• Welcome to the LegalBeagles Consumer and Legal Forum.
    Please Register to get the most out of the forum. Registration is free and only needs a username and email address.
    REGISTER
    Please do not post your full name, reference numbers or any identifiable details on the forum.

Partial Settlement Offer

Collapse
Loading...
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Partial Settlement Offer

    Hi Everybody

    I have been dealing with MBNA and have reached a 35% partial settlement figure on a credit card debt in excess of £10000 so a deal I am able to pay and happy about. However, although they say (in writing) that the account will be closed and that they will not pursue me for the balance they will register a partial settlement with the CRA's (I'm okay with this) but they will also register a default for the remaining balance (not happy with this). It's the default for the remaining balance that I am not happy about as I'm thinking I may as well let them default me for the full amount and then try for a lower settlement with whatever DCA takes over. On the other hand I am happy with a 35% deal and would rather just get rid of it.

    Any advice/comments appreciated.

    Thanks.
    Tags: None

  • #2
    Re: Partial Settlement Offer

    As you are probably aware, a default will stay on file for 6 years and, for the purpose of credit worthiness, the amount won't make much difference. There is also the possibility they may still sell the remaining balance to a debt purchaser, it has happened! :rant:

    Before making a decision, can you tell us a bit more about this account? Have you ever sent a CCA request to MBNA? How old is this card? Did you take it out before 2007? Was it an original MBNA card or one they bought from another lender?

    I have a very old MBNA card (ex A&L) that I haven't paid since Jan 2010 as they couldn't find any trace of the agreement! :bounce: My theory was, if I was defaulted anyway, why pay something when I could pay nothing? It's not like MBNA need the money more than you and me! :thumb:

    It all depends on your circumstances and the history of this account. :grin:

    Comment


    • #3
      Re: Partial Settlement Offer

      I took the card out in 2008 and it was an original MBNA card. I had made regular payments until being made redundant in October and there is no doubt that the debts are my responsibility but I haven't asked for a CCA copy.

      Are you saying that a Partial Settlement with a zero balance is just as damaging as a Partial Settlemnt and a default for the remaining balance does the same amount of damage to a credit rating?

      Comment


      • #4
        Re: Partial Settlement Offer

        Yes, and the remaining balance may be sold on to some other DCA to collect - you'd need everything in writing. Worth looking into though - have they time limited the offer?

        Comment


        • #5
          Re: Partial Settlement Offer

          Yes, I have to pay by 31 May. They say the account will be closed and that they will not pursue me for the remaining balance. If they sold it to a DCA I would happily fight it in court based on the documentation I have. Also the Debt Advice service say they have not heard of any cases of debts being sold on after a partial settlement.

          Comment


          • #6
            Re: Partial Settlement Offer

            Originally posted by dontletthem View Post
            Also the Debt Advice service say they have not heard of any cases of debts being sold on after a partial settlement.
            Clearly they don't get around much then!

            At the end of the day, if you're happy and it would put your mind at ease, you do what you feel is right. It gets rid of a debt, and I'd guess the 35% is pretty much what was owing on the original debt.

            Comment


            • #7
              Re: Partial Settlement Offer

              Originally posted by dontletthem View Post
              I took the card out in 2008 and it was an original MBNA card. I had made regular payments until being made redundant in October and there is no doubt that the debts are my responsibility but I haven't asked for a CCA copy.
              In this case, you should probably consider the partial settlement, what I had in mind probably wouldn't work in this case, that's why I asked the questions.

              Originally posted by dontletthem View Post
              Yes, I have to pay by 31 May. They say the account will be closed and that they will not pursue me for the remaining balance. If they sold it to a DCA I would happily fight it in court based on the documentation I have. Also the Debt Advice service say they have not heard of any cases of debts being sold on after a partial settlement.
              Uhmmmm...:flypig: a few years ago, I settled a small debt ror around 1/3rd. Next thing you know, I started getting letters from another DCA, I think Aktiv Crapital and Moorcrap were involved.

              Comment


              • #8
                Re: Partial Settlement Offer

                Originally posted by FlamingParrot View Post
                In this case, you should probably consider the partial settlement, what I had in mind probably wouldn't work in this case, that's why I asked the questions.
                Hi Parrot.
                Sorry, I know its a very old thread but you comment about the card interested me, so can I ask what it is you had in mind if the card wasn't an original MBNA account card? The reason is that I currently have a claim from PRA on an MBNA/Virgin credit card balance. The amount was for a balance transfer - I took advantage of a Virgin promo for 12 months 0% interest. On a side note, I never even received a card, so there were no transactions on the account apart from the original balance transfer back in 2007.
                tks
                ADD

                Comment


                • #9
                  Re: Partial Settlement Offer

                  There are two rules that determine when they delete a debt from a credit file:

                  1. a debt that doesn’t have a default will stay on your record for six years from the date when it is settled. This applies whether it was settled in full or partially;
                  2. a debt with a default will remain for six years from the default date. This applies whatever happens to the debt after the default – you may have paid it in full, made a full and final settlement, not paid anything to it, or still be making payments, none of this matter because the debt is still going to vanish after six years.

                  If you just had a temporary problem, perhaps you lost your job, or couldn’t work when you were unwell, but after a year you were sorted and back making payments it can seem very hard for this black mark to stay on your credit file for so long.

                  Unfortunately, there is nothing you can do to speed up the default disappearing. You can add a Note to your credit file, which explains why the problem arose. And as the default gets older, some lenders will be less worried about it. But for some creditors, eg many high street mortgage lenders, any default, even five years ago, may result in a rejection.
                  Often the best you can do is repay the debt in full as soon as possible. This doesn’t delete the default but it will start to slowly improve your credit score. Source : debtpro.co

                  Comment

                  View our Terms and Conditions

                  LegalBeagles Group uses cookies to enhance your browsing experience and to create a secure and effective website. By using this website, you are consenting to such use.To find out more and learn how to manage cookies please read our Cookie and Privacy Policy.

                  If you would like to opt in, or out, of receiving news and marketing from LegalBeagles Group Ltd you can amend your settings at any time here.


                  If you would like to cancel your registration please Contact Us. We will delete your user details on request, however, any previously posted user content will remain on the site with your username removed and 'Guest' inserted.
                  Working...
                  X