Default Notice from MBNA recieved today?

[feelingfine]

Hello all,

I have recieved a default notice today from MBNA for the sum of £2747.00.

I had been paying a monthly payment plan of £31.00 for the last 2 years, as i have been out of work due to ill health.

 

Since being on this plan i had not missed a payment until last month (May) which should have been paid on the 26th.

I have had to continually borrow money in order to pay this debt, as i could only afford, realistically £10.00 pm, but MBNA would not accept that and finaly pushed me into paying the sum of £31.00.

 

All my other creditors have been fine, and were at the time of the start of my illness agreed payment plans of between £5.00 and £10.00pm, again all of which have not been missed.

 

As ive said , when the payment due in may was missed after continuous phones, telling me "to borrow the money from anyone i could or this debt will be sold off", i recieved a letter from MBNA, it was a statement showing payment recieved £0.00, and also included, a leaflet on borrowing more money from another company in order to consolidate all my debts?, out of anger this was torn-up and thrown away!

 

Basically what i am asking is , "what do i do next"?...Is there anything that i can do.?

I am not working still, due to my health.

 

Any help would really be appreciated.

Thank you in advance.

[alangee]

First of all, can you post up the default notice, so that we can see if it is valid.

 

Next I would SAR and CCA them to see if you have any unlawful charges made to the account, and if they have a valid agreement.

 

When did you take out the card?

 

Alan

[feelingfine]

Hello Alan,

Many thanks for your reply.

I have attached the Default Notice for you to view, do you see anything incorrect about it?

 

They require the full outstanding amount by 26-06-09, is there still enough time for me to be able to SAR & CCA them?

Thank you.

[heliosfa]

Hello Alan,

Many thanks for your reply.

I have attached the Default Notice for you to view, do you see anything incorrect about it?

 

They require the full outstanding amount by 26-06-09, is there still enough time for me to be able to SAR & CCA them?

Thank you.

 

Sorry, what you have posted is a bit small to read! can you upload it to photobucket or imageshack and post the link?

 

From what you have said, they MAY have gotten the dates correct on this one...

 

HAve there been alot of "penalty" charges on the account?

 

H

[feelingfine]

Yes sorry about that im trying to get things sorted with the image size at the moment.

H, im unsure if there has been penalty charges on the account as yet?

Thank you

 

Edit**:Is this any better via imageshack?

Edited June 10, 2009 by feelingfine
image attached

[alangee]

It would appear that if you got it today, they have allowed enough time, but, try to get a clearer image, because the wording may be wrong, or there may be something else we can pick up on.

 

Alan

Edited June 10, 2009 by alangee

[heliosfa]

OK, I've had a brief look at it and the dates are fine and the formatting looks OK (a first for MBNA? ).

 

Now, what strikes me is the scentence that says "a default has now been registered against this account with the credit reference agencies.". I am not sure they can do this before the exxpiry of the default.

 

How much is outstandding on the account? what was the credit limit?

 

As for not knowing if there are any penalty charges, do you have statements you can check?

 

A CCA wouldd be a good thing to send off IMMEDIATELY. A SAR could also be helpfull, make sure you request the Comms log as it may show they have terminated already

 

H

[feelingfine]

It would appear that if you got it today, they have allowed enough time, but,

So in reality Alan, what would happen next? and can i still send them a SAR & CCA?

try to get a clearer image, because the wording may be wrong, or there may be something else we can pick up on.

Not trying in anyway to "teach you to suck eggs" but when i get to the link if i double click it it comes up clear, or this perhaps because i have uploaded it?

I hope there is something that can be picked up on here

 

Thanks for your help so far .

[feelingfine]

OK, I've had a brief look at it and the dates are fine and the formatting looks OK (a first for MBNA? ).

Oh thats a downer straight away:(

 

Now, what strikes me is the scentence that says "a default has now been registered against this account with the credit reference agencies.". I am not sure they can do this before the exxpiry of the default.

Now that sounds interesting

 

How much is outstandding on the account? what was the credit limit?

Outsanding is £2747.68 & the limit was £3500.00

 

As for not knowing if there are any penalty charges, do you have statements you can check?

If the charges would arise in the "interest" then no is the answere, sorry to be vague but i really dont understand this thb.

The agreement i had with them was, as i said in my OP, paid on time every month for the last 2 years, they had stopped interest as far as i can see from the statements i have?

 

A CCA wouldd be a good thing to send off IMMEDIATELY. A SAR could also be helpfull, make sure you request the Comms log as it may show they have terminated already

Will do that tonight and send it off r/d tommorow, whats a comms log, H? and also how would i word that using the SAR template?

 

Would this be the correct CCA template to use also?

http://www.consumerforums.com/resources/templates-library/86-debt-collectors/581-cca-request-letter

 

thanks for your help, its really apprecaited

Edited June 10, 2009 by feelingfine

[heliosfa]

Oh thats a downer straight away:(

 

Now that sounds interesting

 

Outsanding is £2747.68 & the limit was £3500.00

 

If the charges would arise in the "interest" then no is the answere, sorry to be vague but i really dont understand this thb.

The agreement i had with them was, as i said in my OP, paid on time every month for the last 2 years, they had stopped interest as far as i can see from the statements i have?

 

Will do that tonight and send it off r/d tommorow, whats a comms log, H? and also how would i word that using the SAR template?

 

Would this be the correct CCA template to use also?

http://www.consumerforums.com/resources/templates-library/86-debt-collectors/581-cca-request-letter

 

thanks for your help, its really apprecaited

 

Yup, that's the correct template. Remeber, send a £1 postal order (will cost you £1.50) and DO NOT sign the letter.

 

 

OK, i am a little confused by their Defualt Notice - it is demanding payment of the entire balance and, i could be wrong here dependant on the terms of the agreement, but they cannot demand the full balance on the Default unless the whole balance is arrears. The fact that they are demanding the whole balance to rectify the breach to keep the agreement running just seems wrong.

 

Definitely need some one more in the know to comment on this one I think...

 

Just wondering, how old is the agreement?

 

H

[pompeyfaith]

Having checked the dates of the default notice again it is nonce let me explain.

 

They have to allow you 14 clear days to remedy not including weekends

 

Now it was issued on the 08/06 with a remedy date of the 25/06 this is 14 days so where is the time they have to allow for service of DN first class post is 2 days second class is 4 days so even assuming first class that takes it to the 10/06 so that only leaves 12 days.

 

Dont let then know that they have messed up big time though put that DN under your hat and let them stew on it.

 

Amazes me that they still get it wrong.

 

Regards

 

PF

[heliosfa]

Having checked the dates of the default notice again it is nonce let me explain.

 

They have to allow you 14 clear days to remedy not including weekends

 

Now it was issued on the 08/06 with a remedy date of the 25/06 this is 14 days so where is the time they have to allow for service of DN first class post is 2 days second class is 4 days so even assuming first class that takes it to the 10/06 so that only leaves 12 days.

 

Dont let then know that they have messed up big time though put that DN under your hat and let them stew on it.

 

Amazes me that they still get it wrong.

 

Regards

 

PF

 

I was always under it impression it was 14 calendar days, not working days, and as such, this notice is compliant?

 

 

must not be less than [14] days after the date

of service of the default notice

Edited June 10, 2009 by heliosfa

[feelingfine]

Yup, that's the correct template. Remeber, send a £1 postal order (will cost you £1.50) and DO NOT sign the letter.

Cheers for that, and will NOT sign the letter.

 

 

OK, i am a little confused by their Defualt Notice - it is demanding payment of the entire balance and, i could be wrong here dependant on the terms of the agreement, but they cannot demand the full balance on the Default unless the whole balance is arrears. The fact that they are demanding the whole balance to rectify the breach to keep the agreement running just seems wrong.

Is it possible that they are demanding the full balance within this time because i have been on a payment plan for such a long time?

 

Definitely need some one more in the know to comment on this one I think...

any ideas?

 

Just wondering, how old is the agreement?

Well i have the inception date of the PPI (who declined to pay out) that says 8th April 2005, i am asuming that this was when the credit card was taken out?

 

Amazes me that they still get it wrong.

Pompeyfaith, i hope that they have made a mistake here!!

[heliosfa]

Cheers for that, and will NOT sign the letter.

 

 

Is it possible that they are demanding the full balance within this time because i have been on a payment plan for such a long time?

 

any ideas?

 

Well i have the inception date of the PPI (who declined to pay out) that says 8th April 2005, i am asuming that this was when the credit card was taken out?

 

 

Pompeyfaith, i hope that they have made a mistake here!!

 

Hopefully someone with more insight will pop along soon, if not we can attract some attention

 

As for the PPI, why did they decline to payout? potentially a case for miss-selling there?

 

H

[alangee]

It is 14 calendar days. Business days only come into the equation when calculating time for delivery. As they have allowed 17 days that is just about right.

 

Are the arrears stated on the DN the full balance owing? If they are, I am pretty sure that makes it invalid, but I am not that well up on it to be absolutely sure.

 

Alan

[SB100]

Same here... http://www.consumeractiongroup.co.uk/forum/mbna/203962-sb100-mbna-strangest-default.html

[alangee]

feelingfine/SB100

 

Have you calculated what your arrears should be. For example if you have missed the last three payments then your arrears should not be more than they total.

 

Making a demand for the full amount due, in my mind, terminates the agreement. The only way they can demand full payment in a Default Notice, is if the arrears actually total to the full amount.

 

Perhaps somebody from the site team can look at this and give us their take on it.

 

Alan

[SB100]

Yep, I have the figure. They've added nearly £5k in interest and charges since I stopped paying approx 8 months ago....

 

I'm really struggling with the concept of default notice coming after they've defaulted the account. Like you say, to go after the lot would suggest its already terminated.

[feelingfine]

feelingfine/SB100

Have you calculated what your arrears should be. For example if you have missed the last three payments then your arrears should not be more than they total.

I have, as i said in my OP, that ive been on a payment plan for around 2yrs, but i have only missed the payment Due on 26th May? So i am unsure how i stand with this?

As i was on a PP are they correct in making the demands or full payment?

 

Making a demand for the full amount due, in my mind, terminates the agreement. The only way they can demand full payment in a Default Notice, is if the arrears actually total to the full amount.

In the Default Notice it states:

"This is a statutory notice in order to tell you that in order to remedy this breach you must pay the full amount of your oustanding balance of £2747.68 by 25/06/09"

*if not*

"On or after the date shown your account will be closed and your credit agreement will be terminated"

They also state in the Default Notice that my card will be stopped....but this was cut up and sent back to them, on their request over 18 months ago maybe longer (as soon as i stared to get into difficulty)?

 

Perhaps somebody from the site team can look at this and give us their take on it.Alan

I hope so as this is really troubling me:-?

[SB100]

Just checked experian and they've already terminated the account- and the default was showing in May- which kind of makes a nonsense of this

[feelingfine]

On the CCA in the template Library, this version http://www.consumerforums.com/resources/templates-library/86-debt-collectors/581-cca-request-letter

As this is a running account , ie credit card it states to change from s77(1) to s78.

Really stupid question here, do i also change that in paragraph two:-?:-?

Also what about the numbers in brackets ?

Just about to do the letter and dont want tomake any mistakes?

 

Thanks

[heliosfa]

Hi feeling fine,

 

I got your PM and it seems like the PPI was miss-sold due to what you told me. I would get a complaint in with MBNA along the lines of a pre-existing condition. If they don't play ball, you could go to the FOS, take them to court, or use it as a set-off defence.

 

As for the section 77/78 stuff,yes, you need to change all of the instances to 78 in this case. The numbers in brackets are the same for 77 and 78 if i recall correctly.

 

H

[feelingfine]

Many thanks to everyone who has replied so far.

Just want to get things right before i go ahead and send out the letters.

Really stupid question time again here, sorry?

 

I can send the CCA with the s77 changed to s78, leaving the numbers in brackets as they are?

Can i also send the SAR even though, please correct me if im wrong, they have 40 days to respond to the SAR, but i only have until 25/06/09 to pay the outstanding balance in full?

 

Thanks

[heliosfa]

Yes, the bits are 78(1) and 78(6) (on a side note, I think the template is wrong as there is no 77(6), but there is a 77(4)).

 

To be honest, I think that the SAR would be worth sending after the expiration of the Default, specifically requesting the Comms log, as they have been know to terminate & sell before expiration of the default

 

 

sorry to go back to the penalty charges, but I noted that you say you didn't understand them yet - penalty/unfair charges are the ones for "late payment", "overlimit", "collection charge", "default charge", etc. etc. If you have any of these, you can claim them back with interest.

 

How much in PPI premiums have they taken from you since the start of the account? are you able to work out how much interest they have charged you? (if you need a hand with this, post back and I can give you a hand!). It may be worth sending a dispute letter to them re. the PPI, claiming this back with interest.

 

H

[feelingfine]

Yes, the bits are 78(1) and 78(6) (on a side note, I think the template is wrong as there is no 77(6), but there is a 77(4)).

Thank you, i will adjust the template wording for this.

 

To be honest, I think that the SAR would be worth sending after the expiration of the Default,

This is going out first thing in the morning, i know thats its before the end of the timeline set out by them for the Default Notice.

 

 

sorry to go back to the penalty charges, but I noted that you say you didn't understand them yet - penalty/unfair charges are the ones for "late payment", "overlimit", "collection charge", "default charge", etc. etc. If you have any of these, you can claim them back with interest.

 

How much in PPI premiums have they taken from you since the start of the account? are you able to work out how much interest they have charged you? (if you need a hand with this, post back and I can give you a hand!). It may be worth sending a dispute letter to them re. the PPI, claiming this back with interest.

This is one of the reasons im sending out the SAR early because i have not got all the statements so i cannot calculate any of the charges or how much the PPI was?

 

Many thanks for your help!