MBNA - Non default of credit card

Anthorn

MSnonexpert wrote: »

Hi Everyone,

I am having a bit of a long running battle and wondered if anyone had a similar story or any advise.

I started on a DMP in 2009 and made reduced payments on a MBNA credit card.

MBNA wrote to say i was continuing in arrears etc, threatened several times to default my account if i didn't pay 'x' and said that my facility to use the credit card had been withdrawn but the account was never defaulted.

The account was also sold to Britannia Recoveries who used Moorgate to manage the account but still never defaulted.

The account has now been paid off but will stay on my credit file for another 5 1/2 years now. Had MBNA defaulted me way back in 2009 the account would have gone in 2015.

My argument with MBNA is that because they withdrew the credit card facility from me whilst I was on a DMP that this means our relationship had broken down and the account should have been defaulted at that point.

Has anyone seen where this would be a valid argument and whether anyone could or has had the entire entry removed completely from their credit file because the company should have defaulted the account.

I've read the quoted OP three times and I'm still puzzled. As I understand it the account was never defaulted and now it's completely paid off. So therefore the account should be "Settled" provided the account has been closed. Otherwise the account will be up to date. I don't understand what it is that the OP is complaining about. It would appear the OP is complaining about not being defaulted. That must be unique. I wish I had that treatment back in 2008 when it seemed as though lenders were competing with other to see who could default me the quickest.

To recap, if the account was never defaulted and never closed or withdrawn by the lender then the account should be up to date. If the account was fully paid and closed it should be settled.

Anyone know the status code of a non-default?

dumpyboy wrote: »

Maybe the posters right you work for mbna or maybe you do not know how they operated back in the 2007 and 2009 , if you made reduced payment they never defaulted the accounts but kept showing them for ever in arrears at 6

OK who's working for MBNA. Come on own up, who is it?

glentoran99

Anthorn wrote: »

I've read the quoted OP three times and I'm still puzzled. As I understand it the account was never defaulted and now it's completely paid off. So therefore the account should be "Settled" provided the account has been closed. Otherwise the account will be up to date. I don't understand what it is that the OP is complaining about. It would appear the OP is complaining about not being defaulted. That must be unique. I wish I had that treatment back in 2008 when it seemed as though lenders were competing with other to see who could default me the quickest.

To recap, if the account was never defaulted and never closed or withdrawn by the lender then the account should be up to date. If the account was fully paid and closed it should be settled.

Anyone know the status code of a non-default?



OK who's working for MBNA. Come on own up, who is it?

are you new to this forum? Look around its a common complaint, Its better for credit rebuilding to get defaulated ASAP so the negative is gone from your credit file sooner


The opening poster now has a late payments (status 6) on their file for 5 + years after paying it off rather than the record gone 6 years from it defaulted


He was in a DMP the account was closed and sold to debt collectors, it also quite clearly state that in the opening post, and it also states the facility was withdrawn.


The account was defaulted without the actual default

Anthorn

glentoran99 wrote: »

are you new to this forum? Look around its a common complaint, Its better for credit rebuilding to get defaulated ASAP so the negative is gone from your credit file sooner

That's a bit harsh. I did say I was puzzled. Sorry cannot find anyone complaining about not being defaulted I need a link.

glentoran99 wrote: »

The opening poster now has a late payments (status 6) on their file for 5 + years after paying it off rather than the record gone 6 years from it defaulted

What do you mean by "on their file"? Status 6 says that the account is more than 6 months in arrears. But the OP has stated that the account is fully paid. So therefore the account is not in arrears and is up to date. The late payments should be recorded in the history of the account

glentoran99 wrote: »

He was in a DMP the account was closed and sold to debt collectors, it also quite clearly state that in the opening post, and it also states the facility was withdrawn.

Doesn't matter who the debt was sold to and who owns it. The original agreement remains valid. See below for the rest of the answer

glentoran99 wrote: »

The account was defaulted without the actual default

Conversely the account was defaulted but not defaulted? Well ok if you say so. I ate a pie for lunch but didn't eat a pie.

In the case of a DMP the administrator will have contacted the lender on behalf of the debtor to arrange to stop or lower the interest and to stop the account being defaulted and the OP will have agreed. It looks to me like the DMP did that very well. I really don't see how in that case the OP can complain about it.

The solution to me would appear to be very clear: Contact the lender and close the account. The account should then be settled although the late payments will still be in the history of the account.

glentoran99

Anthorn wrote: »

That's a bit harsh. I did say I was puzzled. Sorry cannot find anyone complaining about not being defaulted I need a link..

Off the top of my head try Dumpyboys posts

Anthorn wrote: »

What do you mean by "on their file"? Status 6 says that the account is more than 6 months in arrears. But the OP has stated that the account is fully paid. So therefore the account is not in arrears and is up to date. The late payments should be recorded in the history of the account..

The account has been marked 6 months in arrears for a very long time, right up until it was settled, this now remains for all to see for 6 years, at the account been defaulted it would be gone without a trace,

Anthorn wrote: »

Doesn't matter who the debt was sold to and who owns it. The original agreement remains valid. See below for the rest of the answer
..

The original agreement was broken, They removed the facilty, they sold the debt on
The following indicate that a breakdown has occurred in most types ofproduct (excluding those in the section on Exceptions at paragraphs 12-15). This list is not necessarily exhaustive.

•  The account has been referred to a collection agency or in-housedebt collection department.
•  The account has been referred for legal action.
•  The account has been included in a bankruptcy, IVA, or similar.
•  The asset financed has been repossessed or instructions forrepossession have been given.
•  The lender takes or has taken steps to cut off the service provided (orwould do so if they were not prevented on social rather thancommercial grounds or by other regulations, codes of practice orstatute).
•  The customer has not made satisfactory proposals in response to ademand for repayment.
  2 Definition of ‘Default Data’ from ‘Information Sharing – Principles of Reciprocity’ available from creditreference agencies or at http://www.experian.co.uk/corporate/...ing/index/html
  Version 3 5 Defaults: A guidance note02.08. 2007

Conversely the account was defaulted but not defaulted? Well ok if you say so. I ate a pie for lunch but didn't eat a pie.

Anthorn wrote: »

In the case of a DMP the administrator will have contacted the lender on behalf of the debtor to arrange to stop or lower the interest and to stop the account being defaulted and the OP will have agreed. It looks to me like the DMP did that very well. I really don't see how in that case the OP can complain about it.
..

If interest was stopped then the your previous point about the agreement still being in place is null and void

Anthorn wrote: »

The solution to me would appear to be very clear: Contact the lender and close the account. The account should then be settled although the late payments will still be in the history of the account.

as stated the account facilty was withdrawn, IE closed! The relationship had broken down, the OP had defaulted instead of recording this correctly MBNA recorded as 6 months in arrears for a very long time


ICO guidelines state http://www.scoronline.co.uk/sites/default/files/high_level_prinicples_document_final.pdf



As a general guide, this may occur when you are 3 months in arrears, and normally by the


time you are 6 months in arrears.

Anthorn

glentoran99 wrote: »

Off the top of my head try Dumpyboys posts

Already replied to most of it and what I posted still stands as true.

For a start an account which is fully paid cannot be in arrears. So therefore providing information that it is in arrears is wrong information. That's pretty much plain old common sense anyway.

From the document you linked to:

In the event that repayments are made and the arrears reduce, the change in arrears status
should be recorded in the next monthly update.

i.e. 6 to 5, 5 to 4, 4 to 3, 3 to 2, 2 to 1, 1 to 0 (up to date).

If the OP has status 6 when the account is fully paid then clearly wrong information is recorded on the report so a complaint should be made to the CRA.

I don't see why selling the account is relevant. Any lender can sell on accounts. Back in 2008, I had all my accounts sold to Lowell. When an account is sold the original agreement remains valid. The facility may well be withdrawn but the account remains.

Lastly as I said, the DMP administrator did their job by getting the lender to agree to reduce their interest and to stop the account going into default. The OP will have authorised that action by the DMP admin and the lender obviously agreed.

The OP needs to contact the DMP administrator to find out exactly what they did because in the light of an agreed change of payment amount or frequency a new agreement may have been agreed. But quite frankly the OP should have already received information about that. Not really much of a chance of any complaint about not being defaulted succeeding if it's the result of action by the DMP administrator which the OP authorised.

dumpyboy

Anthorn wrote: »

Already replied to most of it and what I posted still stands as true.

For a start an account which is fully paid cannot be in arrears. So therefore providing information that it is in arrears is wrong information. That's pretty much plain old common sense anyway.

From the document you linked to:


i.e. 6 to 5, 5 to 4, 4 to 3, 3 to 2, 2 to 1, 1 to 0 (up to date).

If the OP has status 6 when the account is fully paid then clearly wrong information is recorded on the report so a complaint should be made to the CRA.

I don't see why selling the account is relevant. Any lender can sell on accounts. Back in 2008, I had all my accounts sold to Lowell. When an account is sold the original agreement remains valid. The facility may well be withdrawn but the account remains.

Lastly as I said, the DMP administrator did their job by getting the lender to agree to reduce their interest and to stop the account going into default. The OP will have authorised that action by the DMP admin and the lender obviously agreed.

The OP needs to contact the DMP administrator to find out exactly what they did because in the light of an agreed change of payment amount or frequency a new agreement may have been agreed. But quite frankly the OP should have already received information about that. Not really much of a chance of any complaint about not being defaulted succeeding if it's the result of action by the DMP administrator which the OP authorised.

With mine when I went on the dmp mbna froze the interest a long with all my creditors apart from Barclays who reduced it to 6 percent, Sainsbury who did not for 2 years 6 months when they defaulted , all the accounts a part from mbna ,Barclays , Sainsbury sold them on, after 3 years Barclays returned to normal interest and normal payments till paid in full and marked settled , mbna placed the account on what they called 12 years pay down for a set amount for 12 years . It was all ways marked 6 I paid the one account of in six years it was not shown as settled but still reported as 6 ,went to fos they did not want to know his answear was I willing entered in to a 12 year pay down it was there right to display forc12 plus six years, was with the ico for about 18 months and they ruled that mbna could display special arrangement to pay as the account header but if I had paid the agreed amount monthly it had to be green payment made as expected , and the accounts had to be marked settled no latter then 28 days after last payment . There are threads on here very long running from me but when it was done it transformed my credit file overnight. As a footnote the accounts are all paid except Sainsbury which I hope will be December this year which marks 10 years ( for 2. 4 years I paid them 58 a month and they increased the account with interst and charges by abot 140 a month)

Anthorn

Hey dumpyboy. Thanks for that reply. This is something that I'm very interested in so don't be surprised if I appear in your threads.

I went through much the same paying off bad debts for nearly seven years and I never experienced anything I wasn't expecting. It was all pretty much straightforward: Default, paid off, settled, expired and dropped off credit report. But then I didn't have a DMP, I made private arrangements.

Anyway good luck.

dumpyboy

Anthorn wrote: »

Hey dumpyboy. Thanks for that reply. This is something that I'm very interested in so don't be surprised if I appear in your threads.

I went through much the same paying off bad debts for nearly seven years and I never experienced anything I wasn't expecting. It was all pretty much straightforward: Default, paid off, settled, expired and dropped off credit report. But then I didn't have a DMP, I made private arrangements.

Anyway good luck.

I had a formal d m p to start with but after about 3 years I did it my self .knowing what I know I would have simply stop paying them till interst stop and defaulted, had 6 out of nine did and they were a lot easier to deal with at the 3 year mark, I left the mange d m p because at 3 years they told me to stop paying Barclays as the went back to normal interst and I paid them full amounts , going on my own was the best thing I did cleared the vast majorly in half the time forecast by d m p company,

glentoran99

Anthorn wrote: »

Not really much of a chance of any complaint about not being defaulted succeeding if it's the result of action by the DMP administrator which the OP authorised.

That's simply not true, The FOS held up two of my complaints

glentoran99

Anthorn wrote: »

Hey dumpyboy. Thanks for that reply. This is something that I'm very interested in so don't be surprised if I appear in your threads.

I went through much the same paying off bad debts for nearly seven years and I never experienced anything I wasn't expecting. It was all pretty much straightforward: Default, paid off, settled, expired and dropped off credit report. But then I didn't have a DMP, I made private arrangements.

Anyway good luck.

Private or not it was still a DMP just a self managed one