MBNA PI Question

U2fire

Hi , i have just started a DMP with 8 creditors, all bar mbna have accepted, i have spoken to MBNA who inform me that i will be on a PI, they say if i had been able to clear the debt in 5 years then they would have set me on a arrangement and frozen charges and interest, but as i am unable to meet this figure, then my account will de-fault and they may sell the debt obviously i will be making my token payments and my fees and interest will be frozen, Is this not an arrangement?
None of the otheres have spoken of PI or made it as complicated, is this just MBNA terminology (is there a difference with my other arrangments) as i have had a default already on one of the others anyway after they agreed a arrangement.
Thanks

chanz4

5 years is reasonable, anylonger they will default and sell I would take it

U2fire

I think you misunderstood, this is what they would have offered me but my income/expenditure dosent show the amount they are after so i am unable to agree to the 5 years even if i wanted to, i am confused over there "PI" as my other creditors have never raised this!

chanz4 wrote: »

5 years is reasonable, anylonger they will default and sell I would take it

fermi

Honestly, it most likely doesn't matter.

In fact, by defaulting you and maybe selling it on, MBNA could well be doing you a favour.

A default now will be off your credit file much sooner than if it went on to a 5 years "arrangement", and as you already have other default a default's not a big worry.

MBNA have messed other people around with arrangements, sometimes deciding that near the end they don't like it and they are going to default the account anyway.

Depending on the purchaser, by MBNA selling it on you may be able to get interest/charges stopped with any new company.

lopez

PI means program ineligible, your offer was too low to go on repayment program, each month you make payment your account will fall further into arrears a you're not meeting the minimum required, the arrears will cause your account to default as it would normally if you missed payments.