MBNA - is it too good to believe?

livewithinmeans

Hello DFWs - I'm seeking advice as no debt 'expert' can verify what I've been told by MBNA. My situation is I have to pay off a £22,300 Virgin credit card debt, minimum payments have always been made on the card but I cannot afford to keep paying the min payments and not see the debt go down.

I've spoken to MBNA and they've verbally confirmed if I pay 95% of the debt, they will declare the debt as 'full & final settlement' and that not paying the full amount will NOT affect my credit rating. If I was to pay less than 95% it would be partial settlement and would affect my credit rating. The question, can I trust MBNA - they are sending me a letter and pushing for me to take this offer up (they've told me it can be 'withdrawn'?), has anyone experienced anything similar? I had my credit rating trashed years ago over a very small £3.00 unpaid debt, so keen to keep it on the right side of okay and paying 95% rather than 100% of the debt would greatly help me.

Any advice or similar experiences would be a great help.
Thank you.
Livingwithinmeans

DVardysShadow

As you are supposed to be getting a letter, wait for it to arrive. It should carry the words 'full and final settlement' and should not contain 'without prejudice'

Oneday77

livewithinmeans wrote: »

Hello DFWs - I'm seeking advice as no debt 'expert' can verify what I've been told by MBNA. My situation is I have to pay off a £22,300 Virgin credit card debt, minimum payments have always been made on the card but I cannot afford to keep paying the min payments and not see the debt go down.

I've spoken to MBNA and they've verbally confirmed if I pay 95% of the debt, they will declare the debt as 'full & final settlement' and that not paying the full amount will NOT affect my credit rating. If I was to pay less than 95% it would be partial settlement and would affect my credit rating. The question, can I trust MBNA - they are sending me a letter and pushing for me to take this offer up (they've told me it can be 'withdrawn'?), has anyone experienced anything similar? I had my credit rating trashed years ago over a very small £3.00 unpaid debt, so keen to keep it on the right side of okay and paying 95% rather than 100% of the debt would greatly help me.

Any advice or similar experiences would be a great help.
Thank you.
Livingwithinmeans

A £3 debt would be very unlikely to trash your credit rating, however.
95% of £22,300 is £21185, where will you find that kind of money?
I know I would negotiate with them for a lower settlement figure and always do it by writing. Tell them that 95% is unrealistic but you can rustle up 75% for a F&F. You will find templates somewhere on teh board for this.

TBH if you can get the cash 95% isn't really an offer as it's more or less full payment.

shona3387

MNBA are playing hard ball with me as well...some websites say can get upto 50% off in a final settlement, MNBA only offering 5% even though I have proved my income and circumstances have changed and I cant afford repayment. Joint debt with partner so hoping he will pay off.
Anyone any tips on dealing with MNBA to get the best deal, as I have tried asking for lower interest rate, lower payments and not playing ball...cause I broke terms and conditions by missing a payment even though I wrote and advised will be missing and advised of problem...still charging interest and lat payment fees even though asked to hold as debt websites advise.
Offered them £3000 on a £4,400 debt and they declined....
any tips!

gratefulforhelp_2

I know someone who paid 25% in F & F, though that was to a debt collector company.

sofababe

If you can't afford the minimum payments how can u expect to pay over £21,000 in one go???