MBNA account 1

[paulb2905]

Re: MBNA account 1

You have to confirm in writing the Unlawfull Rescission really (although theres an argument that once terminated it is assumed to be, as it is unreasonable for a "ordinary man" to be conversant with the legalese)

This falls under section 103 of the Consumer Credit Act 1974 (be mindful of the SI amendments which may apply depending when your account started though!!)

And you will probably have to pursue through courts - so make sure your prepared to do this and have a copy of the DN and Termination Letter or Notice of Assignment (with regards debt sold to DCA)

Please note that if MBNA or any Creditor fail to reply withing 1 month they commit an offence under the act which carries a fine and possible jail sentence and you should send your complaint to the Director of the OFT and i would sugest you send a copy of the complaint with another letter to the bank!

[Amethyst]

Re: MBNA account 1

Please note that if MBNA or any Creditor fail to reply withing 1 month they commit an offence under the act which carries a fine and possible jail sentence and you should send your complaint to the Director of the OFT and i would sugest you send a copy of the complaint with another letter to the bank!

???? Can you clarify. I think I know what you mean (and are a bit out of date on) but may be something else. Ta xx

[paulb2905]

Re: MBNA account 1

Heres the reproduction from the CCA1974 - it preceeded by 102 which deals with Rescission
Termination Statements
103.-(1) If an individual (the " customer ") serves on any person (the " trader ") a notice-
(a) stating that-
(i) the customer was the debtor or hirer under a regulated agreement described in the notice, and the trader was the creditor or owner under the agreement, and
(ii) the customer has discharged his indebtedness to the trader under the agreement, and
(iii) the agreement has ceased to have any operation ; and
(b) requiring the trader to give the customer a notice, signed by or on behalf of the trader, confirming that those statements are correct, the trader shall, within the prescribed period after receiving the notice, either comply with it or serve on the customer a counternotice stating that, as the case may be, he disputes the correctness of the notice or asserts that the customer is not indebted to him under the agreement.
(2) Where the trader disputes the correctness of the notice he shall give particulars of the way in which he alleges it to be wrong.
(3) Subsection (1) does not apply in relation to any agreement if the trader has previously complied with that subsection on the service of a notice under it with respect to that agreement.
(4) Subsection (1) does not apply to a non-commercial agreement.
(5) If the trader fails to comply with subsection (1), and the default continues for one month, he commits an offence.


So if you wroteto them saying "thank you for terminating the account, which i accept........... Please note that this is an unlawful rescission of the account - please confirm by return the amount of the arrears plus interest, less any unlawful charges + interest applied to the account." would be covered by 103 giving them 1 month to reply

[Amethyst]

Re: MBNA account 1

yip that last bits been repealed. Consumer Protection from Unfair Trading Regulations 2008/1277

and 'replaced' with

''(6) A breach of the duty imposed by subsection (1) is actionable as a breach of statutory duty.''


(( breach of statutory duty is a tort, but failure to perform a statutory duty adequately may also be relevant to, or evidence in, an action for negligence or breach of contract ))

[paulb2905]

Re: MBNA account 1

:tinysmile_cry_t: oh well, but at least it can be deemed "negligence" all evidence towards the possibility of OFT prosecution/unfit for license holding! - check out my email reply from the OFT!! Get those complaints rolling in!

[nelliewops]

Re: MBNA account 1

Hi folks

Just an update on this -

Have sent off F&F settlement offer letters for both OH's MBNA accounts (now both no longer owned by MBNA). These have only been received by the new owners this week, so it's early days yet. I have gone in with low (10%) offers to test the water and will see what reaction they provoke...........will update when they respond.

Nellie x

[nelliewops]

Re: MBNA account 1

Well, that was quick - only two days after receiving my F&F offer of 10% of the outstanding balance, the DCA that now owns OH's MBNA account 1 has rejected it and made a counter offer of £1000 which equates to just over 25%.

Their letter is worded as follows -

'We would, however be prepared to accept the sum of £1000 in Full and Final settlement of your liability to the above named account. This offer has been made to you on the condition that the full amount of £1000 is received in our office no later than XXXXXXXXX.

If the above terms are met, we will notify the credit reference agencies to update your credit file as satisfied with a zero balance, and you will have no further liability to the outstanding balance.

We will also ensure that neither ourselves, nor any associate company will take any action to pursue or enforce the above account.'

My original letter also stated that the offer was made on condition that any remainder of the debt would not be sold to or pursued by any third parties - I note their response cleverly avoids confirming this............

I would certainly not be happy to hand over any money till I had that further confirmation in writing from them.

I guess my next step is to make a further counter-offer and to get all my conditions agreed in writing!

If anyone can offer any additional advice I would be most grateful - thank you!

Nellie x

[nelliewops]

Re: MBNA account 1

Well, I've had a discussion with OH about this (it's his account, after all so he should have some say I s'pose!) and he thinks we should make a further offer of £700 - roughly halfway between my original offer and their counter-offer.

I'll write another letter stressing that it is not only offered on the conditions that they have already quoted, but also that the remaining balance is not sold on etc etc...............

[nelliewops]

Re: MBNA account 1 - Making Full & Final offer

Hi folks!

Just another update on this one -

I wrote to the DCA who now owns this account with a counter offer of £700 and have today received a letter saying they are prepared to accept a sum a little in excess of this.

However their letter is worded somewhat cryptically -

'After reviewing the account, as a special matter we are willing to reduce the outstanding balance to £XXX, giving a reduction of 80%.

This offer is only available to you on the condition that payment is received by XXXXXXXXXX. You should note that failure to maintain this agreement will result in the balance reverting to £XXXX.

This figure has only been offered as a minimum repayment amount. Any payment made over this amount will be deducted from your outstanding balance. We regret that NO REFUNDS will be made on full and final settlements, where the full outstanding balance has not been cleared.'

I'm a little confused by the last paragraph, especially the bit about 'refunds' - are they trying to say this is a 'short settlement' or what?

In their previous letter where they were asking for more in F&F (£1000) they said that as long as the payment was received by 19th November (yesterday) they would 'notify the credit reference agencies to update your credit file as satisfied with a zero balance', confirmed that OH would 'have no further liability to the outstanding balance' and that 'we will also ensure that neither ourselves, nor any associate company will take any action to pursue or enforce the above account.' .

This wording is not present in their current offer letter.

I have written back this morning stating that until they clarify the points above and confirm in writing that the statement (as quoted above) in their previous letter still stands as well as confirming that they will not sell or pass on any remaining balance to a third party, no payment will be forthcoming. However, if they can confirm this to my satisfaction the payment can be forwarded to them.

If anyone can elucidate on the wording of today's letter I would be most grateful

Thanks everyone,

Nellie x

[nelliewops]

Re: MBNA account 1 - Making Full & Final offer

'This figure has only been offered as a minimum repayment amount. Any payment made over this amount will be deducted from your outstanding balance. We regret that NO REFUNDS will be made on full and final settlements, where the full outstanding balance has not been cleared.'

Can anyone explain what the DCA means by the last sentence above regarding refunds please?

I have written asking them to clarify and also for confirmation of the points made in their previous correspondence.

Many thanks,

Nellie x

[pompeyfaith]

Re: MBNA account 1

what they are saying is the amount you have offered is accepted as the minimum and any payments made over and above this will not be refunded but will go against the outstanding balance

In otherwords although they will mark the cra's as zero the debt will still be on there books

So you need that reciept saying full and final in case they do decide to enforce via court

[nelliewops]

Re: MBNA account 1 - Making Full & Final offer

what they are saying is the amount you have offered is accepted as the minimum and any payments made over and above this will not be refunded but will go against the outstanding balance

In otherwords although they will mark the cra's as zero the debt will still be on there books

So you need that reciept saying full and final in case they do decide to enforce via court

Thanks PF

Well, I've written back to them asking them to confirm as per their previous letter that they will release OH from all liability etc etc - that was for a payment of £1000, but hopefully they will come back and say these conditions will still be adhered to...............I'm not going to rush into anything though and will make sure I go for the full 'belt and braces' approach before any money changes hands!

It's ridiculous though that with OH's other MBNA account the DCA who owns it now accepted 10% without any quibbling although it was a larger outstanding balance, yet this one is arguing the toss over a few measley hundreds.............

Hopefully they won't decide to enforce further down the line - to be honest you don't seem to hear of that many cases where the DCA does go down the court route, but I s'pose anything is possible with these barstewards!

[pompeyfaith]

Re: MBNA account 1

Indeed there are no hard and fast rules they all make up there own, that is why it is so very important you get it in writing.

Every debt will remain on the DCA's books until it is paid off in full this is to comply with HMRC and taxation.

[Angry Cat]

Re: MBNA account 1

Looks like a short settlement to me!

Caution, as they will probably go after the remaining outstanding balance or, sell it on to another debt buyer; MBNA tactics...

[nelliewops]

Re: MBNA account 1

Thanks for your comments and advice PF and AC - they are most appreciated!

I'm going to tread very carefully with this and won't do anything rash. Other than doing as I previously stated (requesting everything in writing re: closing the account, not selling on any remainder and all liability ceasing once payment is received etc etc) is there anything else I should be doing to ensure a full belt and braces approach d'you think?

Many thanks again guys and girls