MBNA - Sold to Arrow - but now a PPI claim with MBNA

[theturningworm]

Re: MBNA - Sold to Arrow - but now a PPI claim with MBNA

Thanks littlebert but I can't agree

The Prescribed Terms are;

A term stating how the debtor is to discharge his obligations under the agreement to make the
repayments, which may be expressed by reference to a combination of any of the following—

(a) number of repayments;
(b) amount of repayments;
(c) frequency and timing of repayments;
(d) dates of repayments;
(e) the manner in which any of the above may be determined; or in any other way,
and any power of the creditor to vary what is payable.

Without that prescribed term, the creditor has no power to vary any part of the agreement and as per Carey v HSBC;

"...other terms may be incorporated by reference but not the prescribed terms."

[littlebert8]

Re: MBNA - Sold to Arrow - but now a PPI claim with MBNA

This is just more detail on how the agreement should set out how repayments will be made. Its not saying that a general right to variation is a prescribed term. Notice how it says "... any combination of the following..."

In the case of this MBNA agreement, at 1d they say that "We may write to you allowing you to make a reduced monthly payment..." In other words, they can vary what is payable on a given cycle by letting you pay less, but there is nothing in the terms saying they can demand more that the 2.25%/£5 minimum repayment defined in 1c. Now I think this will have been raised or changed to cover at least interest/PPI more recently as this because the industry norm - this will have been done via the general right to vary the terms and you should have been sent a Notice of Variation in advance.

The general right to vary the terms of the agreement is most likely contained within the separate terms and conditions document, which they state was enclosed. For example, in my virgin agreement from 2010 it was:

11 Altering this agreement

11a We may introduce new terms, or change any of the terms of this agreement, lf the change benefits you, we may do it e immediately and tell you about it within 30 days. Otherwise, we will tell you personally at least 30 days before any change.
11b lf, under paragraph 11 a, we are increasing any of your standard interest rates or fees and charges (such as handling fees, any card fee or default charges), we will always tell you personally about it at least 30 days beforehand. You are free at any time to close your account (see paragraph 10 for details).
11c Examples of reasons why we might increase your interest rates could be one or more of the following:

• changes in your circumstances, the way you use your account or in our credit assessment of you;
• changes in interest rates made by the Bank of England, our funding costs or other costs in administering your account, our systems or our products and services; and to ensure that our business is run prudently;
• changes in external factors, such as interest rates, stock markets, labour costs, new technologies, other innovations or changes in general economic conditions; and
• changes to the legal or regulatory obligations which affect us.

This was the amended agreement, not the original (they didn't send me a copy of that!).

This is an interesting point and I'll be happy to be proved wrong.