MBNA a/c closed 6yr ago - chased for 2011 transaction

morgansmummy

Apologies, a long one - but views welcome


Had a call from MBNA tonight out of the blue regarding an account which was closed in December 2006.

The guy from MBNA called my OH tonight, to discuss the outstanding amount of circa £150 which has arisen as a result of a £74 payment made to "cardguard" on this account in July 2011. A transaction that is not known to us at all!

The caller from the collections department of MBNA acknowledged that the account had been closed in December 2006, however, they "are under an obligation to pay cardguard".

Despite the chap from MBNA acknowledging that the account had indeed been closed in December 2006, they are now threatening to apply a default notice at the end of the month, and if still left unpaid they will refer the debt to a debt collection agency.

It then emerged that MBNA had bee sending statements to our previous address, since we hadn't notified them that we had moved, due to the fact that the card had been cancelled.

After much negotiation, MBNA said that if OH paid the original amount now, then it they would remove the fees and interest incurred since the transaction.

MBNA are saying that it is OHs responsibility to pay the £74 outstanding, and for him to recover the money from cardguard.

Surely this can't be right - the account wa closed, which MBNA agree is right - how on earth can OH be held account to this?

chattychappy

It comes down to whether OH authorised Cardguard to debit the card. The fact that your OH subsequently closed the account is irrelevant - he is still responsible for outstanding authorities.

This often comes up. Card protection plans are often paid for via "continuous payment authorities" and people often get caught out. He is not the first.

BUT, I must say - 5 years is a bit of a record....

If you think OH might have authorised it all those years ago, then I think I'd accept MBNA's offer.

Try to identify the company and cancel the authority, keeping a record of doing so.

If he really doesn't recognise it, then dispute it.

glawster_2

Some lenders use names such as ‘card protect’ or ‘card guard’ this is, essentially, Payment protection just with a different name. If this is PPI and you didn't ask for it or want it then you can probably claim it back. There is a PPI reclaim guide on the MSE site have a read then make a claim to MBNA.

meer53

Card Guard is the same as CPP as far as i know. It just covers the reporting of lost/stolen cards. It could have been a 5 year policy.

missmoneysaver1906

I know this well, what mbna are offering is good pay origional balance and get the rest refunded, this is usually a 1 or 3 yearly subscription that you had origionally authorised at some point. mbna have a department called disputes make sure they conference the call through to card guard (3 way call) so you are able to cancel the subscription so it does not reappear in a few years time....as they still do on closed accounts. hope it helps

jonesMUFCforever

See my thread yesterday about Barclaycard's new terms and conditions - you will be able to stop CPA in future through them.

morgansmummy

Thanks for your responses. It seem there was a policy taken out in 1993 (!) and they take payment every three years. Despite the policy being cancelled in 2001, it seems that cardguard have opted to start taking payment again. Obviously as they have all of your credit card details they just pick one to charge to.

The case is currently being investigated bu cardguard, so hopefully will be resolved soon.

chattychappy

morgansmummy wrote: »

Despite the policy being cancelled in 2001,

...

The case is currently being investigated bu cardguard, so hopefully will be resolved soon.

If you cancelled it in 2001, then you can dispute it with MBNA as the subsequent charges were unauthorised. It's really up to MBNA to resolve it with cardguard.

Good luck!

moneywolf

I had exactley the same problem with CPP & MBNA

a card i cancelled in 2005, what a mess it was to try & sort out.

Mbna refunded the money , but the last payment notices were never resolved