MBNA have passed my debt on to Arrow Global

fatherofraff · 11 November 2018 at 4:10PM

Hi all,

This is my first post here so firstly, thank you for taking the time to read my post.

So, I declared bankruptcy at the beginning of July following a long battle with mental health issues and a breakdown. This decision was not taking lightly and my wife and I sought help with CAB and the National Debt Helpline. My bankruptcy was approved and I was declared bankrupt on July 4th 2018.

Now, yesterday, the 10th November 2018, I receive a letter from Arrow Global stating that on the 24th October 2018 they have taken on my MBNA outstanding balance of £1867.60 as of October 12th 2018.

This has had a terribly negative effect on me causing me to have a bit of a meltdown as I am not working, looking after my son full time, I have 0 income and my wife is supporting the family.

What puzzles me is the balance outstanding. I was declared bankrupt 4 months ago and MBNA still have an outstanding balance for me? My other creditors have removed my outstanding debts. Do I contact Arrow Global direct? I’m not sure what to do.

Thanks in advance for any suggestions you can offer.

Chris

[Deleted User] · 11 November 2018 at 4:15PM

If the debt was included in your bankruptcy, just drop them a line reminding them of that fact.

It doesn't matter that your debt has been sold - they are just obliged to tell you of the fact.

fatherofraff · 11 November 2018 at 4:20PM

The debt was included in my bankruptcy and they acknowledged this on the letter and have my court reference number.

I just don’t understand what the purpose of the letter is. I’m reading it as they are waiting for me to be discharged from bankruptcy so they can then try and claim the money from me.

Thanks for the speedy reply

[Deleted User] · 11 November 2018 at 4:28PM

The purpose of the letter is to tell you the the debt has changed ownership. They have no choice in the matter.

You need take no action. It changes nothing.

fatherofraff · 11 November 2018 at 4:31PM

Thanks zx81, I will try and stop stressing about it now.

sourcrates · 11 November 2018 at 4:36PM

As above, don`t panic, you are Bankrupt, your creditors have no remedy against that fact, the selling of debts under these circumstances is common place, does the letter actually ask you to pay anything ?

Because when a debt is sold, the party that buys it is not aware of the accounts current status (that's how cut throat this industry is, they commonly sell debts subject to bankruptcy or insolvency, to gain some profit).

If it does ask for money, either write and tell them your bankrupt, or ask your OR for advice, they may deal with it for you.

In any case R E L A X they can do nothing to you.

fatherofraff · 11 November 2018 at 4:43PM

Thank you sourcrates, your advice, like the advice given by zx81, has eased my stress somewhat.

My wife would also like to pass on her gratitude as it seems I was driving her potty with my relentless worry rambling. .

Many thanks

Chris

silvercar · 11 November 2018 at 6:02PM

Arrow Global would have paid MBNA to buy the debts off them. They would have paid pennies per pound for the debt. They buy them as a bundle. Within that bundle of say 5,000 debts, some will end up being paid back in full, some a partial amount in settlement, some drip feeding small amounts each month, some nothing and some they won't be allowed to collect as the debtor has gone bankrupt.

It's a calculated risk on Arrow Global. They pay X to MBNA and they get back Y. They have calculated that Y is greater than the X they paid MBNA and their costs of chasing.

MBNA are happy because they have an amount of money for the debts and they don't have to spend resources chasing.

Arrow Global know that some of the debts will not result in a penny back for them; it's fine, it's part of the risk in what they bought.

fatbelly · 11 November 2018 at 6:11PM

Hard to believe but there are some companies who specialise in buying insolvency debts.

Presumably they pay a ridiculously small amount and hope for annulment/failed IVA/revoked DRO

Justice13075 · 28 February 2020 at 10:11PM

Here's a good one for you. Got a letter out of the blue from Resolvecall who have been asked by Arrow Global to collect outstanding monies from a card I have never owned and this the card was supposedly taken out by me in 2008 and the last correspondence with me was in 2010. It has been statue barred for 4 years. I have sent off a letter that National Debtline sent me.

pcoventry · 2 March 2020 at 3:22PM

fatherofraff said:

The debt was included in my bankruptcy and they acknowledged this on the letter and have my court reference number.

I just don’t understand what the purpose of the letter is. I’m reading it as they are waiting for me to be discharged from bankruptcy so they can then try and claim the money from me.

Thanks for the speedy reply

It is a Criminal Offence to chase someone after being informed they are in BR - MBNA are in the wrong here - so you tell Arrow and you prove it with your BR cert and then if they carry on tell the OR - they would be foolish to even try it.

MBNA have passed my debt on to Arrow Global

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