Mbna partial settlement default help pls

Mandamooo

Hi, unfortunately I have been unwell for a period of time and owed mbna £9800 on my credit card, they said they were going to default me on 31st may if I didn't clear the arrears, my dad said he would lend me £3000 to pay the card off which they accepted as long as I paid by the 31st, I was a bit worried about them still selling off the remainder and also would it show a zero balance so I wrote to them within time to ask for confirmation of this, they didn't reply so I rang them last week to clarify and they said they wouldn't confirm it in writing and to pay it, I asked them to clarify this they tried to ring back but unfortunately I was in the doctors in an appointment, this was just before 4 on the 31st, by the time I was free the offices had closed but they had already said they wouldn't confirm in writing.

I have tried to ring them today to sort it out to be told they have registered the default now and it's too late, I don't know what to do, they have said on the phone now that it would be a zero balance with them and I wouldn't be chased for the remainder, I really wanted this confirming in writing though, what do I do, I want to pay it and they said they can't now take the default off any advice pls ?

rizla_king

Insist that they confirm the offer in writing. If you don't, they will just sell the remainder on.

[Deleted User]

don't pay zippo until agreement is in black and white

Mandamooo

They said in the agreement letter that if I didn't pay by 31st they would take steps to default and may sell the debt on, I asked them for further clarification in writing as that seemed vague and they said no, if I get them to agree to it in writing now can I get them to remove the default as well seeing as I tried to resolve it in time ?

How bad does it affect your credit file if you partially settle with a default ?

Tixy

A default is inevitable if you are offering a reduced full & final settlement, so if its any consolation it wouldn't have made any differenee if you had had a few more days, they wouldn't have sent out in writing that they would accept such a low amount and not enter a default.

If you want to offer a reduced full & final settlement to them the best way to do that is to write to them with your settlement offer (there is a template on national debtline website which is useful and asks them to confirm the right infor in writing to you).

A large recent default will make it hard for you to get new credit in the short term.

After it has been settled or partially settled and as it gets older on your file then it will have slightly less of an impact, but will still likely affect you getting any of the very best deals around for the full 6 years from the default.

Mandamooo

when they accepted the offer, they wrote and said it would show as partial settlement if paid before the day they said it would default which was the 31st, I wrote to them and asked if they would show it as fill and final they didn't reply to that either, so from what they have said it looks like they would have accepted before default :-/

Seeing as they accepted it, is there any way if I can get them to agree its zero and they won't sell it on in writing and remove the default ?

Are defaults automatic and non reversible ? :-/

Tixy

Evenif they had agreed to a full & final settlement and to show nil balance outstanding prior to the default being entered they would still have put a default on and then shown that as partially satisfied.

By partially satisfying you are by definition defaulting on the original agreement.

If they confirm they will accept the full & final settlement then they may well agree to mark the account to show the balance owed is zero but I think you have near zero chance of them agreeing to remove the default.

In answer to the last question a creditor is able to remove a default if they wanted to.

[Deleted User]

You'd best hope that they are still willing to accept the £3000.

Not to sound harsh but they gave you the opportunity to clear a £9800 debt by paying only £3000 and that still wasn't good enough for you?

You allowed yourself to potentially loose out on this opportunity by wanting it in writing that you wouldn't have to pay any more of the money they could have justifiably expected to get back in full.

I hope they do extend their offer to accept the £3000, although I wouldn't blame them if they didn't. If they offer it to you, I would advise you to accept it post haste. How can you possibly justify an expectation of avoiding a default on your credit file when you're underpaying by over 70%?

Mandamooo

Lazyloki wrote: »

You'd best hope that they are still willing to accept the £3000.

Not to sound harsh but they gave you the opportunity to clear a £9800 debt by paying only £3000 and that still wasn't good enough for you?

You allowed yourself to potentially loose out on this opportunity by wanting it in writing that you wouldn't have to pay any more of the money they could have justifiably expected to get back in full.

I hope they do extend their offer to accept the £3000, although I wouldn't blame them if they didn't. If they offer it to you, I would advise you to accept it post haste. How can you possibly justify an expectation of avoiding a default on your credit file when you're underpaying by over 70%?

Unfortunately i have been ill for 6 months & will not be returning to work in the near future. I have tried to make what payments i could but the pressure was too much for me & was making me worse, my dad offered to help with what he could offer. We realised that if MBNA sold the debt on then they would get very little for it & we didnt want that to happen. The offer was for MBNA as much as helping myself. I was told via telephone conversation that a default wouldn't be entered on my credit file if i made the partial settlement. I was also informed the debt wouldnt be pusued by themselves or any third party, the balance would be written off & the account marked as zero.

I feel that to ask for "written" confirmation that covers me legally & confirms all the points relating to the "new" agreement we came to is both reasonable & sensible. After all, £3000 is obviously much more satisfactory to MBNA than nothing. Would you pay out any money without the guarantee in writing the balance wouldn't be sold on (if that was the verbal agreement)? (after reading some of the horror stories on the internet)

Furthermore as it "was" a "new" agreement... then if paid accordingly as per that agreement with a zero balance... how could that be in default, wouldn't the new agreement legally void the old?

If they had just agreed to send in writing what they had agreed on the phone then they would have the payment agreed, the matter would be closed & be mutually beneficial. Instead they have created a lose lose situation & i'm at my wits end with it, don't know what to do next?? Any help would be much appreciated.

Mandamooo

By the way Lazyloki, it wasn't that "it wasn't good enough for me" ... I was actually very relieved, but that releif was short lived when i realised that without "written confirmation" i could still recieve a default & i could still be pursued by debt collectors. I'm sure you can understand that.

[Deleted User]

I do understand that but I have to be honest and say that I really don't see how you can get out of this without some kind of default on you credit file. By making an arrangement to pay less than the balance you are effectively defaulting on the account. I could very well be wrong but I think that the person you spoke to might not have known what they were talking about.

I can't see MBNA putting this in writing - you can ask them again though. With such a huge faceless organisation it can be very difficult to get someone who actually has the authority to send out such a letter.

As I said before, if they offer you the deal again, and I hope that they do, I would just accept it.