Are funds repaid back to your credit card?

[Marincor]

I would like to know:

 

When I am successful in my claim against MBNA, will the money be paid back to my credit card or will I receive a cheque?

 

If anyone has an answer to the above question it would be most appreciated.

[surreyscouse]

if you owe them money then yes, back into the account. If the refund is more than you owe them then they will send you a cheque for the difference and more than likely close the account

[clayts]

Is this the case when they have passed the debt onto a DCA (in my case Wescot) ?

[surreyscouse]

i believe they tell the DCA to reduce the debt accordingly. They have been known to call the debt back and start to manage it once again in house. They do seem to work very closely with their DCA's from what I can see. Do have have any of wescotts headed paper or anything. If you have the companies house number then I will see if they are related to mbna in any way

[DavidBellchamber]

Regarding the case where the original creditor, in this case MBNA, has sold the debt to a DCA, I would have thought that they would no longer have a right (or indeed any interest) in passing the refund on to the DCA.

 

Since the dispute is solely between the claimant and MBNA, how can MBNA give the claimant's money away to anyone else?

 

I would appreciate an answer to this from someone who knows, as I am likely to be in this position myself soon.

[Philip Hindley]

Regarding the case where the original creditor, in this case MBNA, has sold the debt to a DCA, I would have thought that they would no longer have a right (or indeed any interest) in passing the refund on to the DCA.

 

Since the dispute is solely between the claimant and MBNA, how can MBNA give the claimant's money away to anyone else?

 

I would appreciate an answer to this from someone who knows, as I am likely to be in this position myself soon.

 

Speaking for myself, before agreeing to settle my claim in full, MBNA wrote to me saying they had made payments of approx £900 to the DCA, 1st Direct.

 

I don't know if they actually did this, but am about to send 1st Direct a Data Protection Act request to find out.

 

When MBNA sent cheques to refund all my charges plus interest, I didn't want to push my luck any further by asking about the payments to the DCA!

 

I'll let you know when I get an answer from 1st Direct

[clayts]

i believe they tell the DCA to reduce the debt accordingly. They have been known to call the debt back and start to manage it once again in house. They do seem to work very closely with their DCA's from what I can see. Do have have any of wescotts headed paper or anything. If you have the companies house number then I will see if they are related to mbna in any way

 

Registered in Scotland No. 84131 Registered office 64 Dalblair Road, Ayr KA7 1UH

 

I don't think Wescot are in-house : they also manage my Goldfish debt.

[surreyscouse]

no connection to MBNA whatsoever. Interesting that the registered office is in Ayr yet none of the directors actually live anywhere near Ayr, they all live in england.

 

Another interesting point is that one of the directors is also a director at Everyday Loans ltd. I wonder who does their debt collection ?

[pj41]

Speaking for myself, before agreeing to settle my claim in full, MBNA wrote to me saying they had made payments of approx £900 to the DCA, 1st Direct.

 

I don't know if they actually did this, but am about to send 1st Direct a Data Protection Act request to find out.

 

When MBNA sent cheques to refund all my charges plus interest, I didn't want to push my luck any further by asking about the payments to the DCA!

 

I'll let you know when I get an answer from 1st Direct

 

Hi Philip,

 

I'm a bit confused here! MBNA sent you cheques for the anount you cliamed and they paid the DCA too ? Surely, if the DCA are collecting for MBNA they will reduce the amount you owe by the £900 odd quid you got back. If the DCA has bought it, I doubt MBNA will have done anything, and as they bought it for a pittance you could use the £900 odd to negotiate with the DCA to clear the debt.

 

 

Paul

[poochball]

From my own experiences, the balance is adjusted at the Debt Collection Agency. Either way you are getting the money back, it is like the charges didn't happen.

[Philip Hindley]

Hi Philip,

 

I'm a bit confused here! MBNA sent you cheques for the anount you cliamed and they paid the DCA too ? Surely, if the DCA are collecting for MBNA they will reduce the amount you owe by the £900 odd quid you got back. If the DCA has bought it, I doubt MBNA will have done anything, and as they bought it for a pittance you could use the £900 odd to negotiate with the DCA to clear the debt.

 

 

Paul

 

Dear Paul.

 

Don't want to hijack anyone else's thread, but my situation is as follows:

 

1. I asked MBNA to refund all charges.

2. They refused.

3. I sent them a LBA.

4. They wrote saying they had made a payment to the DCA (to whom they had SOLD the debt for £500) of £900 off the outstanding balance.

5. I told them I was happy to accept the reduction as a partial payment, but would continue my action until all the charges were refunded.

6. I issued my claim via MCOL, but neglected to include the 8% statutory interest in the total (an extra £600ish).

7. MBNA sent me a cheque for all the charges.

8. I 'phoned them asking for the interest. They said they would calculate what they'd actually charged me as interest on the charges.

9. They sent me a second cheque for approx £1600.

 

Sorry to be long-winded, but hope this answers your question.

 

I won't know if MBNA actually paid anything to the DCA, or reduced the outstanding balance, until I serve the DCA with a Data Protection Act notice.

 

If they have reduced the balance in addition to refunding their penalty charges and interest, then I consider myself to be fortunate, and might decide not to sue them under the DPA for sending all my statements to the wrong address!

 

cheers

[pj41]

Hi Phil,

 

I read your thread. After those letters you received and the quite brilliant replies you sent, I really hope you will be "fortunate"

 

 

Cheers

 

 

Paul