MBNA - Account in Arrears

[supermac9]

I have an account with MBNA which is approximately 1 month in arrears - I receive the usual regular calls from their call-centre, and trade online messages about my account.

I have asked on a couple of occassions for a reduction in interest rate to help me with the situation - I'm paying and eye-watering 29.9% (probably no more than plenty of other people) and it's simply wiping out my monthly payments, making it almost impossible to catch up.

They''ve offered a secured loan, which I have rejected outright, and seem very reluctant to go down the route of an arrangement (with the consequent reduction in payments and interest) - they are telling me that they only usually go down this route with people who have long-term problems (i.e. they are unemployed, which I'm not), and that this type of arrangement would go against my credit record for 6 years.

I'm not sure where to take this now - I'm struggling with the monthly payments but just about manage to make them, only to stand still month after month.

Would an arrangement be the right thing to do, or should I soldier on and maintain my credit record (I can't imagine it's too good anyway if I'm in arrears)?

[MIKE770]

Re: MBNA - Account in Arrears

they should not be offering a loan instead, against guidelines I believe?

[supermac9]

Re: MBNA - Account in Arrears

Thanks Mike - I'll have a trawl through whatever guidelines I can find and might ask them the question.

[pompeyfaith]

Re: MBNA - Account in Arrears

They are not offering a secured loan to help you out, this is offered in the hope you will agree and they therefore are able to secure the debt on any property or assets you have.

Good decision to refuse they loan the money unsecured so why should they be able to change that now.

Supermac is right in that it is bad practice to offer further borrowings to someone who is already showing difficulty.

This is in the lending code I believe

http://www.lendingstandardsboard.org...endingcode.pdf

[QCKate]

Re: MBNA - Account in Arrears

Have you read this about the OFTs recent ruling against MBNA for just this sort of behaviour...

OFT requires MBNA to improve debt collection practices - The Office of Fair Trading

QCK

[frisp]

Re: MBNA - Account in Arrears

Put together and income and expenditure spreadsheet, include all payments to whomever you make them, (template on site) then send it to them.

If the IE spreadsheet shows clearly that you cannot afford the payments ask them to allow you to pay off the debt without interest, agreement to be assessed 6 monthly.

With this you are showing that your taking steps to resolve the issue, you could also try talking to citizens advice.

[supermac9]

Re: MBNA - Account in Arrears

I've added up the various fees and charges that MBNA have applied since my account started to go haywire, and in the last 12 months it comes to over £160! I've sent a list of them through to their online message service, told them they should be refunded - I think I know how they will respond!
I'll keep reporting progress.

[supermac9]

Re: MBNA - Account in Arrears

Re MBNA offering a secured loan as an alternative to the (unsecured) credit card debt, here is their response:

Received 24/12/2010 from Customer Service
Thank you for your message, we feel we are conforming to the lending code. Some of our customers may want to consider an option of secured loan, over a fixed term, on a lower rate of Interest. Customers could consolidate multiple debts therefore reducing their monthly expenditure. I trust this answers your query.

From me: It would appear that MBNA has a policy of offering a secured loan as a direct replacement of the credit card debt - could you confirm your view on how this fits with the contents of Section 9 of The Lending Code December 2010?

Anyone got any further thoughts on this?

[MIKE770]

Re: MBNA - Account in Arrears

Re MBNA offering a secured loan as an alternative to the (unsecured) credit card debt, here is their response:

Received 24/12/2010 from Customer Service
Thank you for your message, we feel we are conforming to the lending code. Some of our customers may want to consider an option of secured loan, over a fixed term, on a lower rate of Interest. Customers could consolidate multiple debts therefore reducing their monthly expenditure. I trust this answers your query.

From me: It would appear that MBNA has a policy of offering a secured loan as a direct replacement of the credit card debt - could you confirm your view on how this fits with the contents of Section 9 of The Lending Code December 2010?

Anyone got any further thoughts on this?

Await any response then FSA?

[supermac9]

MBNA - Account in Arrears

MBNA have been back in touch to try to sell me a secured loan again, but they seem very reluctant to go down the route of a permanent agreement - they keep saying that it will go against my name for 6 years etc.
I might be able to sort things out in the short term, but they seem to be playing hardball with me.
I'm ready to take this up with the FSA now.
------------------------------- merged -------------------------------
One more question - they have come back about the fees for the last 12 months, telling me to write to their Customer Service (!) Team - if I do this, will it have any impact on claiming back fees prior to this?

[Crispybacon]

Re: MBNA - Account in Arrears

MBNA have been back in touch to try to sell me a secured loan again, but they seem very reluctant to go down the route of a permanent agreement - they keep saying that it will go against my name for 6 years etc.
I might be able to sort things out in the short term, but they seem to be playing hardball with me.
I'm ready to take this up with the FSA now.
------------------------------- merged -------------------------------
One more question - they have come back about the fees for the last 12 months, telling me to write to their Customer Service (!) Team - if I do this, will it have any impact on claiming back fees prior to this?

Hi Supermac

Report them to the OFT as it seems that MBNA are taking no notice of the slap they have received from them. This is taken directly out of the OFT guidelines on unfair business practices for debt collection

2.6 Examples of unfair practices are as follows:

b. pressurising debtors to sell property, to raise funds by further borrowing or to extend their borrowing

Quote that to them and see if they still say they are conforming to OFT guidelines and the Lending Code.

Best

Crispy

[MIKE770]

Re: MBNA - Account in Arrears

report them giving copies af letter also transcript of conversation when/time. let these muppetts sink.

[WendyB]

Re: MBNA - Account in Arrears

As far as reclaiming charges goes, best to do them all in one go, in my opinion. Have you done a AR to find out exatly how many charges they've applied? Although I never did a SAT, and got an excellent result from them, have a look at my thread OH v MBNA (Partial refund in 23 days) now FULL REFUND ! - Legal Beagles Consumer Forum

[pompeyfaith]

Re: MBNA - Account in Arrears

Ill back up what mike770 and others have said you must report them to the FSA and OFT.

It is simple in that offering someone further lending whether it be secured or not when they are showing difficulty paying existing borrowings is below all logic of financial gain and against the oft lending code.

MBNA are already in hot water over there stance so lets make this even hotter for them.

Regards

[MIKE770]

Re: MBNA - Account in Arrears

Hot Water - put them in Boiling Water?