CCA Not Received for 11 months...! Please Help..!

hirondelle

raga wrote: »

Hi all,

I have(had) two CCs with MBNA. They have sent one but not for the second card. I presume they do not have it if they can't find it for 11 months.

I am thinking of applying for a mortgage, not sure if this will have huge affect on the credit rating? Can I update my credit file with some statement?

thanks..

If you go down the unenforceability route, it will DEFINITELY have an adverse affect on your credit rating so think carefully about what you want to do.

Were your credit cards taken out before April 2007?

chattychappy

raga wrote: »

Can I still send the second letter or this route is outdated now?

The route is a little outdated... in the sense of the Carey v HSBC judgment. Prior to this people were very excited about avoiding debts by demanding copies of agreements and then believing if these weren't provided they would have nothing more to pay. A number of dodgy firms would take money to go through the process. The judgment has meant this business is collapsing as it's not worth the fight.

I think it's fair to say the position is:

1) Even if an agreement is unenforceable, it doesn't mean that the debt isn't legally due. Therefore it can be reported to the agencies as such.

2) An agreement is not automatically unenforceable by virtue of technical irregularities - ie even for pre-6th April 2007, it is not necessary for the lender to provide a copy of the signed agreement. It is sufficient to provide something short of this - eg a reconstituted agreement.

redpete

raga wrote: »

Stephane,

MBNA offered 5.6% for the life of the balance and I had been paying promptly by direct debit. I transferred all my other cards to both MBNAs. Within few months the interest rate went up to 29.9%. This is when I had difficulties paying them. I called them and offerred that will continue to make payments if they go back to the rate they initially agreed. Their answer was, "we can change the rate whenever they like". And I stopped paying.

Now if you think you if you would just nod your head and pay whatever the lenders ask you to do, then you shouldn't be in this forum. I needed advice to take on MBNA; not an advice what is right and wrong. In my case I am sure you would agree that MBNA is wrong.

To give advice that is worth anything people need a lot more info than you put in your first couple of posts. The rate going up is not a valid reason to stop paying completely and people pointing this out are giving you valid advice. You can say that you do not accept the increase in interest rate and ask to be left on the existing rate (as long as the agreement wasn't for a liited period) but this will mean that you cannot use the card for anything further apart from paying back what you owe at least at the minimum amount per month that the lender asks for; I don't know if you can argue this retrospectively (i.e. for a rate change that occurred some time ago).

chattychappy

I don't understand why MBNA would have offer you a LOB deal but are now charging 29%.

1) What did the LOB apply to? Usually they make the offer, and then only transfers you make pursuant to that offer are then subjected to that rate. Existing balances, other transactions (eg purchases) are NOT included. Also, the LOB deal is only available for a limited period. After that period, further transfers will not get the LOB rate.

2) What does the 29% apply to? They might have put up the standard rate, but that would not affect the LOB balance.

3) Have you defaulted in any way? You said you paid by DD. Any payments missed? Did you go above the credit limit? Any default and the LOB deal is off.

raga

Hi all,

To answer some of the questions, MBNA contacted me offering the low rate for the LOB. At that time the balance on my card was £0. Because this was for the LOB, I paid the handling fee of 3% and transferred all other credit cards to this two MBNA cards. I was paying fixed payment of £200 on one card and £100 one another each month by DD. I am not sure why MBNA did this; sure they must be making money somewehre, somehow. whenthe interest went up to 29.9%, the interest alone was more than £200 (on one card) and the minimum payment was more than £200. I had a paycut at this time and was not afford to pay the minimum payment. Hence stopped paying it.

I never used this card for any other shopping, only the balance transfer. I entered into balance transfer deal because of the low interest rate for the LOB. MBNA simply cannot change what they agreed just because they have the right to change it. An agreement is between two parties.

Hi hirondelle, yes the cards were taken out before 2007,

In order to bring my credit report to a reasonable state, what are the options available? Will appreciate if some help. Shall I contact the DCA? But I will not pay the full amount that is mostly the interest.

King100, as you suggest I will try CAG. Cheers.

PNPSUKNET

The default on payment would of ended the promotion

chattychappy

raga wrote: »

To answer some of the questions, MBNA contacted me offering the low rate for the LOB. At that time the balance on my card was £0. Because this was for the LOB, I paid the handling fee of 3% and transferred all other credit cards to this two MBNA cards.

Are you saying they made the same LOB offer on BOTH of your MBNA cards? Unless they did this explicitly, you cannot assume the same offer applied to both of them.

raga wrote: »

whenthe interest went up to 29.9%, the interest alone was more than £200 (on one card) and the minimum payment was more than £200. I had a paycut at this time and was not afford to pay the minimum payment. Hence stopped paying it.

You stopped paying BEFORE the interest went up, or AFTER?

[Deleted User]

raga wrote: »

Hi all,

MBNA simply cannot change what they agreed just because they have the right to change it. An agreement is between two parties.

This is where you're going wrong. They CAN change the interest rate if they want to. But YOU need to agree to it. As in 'yes' or 'no, I no longer want to do business with you." If you don't reach that agreement, then the agreement ends. You don't borrow any more money from them, they don't change their rates. You don't just take a decision not to pay anymore. From what I've read, you didn't tell them you weren't accepting it.

Re the LOB - I suspect you may be getting confused about the offer. A true LOB would last until you paid it off. Could be 6 months, could be 50 years. It can only be taken away if you breach the agreement. So either it wasn't a LOB, or you missed a payment/went over limit before they changed the rate.

YorkshireBoy

Deleted_User wrote: »

They CAN change the interest rate if they want to. But YOU need to agree to it. As in 'yes' or 'no, I no longer want to do business with you." If you don't reach that agreement, then the agreement ends. You don't borrow any more money from them, they don't change their rates.

That's a recent development though isn't it?...Jan 2009/Jan 2010?

The OP has been chasing his agreement for 11 months, so it could be the increase happened long before then?

The fact remains though, that lenders don't change the terms of a LOB deal unless the T&Cs are breached.

raga

Hi Chattychappy,

• They offered same LOB on both cards.
• I paid two months installments on high interest, then stopped.

zx81,

• I contacted MBNA and said I do not agree with the change of interest. Several times.
• There is no confusion about the LOB, the first time I heard of the term "LOB" was from MBNA, when they offerred this deal.
• I used this card only for the balance transfer repayment. And never missed a payment. I was told by MBNA at the time of balance transfer that if I miss a payment, they would apply high interest rate. So I kept payment prompt every month. I was paying twice the minimum payment.

When I called the MBNA customer services to complaint about the high interest, the woman said I have had the promotional rate for about 8 months or so. I told her about the LOB but she asked if I have received anything in writing from MBNA confirming it will be LOB. It was done over the phone where they called me and arranged this LOB.

They called, offerred this LOB rate and then asked for evidence in writing???