MBNA Charges as a result of PPI inflating balance***Success Claim Won ***

[dx100uk]

always the OC

 

dx

[Guest alan703]

hello am just about toclaim charges from mbna too, ur saga has been most helpful, can you confirm you went straight to fos or did u write to mbna first

thanks

 

I went to the FoS who wrote to MBNA on my behalf. I have just received the acknowledgement from MBNA saying they will have a response in 28 days.

 

FoS did not add my schedule of charges. They just asked MBNA to investigate the Charges applied to my account.

[PPI Rani]

thanks guys

ps @dx OC???? [

[ims21]

thanks guys

ps @dx OC???? [

 

 

Original Creditor

[Autodrome]

which spreadsheet did you use?

[Guest alan703]

which spreadsheet did you use?

 

I used the CISheet v1.01 unsure if it's the right one or not, but I've sent it

[Guest alan703]

I have received a letter from MBNA informing me they will get back to me in a further 28 days. I responded with to that with an email to the CEO, and now I will have a response within the next 7 working days - which is Tues 25/7

 

Will update you then

[ims21]

OK alan

 

So from the post you made in your PPI thread we know that MBNA have declined to refund the charges in full but have offered a tiny amount.

 

You want to reclaim all of your charges going back further than six years.

 

You have already sent them a spreadsheet using a rate of 29.9% for interest in restitution and a preliminary letter.

 

This is now being dealt with as a completely separate issue from the PPI and therefore you are going for a refund of the charges on the basis that they are a penalty and not on the basis that it was the PPI that caused them. This then becomes a standard charges reclaim.

 

As dx says, MBNA can be a hard one but the only way you are going to stand a chance of getting them back is through the courts.

 

As has been said, S32(1)© Limitations Act has been used successfully with other lenders to overcome the six year business and if you are going for more than six years then you will need to rely on that. In addition, if you are going for interest in restitution then you need to understand what that is about. I gather you have read No.4 in my signature.

 

I personally think that 29.9% is a bit high but there have been successes using 24.9% as a nominal rate. You can of course choose your rate but don't forget that you will have to justify your rate in front of a Judge if this gets to court.

 

As you have already done a preliminary letter and not had a result, I would now update your spreadsheet to reflect the claim being up to today's date and with an interest rate you are happy with. When you have done that send a "Letter Before Action" to the lender together with a copy of the updated spreadsheet.

 

Put them on 14 days notice that if they do not refund the charges you will issue against them without further notice.

 

Remember, only threaten court action if you intend to go through with it and you must work on the basis that this will go to court. If they do cave in before hand then that is a bonus but work on that basis that this will go the full distance.

 

In respect of S32, the case law you will need to rely on is Kleinwort Benson -v- Lincoln City Council and in respect of interest in restitution the case law is Sempra Metals -v- Commissioners of Inland Revenue

[Guest alan703]

I've got too many posts on the go, and posted in the wrong place. So am reporting in the right place now.

 

So MBNA offered me £56.05 refund on £328 of charges. They only offered payment on 2 x £25 charges.

 

Told them they had 7 days to reconsider beforeI take court action.

 

The response - only twice was I charged for being over my limit as a result of my PPI, and they are allowed to charge for late payments. This has been £12 since 2006 blah blah. They charged me £20 & £25

 

Due to limitations act, I am not entitled to any more as I have not received any charges in the last 6 years.

 

My complaint said -

 

I was complaining about the excessive and unlawful charges applied to my account. In addition to this, had ppi not been applied to my account, my account would never have been in default.

 

 

The last letter they sent said they had refunded the late payments in my PPI case. This letter says something different.

 

Must I go to the ombudsman, or can I go straight to court. I can make a claim using money claim online provided I claim a fixed amount. I am unsure if I can set my own interest rate though?

 

I have only learnt about credit card penalties being excessive since starting my PPI claims. I was under the impression that ruled out the limitations act?

[Guest alan703]

IMS.

 

On the money claim online - I need to fit my claim into 1000 letters I think it is, but can also send detailed particulars by separate cover within 14 days.

 

MBNA have said they will not communicate further about this case, and anything I send them will be file with no response. Can I still send an LBA?

 

I have used money claim online recently for a case that was not a banking one, and found it quite straight forward - although the company paid up within the 14 days, so it went no further.

 

I will adjust the interest to 20% which is their own cash advance rate, so that would make it a justifiable rate?

[ims21]

Hi

 

Yes MCOL allow you to file full particulars of claim in paper format later.

 

If MBNA don't communicate and just file stuff without response right the way through then they may be on to a loss in court. I would guess they will actually respond to court papers. Yes, if you intend to sue send them an lba. Don't forget, you are the one in control here.

[Guest alan703]

I assume the email I sent giving them 7 days to reconsider my claim does not count as an LBA? I stated in that email an unsatisfactory response would result in court action.

 

I did not head the letter "Letter Before Action"

[ims21]

I would be on the safe side and send a letter headed "Letter Before Action" using your original preliminary as a base. Send recorded to their registered office.

 

At least that way you know that all bases are covered.

[Guest alan703]

Thanks

 

I'll get on thy when I get home.

 

That'll be another 14 day wait then

[ims21]

If you feel happier with a 7 day lba then that is fine too.

 

Sadly I don't think this is going to be a quick process to get the charges back.

[Guest alan703]

I'll go 7 days.

 

I take it they will defend it in 14 days buying more time?

 

The claim at 29.9% was £3000

At 20% I think it is only £1600

 

I'm also hoping there will be a point where it is not financially viable to defend it.

[ims21]

Well in order to defend you will have to issue first

 

So if they don't play ball with the lba then you will need to issue and then you are into the realms of the court process i.e. time for them to acknowledge and defend, exchange of documents and all the rest of it.

 

You are not days away from a settlement...more like months in my opinion.

[Guest alan703]

assuming they defend, where do I get the info I need to properly present my case?

 

I have my spreadsheet

Transaction lists

Two contradicting letters from MBNA - 1 saying they have already paid the late default payments in my (unresolved) PPI claim. The other saying they will not pay it due to limitations act.

 

I assume I may hve to prepare my PPi incase they say they paid it within that again, or included it but I refused. Or could that be ruled irrelevant as it is unsettled?

[ims21]

All of the information you will need is on CAG.

 

Limitations Act is here

 

http://www.legislation.gov.uk/ukpga/1980/58

 

Sempra and Kleinwort cases can be Googled

 

If it goes to court they will have to show that some of the charges have been refunded in the PPI claim (although they haven't because that is not yet settled)

 

You will need to do some reading around the bank forums. As I've said, Shelley's thread in the Barclaycard successes forum is a good one to read but there are many others to research too.

 

Also have a read about preparing court bundles which you will need if it goes to court. The court bundles can take a lot of paper and ink too.

 

Good preparation is essential.

[Guest alan703]

Do I need to read the whole sempra and kleinwort cases which will no doubt result in me being confused, or is there specific elements I can concentrate on within them?

[ims21]

Sempra is all about interest in restitution and Kleinwort is about the Limitations Act.

 

Have a scan through them first and become at least a bit familiar with them.

 

After all, you may need to explain these things in court.

 

If you wish you can leave it a bot further down the line but may have to show that you know what you're talking about, even as a Litigant in Person.

[Guest alan703]

I calculate that you have taken £xxx plus £xxxx which you have charged me in interest which total £xxx.

 

Reading Shelley's prelim letter, and the Letter Before Claim from "Which" How do I fit restitution into the above quote?

 

http://www.which.co.uk/consumer-rights/making-a-complaint/taking-a-dispute-to-the-small-claims-court/sample-letter/

[ims21]

Change the wording.

 

"I calculate that you have taken £xxx in charges plus £xxxx interest in restitution which total £xxx."

 

You don't need anything from "Which"

Edited August 17, 2012 by ims21

[Guest alan703]

Here goes,

 

I have attached my effort at a Letter Before Claim.

 

Is it too much info, or is that irrelevant?

 

I have decided to stick with 29.9% as that is what I have already asked MBNA for. Also I have read that restitution need only be fair, it does not have to reflect the contract rates. I can alter it if need be.

 

Although I entered a Trust Deed on 02/09/2004, and my account should have been frozen at that point, MBNA continued to add charges and interest. There are also a couple of bogus payments and refunds applied to it. They then sold my account on , and as such, still received payment, just not from me. The last entry that zero's my account reads

 

10/03/2005 : ZERO CURBL ON SOLD ACCT : -1018.56 : 0

 

It does not say how much the account was sold for, if indeed it was sold at a reduced value.

 

So with that in mind, I feel it fair to request restitution for their unjust enrichment due to every excessive default charge applied to my account. The charges after 02/09/2004 should never have been applied had they operated the account properly, and frozen it when I entered a protected trust deed.

 

Should I request, or should it have been included in my Subject Access Request, a document detailing the sale of my account to Max Recovery/Eversheds, after I entered the trust deed?

 

I do not really understand why a debt collector would buy an account that has entered a trust deed, which has no real prospect of recovering a reasonable sum towards the debt.

 

I have not mentioned the PPI claim at all in the Letter Before Claim, but if MBNA were to come back and say you failed to pay the account and it defaulted - the PPI claim is my biggest argument against that. The removal of PPI places my account in credit from September 2003 until my Trust Deed in September 2004.

MBNA Letter Before Claim.pdf

MBNA Charges LBC edited.pdf

Edited August 16, 2012 by alan703

[Guest alan703]

IMS, I am unsure how to work out the exact interest they charged me, so chose to leave that bit out - (I hadn't read your post, it has taken me this long to compose a letter - I HATE THEM LOL)

 

Instead, I stated that I was claiming restitution when I went on to list what I wanted from MBNA.

 

Sorry to use "Which" website, I was looking for an LBA template online. Shelley had a prelim letter up, but it didn't specify where she found her LBA letter before she sent it.

 

Hope no offence is caused.