Full v Partial with MBNA

ricky_balboa

Hi,

Can some please help me with this settlement problem i have.
I want to settle a credit card debt with mbna of £14,500, I have missed 3 months payments.The limit on the card was £12,800.

I had lots of other debts with cards, which most have been cleared as i came into some money.But now there isnt enough left to cover the whole of the MBNA card.

I have lots of payment arrears on my credit file, but no defaults or ccjs.

I spoke to an MBNA representive, and i asked for a full and final settlement figure.He asked what i was looking at , and i suggested £12,000.He said that we would have to go through an income/outgoings sheet to explain why over £2000 was being written off.he also said that this would show on my file as a partial settlement (which i believe lasts 6 years).

He suggested a full settlement figure of 95% (about £13,800).
Would this final settlement also show as a default and last 6 years on my credit file?

I believe my missed payments will clear after a year, is this true?

What do MSE people think is my best option from here?

many thanks in advance for your replies.

Ames

Don't go for a partial settlement - they'll come back for the rest. Make sure however much you offer it's full and final and you get that in writing. Someone else will come along to answer your other questions soon.

Runnybabbit

Hi, As Ames states "do not accept partial settlement" as they can and will come back for the rest - if they don't, they'll sell the debt on to someone else and then the merry-go-round starts again. I'm currently dealing with MBNA myself with regards to the same situation as yourself, is it the delightful Matt who's dealing with you? I'm offering 50% for a F&F settlement only, and it seems I may be making progress here, so bear with it. Good luck and hope you get it sorted soon.

LilacPixie

Well it all depends. Is the account open? what does the £14500 consist of?? is it all money you have spent plus interest or is it excess charges too?? If the account is barred is it still working with MBNA or is it with a DCA. Do they know you are in difficulties?? have they frozen charges and interest??

ricky_balboa

thanks for the replies,

The 14,500 is made up of interest at a very high rate, last month was over £200, cash withdrawls, there are also charges on there.So alot of the money is built up on interest and charges.

The account is barred.It did goto a dca at one point, but its now just with mbna i believe, after i made a couple of £400ish payments.

Having spoke to the guy last night, he said a 95% payment would mean that no default will be put on the credit file.Just a complete satisfied.

Do u believe, i could get a full and final settlement around 10-12K, but would it say default on the credit file?

ricky_balboa

Could someone please help me with the previous dilemma?
Im not sure on what my best course of action is from here.

Should i write a letter saying i will pay the limit on the card of £12,800 which i can just about afford and ask for a "full and final settlement", or will this show up on my credit file as a default?

Should i write a letter asking for a "full & final settlement" of less than above, knowing they will put a default on it, cause the figure is alot lower (ive seen people quoting around 50% of the outstanding balance) ?

Or do you think that only by paying 95% i will get a "full and final settlement" ?

many thanks

MrsTinks

Hold fire for a second and look at your credit reports - check there isn't already a default against your file as I will bet you they will NOT remove it if it's already there!!!
If there isn't already a default on it then you're lucky and I would just try to stick to 90% and no default and marked as "settled" ie full and final not partial!
Stick to your guns and send them the offer in writing and tell them you can have this settled with them within a week or whatever of recieving IN WRITING their confirmation that this is a FULL AND FINAL and not, repeat NOT partial settlement. You could say that this offer will be withdrawn as of x date as you have other debts you can use it to pay off if they are not interested

Deep_In_Debt

Sometimes it helps if the debt is passed to a DCA. I've done a F&F settlement on a £6k debt for £2.5k. The original creditor wanted £4k and wouldn't budge! Stick to your guns.

ricky_balboa

thanks for the replies, great advice.

I will check my credit file, if there is a default from MBNA already; what percentage do you think i should aim the settlement letter at?

ricky_balboa

I have had the following email from MBNA regarding my final settlement.
I am happy to agree to it, as it means nearly £1800 will be written off/refunded.
Do you think this email from MBNA is genuine and should lead to my credit file not being affected?

many thanks in advance for any replies.:T

ricky

ricky_balboa

Forgot to post the letter!!, please read the previous post for info:-

Following your conversation with Richard Strefford, I can confirm that MBNA will accept £13,000 as full and final settlement. The remaining balance will be refunded. As soon as your payment clears on to your account, MBNA will report to the Credit Reference Agency that the debt has been settled in full.

Any questions, please don't hesitate to call or email.

Regards.

Nick Aldersey
Risk Operations 90 Day Section Manager
Chester, Phase 4, First Floor
+0044 1244 5(74493)