MBNA nightmare

spindle19

I was checking my credit history and report over the weekend and found a 'default' against my name reported by MBNA. The default was recorded earlier in the summer this year after six months of non-payment of a credit card balance. I was puzzled because the account was an old closed one and a transaction of £55 pounds had snowballed to £151 due to non-payment charges. I couldn't possibly have known or paid as I had moved twice since closing the account (paid down to zero) and nearly five years had passed since closure. Clearly MBNA didn't have my new address and they shouldn't have needed it. It turns out that it was the AA (Automobile Association) re-activating my breakdown cover (it was suspended at my request after I got a new car that had breakdown cover included). So, even after the best part of five years the AA charged an old account. They claim they have done nothing wrong and this indeed may be the case legally etc, but morally I think it's disgraceful and very irresponsible as well. The MBNA have at least agreed to accept payment of £151 and they'll write to the credit reference agencies to clear my financial name, but I feel they are partly to blame too for agreeing to honour the transaction. I'm now £96 out of pocket and after calling the AA to ask if they might compensate me in some way, they flatly refused. The MBNA told me they had never seen anything like this before. I may never see any compensation from the AA (and I accept it was just a silly unfortunate string of events). I would have thought the AA would want the matter closed too (after all they still got the £55 and no bad publicity). Obviously this is just an outline of what happened. I really think the system should change; all the AA had to do was warn me that the payment details were out of date, even the renewal docs didn't show any card details at all. I'd like to see this sort of practice stopped as someone could get into real financial strife as a result of this type of thing.

chattychappy

Seems to me it turns on what is meant by "suspended". If you effectively withdrew authority for them to charge your card, then anything that appeared after that was not authorised. So you'd be entitled to dispute it, even at this late stage. It does seem you've settled though.

I don't think it's really an MBNA "nightmare". It seems they were a bit sympathetic and I doubt whether other credit card companies would have been any better.

spindle19

That's fair comment re MBNA, but I do think it was handled very badly by both MBNA and the AA. This sort of thing need not happen and I'd advise anyone to steer well clear of credit card continuous authority because they can come back and bite you at a (much!)later date.

jonesMUFCforever

So you gave the initial authority to the AA - MBNA would have no knowledge of this - you then closed the card but did not cancel the CPA to the AA and somehow its MBNA who are a nightmare! - Strange world.

oscar52

jonesMUFCforever wrote: »

So you gave the initial authority to the AA - MBNA would have no knowledge of this - you then closed the card but did not cancel the CPA to the AA and somehow its MBNA who are a nightmare! - Strange world.

Maybe you should re-read the OPs post - specifically this part:

It turns out that it was the AA (Automobile Association) re-activating my breakdown cover (it was suspended at my request after I got a new car that had breakdown cover included). So, even after the best part of five years the AA charged an old account.

rb10

spindle19 wrote: »

I really think the system should change; all the AA had to do was warn me that the payment details were out of date, even the renewal docs didn't show any card details at all.

So you were still getting renewal docs through from the AA? But you never saw a transaction on your account for it?

knightfox

When did you close the MBNA account?

When did AA actually charge the card / account?

I am not sure how MBNA found you, if you have moved since then. Do you have credit cards that are linked to MBNA?

YorkshireBoy

From the OP...

knightfox wrote: »

When did you close the MBNA account?

The best part of 5 years before the AA debited the account, so early to mid 2005.

When did AA actually charge the card / account?

6 months before the default was added this summer, so around late 2009/very early 2010.

I am not sure how MBNA found you, if you have moved since then.

MBNA didn't find the OP...the OP found MBNA after checking their credit report and seeing the default listed...presumably fairly recently.

bengal-stripe

oscar52 wrote: »

Maybe you should re-read the OPs post - specifically this part:

Maybe you should look at the OP's posting on the same topic in another thread:

spindle19 wrote: »

Yes, the AA had my new address! However, I couldn't figure out how they could renew as I couldn't possibly have valid payment details on record (or so I thought!). The new membership card was sent out before the actual renewal date (same as CC companies do) and I just assumed that the membership was invalid after the expiry of the old one. I won't be making the same mistake again!

The OP was well aware (prior to the renewal date) that the AA was re-activating the subscription. S/he did not object to that fact or tried to cancel the subscription.

I think, no-one but the OP is to blame.

spindle19

The account was closed around the end of 2005, can't remember exactly. I moved twice since then so I never received the statements (sent to an address I haven't been at for 5 years). I only found out after I spotted the 'default' on my credit report (I check it a couple of times a year). The charge to the account was made in Dec 2009. The renewal docs have nothing on them to say which card. It was me who contacted MBNA because I thought the default was a mistake or fraud. I haven't had a card from MBNA or one linked to MBNA since that one closed.

YorkshireBoy

spindle19 wrote: »

The account was closed around the end of 2005

I got that wrong then...but you did say nearly 5 years to the debit in your OP!

The renewal docs have nothing on them to say which card.

Not even the last 4 digits? ie "XXXX XXXX XXXX 1234" or "card ending 1234" as is normally the case...and certainly is with my RAC renewals.