is OK.

TimTheBear

Hi Wrinkles

Its our first month of 'non' payment. just a couple of days ago, although we have written to all creditors explaining. When do I 'default' i.e the timeframe? I am very tempted to DMP as I dont want to 'negotiate' with banks. Just sick of them..

Then maybe I can see a rainbow amongst all this BS.. The OH is still adament that we should negotiate with CC's and get the figure down. I dont think its right as its our debt, we spent it etc.

Would a DMP or F+F/Partial payment be worse on my credit file?

WRINKLES

fermi wrote: »

MBNA are one of the few who often will consider it. Depending on the debtor's circumstances of course.

Seen quite a few over the last few years.

As said, they do normally insist on marking the CRFs as partially settled. As long as they also confirm in writing that you are not liable for the remainder, and you are not bothered about your credit record, then that is OK.

Fermi i bow to your superior knowledge;)

WRINKLES

If you get agreement on full and final and is shown on your credit report as partialy settled it will damadge your rating a dmp will do the same ,

TimTheBear

I'm getting more confused.. DMP or just F+F. If both will have the same consequences, then F+F would be the most obvious choice as you owe less?

DMP I'm a bit miffed on how it could be the same though, as you are paying the full balance still under negotiated terms?

The OH is saying that credit rating will continue to be tarnished even if you finish your DMP. Is that true? i.e need to rebuild it for 6 years AFTER settling the debt?

WRINKLES

YES im afraid so

fermi

TimTheBear wrote: »

DMP I'm a bit miffed on how it could be the same though, as you are paying the full balance still under negotiated terms?

A DMP normally means that you will be paying less than the contractual payments. As such, the creditor is entitled to default the account.

TimTheBear wrote: »

The OH is saying that credit rating will continue to be tarnished even if you finish your DMP. Is that true? i.e need to rebuild it for 6 years AFTER settling the debt?

Assuming that the creditor defaults the account, then that is not true. The account only stays on your credit file for 6 years after that default, not 6 years from the final settlement via the DMP.

Obviously, if you finish the DMP before 6 years are up, then the default will stay on file for a while after.

TimTheBear

So CCCS are saying 5.5 years to complete my mountain of debt, stuck with existing mortgage on a SVR, then + 6 years for a mortgage company to even consider giving me a mortgage.

So 11.5 years to move home..

I might as well get the rope out now?

WRINKLES

Fermi explained this better than i did sorry

TimTheBear

No worries wrinkles.. I still have the rope here..

Fermi - Would the creditor normally default me anyway then if you went into a DMP?

I'm confused on what route to take. F+F or DMP.