MBNA - can they do this?

loobie

My husband has an MBNA platinum card. He lost his job 2 years ago, and we asked to be put on a payment arrangement. They refused, so we have been paying the normal monthly payment. He has been back in work now for 18 months, and we are still paying the normal amount, even though the facility has been withdrawn.

The balance is now £112, and he contacted them last week to ask if they would be reinstating the credit facility. They asked him about his income and outgoings, but didn’t ask about mine (he pays the mortgage and bills, I cover everything else), so his incomings and outgoings look quite similar.

He has since received a letter saying that they have done a credit search and it has come back declined, so they won’t be reissuing a new card.

My question is, should they have conducted a credit search in the first place? They never actually closed the account. Our understanding was that the facility would be withdrawn until the balance was almost paid off (their minimum payment is £25, so it will be gone in 4 months anyway, but that’s not the point!), then it would be reinstated, albeit with a much lower credit limit.

Can we appeal the decision?

The next payment is due on Monday and I am tempted to stop it until this is all sorted out.

Thanks in advance

L x

opinions4u

Yes, they can do a credit search.

Yes, you can appeal the decision.

But they are not under any obligation to reinstate a credit facility if they don't want.

loobie

so should I just keep paying, or wait for the outcome of an appeal?

I'm a bit annoyed at habing to pay £25 a month for something we can't ever use again.

somethingcorporate

You breached the contract - there would be no way they would be offering you a new facility so soon after you defaulted - to expect it to be so is a bit naive unfortunately. When this happens most lenders want you to clear the debt and then clear off.

You could try a new lender but the arrangement you came to with MBNA will be held against you. If you do look elsewhere make sure it is not another MBNA card (they offer the credit lines for a number of companies) as it will likely be an auto-decline and a wasted search.

You're not paying £25 a month for something you cannot use, you are paying back your debt.

StuC75

loobie wrote: »

I'm a bit annoyed at habing to pay £25 a month for something we can't ever use again.

You're not paying for the credit facility you are paying what you have already spent on the account?

opinions4u

loobie wrote: »

so should I just keep paying, or wait for the outcome of an appeal?

I'm a bit annoyed at habing to pay £25 a month for something we can't ever use again.

Look, you've been through a tough time.

Your credit file may have suffered as a result.

But you owe the money. It's a genuine debt. You're paying it back. That's the way of the world.

Don't stuff your credit file any further by behaving stupidly over a relatively small debt. That means the "naughty clock" starts ticking for another six years.

Get it paid. Kick them in to touch. Start a savings account when it's repaid. Build up a savings balance. Pay your bills on time. Get a credit card elsewhere later if you really need one. But nobody really needs one.