Help with MBNA Credit Card Debt

edited 30 November -1 at 1:00AM in Debt-Free Wannabe
6 replies 1.2K views
hollynolollyhollynololly Forumite
14 Posts
edited 30 November -1 at 1:00AM in Debt-Free Wannabe
Hello all, long time stalker's first post...

After following all the helpful info on here, I have contacted MBNA about my credit card debt - I owe approx £8.5 k. I have been trying to keep up and have made some payments but Im still in arrears totalling seven months payments £1260.

I will have some extra cash at the end of March so I wrote offering a full and final settlement of £3,500 - just over 40%. They contacted me to say they should be able to accept this (Ive had nothing in writing).

However this morning they have rang and said they will only accept the settlement if I make a payment today of £180 to stop the account defaulting. If I don't, the account will default and then they will pass it to a DCA and therefore will not accept my f&F offer.

Is this just a tactic by MBNA to get more money out of me - Ive had nothing in writing to confirm they accept my offer so Im worried if I pay it they may turn down my offer anyway! I could (just about) pay the £180 if I really needed to but it would leave me short for the rest of the month.

Can anyone advise me please? Thanks :o

Replies

  • Hello all, long time stalker's first post...

    After following all the helpful info on here, I have contacted MBNA about my credit card debt - I owe approx £8.5 k. I have been trying to keep up and have made some payments but Im still in arrears totalling seven months payments £1260.

    I will have some extra cash at the end of March so I wrote offering a full and final settlement of £3,500 - just over 40%. They contacted me to say they should be able to accept this (Ive had nothing in writing).

    However this morning they have rang and said they will only accept the settlement if I make a payment today of £180 to stop the account defaulting. If I don't, the account will default and then they will pass it to a DCA and therefore will not accept my f&F offer.

    Is this just a tactic by MBNA to get more money out of me - Ive had nothing in writing to confirm they accept my offer so Im worried if I pay it they may turn down my offer anyway! I could (just about) pay the £180 if I really needed to but it would leave me short for the rest of the month.

    Can anyone advise me please? Thanks :o

    Hi Holly

    Personally if I hadn't received anything in writing then I wouldn't trust them as far as I could throw them.

    They 'should' be able to accept your offer.

    Then all of a sudden they cannot accept your offer unless you make a payment today.........

    I would inform them that you may be prepared to make a payment to stop the account defaulting but only if you get confirmation in writing they accept your F&F.

    Inform them that a relative would be paying the balance, and consequently you do not have that money to pay today, but your relative may be satisfied to pay this if you can get the F&F in writing.

    This would be a reasonable thing to ask, and, if they refuse, you know where you stand with them and what their real intentions are.

    If you don't comfortable taking such a hard line, then try calling them back but make sure you record the telephone conversation.

    Ask them to confirm that if you make a payment today they will guarantee to accept your F&F offer.

    Make sure they do not use 'weasel words' such as 'might' or 'should'. Make sure you press them that the remaining balance will NOT be pursued and will NOT be sold to a DCA.

    You can see that getting this confirmed on the phone is fraught with risk which is why I suggest if its not in writing then don't do it.

    Best

    SnV
    LBM & Debt July 2010 [STRIKE]£19,000[/STRIKE] now - £11,619.60 Long Haul Supporter #247

    Remember Income > Expenditure = MSE Heaven :A and Income < Expenditure MSE Hell :(

    Current STB (sticking to budget) Counter - day 109 (Personal Best - 109 days!)
  • Thanks, that's what I was worried about too, not having anything in writing.

    I think I'll email them asking for written confirmation and if not Ill just have to take my chances with the DCA... Im really disappointed as I wanted to get this paid off and was happy with the 40% settlement!
  • TixyTixy Forumite
    31.5K Posts
    ✭✭✭✭✭
    Hi holly

    Agree with SnV. Plus even if the debt does get sold on to a 3rd party - its quite likely they will accept an equivalent F&F offer anyway.

    Have you not had a default registered against this account yet? no default notice in the post or default registered on your credit file? I would have thought you would have had this already being so far behind with payments. If not then no matter what they said it seems unlikely they would accept such as low F&F anyway.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • BTW just a caution from my own personal experience of dealing with MBNA's collection department........

    If you do engage in a telephone conversation with one of their agents they will do their hardest to get you to make a payment there and then over the telephone.

    For example I got told that they would not accept my DMP if I didn't make a payment during that phone call.

    When I refused, stating that they did not need this to agree to my DMP I was asked:

    "So you are saying you are refusing to pay back the money owed then?"

    DO NOT ACCEPT this specific wording if you are asked this question. This immediately puts you into the bracket of a 'won't pay' rather than a 'can't pay'.

    I have come across this practice within their collections department on three seperate occasions now.

    As far as I'm concerned this is a leading question and is phrased in a specific way and I can only surmise that they will then specifically put in their call notes that you have refused to pay back the money owed.

    If asked this question ensure that you forcefully reject their suggestion that you are refusing to pay. Inform them that this is certainly not the case, that you are trying to propose a payment solution but it has to be at a rate you can afford.

    Inform the operator that you will be making a Subject Access Request (SAR) (say this even if ultimately you do not) and that any misinterpretation of your phone conversation as to your status regarding being able to pay will be subject to a formal complaint via both MBNA's complaint process and the OFT.

    I experienced exactly this, and got a complaint upheld my MBNA with the usual excuse that the operator had been 'retrained'.

    Another reason why you should keep everything in writing.

    Best

    SnV
    LBM & Debt July 2010 [STRIKE]£19,000[/STRIKE] now - £11,619.60 Long Haul Supporter #247

    Remember Income > Expenditure = MSE Heaven :A and Income < Expenditure MSE Hell :(

    Current STB (sticking to budget) Counter - day 109 (Personal Best - 109 days!)
  • Ive not had a default notice yet - thats what she threatened me with this morning if I didnt pay up by 4pm today! Apparently as soon as it officially defaults they then pass it on to a DCA.
  • TixyTixy Forumite
    31.5K Posts
    ✭✭✭✭✭
    Even after they send out a written default notice that notice has to give you 14days to settle the debt before it can be registered against your credit file. I'd be very surprised if they sold on your debt before that 14day timescale as an absolute minimum (though they may pass it to an internal DCA to deal with the collection of the debt from then on).

    As I say if they haven't issued a default yet then a 40% offer is very low. Which makes me think they possibly would never have accepted it anyway. Even if they did accept such a low offer they would probably still issue a default on your credit file prior to marking it as partially satisfied. If you want to do a reduced settlement then its likely you are going to have to accept a default notice will be on your credit file for the next 6years.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
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