MBNA - Non default of credit card

Anthorn

dumpyboy wrote: »

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,

I was hit with debt in 2008 when the banks went down, My employer went down and I went to the wall. Strangely though I recovered in 2012 when it was declared that we were in a double-dip recession but we weren't really.

I already knew what I was doing: I produced a budget sheet, worked out what I could afford which at the start wasn't a lot, sent the budget sheet to all my lenders with an offer of payment and received their written agreements. I did not experience any problems. What came out of the blue was one of my accounts was sold to Lowell and all my other accounts were progressively sold to Lowell. But Lowell just continued with the agreements I already had. My biggest bad debt was actually finally paid off after it dropped off my credit history. No problems at all. Right now I'm financially better off than I was when I went to the wall.

Maybe problems lie with DMPs.

glentoran99

Anthorn wrote: »

I was hit with debt in 2008 when the banks went down, My employer went down and I went to the wall. Strangely though I recovered in 2012 when it was declared that we were in a double-dip recession but we weren't really.

I already knew what I was doing: I produced a budget sheet, worked out what I could afford which at the start wasn't a lot, sent the budget sheet to all my lenders with an offer of payment and received their written agreements. I did not experience any problems. What came out of the blue was one of my accounts was sold to Lowell and all my other accounts were progressively sold to Lowell. But Lowell just continued with the agreements I already had. My biggest bad debt was actually finally paid off after it dropped off my credit history. No problems at all. Right now I'm financially better off than I was when I went to the wall.

Maybe problems lie with DMPs.

as I said above you were in a DMP, you just did it yourself


The problem lies that lenders have no strict set of rules of which they must abide, Why should someone who makes an effort to pay debts be disadvantaged over someone who does not


Example


Debtor 1 : £10,000 debt with mbna, ceases paying January 2010, By June 2010 account would be defaulted, by june 2016 all trace of this account is gone from credit file and debtor is free to start again


Debtor 2: £10,000 debt with BOI, ceases paying full amount in January 2010, comes to arrangement with creditor £138.88 per month, interest stopped, Account is reported as Arrangement to pay, 6 years later January 2016 account is settled, History of arrears shown to potential creditors for 6 more years, until January 2022, 12 years after failing into difficulties




In July 2016 which debtor looks more attractive to a lender? Debtor 1 with no record of arrears or debtor 2 with arrears only just paid off?


is that fair?

Anthorn

glentoran99 wrote: »

as I said above you were in a DMP, you just did it yourself


The problem lies that lenders have no strict set of rules of which they must abide, Why should someone who makes an effort to pay debts be disadvantaged over someone who does not


Example


Debtor 1 : £10,000 debt with mbna, ceases paying January 2010, By June 2010 account would be defaulted, by june 2016 all trace of this account is gone from credit file and debtor is free to start again


Debtor 2: £10,000 debt with BOI, ceases paying full amount in January 2010, comes to arrangement with creditor £138.88 per month, interest stopped, Account is reported as Arrangement to pay, 6 years later January 2016 account is settled, History of arrears shown to potential creditors for 6 more years, until January 2022, 12 years after failing into difficulties




In July 2016 which debtor looks more attractive to a lender? Debtor 1 with no record of arrears or debtor 2 with arrears only just paid off?


is that fair?

Thanks for taking the time time to reply. I partly understand it now.

But I'm still of the opinion that the status is wrong: Ok a settled account stays on the report for 6 years after the settlement date. I agree with that. It means that an account which takes 6 years to settle will be on the credit report for 12 years.

But a fully paid account is not in arrears as I've already stated. Therefore it should not have the status of arrears.

I would still chase the lender and if nothing is done chase the CRA. The CRA is going to investigate it and that might prompt the lender to remove the account or at least change the status. From there back to the lender and the Financial Ombudsman or the Finance and Leasing Association if the lender is a member. (conciliation service). Indeed the FOS could refer you to the FLA. Look at the lender's complaints procedure.

A notice of correction could be placed on the credit history stating that the account is fully paid off and not in arrears. The disadvantage of that is that it will draw attention to the account and will also delay credit applications.

The problem is of course that there is no dedicated central regulator for CRAs such as OFCOM and OFGEM and that's surprising.

bris

dumpyboy wrote: »

If it had been defaulted in 2009 it would been gone now , the person says it going to show for 5 and half more years so mid 2022 ,so mbna can report the account with red 6 for 13 years and I can tell you from bitter experince you can forget about getting any credit cards or even a current account ,where the fairness in mbna being allowed to report that

Why should you get credit when you don't pay it back, or pay it back when it suits you.


They don't want you, you only have yourself to blame so why blame them for your mistakes?


You might think its unfair but the lenders don't see it that way, you are a risk they can avoid now.

glentoran99

bris wrote: »

Why should you get credit when you don't pay it back, or pay it back when it suits you.


They don't want you, you only have yourself to blame so why blame them for your mistakes?


You might think its unfair but the lenders don't see it that way, you are a risk they can avoid now.

see post 33, and not everything is clearcut as "you have only yourself to blame"
Also how long is a suitable punishment time? Life and circumstances can change a lot over time,

Im pretty lucky in that even with defaults on my account I have been able to get mortgage and credit card at normal rates, Was also extremely fortunate that two of my creditors "messed up" one reported account as settled when I only paid a 1/4 of it, and the other by the time it changed hands a few times marked the account as ok and not in arrears

glentoran99

Anthorn wrote: »

Thanks for taking the time time to reply. I partly understand it now.

But I'm still of the opinion that the status is wrong: Ok a settled account stays on the report for 6 years after the settlement date. I agree with that. It means that an account which takes 6 years to settle will be on the credit report for 12 years.

But a fully paid account is not in arrears as I've already stated. Therefore it should not have the status of arrears.

I would still chase the lender and if nothing is done chase the CRA. The CRA is going to investigate it and that might prompt the lender to remove the account or at least change the status. From there back to the lender and the Financial Ombudsman or the Finance and Leasing Association if the lender is a member. (conciliation service). Indeed the FOS could refer you to the FLA. Look at the lender's complaints procedure.

A notice of correction could be placed on the credit history stating that the account is fully paid off and not in arrears. The disadvantage of that is that it will draw attention to the account and will also delay credit applications.

The problem is of course that there is no dedicated central regulator for CRAs such as OFCOM and OFGEM and that's surprising.

Its not showing a status of arrears now though, It will say settled, However for the previous 6 years it will say the account was in arrears and be shown for the next 6

dumpyboy

bris wrote: »

Why should you get credit when you don't pay it back, or pay it back when it suits you.


They don't want you, you only have yourself to blame so why blame them for your mistakes?


You might think its unfair but the lenders don't see it that way, you are a risk they can avoid now.

Fair point just blacklist every one the same ,report for entire lifetime anyone ,but everyone must be treated the same

Crystal_Pixie

bris wrote: »

Why should you get credit when you don't pay it back, or pay it back when it suits you.


They don't want you, you only have yourself to blame so why blame them for your mistakes?


You might think its unfair but the lenders don't see it that way, you are a risk they can avoid now.

Either you are very naive or you haven't experienced life. I agree with Dumpyboy about the injustice of this. I went through divorce and was lumbered with a large amount of debt. However, instead of leaving it and just letting the companies default me I tried to pay off as much as I could via Stepchange. Barclaycard did the same thing, marked every payment as arrears even though it was part of an agreed payment plan.
I paid all my debt off and the companies that defaulted me these defaults will come off this year. Barclaycard markers will be on my file until 2020 because I tried to do the right thing.

People don't normally get themselves into bother - life happens and you have to deal with it.

MSnonexpert

Hello everyone.

There have been quite a few posts since I last looked at the thread so I'll try to sum up where I can.

Firstly its nice to see some people agree with me, I also appreciate that everyone's circumstances are different and some people see defaulting as a good thing and some people don't, I guess it depends on how soon that person is able to pay of the outstanding debt.

With regards the "working for MBNA" comment. I t was tongue in cheek, but I assume now its been heard multiple times before.

Once i paid off the debt to the debt collection agency I did get some green markers when I paid the balance over a few months but all the red 6 markers are still there for years and years before for all to see.

With regards to the person who said that I only have myself to blame, well i'll give you some background to my story and then you can see if every single person who is in debt should be treated exactly the same. I like many other people back in 2007 had credit and could pay the monthly payments comfortably each month but when the credit crisis hit (which the banks had a hand in) meant that I no longer had a job with the house builder who employed me because they couldn't find anyone to sell houses to. I entered a DMP and paid back every penny i owed albeit not with the same level of interest or in the agreed timescale.
All I ask is the banks follow the rules set out in recording this on my credit file which they have not done.

On a lighter note, thank you all for the info so far. I have been told I will get an answer before the end of next week so hopefully I'll have a favourable answer to share.