mbna settlement & payment plan HELP?

edsjad

I am seriously in debt and have been trying to agree a payment plan with mbna credit card since january - when I phone they tell me to write, then i write and they say phone - they have been dragging it on for ages, meanwhile continuing adding charges and fees. I wanted to get something sorted before applying to reclaim my fees; i haven't actually used an mbna credit card for about three years so all expenditure has been in fees/charges and it is £700 over its original limit as i haven't managed to pay the full amount since january but have paid £50 which i discussed with them several times. I have the following letter today and don't know what is the best thing to do:
What i may be able to offer you subject to terms and conditions:
1 £76.21 per month reduced payment plan. I can stop all interest and fees, on the understanding that payments made will clear the outstanding balance within a 100 month period. I am more than willing to review the fees and charges that have already been applied to the account.
2 £3429.42 settlement. If you are able to make an offer of £3429.42 against this full debt of £7620.94 then i may consider writing off the remainder, this will be reflectd on your credit file. Even if you cannot get the funds immediately, there are alternative options. Obviously this offer is subject to status.
...These offers are too good not to consider. Please call ....to discuss this further.

They have suggested an settlement offer in writing, telling me to phone them; I did and told them i couldnt do it even after declining their offer of a consolidation loan. Then they wanted me to write with other debts i owed. (I had already sent a letter with income and outgoings). The letter above follows their receipt of that i think.
What do you think? What are the implications of the final settlement as it is part a settlement in a way? I wanted to claim my bank charges - would accepting either of these mean I couldn't do that? When I talk to them on the phone, they keep trying to get me to borrow a consolidation loan from them which I don't want to do. Any advice please - i don't know what to do. I don't know if I could get hold of £3400, but I couldl try if i were given a few months eg sell car, sell on ebay, etc I suppose i would rather do that than be paying them back for 8 years..If i did, could i still claim the fees and charges? If that were possible, then it might be worth it? HELP....!! Jaquie (not received a DFW number yet) - but i am!

xlesleyann

Do you know how much in charges they have taken? If nto might be worth finding this out as they would take this amount of the debt that you.

The settlement figure they gave I imagine would only stand for a certain amount of time, you would have to double check this.

Either way you go it wotn stop you claiming back your charges.

Good luck and hope it works out for you!!

edsjad

xlesleyann wrote: »

Do you know how much in charges they have taken? If nto might be worth finding this out as they would take this amount of the debt that you.

The settlement figure they gave I imagine would only stand for a certain amount of time, you would have to double check this.

Either way you go it wotn stop you claiming back your charges.

Good luck and hope it works out for you!!

thank you - that's really useful. I will go through my statement tonight just so i have an estimate before phoning them. I will aso write and ask for the charge costs. Yes i think the settlemet fig will be for a short itme. although i am sorely tempted, i am worried about being in more debt - athough if i find an interest free credit card that will accept me, that might be worth it. jauqie.

Twinkly

edsjad wrote: »

thank you - that's really useful. I will go through my statement tonight just so i have an estimate before phoning them. I will aso write and ask for the charge costs. Yes i think the settlemet fig will be for a short itme. although i am sorely tempted, i am worried about being in more debt - athough if i find an interest free credit card that will accept me, that might be worth it. jauqie.

You will need proof of all the charges so its best to start with a SAR (Subject Access Request) under the Data Protection Act, rather than ringing and asking for charge details, now and get all the details you need. Go through all your statements and when you have added up the charges take that amount away from the current balance to obtain the actual amount you should be negotiating on for repayment.

Do not contact them by telephone from now on and communicate only in writing. Write and advise them that you will be reclaiming the unlawful charges and that you are aware the current balance reflects a high percentage of these charges. Offer an amount for repayment based only on the actual balance owing.

At this point you are in negotiation and I wouldnt consider any offer from them unless the charges are refunded and you are only paying what you actually owe. The account should remain in dispute until that point. Dont worry and lose your nerve and feel as though you have to accept the offer they have made. You dont.

The part about not being able to get the money immediately and there are other options concerns me. It sounds as though they may be on the verge of offering you a loan at a high interest rate to pay the settlement figure, which will not help you.

When your charges are refunded (eventually) they will be taken off the loan anyway. If you have to go to court to get them back this will work in your favour as you will then be entitled to claim the interest per charge and this will reduce the balance even more. To get an idea of by just how much input each charge into the interest calculator in the main article here:
Interest Calculator

You may find that after reclaiming charges and getting the balance reduced that they may still settle for less than you actually owe. I cant guarantee it though as settlement figures are usually based on them writing off charges but it wouldnt hurt to ask.

Good luck