MBNA Default issued

newbie1001

Hi

Received a letter today telling me that MBNA have issued a default on my account for the sum of £8,004.45. I was expecting it to be honest.

The problem i have though is back in 06/11 i wrote to them informing them i was encountering difficulties in meeting payments (especially after they incresed them and offered a solution. They sent me an I&E form which i completed and sent in. I continued to recive demands etc so i then wrote to them again with anoth I&E form and a cover letter. Again i git demands etc so wrote a final letter with another I&E and included all the previous letters and Proof of delivery (All sent by Recorded). They still have continued to ignore these though and even though i did make some payments (About £400). The debt has rose from £7,256 to it's current level (Approximately £1200 in Charges and interest since i first informed them of my situation.

What is now my best course of action and can i reclaim some of the interest or charges. I am not in the postion to make an offer to clear the account. Does the OFT rulling affect my account since they have basically ignored my harship requsts and offers. Do i carry on writing to MBNA and if so what is the best way or do i got to the OFT etc and do i need to do anything before then. As far as i am aware the account is still with them as i only recieved the notice today.

Any advice on how to proceede will be most welcome

happy_bunny_2

send them a formal complaint, signed for. They can ignore that but you can then take to the Financial Ombudsman Service (FOS) after 8 weeks of no reply.

Ask them how you are being treated fairly under the lending code etc. Also quote whatever their policy for hardship from their website. I would also try and get the default changed to an arrangement, but depends on when you think you can clear the arrears.

I guess you want to come to an arrangement? How many months behind are you?

newbie1001

The third letter i sent was kind of in a complaint format so i can modify that one quite easily and will make sure it goes to complaints. I am about 7 months behind but has i said i did make some payments (4 months worth about £80 short of what was due monthly) but these were just seen as underpayments to what was actually heard rather than a payment plan.

hummingbird

Hi there, MBNA seem to do this sort of thing a lot - just to say we have been talking about it on a thread called MBNA started by Burnt Rogers, sorry I can't post a link atm but it's a recently started thread so come and have a look.:j
Hummingbird x

System

This is par for the course with MBNA. When I was on a DMP they took eight months before finally freezing interest, but only after thousands of £ were added in interest in charges.

In the end I got utterly fed up of their deliberate malingering so fired off a formal complaint threatening to pay £1 per month unless they sorted themselves out. That's when they agreed to freeze interest.

When you complain you'll get nothing for a couple of months then a letter saying it's "taking longer than expected to answer your complaint" and that they'll write again soon. They probably use this trick to get around the 8 week reply limit.

It was partly their actions which made me go down the BR route and I'm quite happy that they will now be denied the vast majority of what I owed them.

endora

Hey there, I also have (well, had) an MBNA card. They were awful! Just as the credit crunch hit and interest rates went down they raked up the interest to something like 36 or so percent! Had never missed a payment and the balance was increasing until it went over the limit and they starting adding charges for that as well.

Tried to claim on the payment insurance but they never sent me the details and when I finally got them I found I did not qualify so I ended up defaulting. They still added a lot of interest after default, for months and months. They really are one of the worst!

paintpotter

I am on a DMP with payplan, I also had a credit card with MBNA with about 13k on it. I must admit I have found them very lenient. They have frozen the interest, and did not issue a default notice due to my failings on repayment. They have not even put anything on my credit file.

endora

How long have you been on your DMP? How much are you paying them every month?
One problem I can see is if they decide to default you in the future then the default will stay on your file 6 years from that date.
From what I have seen, MBNA are not very consistent in their behaviour.

paintpotter

endora wrote: »

How long have you been on your DMP? How much are you paying them every month?
One problem I can see is if they decide to default you in the future then the default will stay on your file 6 years from that date.
From what I have seen, MBNA are not very consistent in their behaviour.

I have been on my DMP for 2years and 2months. I am paying them £173 per 4 weekly, I now owe £8360. The other credit companies defaulted me, and they shows on my credit file. On my credit file MBNA show as satisfactory. I am assume they are not consistent.