MBNA - Not accepted F&F Settlement

[Montague123]

Hi all

 

I wrote around three months ago to MBNA and suprise suprise they could not supply me with a signed CCA

 

After a couple of requests it became clear they did not have one - so to resolve the matter i offered them 10 % as a full and final settlement as i didn not want a default showing

The letter i sent was as below

 

 

I DO NOT ACKNOWLEDGE ANY DEBT TO YOUR COMPANY

I write with reference to the monies which you are claiming on the above account.

I am not prepared to offer to pay the monies in full as you cannot supply me with a valid Credit card agreement. However, I am willing to offer £896.00 as an ex-gratia payment in full and final settlement of the account.

This offer is made on the clear understanding that, if accepted, neither you or any associate company will take any further action to enforce or pursue these monies in any way whatsoever and that I will be released from any liability.

I also request that, if accepted, you will mark any entry on a credit reference agency file relating to the above account as "satisfied" in full & any default removed.

I look forward to your response which I request by 16th June 2009.

Please note that no payments will be made whilst the above referenced account is in dispute.

Yours faithfully

However i received this morning and it after reading it a couple of times - they are almost admitting they cant come after me - so what do i do next. I dont want a default placed on my record, they cant sell it on but i just dont know what template letter to use.

The letter basically said

Thank you for your recent correspondence offering a full and final settlement.

We have reviwed the offer and unfortuantely cannot considor a full and final settlement unless the offer of payment is 95% of the account balance.

We could considor partial settlement.

This would mean your account would register as a partial settlement, however we could not take any action to recover the final amount.

I would really appreciate any help as i am getting into a real flap. I just need to word my response properly

Thank you

Montague

[Coactum]

This look to me as if they are happy to accept your 10% offer and agree that no further action will be taken to recover the remaining 90% but that they will not agree to marking your account as satisfied etc.

 

If you can afford the £896 it will be a relatively low cost way of finally resolving the matter. However, I suspect that this will leave a black mark on your credit file for the next 6 years, but you could creatively word a suitable response to add to your file so that any potential future lenders would understand. Something like:

 

I repudiate MBNA’s claim that I owed them £8,960 but accepted that something was due. MBNA were unable to satisfactorily prove to me how the alleged sum had been calculated, and were happy to accept my proposal to resolve matters. The sum I paid was given on the understanding that it was a full and final settlement of this alleged debt.

 

I would suspect that any future lender reading this would understand that there was a dispute and that you had co-operated in resolving, but they may well call you in for interrogation before granting any loan.

[Montague123]

Thank you for your prompt reply

 

Just reading that there are such a lot of scare stories with MBNA that they then sell the remaining part of the debt on

[Coactum]

I would think that this is why any final offer you make has to be given under strict terms.

 

You could try writing your letter restating your terms and rejecting their proposal and add within that letter that encashment of cheque #123456 from account 87654321 is deemed unconditional acceptance of the aforementioned terms.

 

I have always found that when you wave money in someone’s face that the succumb to temptation. I’m sure that faced with your cheque and terms that they would find it nigh on impossible to return your cheque and decline your terms.

[toto003]

Partial Settlement is what it says.

 

It isnt Full and Final, and despite what they say, you will still be pursued for the debt when they sell it on.

 

There are several threads about this already.

 

If they are not going to sell the debt on and let someone else chase you, why wouldnt they agree to a F&F ?

[Coactum]

So, that's what the meant when they said:

 

however we could not take any action to recover the final amount.

 

MBNA might not take further action but someon else who buys the debt will!

[Montague123]

does anyone know if there is a template for my reply

 

I have searched to no avail

 

Thank you

 

Montague

[toto003]

does anyone know if there is a template for my reply

 

I have searched to no avail

 

Thank you

 

Montague

 

I am not sure that there would be a template for that kind of reply.

 

what is it you want to say to them exactly ?

[Coactum]

How about this:

 

WITHOUT PREJUDICE

Dear Sir/Madam

 

Re: Account No0000000000000000:

 

I refer to your recent communications in relation to the above account.

 

As you are well aware I am unable to offer to pay the balance that you claim is due in full, however, I am able to raise £896 and I want to offer this as an ex-gratia payment in full and final settlement of the account. This offer is made on the clear understanding that, if accepted, neither you or any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that I will be released from any liability.

 

I also request that, if accepted, you will mark any entry on a credit reference agency file relating to the above account as "satisfied in full".

 

A bankers draft will be made payable to you within 7 days of receiving your written acceptance of this offer and method of payment.

 

I look forward to receiving your reply.

 

Yours faithfully

[MondeoST24]

I dont know why people get into a flap about defaults on credit files.

 

No valid agreement = no debt = no debt to default on

 

Let them put what they want on there then sue them for its removal under the DPA. I did this against Halifax and the judge wrote an order for its removal.

 

They didn't comply so the judge wrote another order directly to the company secretary of Halifax threatening that if they didn't remove it it was contempt of court and he may be sent to prison.

 

A couple of days later not just the default but any trace of me ever having an account with Halifax disappeared from all my credit files.

[Coactum]

Interesting feedback MondeoST24, I guess you have documented all that you did elsewhere within this forum and so would appreciate being pointed in the right direction.

[toto003]

Interesting feedback MondeoST24, I guess you have documented all that you did elsewhere within this forum and so would appreciate being pointed in the right direction.

 

x2 from me Montague123

 

would love to see the process you went through to achieve that and the wording you used.

 

Please post the links.

[MondeoST24]

http://www.consumeractiongroup.co.uk/forum/data-protection-default-issues/145266-default-removed-halifax-co.html#post2233178

[Coactum]

Perhaps I've missed something here MondoeST24 but from what I read your success came about through the HBOS failure to defend. I'm guessing they will not make that mistake agian, and as we are also referring to a different banking group in this thread it does not necessarily mean that Montague123 can expect likewise.

[Montague123]

Thank you for all your responses

 

I have a couple of questions if anyone can help.

 

If i send a cheque saying cashing the cheque does mean agreement to my conditions and the bank cash the cheque and then sell the rest of the debt on - what can i do legally?

 

I afraid if i take them to court it will cost me money i dont have

plus

 

the above post says take them to court to remove defa

WIll this not cost me money?

 

Thank you

[angel_1]

hiya all pls take a look at this thread below very interesting!

 

http://www.consumeractiongroup.co.uk/forum/mbna/204839-band-together-against-them.html

 

have a sunny day laters angel x

[debt_rabbit]

don't go with the aprt offer - make it clear you want the F&F - the debt is unenforceable

Edited June 18, 2009 by debt_rabbit
wrong thread

[andie_303]

I just won a sneeky F&F with black horse - though it was for a much smaller amount.

 

I banked on them seperating recieved cheques from letters when they arrived and effectively banking the cheque without reading the letter. Case law states that if the cheque is from a 3rd party and clearly shows it is in F&F of an account and they bank it there is not much they can do afterwards and in them presenting it they have accepted the terms on which is was offered. This is only possible if it is a cheque from a 3rd party unconnected with the debt.

 

After an initial chasing phonecall from Black Horse asking where the £471 left outstanding was and me telling them what they had done in banking the cheque my account was closed and marked as fully satisfied on my credit report

[debt_rabbit]

I just won a sneeky F&F with black horse - though it was for a much smaller amount.

 

I banked on them seperating recieved cheques from letters when they arrived and effectively banking the cheque without reading the letter. Case law states that if the cheque is from a 3rd party and clearly shows it is in F&F of an account and they bank it there is not much they can do afterwards and in them presenting it they have accepted the terms on which is was offered. This is only possible if it is a cheque from a 3rd party unconnected with the debt.

 

After an initial chasing phonecall from Black Horse asking where the £471 left outstanding was and me telling them what they had done in banking the cheque my account was closed and marked as fully satisfied on my credit report

 

That is really interesting - I can't believe it - that is great!

[andie_303]

read the case law on full and final and make sure you get it right and sometimes it works - you really do have to rely on the companies not reading the letters and just seperating the cheques out - Black Horse admitted that they do that and thats how mine got through

[Pandora_nini]

How about this:

 

WITHOUT PREJUDICE

Dear Sir/Madam

 

Re: Account No0000000000000000:

 

I refer to your recent communications in relation to the above account.

 

As you are well aware I am unable to offer to pay the balance that you claim is due in full, however, I am able to raise £896 and I want to offer this as an ex-gratia payment in full and final settlement of the account. This offer is made on the clear understanding that, if accepted, neither you or any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that I will be released from any liability.

 

I also request that, if accepted, you will mark any entry on a credit reference agency file relating to the above account as "satisfied in full".

 

A bankers draft will be made payable to you within 7 days of receiving your written acceptance of this offer and method of payment.

 

I look forward to receiving your reply.

 

Yours faithfully

 

Hello, I was wondering how you got on with this? I am considering doing exactly the same.

Thanks

Pandora

[TheScaryOne]

I'm also interested in finding out how you got on with this letter.