MBNA Payment Arrangement

[supermac9]

Just a quick bit of advice when trying to set up a payment arrangement with MBNA.
The income and expenditure statement will only work if your calculated monthly payment comes to a high enough amount to clear the debt within 5 years. Otherwise, they threaten to default your account and sell it on to someone else.
Worth bearing in mind when completing one of their over-complicated forms.

[supermac9]

Re: MBNA Payment Arrangement

Quick update and more advice.
Arrangement in place after speaking to one of their customer service people, who I have to admit was very helpful and understanding, even helping me to make the numbers fit so the arrangement was suitable and that my account would not default.
I would try to sort things like this over the phone - correspondence and the online messaging system arent anywhere near as good.
All-in-all, a huge weight of my mind now that it is in place and I finally have an end-date.

[teaboy2]

Re: MBNA Payment Arrangement

Problem is not everyone can afford a repayment plan which would result in debt being repaid within 5 years. It depends on an individuals income and expenses and the size of the debt itself. If you offered to pay what you can afford then such offer is reasonable and MBNA's policy can not say otherwise as that would put them in breach of the OFT debt collection guidelines.

Mind you when they unlawfully defaulted and terminated my account they got their just desserts. Now default removed after i threatened the buyer of the account aktiva kaptial that i would counter claim for unlawful repudation/rescession by MBNA. One must wonder why it made them so nervous that they removed the defualt on my file and even failed to reply my letter to them.

[Guest]

Re: MBNA Payment Arrangement

I have personal experience of payment arrangements being set up with MBNA and virgin through payplan which would take 12 years to pay off the sums due, although the plan is review able every twelve months.
Perhaps this is an indication that it is not always better to do these things yourself.
However glad to here of someone grasping the nettle and sorting themselves out, so easy to hide your head in the sand.

D

[supermac9]

Re: MBNA Payment Arrangement

I think there is often a dilemma with payment arrangements - keeping the payments affordable against getting the debt cleared as soon as possible. 12 years does seem like a long time, but in reality, if the arrangement hadn't been put in place how long would the account have gone on for (probably a lot longer, including £thousands in extortionate interest charges).
You are right about getting things sorted out - burying your head is not really an option.