Help with decision on what to do with MBNA threats...

[Robertg2477]

Hi All,

I have spent a few hours going through this site and cant find a case similar to mine, so thought I would do a post. Problem is I need an answer by tomorrow if I am to take the correct action.

I owe about 7k on my MBNA credit card. I was coming up to the end of the intrest free period so I thought I would get a loan with a lower interest rate and continue to pay the debt. A few days after making enquiries into loans I gat a call from Benificial Claims saying that because my card was issues pre 2007, it was perhaps unenforcable. So afer many days of trying to decied what to do I thought well I have nothing to loose and will give it a go at getting the debt written off. Benificial claims got the ball rolling by

writing to MBNA and getting my CCA and in there reply was that the debt was in fact unenforceable and that the case was strong. They have now since past the case onto their solicitors who are dealing with it as in their eyes is unenforceable.

MBNA call everyday, at home, work and mobile and on the odd occasion when I speak to them they say the have never received a letter of Authority from anyone and that the debt is with me so they have to speak to me. Surely they should never have giving my information to a third party without permission and also the have sent statements to the solicitors. The solicitors have written to me with the following:

With regard to your agreement, having assessed it I have found that the figures stated on your agreement for your Total Charge for Credit ('TCC') and the interest rate for Purchases do not match as they are required to do. This could be an error in calculating the TCC or alternatively rounding of the interest rate, to your detriment. We are in the process of investigating further to determine whether rounding has taken place, which includes asking your Lender to provide copy statements through the history of your account. From these we will be able to tell whether the interest rate has indeed been rounded, as we suspect.

If this is the case then your matter will be placed in abeyance by ourselves pending the outcome of litigation we have on this point. While a conclusion in that matter is unfortunately several months distant it will, we hope, confirm that this is a legitimate argument for us to pursue. In the meantime we are willing and able to defend any proceedings brought against you on this point.

I received a call from MBNA over the weekend and they are asking for £169 payment and that this would prevent the account from defaulting. Does this mean my credit file will be unaffected if I pay this amount and the same every amount until the outcome of the case. I can afford the £169 and if it means protecting my credit file it might be worth it?

I received this email from MBNA today and would like help in deciding what to do??

We would much rather come to an agreement with you directly than take further action however, you are leaving us with no choice. Due to regulatory requirements we will be forced to default your account, which will remain on your credit file for six years. A Default does not relieve you of the responsibility to repay the debt, which may be legally assigned to a third party for collection.

 

To prevent recovery action, please call an account manager on 01244 681461, they will be available Monday to Thursday 8am to 9pm, Friday 8am to 5pm and Saturday 8am to 12pm.

I hope this hasn’t bored you all and hope someone can give me some answers and put me in the right direction. In a nut shell what I am asking is should I pay the £169 and keep on perusing the case.

Also, if I leave it as is and don’t pay anything and I end up with bad credit, is it true MBNA cant keep charging me interest and other fees while a case is in dispute? And can the reference/judgement be removed from my file? Below is a response from the solicitors as well…

In the event that we are unable to secure a positive outcome in this for you we will, on your behalf and if you so wish, enter into negotiations with the Lender in order to reach a settlement figure and remove adverse credit references. To this end, and as our advice has been, we suggest that you set aside money you would normally use to meet your monthly repayments, in the event that we are unable to secure a declaration of unenforceability, so as to avoid you having to suddenly find a lump sum of money for a settlement.

In the circumstances I would not recommend making a payment as any monies paid to the Lender cannot be claimed back in the event that the agreement be declared unenforceable. However, it is a decision for yourself to make.

Thanks

Rob

[kevinghill]

Rob

I am persuing three creditors for unenforceable debt through Benificial Claims one of them being MBNA.

If you are in any doubt or they are harrassing you, just call Beneficial Claims and they will advise you how to deal with them.

 

I have had hassle with some obnoxious women claiming to be from MBNA, but all I say to her is "thank you for calling, if you wish to discuss anything relating to this matter, please speak to Beneficial Claims" then just hang up.

 

If BFC have told you that this debt is unenforceable after they have checked your credit agreement, then you can be pretty sure it is so.

 

If you are disputing a debt, then the creditor cannot pursue you for payment.

 

Hope this helps

 

Rgds

Kev

[Robertg2477]

Hi Kevin,

 

Thanks for that. I spoke to MBNA last night and they say if I pay the £169 by Saturday this will stop my account defaulting and so showing up on my credit file. My credit file already shows the 7 missed payments. Is it worth paying the £169 in order to prevent my credit score from being negativly affected, or is this all ready done as I have missed payments? Or should I just ignor it and let it all run its course?

 

Thanks

Rob

[kevinghill]

Rob

Your credit file will already show defaults, so 1 more will not make much difference, but if I were you I would get advice from Benefical Claims.

 

 

Rgds

Kevin

[fireyjack]

I'm getting exactly the same threat at the moment via phone, e-mail and letter.

After not paying anything for 6 months would this 'default' have such an impact on an already trashed credit file?

 

Or, is this simply trying to put the frighteners on as they know it wouldn't stand up in court?

[kevinghill]

If you are legally disputing this debt, then a creditor can not pursue you for payment. Besides as you say if you have defaulted for six months your credit file is already trashed.

This is big noises putting the frightners on ordinary people, the ba#*".ds!!

[Robertg2477]

Hi Kevin,

 

I have just checked my credit report with Equifax and can see that the account has the missed payments and not yet shown as a default account, but this will default in a month or so. Does a default mean I am black listed?

Spoke to MBNA tonight an d they want a list of my expenditure so they can offer me a repayment plan for the debt owed. Is this a good sign that the want to settle before going further as they know they win or not? Is it worth paying the £169 to stop the default being placed on my credit file or keep persuing the case?

 

I hope this makes sense.

Rob

[Robertg2477]

Hello.

 

Has anyone got any advice?

 

Rob

[Robertg2477]

Anyone??

[foxyflugel]

I would keep hold of my money tbh. You will never get it back - and if BC are saying that it is uneneforceable and you keep paying against their advice - then it will look like you are acknowledging the debt by paying it.

 

I am in a similar position (with RBOS) and my solicitors advised me to pay £1 - so therefore I now have defaults on my file - but I will live with this for another 5 years (it's been going on for 1 year already) - as it goes against the grain to pay money when they can't take me to court for it.

 

A default does mean you are blacklisted. I went onto a hardship plan with MBNA/Abbey and they allowed me to pay what I could afford (froze all interest and charges) for 5 months - then they said the debt would be sold on if I couldn't pay the arrears owing - by the 6th month. No mention of a payment plan or sending an expenditure plan in. The fact that they are willing to do this suggests to me that they are trying to act reasonable in an attempt to get the money back - knowing that the agreement is unenforceable.

 

With regards to the harrassment - change your mobile number (it's a hassle - but worth it) - also I invested in some Panasonic phones where you can bar numbers - they are worth every penny when these idiots are calling you 4/5 times a day - as the phone doesn't ring it just registers that they called you.

 

Also the behaviour of many of these banks leaves a lot to be desired. Good luck with it whatever you decide to do.

Edited April 3, 2010 by foxyflugel

[ladybird17]

Once you pay you've acknowledged the debt. Just write to MBNA, tell them who can speak on your behalf, send it recorded delivery and track delivery.

MBNA are extermely aggressive, and you might even find the bloke who tells people that as they're owned by Bank of America, British law doesn't apply to them. He's a scream!!