MBNA - will they offset?

MP14

OH has received letter confirming that MBNA are upholding claim however letter states that it may be offset if outstanding balance and may be recalled if debt has been sold on.

The debt was sold on to Lowell a long time ago and Lowell now have decree which we are paying monthly. So in this case are MBNA able to recall and offset?

Thanks for any help.

dunstonh

So in this case are MBNA able to recall and offset?

If the debt cannot be recalled then MBNA are not allowed to offset. if the debt can be recalled then they can use it to offset.

MP14

What are the rules on recalling the debt though? I would guess that because Lowell have decree it can't be recalled because the decree is a court order between OH and Lowell. Is that right?

Thanks again

dunstonh

What are the rules on recalling the debt though?

If the debt can be recalled by the lender then they can do so and offset. They are allowed to do that.

I would guess that because Lowell have decree it can't be recalled because the decree is a court order between OH and Lowell. Is that right?

There will be a commercial arrangement between the lender and the collections agency. The court order is nothing to do with that. That is just an agreement between your OH and the collections agency. However, early repayment would end that agreement and the redress would be classed as early repayment should MBNA choose to and are able to recall the debt.

yamsteroo

I've no idea whether they will recall the debt etc or the legalities of doing so but I had a DMP which included MBNA and on a successful refund of PPI (£1100) they just sent me the cheque even though my debt was still with them and at that point, over the value of the refund.


I even noted on my claim that as I was in a DMP I was aware they could offset but still they chose not to so you never know, they may just send you the repayment and leave your debt management as it is.

dunstonh

I've no idea whether they will recall the debt etc or the legalities of doing so

The FOS state in their own publications that if a lender can recall the debt from the claims company then they are allowed to offset it.

The problem tends to be that companies are inconsistent in their approach and some get money and others do not.