MBNA - Defective DN & Arrears

[rleon]

I'm currently 'negotiating' an old credit card debt with MBNA and one of their DCAs.

MBNA did their usual thing of sending a defective DN, and then selling the account early. This happened some years ago. Without wanting to go into details, the DN is clearly defective for a number of reasons, and the sale clearly terminated the agreement.

I understand from some forums that even with a defective DN I may still be liable for outstanding arrears.

Can someone tell me which legislation applies to this? What argument might a DCA use to claim arrears if their attempt to collect the full balance fails?

[miliitant]

Re: MBNA - Defective DN & Arrears

you are in luck

brandon v american express

it was decided a defective default notice cannot be de minimis

if the account was sold by a defective default notice then all you will be liable for are any outstanding arrears up to termination/sale

the arrears will only be about three months contractual re-payments

[rleon]

Re: MBNA - Defective DN & Arrears

Brandon vs AMEX. Got it. Thanks!

But I'm not still sure about the last part. Will the arrears be the sum that should have appeared in the remedy-of-breach statement on the DN?

What's the legal basis for the DCA and/or OC claiming that amount?

It's more like six months of missed payments. But it includes plenty of interest and not a few late/over fees, so I'm guessing I should be able to haggle it down. (If it goes to court and isn't thrown out - which it may well be.)

[miliitant]

Re: MBNA - Defective DN & Arrears

a default notice is issued when a max of three contractual payments are missed as a rule

issuing a default notice after that is considered a no, no by the office of fair trading and in court it would be hard for a creditor to justify the delay

the sum would be to remedy the breach, but as stated, that would be three payments max

the only exception would be a repayment arangement or payment holiday in which the creditor agreed

you need to study the default and termination regulations

http://www.google.co.uk/url?sa=t&rct...kcyGYTomTwI22w

[Guest]

Re: MBNA - Defective DN & Arrears

a default notice is issued when a max of three contractual payments are missed as a rule

issuing a default notice after that is considered a no, no by the office of fair trading and in court it would be hard for a creditor to justify the delay

Are you sue M, i know that the CCA states that two notices of default sums must be sent before a section 87 notice is sent, but i do not think that there is any restriction on when the DN is sent after the account has entered a default situation.

It is after all just a notice of default and warns the debtor that the agreement is about to be terminated and proceedings commenced, it can be sent years after the account entered default.

Also the Brandon appeal merely established that the amount of time to remedy was not de minimus and would have to be considered by a court, this was in answer to an application for summary judgment, it did not mean that this was a sure fire defense, the court can still reject it on grounds of lack of prejudice.

D

[miliitant]

Re: MBNA - Defective DN & Arrears

the oft on the issue of a DN is guidance only, only a court can decide the relevance,

the creditor can send out as many notice of default sums as they like adding interest etc

ITS THE DEFAULT NOTICE UNDER 87 (1) THAT SETS THE STAGE

BUT I AM EAGER TO LEARN AND WILL STAND CORRECTED WHEN NEEDS MUST

[Guest]

Re: MBNA - Defective DN & Arrears

the oft on the issue of a DN is guidance only, only a court can decide the relevance,

the creditor can send out as many notice of default sums as they like adding interest etc

ITS THE DEFAULT NOTICE UNDER 87 (1) THAT SETS THE STAGE

BUT I AM EAGER TO LEARN AND WILL STAND CORRECTED WHEN NEEDS MUST

Yes indeed in fact the creditor must send out one monthly for as long as the account is in arreas and drawing default charges, this is not OFT guidance this is contained in the CCA 2006(statute).

The point is that there is no legislation or guidance that says a creditor must send a DN at any time(providing the account actually is in default of course), other than before he wishes to terminate and/or enforce.

People have had an account in default and a D on their credit notices for months or years before the creditor decides to send a DN and terminate or enforce the account.

D