MSE News: MBNA slammed over unfair debt collection tactics

arthur2

I had quite a large debt, some of it with MBNA, but had no problems paying when I was working. However I became disabled and my income stopped. They agreed to a monthly payment of about 1%, and said if I kept it up for a period of (IIRC) a year, they would accept a payment of one third in full & final settlement. This was OK for a few months, but they got their dates wrong and claimed I had not paid one month, even though I had proof. They had immediately "sold" it to "Link Financial-Lin" (they got the name wrong!), even though I had complied with their requirements. I asked for a copy of the Consumer Credit agreement, but it never came. I did get sent a compliments slip with a balance print-out, supposedly "evidence" of the assignment to Link. I advised them that as they had failed to comply and had breached the agreement to take token payments and then accept a discounted full & final settlement, I would now treat the whole matter as unenforceable. Link rang a few times, and I even got one helpful bloke who was going to see whether they could get their money back from MBNA as they had been "sold" an unenforceable debt!!

Two years on, I suddenly got a "letter before Action" this week. I am wondering whether to apply to the Court to have the agreement voided, or what my next move should be. I had been told there was no way they could get a CCJ if they have failed to supply the Agreement within the statutory timescale.

Does the OFT hassling them have any implications for Link Financial?

fermi

May be of help: New OFT Guidance on agreement requests under s77-79 of the Consumer Credit Act

Sparklyfairy

Sparklyfairy wrote: »

Aren't they still owned by Bank of America?

I think it's just ironic that they were also involved in the sub prime mortgage fiasco that started things off....they seem to be very heavy handed to at least try to recoup their losses!

Sparklyfairy

currentmember wrote: »

Surely a bank operating in the UK such as MBNA (which was american anyway prior to Bank of America) operates under UK financial law?

If the above is correct, then does HSBC also operate under Chinese restrictions or Clydesdale in Australian law given it is owned by The National Bank of Australia?

I agree 100%. They operate here - they have to abide by UK law - regardless of how things are done in other countries in which they operate. The problem is where they function within those laws & the loopholes....which is why the OFT stepped in to, hopefully, clarify these issues to MBNA.

northerngirl30_2

glad they are getting into trouble, I had credit card and loan both with virgin (or MBNA as I later found out) when it all hit the fan in 2008 they were one of the worst to deal with, I had constant calls to mobile, work and home, all day and night, no letters, had agents on the phone telling me to make payment even though I physically couldnt as I had no switch or debit card at that point, their response to this, use someone elses card, which i said i couldnt as was at work and would be until well after their deadline passed, further response... get one of your work mates to do it..... at that point i had had enough and put the phone down.. as if i could just wander round the office asking my colleages to make a debt payment on thier card so I wouldnt get taken to court... to be fair the loan went to equidebt and the card to link, both of whom have been relatively good to deal with,

as someone said above, its not a crime to be in debt and more and more people at the moment are in financial crisis so its good to know that people are taking complaints seriously!

chillxxx

currentmember wrote: »

Surely a bank operating in the UK such as MBNA (which was american anyway prior to Bank of America) operates under UK financial law?

If the above is correct, then does HSBC also operate under Chinese restrictions or Clydesdale in Australian law given it is owned by The National Bank of Australia?

Please dont take this as a sarcastic comment, as this is not how it is intended, but is just my understanding.

The nationality of the ownership is irrelevant. MBNA Europe is a subsidary copmany anyway. As they operate in the Uk they compounded to operate under the FSA Term and conditons. The law on customers contracts is subject to Englsih and Welsh Law and Scottish law in regard to Cards issued to Scottish customers. Most banks and insurance companies in the UK are owned by foriegn companys. If this wasn't the case we would have a free for all on regulation and companies chossing to domicile them in rogue country to escapre stringent regulation.

nissan25

Tankrizzo wrote: »

I was two days late paying my MBNA card once, obviously my fault, I just completely forgot.

They phoned all day and night, my mobile, my home number, even phoning my work six times. They even continued phoning three days after I paid.

In the end I wrote to them and withdrew my permission for them to contact me verbally, now they can only write.

Hi can you withdraw permission and request written contact only? This company as you say harass you night and day, home, work, mobile, recorded messaging and drives you up the walls!

robbie01

Is anyone else having trouble with MBNA I am at the end of my tether I ahve been trying for 8 months to agree a payment plan of £150 against a debt of £8000 I started the year 2010 owing £7900 have paid £1400 this year and now owe £8400 due to them adding default fees etc even thoguh I pay a reduced amount on time which had been agreed verbally they always come back and say we dont acccept this you can afford more. They are appauling rude and constantly call me up to 12 times one day I expalin I cant give them more than I have they told me to ask another adult!

fermi

"ask another adult"

What do you mean by that?

If they are suggesting that you borrow money to pay them off, or ask someone else to do so, then that is waaaaaaaaaaaaaay out of order and in breach of OFT guidelines.

dumpyboy

if this is a true report some one should tell m b n a as there mangers denied they have been pulled up by the oft and can still refuse to talk to third partys as they can not make out going phone calls!!!