MBNA settlement offer

[Dotty50]

Cheque to be returned if not accepted under YOUR conditions. Although they will probably bank it anyway.

 

I did read a thread where the account had been deleted completely but didn't sub to it and have not been able to find it again!

[humbleman]

Thanks all for your comments.

 

Just read this thread from Broooooooooce

Re: Full & Final Settlement Offers - Any Advice???

 

and does sound very similar to mine. Especially MBNA wanting me to pay by Debit Card which makes me even more suspicious.

 

I have emailed them again today but my feeling (slightly reluctantly) at this stage is I don't trust the deal and won't take it until certain criteria is met. Based on the thread I've read it would be

 

1) In writing confirmimg F & F payment

2) CRA file to reflect FULL payment or settled or even deleted (can they do that?)

3) Payment only by a third party cheque with F & F on back

 

I think that covers what has been said elsewhere. Would you guys agree? Any other points to be included?

 

I would not give them any debit card details. of course then can delete the entry with a press of a button, take 15 sec from start to finish.

 

If they want the lump sum in their account then they will agree to it.

[kjs2025]

Had my friend Richard from MBNA calling me to see if I was going to take the offer. Altho' no letter on headed paper has arrive yet he was adamant that the emails would suffice as it does have all their details at the bottom.

 

Also, to alay my fears, he said " he has been working for MBNA for 6 years and he has never know remaining balances be passed to DCA's after F & F has been paid...as you could sue the a*** off us!"

 

Kept querying him as to why the hurry which he explained was due to both a/c's would default on 28 Feb as 6 months with no min. payment. Then it would be passed to DCA which we both agreed would be sold to at a large discount anyway.

 

He said even I made the 2 x payments mentioned previously for the smaller amounts that would buy me a few weeks grace and would be deducted from the £5k.

 

He was even prepared for a letter on headed paper to be sent by special courier if that would help.

 

Part of me is anxious that he's trying too hard and the other is I may never have this chance to clear £25k debt for just £5k.

 

Has anyone been in this situation? Will they stick to their guarantee?

[Dotty50]

Hi KJS,

 

I still stand by what I said previously, send a letter 'Special delivery' (just for a bit of extra security) to Richard........ and make sure you obtain the signed proof of delivery from the Royal Mail website. If the issue with the CRA is as/more important then you can push for the removal too. If I was able to get this sort of offer, personnaly I would try and take it. But do everything I could to make it watertight. I don't think I would be concerned about their time scales/limits.

 

"If you can raise the funds via a third party, then I think I would send payment by third party cheque (a building society cheque would probably be best, then no personal bank details revealed) stating F & F as agreed in their emails of .......etc and repeat their words that the debt is settle in full and not sold on to DCA...........etc."

 

Draft a letter and post it up here for advice

[dx100uk]

agreed!

 

dx

[kjs2025]

Thks to all for responses. Have spent hours trawling the forums regarding MBNA (and others) and Unenforcable CCA's. As always there are contrasting views but my summary would be the usual 3 x options, as for many caggers, I guess:

 

1) Pay the £5k settlement offer to MBNA ensuring as watertight as possible with "full & final payment etc." included.

 

PROs: Represents only around 20% of actual balances.

Accounts are closed and no further payments due (according to other threads & MBNA) altho' shown as

Settled (ut Partial Settlement)

CONs: Partial Settlement on file with CRA for 6 years

Borrowing from family members

Still outside chance that balance could be sold to DCA

 

 

2) Continue paying minimum payment of £1pm - A/C's both receive DN's and get passed to DCA's. Request CCA's and find that they are both unenforcable.

 

PROs: Stop paying them any further sums of money

Unlikely to be taken to court as MBNA unlikely to win case

CON's: Outstanding balances remain with CRA for 6 years

Possibility that MBNA may still take me to court

 

 

3) As for 2) above but find that CCA's are enforcable

 

PRO's: Continue with with minimum payments ufn

CON's: May lose patience and decide to go to court to see if can squeeze me for more

 

Does this sound right or am I missing anything else? (Bit tired as been on here for around 4 hrs)

 

thanks again

Edited February 23, 2010 by kjs2025
unfinished

[haggis1984]

So with either option your credit score is trashed for 6 years. Even if its found that the CCAs are enforceable the court won't make you pay more that you can afford.

 

It seems like with a trashed credit file either way so you have nothing to loose by making CCA requests and finding out what theyve got. How old is the account?

 

Partial settlement of 5k means a total debt of around 25k. Im pretty sure that MBNA would play hardball with a balance this high and probably try it on in court anyway, regardless of what rubbish they come up with as an agreement. Be prepared for this and have a look at some of the threads where people are fighting in court.

[carrotandgrenade]

Experian partial settlement docs

 

If the link I posted does not work then go onto Experian's website home page and type partial settlements in the search bar. Three pdf documents will come up so click on the very first one. I've read the whole document but I would suggest you just read pages 18 and 19. I hope this may help

 

MBNA partial settlements seam to be the same as going to a casino and betting on black!

[Dotty50]

Hi carrotandgrenade,

 

Link worked on laptop at home, must my my PC at work!

[Guest HeftyHippo]

why can they not mark the debt as fully settled? partially settled means there is an outstanding amount. trye, they may not have any intention to sell the outstanding amount at the present, but who knows in 12 montsh time when a new manager is appointed and he sees the chance to raise a few quid by selling off all those partial amounts owed by people known to be able to get a few quid together...

 

 

if they are accepting money for a F&F, then the debt must be fully settled, otherwise it cannot be a full and final settlement can it?

[Dotty50]

Well I think they could, if they wanted to and they could remove it completely if they wanted to but it is not fully settled at the end of the day. Despite the amount of interest they have had.

 

Only the OP can decide what is best for them and I have to say, I would take the same option if I was given the chance.

[kjs2025]

Thks again all for your feedback. Having trawled many threads on this issue it does seem there is a chance of success in these cases.

 

I agree there does not seem a way around the "partial settlement" clause and that worries me.

 

I remain cautious and I have produced a draft letter that combines many aspects from these threads, in particular one from Iida, as well as actual text from MBNA emails.

 

This is the letter I would like MBNA to issue which I hope would stand up should things go wrong down the line.

 

Very much welcome your thoughts....

Dear Mr S

Ref: Account MBNA account numbers xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Following our conversation dated 12 February 2010 with Richard Lewis, I can confirm that providing the following payments have been received and cleared onto your accounts by 28th February 2010 as agreed, no further action will be taken by MBNA or any other party to recover the remaining balances:

Account ending xxxx: £2714.50

Account ending xxxx: £2285.50

The Terms & Conditions are as follows:

Both of the above Accounts require a payment in February if the full settlement amounts are paid before 5pm on 26th February via debit card then your settlement completion letters will be issued immediately.

However if you want more time to get the full settlement amounts together we can extend this deadline until 30th March if payments for £223.00 & £269.00 are paid via debit card again before 5pm on the 26th February. In this case the full settlement figure would be acceptable via a third party cheque provided enough time is allowed for clearance.

This settlement has been agreed by our senior director (name) and if you adhere to the terms & conditions then you will not have any problems.

If these conditions are met then I can guarantee, upon behalf of MBNA, the following:

1) The sum of £2714.50 is accepted in full consideration of the remaining balance due for account no xxxxxx. This ex-gratia payment will be accepted in full and final settlement of the account.

2) Once the £2714.50 is received I can confirm this will be full and final settlement settlement on this account, however, it will be registered as a partial settlement on your Credit File for six years

3) The sum of £2285.50 is accepted in full consideration of the remaining balance due for account no xxxxxx. This ex-gratia payment will be accepted in full and final settlement settlement.

4) Once the 2285.50 is received I can confirm this will be full and final settlement settlement on this account, however, it will be registered as a partial settlement on your Credit File for six years.

 

5) Both accounts will be shown as closed and the remaining £19237.46 written off by MBNA.

6) This offer is made on the condition that all adverse entries regarding these accounts are removed from our credit files with the credit reference agencies and is marked as “satisfied in full” and the balances set to £0/nil.

7) This offer is made on the clear understanding that neither MBNA nor any associate company will take any further action to attempt to enforce or pursue this debt in any way whatsoever and that any and all liability on our behalf will be fully discharged on receipt of the above stated monies.

8) These guarantees are applicable on both accounts for you as the main Cardholder and the other Cardholder on these accounts, Mrs. S.

9) Settlement completion letters will be sent to you following receipt of both full and final payments.

If the above terms are met I can confirm that MBNA will NOT chase you for any more funds.

However if these Terms are not met both of your Accounts will be passed to Default & the settlement agreements will be null & void.

If you have any queries in the meantime can you please contact your Account Manager Richard Lewis on 01244 659 847 ext 15676.

Signed:

Name:

Position:

Section:

Company:

[kjs2025]

not copied across as wished but sure you can spot obvious errors:)

[haggis1984]

This offer is made on the clear understanding that neither MBNA nor any associate company will take any further action to attempt to enforce or pursue this debt in any way whatsoever and that any and all liability on our behalf will be fully discharged on receipt of the above stated monies

 

Replace the word 'enforce' with the word 'collect monies' or similar. After McGuffick Im never signing anything with the word 'enforce' in it again!!

[kjs2025]

Sent my earlier letter by email to MBNA, amended slightly as highlighted by Haggis (thks for that).

 

In the meantime, as I awaited a response, spookily about 3pm I received 2 x Recorded Delievry Letters via DHL from MBNA (1 x each a/c).

 

Pls see attached letter.

 

It is far too vague & open-ended compared to what I sent them and does not fill me with any confidence that further collections on both a/c's would follow at some point.

MBNA - settlement offer.doc

[dx100uk]

me neither

 

its not signed or anything.

you could do that yourself!

no judgewould except that if it ever got used in court.

 

i know it sounds silly

but its almost as if the guy wants to pocket this money for himself type syndrome!

 

i bet they dont have a cca!

 

if MBNA cant enforce it then a DCA cant either

 

i'd pay them nothing.

 

either way you are going to have a marker on your file

by paying nothing you've saved the money!

 

dx

[Guest HeftyHippo]

doesn't seem to be what they said previously, and no where near anything that confirms you wont still owe money afterwards.

 

stick it out. if they're not playing tricks, there's no reason why they can't state full and final in the letter and in your credit file.

 

as said, maybe this debt is not enforceable? have you had your CCA?

[haggis1984]

No further action will be taken to recover the remaining balance

 

I understand why your concerned, we all know how underhand this lot can be. TBH If it were me Id be happy with the quote above - if you're not stand your ground and wait for a reply to your email.

[haggis1984]

me neither

 

its not signed or anything.

you could do that yourself!

no judgewould except that if it ever got used in court.

 

i know it sounds silly

but its almost as if the guy wants to pocket this money for himself type syndrome!

 

i bet they dont have a cca!

 

if MBNA cant enforce it then a DCA cant either

 

i'd pay them nothing.

 

either way you are going to have a marker on your file

by paying nothing you've saved the money!

 

dx

 

Exactly the point I was making earlier. If there's no enforceable CA then all you gain from paying them is not having to deal with them again. Credit rating is damaged either way.

[kjs2025]

Appreciate the feedback guys.

 

Their letter just looks like a 'standard' letter to me from someone who has not been involved in any of the communications.

 

Agree - it offers less than they had conceded on their emails.

 

Would I be correct in assuming if I obtain the CCA's for both and found them unenforceable that I could stop all payments to them?

 

If they then took the case to court and found that to be so, that the debt would always remain on my file but they would have no further recourse to recover any of the balances?

 

or have I misunderstood the processes involved?

[kjs2025]

Just a quick aside - my phone calls from Richard (MBNA), which I do not have taped, have never followed the correct Data Protection route.

 

He rings me on my mobile, from his mobile, and just discusses our case straightaway. When I asked him why he calls from a mobile he said it is an MBNA mobile!

[carrotandgrenade]

My debt with MBNA is just under £8,000. Nearly all of this figure is from ballance transfering at zero percent on other cards. I have been on hardship payments since day one pretty much. At the begining of February as my account was going to be charged off I was offered by MBNA a 65% discount on the ballance. I was also offered additional time to find the £2,800 (5 weeks) I have no money whatsoever but I could borrow this amount from a family member. It is very tempting when you owe someone £8,000 and you are told that £2,800 would wipe the debt away. However I must be more careful with my familys hard earned cash than I was with my own.

 

My problem is not with MBNA placing a partial settlement on my credit file because that is not relievent. However they must in any written offer state that payment is on the understanding that it is a full and final settlement of the said xxxxxxxxxxxxx account.

 

I have not asked MBNA if they would do this as I think I know what their answer would be. Believe me when I say this "I hope I'm proved wrong on this"

 

F&F settlement letter of said account and partial settlement recorded on credit file "Deal Noel". Partial settlement letter and partial settlement recording on credit file "No Deal Mr Banker you stupid w*****"

[haggis1984]

Appreciate the feedback guys.

 

Their letter just looks like a 'standard' letter to me from someone who has not been involved in any of the communications.

 

Agree - it offers less than they had conceded on their emails.

 

Would I be correct in assuming if I obtain the CCA's for both and found them unenforceable that I could stop all payments to them?

 

If they then took the case to court and found that to be so, that the debt would always remain on my file but they would have no further recourse to recover any of the balances?

 

or have I misunderstood the processes involved?

 

The CCA process is:

 

1. You send CCA request

2.Either.....a. MBNA fail to provide an adequate response within statutory time (12 days)

b. Or..... MBNA provide a properley executed, enforceable credit agreement (in which case pay up!)

c. Or....MBNA provide sufficient documentation to satisfy your request (a true copy which contains all of the information contained within the original agreement, and the current t&cs but can ommit your signature). Note that MBNA can't succeed in any court claim without coming up with a document with your signature on it. There are some cases at present where creditors are trying to use a reconstituted agreement (cut and paste in photoshop) to collect a debt in court.

3. In the event of 2a you can decide to stop payments. Unfortunately you cant be sure whether or not they actually hold a properley executed agreement until they file in court. If 2c you could still decide to stop payments. Either way its a risk.

 

The fact MBNA are prepared to accept a partial settlement suggests they don't have a properley executed agreement, cant be sure on this though. Also, the older the account the less likely they have a properley executed agreement.

[dx100uk]

Just a quick aside - my phone calls from Richard (MBNA), which I do not have taped, have never followed the correct Data Protection route.

 

He rings me on my mobile, from his mobile, and just discusses our case straightaway. When I asked him why he calls from a mobile he said it is an MBNA mobile!

 

urm.... brass in pocket...what's the words of that song....

 

as i noted earlier on............something smells here

 

and it just got stronger.

 

dx

[Dotty50]

Hi KJS,

 

Sorry but came across this thread yesterday, It may be an extreme case but you should be aware of what they can do.

 

http://www.consumeractiongroup.co.uk/forum/legal-issues/248820-order-sale-court-date.html?highlight=abroad

 

Have you considered a letter via a solicitor with the payment? I don't know if this would be legally binding, but providing you find one that specialises in the subject only the solicitor can tell.