Help with negotiating short settlement pls

Such_2

Thanks for taking the time out to reply.
I will be sending a cheque to MBNA next week for the partial settlement, and negotiate a similar one with barclaycard.

In your experience of dealing with MBNA how likely are they to pursue the rest of the debt if they are unwilling to put anything in writing?

I have been assured that this will not be the case, but whenever I speak to MBNA there seems to be a lack of consistency with the advice given, and when i refer to my previous calls they seem to have no record!

Thanks for your help - it is much appreciated

mrsspendalot

Just to warn you that if you accept a partial settlement, the remainder of the debt can be sold on and a DCA could come after you for the money in the future. I'm not sure if you are aware of this or have considered this.

Such_2

I have been "assured" that the account will be closed and will receive a letter to state this within 30 days.

Has this happened to anyone else?

Debtfix

Ok now to deal with this open ended situation where no letter is promised.

When dealing with important matters by telephone you should note the time and date of the call. The name of the call centre operator and their extension No. They will not usually give their surname but if you have these details the call can be identified.

The next step is to note down any substantive item discussed and any reply by the CCO.

So if an offer is made such as "you pay £X and we will not pursue the rest" note this offer.

Using this information you write to your creditor beginning your letter "on date at time I spoke to name on ext No. and I understand from the conversation that if I pay £X my account will be closed.

List any other points as being your understanding of the phone conversation.

As a savvy debt manager (by now) you will keep a copy of the letter in a locked box in a secure place. Send it recorded so that you can show that a letter was received by said creditor around the time you claim to have written to them.

If there is no reply within a 14 day period then pay the money do the deal or whatever.

The principle is that if they disagree with the content of your letter they will write to tell you. If they do nothing the legal position is that they have agreed with the contents of the letter. The contents of the letter will stand up as evidence in court so you can get around the terrors of the phone call not being worth the paper it is written on (to quote some mogul or other).

If they come after any debt deemed to be settled they will have to prove that the conversation did not take place. If the phone call was not recorded
and no letter was received by you the deal is done and dusted. So please make sure that your claims in the letter accurately reflect the phone call and the issues discussed and the outcome proposed by them. Remember they do record some if not all phone calls.

PS in my experience it is often too difficult for creditors to find the tape so if called upon to do it they don't and so cave in and accept the situation. (however my sample is very small and concerned car insurance!)

abc123me

MBNA do have the ability to send you a short settlement confirmation letter... if you tell them you will not pay until you get the letter they will soon send you one.

They can only proceed with a partial settlement if you provide them with income and expenditure details to prove that you can not maintain the monthly payments.

Be assured they do not sell the remaining balance. But if I was you I'd get if confirmed as only not all calls are recorded.

CLAPTON

Such wrote: »

Thanks for taking the time out to reply.
I will be sending a cheque to MBNA next week for the partial settlement, and negotiate a similar one with barclaycard.

In your experience of dealing with MBNA how likely are they to pursue the rest of the debt if they are unwilling to put anything in writing?

I have been assured that this will not be the case, but whenever I speak to MBNA there seems to be a lack of consistency with the advice given, and when i refer to my previous calls they seem to have no record!

Thanks for your help - it is much appreciated

sorry this is pure madness.
obviously they can send you a letter
it happens all the time.

do not send any money until you get a clear letter in writing
In any event its not really much of a discount

RAS

abc123me wrote: »

MBNA do have the ability to send you a short settlement confirmation letter... if you tell them you will not pay until you get the letter they will soon send you one.

They can only proceed with a partial settlement if you provide them with income and expenditure details to prove that you can not maintain the monthly payments.

Be assured they do not sell the remaining balance. But if I was you I'd get if confirmed as only not all calls are recorded.

Such

ABC123me very new to MSE, works in a money related job and is posting up on threads that relate to MBNA.

Whilist there is nothing to stop an MBNA member of staff posting on here, they are required by MSE rules to declare their background before they give advice.

I would also advise you that Smashed and I have been working with another poster who has paid two lump sums in partial payments (nor MBNA) and is now been chased for the remaining debt.

Only do this as full and final settlement, with a written guarantee before you pay or it will be sold on.

mufc689908

MBNA wrote off 80% of a cards balance for me, had the greedy idiots not wacked my APR through the roof without justification I would of kept on paying the monthly bill.

"We can confirm no further action will be taken to recover the remaining balance and your account will be registered as a partial settlement with credit agencies for 6 years"

Helli2020

Hi all,

I'm new to this forum and in need of some advice/help.

Here's my situation (the very short version)

Having had my MBNA card for a long time and having accumilated my bigrin card with my MBNA card they extended my limit to £21,000. Now i have property elswhere and one of my tennants didn't pay me any rent for 10 months then smashed the place up. During this time i couldn't afford to pay the mortgage on this property so i kept on using the MBNA for mortgage, council tax and any damage that was caused. Total rent owed was £15k, damage £4k and some other bits totalled around £20k on the MBNA card. Anyhoo after the interet free period finished obvisoulsy the interest was like a £1k per month and i struggled, went through all the issues with them and tried to pay what i could. After 6 months regular payment of £200 they called me yesterday and offered me a short settle agreement for 40% of the balance because i had never used the card for personal gain i.e. there isn't one purchase on there other than mortgage payments and related purchases. I paid £5k off in August'09 so the balance is about £15k and they have asked for £6k to short settle. Now how does this effect my credit rating long term and should i do it?????

please help

Tixy

Helli - You need to find out if they are prepared to offer you a full & final settlement or just a partial settlement.
And read this article - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers