MBNA default notice - what next?

greyface

Hi hope im in the right section, i was having trouble paying my MBNA cc when the rate of minimum payment % went up last year. the minimum payment were over £500 i called up explaining my finacial difficulties and they were great agreed to reduce payments to £225 per month freeze interest for 6 months. ive since made all payments balance in 16k but i now have a default notice ive sent in a statement of accounts from cccs as even the £225 was a struggle but there seems nothing i can really do unless i pay £3200 in 2 weeks. i understand this will be on my credit file for 6 months but my main worry is what will happen to the debt? they mention selling it etc i am paying it back and what i can afford but find the future bleak.

has anyone been through this with MBNA?

any advice welcome

thanks for reading

ChopperST

Hi Greyface,

Unfortunately as you failed to meet the monthly repayment you have already defaulted on the credit agreement which will stay on your credit file for 6 years, not 6 months.

Get on the debt free wannabe forum and post a statement of accounts to reduce your monthly outgoing to get this debt paid off ASAP and the very best of luck to you.

Gromitt

It is correct, unless you pay off the debt in the time scale (or agreed to a DMP) then they will sell the debt off. If you continue to fail to pay, it may be referred for court action.

Have you submitted a SOA to them and requested a DMP?

greyface

thanks for the replies,

your correct chopper i ment 6 years.

i submitted a SOA 3 weeks ago but that or a DMP wasnt suggested to me today.i do not want the debt sold on etc and i have not missed paying something per month. we had agreed 225 a month 6 months ago and i was paying this,

would they consider a DMP? i realise ive been silly in the past and spent on a card i couldnt afford but i no this needs addressed and im more than happy to sort it out by continuing to pay to it per month.i think ill need to call again tomorrow as im sick with worry

Nat0273

Hi there I recently got on a reduced payment plan with Mbna I asked a question recently and was told I wasn't on a formal reduced payment plan as my offer was not enough to pay the account in full over a 5year term.
They said the account will be defaulted when it reaches 7months in arrears but you can possibly prevent your account from defaulting by getting on a formal reduced payment plan
I only found this out by querying the arrears!

hops1963

Hi - how old is this account?

Nat0273

Sorry not sure if you are asking about my account or original poster as I am new to this
I have had the credit card quite a few years but this is my first month on the new repayment offer

Ben8282

I don't understand this.

What was the balance of the account when the minimum payment became over £500 per month? What % of the balance is the minimum payment?

If the OP agreed a payment plan for reduced payments and has been paying £225 a month with no missed payments how can the account be defaulted?

And what is this £3200 that you say you have to pay in 14 days? What does this represent?

greyface

nat i think you might be in the same position as me in 7 months.

the card has been activated for around 10 years but its a current account and was in use till it reached its limit.

last year i was paying around 330 per month then the new % came into affect and it jumped to around 550 at this point the card had around £19k on it. its another story but 19k limit when your earning 21k a year seems madness, i no its my fault but looking back MNBA should have a few questions to answer on giving someone that limit. i could not pay the 550 and we agreed after going through SOA on 225 per month this did not cover the 5 year plan they said i couldnt afford 330. my 6 months are now up but i have other credit cards and 1 out of the other 2 cards has accepted my offer after taking advice from CCCS of £50 per month.

i assume the 3200 is made up of 6x reduced payments ie 550 - 225 = 325 underpayment per month and the account was also in arrears. tbh im not sure how it gets to 3200.

I will call them again tomorrow and see if i can get onto a 5 year plan and let you no how i go.

any other advice appreciated and thanks so far

Nat0273

Hi grey face I have tried to call them unsuccessfully today when I phone at 6pm it says they are open 8am-4pm when I phone at 8am it says they are open 9-9pm ! As I can't ring when I am at work it is a bit of an issue ! Do all the credit cards do this 5 year rule offer? I really don't want to default on any of my cards but I can not afford to pay them back if they keep the interest at the standard rate
I know I caused the mess anyway let us know how u get on

happy_bunny_2

Nat0273 wrote: »

Sorry not sure if you are asking about my account or original poster as I am new to this
I have had the credit card quite a few years but this is my first month on the new repayment offer

Maybe both.

I have MBNA card due to old Alliance and Leicester card. Taken out around 2000 and we I asked for a copy of my CCA they replied they cannot locate it and would not enforce the debt in court as long as this continued.

Payments are up to date but good for negotiation if hey re not.