Mbna partial settlement and default help pls

[Mandamoo]

Hi, unfortunately I have been unwell for a period of time and owed mbna £9800 on my credit card, they said they were going to default me on 31st may if I didn't clear the arrears, my dad said he would lend me £3000 to pay the card off which they accepted as long as I paid by the 31st, I was a bit worried about them still selling off the remainder and also would it show a zero balance so I wrote to them within time to ask for confirmation of this, they didn't reply so I rang them last week to clarify and they said they wouldn't confirm it in writing and to pay it, I asked them to clarify this they tried to ring back but unfortunately I was in the doctors in an appointment, this was just before 4 on the 31st, by the time I was free the offices had closed but they had already said they wouldn't confirm in writing.

I have tried to ring them today to sort it out to be told they have registered the default now and it's too late, I don't know what to do, they have said on the phone now that it would be a zero balance with them and I wouldn't be chased for the remainder, I really wanted this confirming in writing though, what do I do, I want to pay it and they said they can't now take the default off any advice pls ?

[Inca]

Re: Mbna partial settlement and default help pls

Hi Mandamoo and to LegalBeagles,,we're a bit thin on the ground at the moment but someone will pop by and help you as soon as possible...in the meantime,,don't panic

[Mandamoo]

Re: Mbna partial settlement and default help pls

Hi Inca, thank you much appreciated :-)

[labman]

Re: Mbna partial settlement and default help pls

They can request for the default to be removed if they wish to. You need to push them on this.

[Mandamoo]

Re: Mbna partial settlement and default help pls

they seem very difficult to deal with, so would you recommend i get that and confirmation that they won't chase me for any more money, and that the account would be zero in writing first before I pay them, the offer has expired now so I would need to make them a new one :-/

[Nibbler]

Re: Mbna partial settlement and default help pls

That is a big discount on that size of debt when it is still with the original creditor and not previously defaulted (until just now).

I would personally not trust them unless it is in black and white in writing before I parted with the cash. Refusal to confirm in writing is not on.

[FlamingParrot]

Re: Mbna partial settlement and default help pls

I agree with the posts above, you should never, ever agree to a settlement over the phone, not ever! :nono: Everything should be properly documented in writing, as an extreme case, I know of someone who, back in 2000, agreed to a repayment plan for a loan with interest and charges frozen. The person in question kept up their agreed monthly payments, only to find that, 12 years later, the alleged balance was £24,000!!! :scared: :scared: :scared: That was because interest had been added all those years and the person in question didn't have it in writing that it wouldn't!

If you are going to offer a F&F you should put the offer to them in writing and make sure you get back confirmation of acceptance in writing, :typing: before making any payment. You should say you have a lump sum made available to you by a friend or relative only for a limited time and preferably make the payment using a third party cheque.

Sadly F&Fs are not totally watertight and creditors often sell the balance. :sad: I have even heard of a creditor selling a debt that was ruled unenforceable in court by a judge last year! :scared:

The default is a tricky subject because technically they are allowed to record a default if you fail to make your agreed contractual payments or pay the balance in full, as the default refers to the conduct of the account. If you are settling for a fraction of the outstanding amount, that would amount to defaulting on the rest. Bear in mind paying the arrears and a F&F are totally different things. If you had, in fact, paid the arrears, then they shouldn't have defaulted you, however, that would mean you'd have to either go back to minimum payments for the duration (which would probably amount to a 'life sentence' ) or else find the money to settle the balance in full.

You have to weigh up the options. You can either write back to them with your offer using a properly worded letter (DO NOT DISCUSS ANYTHING OVER THE PHONE!!!) or consider possible alternatives. If you have been defaulted already and you don't see yourself being able to maintain payments (on that balance, they would be rather high!) you could send a CCA request to MBNA and see what they come back with. Whether this will work or not depends on the date you opened the account, ideally is should be pre-2007. I have an MBNA card I last paid in Jan 2010, with a balance just slightly lower than yours, when I requested a copy of the agreement in March 2010 they couldn't find it! :grin: I haven't heard from MBNA in nearly two years. :bounce:

Whatever you decide, do come back an post up before doing anything. :typing: Unfortunately the site was inaccessible for a number of us over the past few days but we should all be back online now. :nerd:

If you want to agree a F&F we can suggest a letter to send, if you decide to send a CCA request there is also a letter to send. Do keep us posted. :thumb: