MBNA - Default 5 years on 10 months left to pay!

lowlowlola

:mad::mad::mad::mad::mad:

Following on from my earlier post re the renewal of my debit card being queried i just logged on to a free trail of my credit report and have just seen that MBNA have slapped a default on me in september 2010 , my DMP started in Aug 2006 and i have 10 months left to pay to clear the debt - i can not believe they have done this .. is there any recourse???????

i know they can register a default at any stage but this seems so grossley unfair thats another 6 years to wait ,,,i've tried so hard it all seems pointless - has anyone had any success with a similar problem

saltnvinegar

lowlowlola wrote: »

:mad::mad::mad::mad::mad:

Following on from my earlier post re the renewal of my debit card being queried i just logged on to a free trail of my credit report and have just seen that MBNA have slapped a default on me in september 2010 , my DMP started in Aug 2006 and i have 10 months left to pay to clear the debt - i can not believe they have done this .. is there any recourse???????

i know they can register a default at any stage but this seems so grossley unfair thats another 6 years to wait ,,,i've tried so hard it all seems pointless - has anyone had any success with a similar problem

Hiya

I'm sorry to hear that MBNA have been so devious. Unfortunately I'm not sure if there is anything you can do on this, and it's a very petty and mean thing but that I fear is MBNA all over.

I'm not sure if you can put a notice of correction on your credit file explaining the actual situation, may be worth a try.

The positive thing is that you are going to clear this debt in 10 months which means you can start using that money for saving rather than debt repayment.

:T

Not being able to get credit for a while may even be a good thing as it will prevent you getting credit and falling back into debt (falling off the wagon as it were!).

Best
SnV

GeorgeUK

The default date must be within 6 months of the actual default (breach of the agreement).

If this is not the case then they are in breach of the Data Protection Act for processing incorrect data about you. Contact the CRA that you got your credit file from to confirm what you think is being shown and then you will need to write a letter of complaint to the bank before contacting the reguslator.

Tixy

Firstly did MBNA send you out a default notice at any point. They have to do this in order in register a default.
If they sent one out a long time ago but only recently registered the default then I would argue that this is unfair, does not represent the actual position of the account and is unfairly detrimental to your credit file.

If they did recently send out a default notice then I would still try to argue with them that this is against the ICO guidelines on applying a default to an account -information on those guidelines
http://www.ico.gov.uk/upload/documents/library/data_protection/detailed_specialist_guides/default_tgn_version_v3%20%20doc.pdf

Specifically section 22 on deals with defaults when in a DMP and worth having a look through to see whether they have acted correctly based on your circumstances, level of DMP etc.

lowlowlola

tixy this is great - no i have not re'cd a default notice but probably did ages ago

i origianlly "broke the agreement" on 31st Aug 2006 and my first DMP payment went to them on 25th Sep

I will look through and draft a reply... its so disheartening i honestly thought i was on the downward slope... it makes me so mad that when you are trying to do the right thing and face up to your debts that you keep getting knocked down... sorry for moaning am having a very bad day all round!

fermi

How large were your payments to MBNA under the DMP compared to the minimum contractual payments on the card?

Both at the start of the DMP, and towards the end.

Did MBNA officially accept the DMP at any point? If they did, did that change at any point?

lowlowlola

from recollection - i don't have the paper work in front of me it the orginal loan repayment was about £430 and the DMP was ££205 - at my regular review in july this dropped to £190 there is £1856 left to pay

my DMP started in Aug 2006, they accepted an arrangement to pay and yes it has changed (up and down) over the years at regular review points i think the maximum i paid was about 65% of the comparable payment as opposed to teh current 45%

fermi

Did MBNA agree to that drop?

lowlowlola

No i didn't have a yearly confirmation from them - it just rolled on

fermi

In that case it is possibly arguable that you were no longer making agreed payments, assuming MBNA had previously agreed. Or that the level had reduced to one that MBNA no longer considered acceptable.

Can I just double check the default details though?

You say you were defaulted in Sept this year? Is that the actual date listed under the "default date" or "defaulted on"? It is sometimes easy to misread the entries, so just want to check.

If the default date is 2010, then the real question is whether it's fair to record that as the default date?

Especially considering the fact that if at the start of the DMP you had instead paid nothing, you would have been defaulted almost straight away. By paying the DMP up to now, you have acted more responsibly than someone who chose to never pay.

The guidance document posted by Tixy is confusing and in some places possibly contradictory, but paragraph 25 seems fairly clear:

Where a customer does not make the repayments agreed under the DMP, a default can be recorded and the DMP marker should be removed when the total value of the arrears is equivalent to three monthly payments under the original terms.

However, this should not result in the customer being placed in a worse position than someone who has made no effort to pay whatsoever

By recording a default now at this payment level, whether or not you have kept to the agreed DMP amount or not, it certainly seems that you have been disadvantaged compared to someone who chose to never pay.

I'm not sure how far you would get with that argument to MBNA. Or the ICO for that matter.

lowlowlola

Hi Fermi it definitely says defaulted ON Sept 10 - Arrangement to pay registered before then, no default recorded.

Thanks for your advice - its very clear, I will try with the para 25 argument and see how far i get - it does seem grossly unfair