Relocated, Interest Racking Up, Can I Do A Deal?

manyamuckle

A slightly odd one this... but hope someone might be able to give helpful suggestions.

I am from the UK and relocated to the US in Oct 15. I have a Virgin Atlantic MBNA credit card which I haven't put anything on for a few years and, to be honest, had pretty much forgotten about.

I came across some paperwork the other day checked the balance and it's been understandably, racking up interest. I had set up a monthly minimum payment thing years ago and had been, when I was in the UK and charging stuff to it, paying it off in full each month anyway. I never really look at my UK bank account as I am mostly using my US bank accounts - I know, silly oversight.

When I relocated I sent a letter to each of the companies that I had cards with (most of which had no outstanding amounts) to give them my new address in the US to mail statements and, for some reason, didn't get them from this card - I can only assume it got lost in the system (I have had issue with a bank account too over the years to do with address and ID since being here so I know it can happen).

So, my question is, what is the likelihood that I can write them a letter and ask for a deal/clemency on the interest that has accrued since Oct 2015?

I know it's an outside chance but any help/suggestions would be helpful. Thought I'd ask before just biting the bullet and paying off the whole thing.... if I can lower the amount, that'd be ideal.

Not overly hopeful but thought I'd ask just in case. Thanks.

[Deleted User]

You'd probably need to default first and have the account sold to a DCA.

chattychappy

I would have thought it's worth a formal complaint about not getting the statements. Ask for compensation. Say that had you received the statements you would have been more aware of the debt and would have paid it off earlier. The accumulated interest is a consequence of their failure to act on your instruction. Suggest they compensate you by writing off the interest+fees element dating back to when you sent the letter (Oct 15).

As evidence, if you have it, show them statements from other providers showing the change of address and that you paid down the debts.

Of course there are some very good arguments against you. Eg the T+Cs state you must pay even if you don't get the statement and you should have known there was something outstanding. So it's a long shot. But the first paragraph above backed by the second might just get a result. Go through their complaints process to the end, and if you feel strongly thence to the FOS.

manyamuckle

Deleted_User wrote: »

You'd probably need to default first and have the account sold to a DCA.

I don't want to default, ideally, as it might affect my credit in the UK if I return - and it would be a faff to do from here. Also, a DCA is something I would rather avoid, especially as I'm overseas and they would likely sell it to an agency here and that would screw up my credit here potentially which I would rather really avoid. I appreciate the suggestion though.

manyamuckle

chattychappy wrote: »

I would have thought it's worth a formal complaint about not getting the statements. Ask for compensation. Say that had you received the statements you would have been more aware of the debt and would have paid it off earlier. The accumulated interest is a consequence of their failure to act on your instruction. Suggest they compensate you by writing off the interest+fees element dating back to when you sent the letter (Oct 15).

As evidence, if you have it, show them statements from other providers showing the change of address and that you paid down the debts.

Of course there are some very good arguments against you. Eg the T+Cs state you must pay even if you don't get the statement and you should have known there was something outstanding. So it's a long shot. But the first paragraph above backed by the second might just get a result. Go through their complaints process to the end, and if you feel strongly thence to the FOS.

Good suggestion. Thanks.

Shakin_Steve

manyamuckle wrote: »

Good suggestion. Thanks.

I don't hold out much hope for that one. You can check your statements online any time you like, even if you've opted for paper ones.

manyamuckle

Shakin_Steve wrote: »

I don't hold out much hope for that one. You can check your statements online any time you like, even if you've opted for paper ones.

True but I have also had no emails regarding the account which I should have still been receiving. Seems they 'forgot' about me too.