What happens if....

PlasticSpoon

What happens if....you just stop paying credit cards? Virgin (MBNA) in particular. Does the fact I live in Scotland and they are in England make any difference to the outcome? I am struggling to pay my debt to them, I have been making slightly more than the monthly minimum payments, but they do whatever they like and whacked the interest up to 39%. They sent a letter around 2 months ago saying they were changing my payment date, but have never contacted me again to say why or to when. My monthly paper statements, and when I look at my account online, don't tell me what my interest rate is. I only know from when they sent the letter saying they were upping it.

They took an old direct debit which I had forgotten about (for under a fiver) which then put my over my credit limit, to which they then added charges, but it's a month later before I know anything about it when I get my next statement.

I have been paying them religiously for years on time, slightly more than the minimum amount, yet the minimum amount keeps going up cos they put the interest up and I just can't keep doing this anymore.

Whether it's morally right or wrong to stop paying is neither here nor there that isn't the purpose of this message. I just want to know what happens if I stop paying them. I have heard that because I am in Scotland not alot will happen, but this didn't come from a reliable source and I am quite prepared to accept that it's a load of twaddle!

MrsTinks

Just because you're in Scotland doesn't mean they can't do anything, the rules are a little different certainly but it's still a debt.
I would recommend that you post a full SOA and let the good peeps on here have a look for you and see what their advice might be.

LilacPixie

well from my understanding bailifs cannot visit scottish residential addresses. I'm no expert tho.

RAS

Hi

Two things

Check out whether CCA requests are valid in Scotland and if so, send them one.

Also, check out the reclaim forum here. Again, the Scotish situation may be different but the halt on reclaiming bank charges does not apply to charges on credit cards. You can still action them.

Have you got a Credit Union anywhere local? They may offer what can sometimes be called a freedom loan to pay something off an expensive debt.

Post up your SOA and people can help you.

Also, can you sell anything on e-bay or at a car boot sale?

And check this link for ideas on making a little bit of extra money. http://www.moneysavingexpert.com/protect/make-money

PlasticSpoon

I understand you asking for a SOA, but I really don't need that kind of help right now, but do appreciate the thought. I currently work 80 hours a week (for a meagre wage) and am keeping myself afloat, I don't have nights out etc I am not an extravagant kind of person. I am very unhappy with MBNAs ethics and I was ok paying my monthly bill to them and paying more than the minimum. The point is due to them increasing interest willy nilly I will now struggle to pay more than the minimum as obviously the minimum amount has increased signifigantly and I cannot see the debt decreasing. I cannot do more work than I already do, I'm already a zombie! I just wanted to know what happens if you stop paying, or is there any way of making them decrease the interest? I haven't defaulted at all, so obviously am not happy with the way in which they have treated me.

RAS

Plastic
if you are working 80 hours aweek to pay off your debts, you need to address this situation differently.

Sadly, with the sort of APR you are paying, the debt will increase not decrease unless you either challenge it, sort out a debt management plan (or the Scottish equivalent) or force them into an accepatable payment regime, which may mean letting them take you to court. A judgement would set a monthly or weekly payment that bound you and them.

MrsTinks

The reason for an SOA isn't just to see if we can save you money but could also help give us an idea of how bad the over all problem is and if the best path for you would be a DMP, IVA or maybe even the dreaded Bankrupcy...
At the moment it sounds like you've got a reasonable credit score - depending on how much debt you have elsewhere etc then getting another card like a life of balance card might help - there are plenty out there depending on your situation.
Whilst I'm a firm believer in "they can't have what you ain't got" then to give you the best advice we can we're going to need an SOA. Otherwise you'll get a lot of "if, then, maybe, possibly, depending"'s
Ultimately if you can't pay them then you can't pay them - if you work as many hours as you do then you are probably putting your health at risk and again an SOA would help in determining if maybe re-arranging all yoru debt and doing a DMP and cutting your hours would be an option.
We don't ask to snoop, but to try and find as much information to help you as we can.

RAS

Plastic

i have to go. Others will help you out. Take care and keep coming back

GeorgeUK

The terms and conditions of the CC will state which law the agreement falls under (Scottish/English) and i'm sure no matter which law it states, they will continue to make charges to your account until it is quite a sum, then go to court.

There are some subsections of the CCA74 which are dealt with slightly differently in Scotland, but you are still able to request a copy of the credit agreement.
http://www.statutelaw.gov.uk/LegResults.aspx?LegType=All+Primary&PageNumber=55&NavFrom=2&activeTextDocId=436428

Have you tried getting a 0% CC?
So you can transfer the balance from virgin at 0% but have no interest to pay for about 12 months?