MBNA never defaulted a DMP account but 2+yrs of AP + 1yr of late

[user2001]

Hello all,

 

Essentially I have just had my full & final response from MBNA from my complaint regarding their handling of my credit file since I started a DMP back in 2006.

 

They never defaulted the account but listed it as AP for a significant period

along with around a year of various missed payment levels before I partially settled the account in 2010.

(see the CRA image below)

 

[ATTACH=CONFIG]48033[/ATTACH]

 

I am drafting a complaint to the ICO and probably will send a concurrent complaint to the FOS.

 

Obviously I have more documentation to go with this

- but I have attached the key ones for now (a snapshot of the CRA file, my most recent complaint and their final response)

Edited December 4, 2013 by user2001
Tidy up the title

[user2001]

I'm just prepping an SAR to send tomorrow.

[dx100uk]

why do you need this defaulted earlierand thus removed please/

 

that waffly and mostly unnecessary letter you sent didn't help.

 

you should [and could still] make a GOGW plea to mark it as 3/6/6

 

dx

[user2001]

Because it shows as adverse information (all those AP and late payments) and will remain on my file for 6 years from the last action (Jan 2010). However, if it were to be retroactively defaulted to circa 2006 then it would vanish from my file. All my other accounts bar 1 defaulted so are now gone from my file.

 

A remortgage application is going to see it in its current state and is likely to prevent me achieving the best rate.

 

I presume GOGW means gesture of goodwill - but not sure what the 3/6/6 means and wonder why MBNA would be inclined to do anything to my file as they clearly believe it is in accurate presentation of the conduct of my account (as per their final response)

 

Sorry that you feel my letter was waffly and largely unnecessary - butt that exact same wording is the reason I don't have 3 defaults still on my file till 2017 as I was able to convince those companies to backdate their defaults.

[dx100uk]

3/6/6 was the date of your third missed payment - when it could be defaulted from.

 

just to be clear, as 'markers' reach their own 6yrs mark, they will fall off

 

so, looking to your cra file pixs...jan 2010 will be when it will 'look good' for you.

 

I would write back to the guy.

 

pleading that

 

as you are going for a re-mortgage soon

and that most of your other creditors recognised your valid and honest attempts to repay

your debts by entering into a DMP & rectified the 'errors' concerning default marking

that MBNA , as a GOGW mark your file as it should be under ICO guidelines , as defaulted on 3/6/6.

 

the ICO quite clearly state in their guidelines that the AP marker should not be used 'to the detriment of the debtor'

the account 'should' have been defaulted under their guidelines on the third missed/short payment,

 

then a creditor is quite within their rights to mark the file with AP.

however, the account should be defaulted first.

[user2001]

why do you need this defaulted earlierand thus removed please/

 

that waffly and mostly unnecessary letter you sent didn't help.

 

you should [and could still] make a GOGW plea to mark it as 3/6/6

For the avoidance of doubt - this account is not (and never has been defaulted). It is marked as Closed with Settled on one CRA and Partially Settled on the other.

 

so, looking to your cra file pixs...jan 2010 will be when it will 'look good' for you.

 

No this is not correct - as the account is closed with the final status as settled in Jan 2010, this account will stay on my file until Jan 2016 - which is nearly 12 years from the start of the DMP.

 

This is why I want the account to be defaulted - as it will then fall off the file regardless of further status once it reaches 6 years from default .... which I have argued should be back in 2006 ... .hence should already be gone from my file rather than lingering around for another 2 years.

 

Mortgage underwriters are likely to look back at my last 6 years history and see this in its current state.

 

 

the ICO quite clearly state in their guidelines that the AP marker should not be used 'to the detriment of the debtor'

the account 'should' have been defaulted under their guidelines on the third missed/short payment,

 

then a creditor is quite within their rights to mark the file with AP.

however, the account should be defaulted first.

 

This is my argument - they have disagreed with me so why would they agree to any kind of good will gesture? MBNA are not famed for their warm fuzzy approach are they?

 

What is worse is that Lloyds have done the same thing to me and finally closed my account with them this year - so it will linger till 2019 - but they have not yet issued their final response to my complaint.

 

Not exactly a favourable position to be in when trying to swap from being locked into the NRAM SVR to a good market fix before the inevitable bank base rate rise.

[dx100uk]

hehe sri the internet was up/down like a yo-yo last night

 

if you can convince MBNA to default you at , as I've said 3/6/6

what I think is the default date

you should be ok as it will now vanish.

 

keep going. it is worth a try.

 

short pleading letter

 

dx

 

 

dx

[user2001]

Well that has been my intention up to this point - although as their final response to my complaint points out, they are flat refusing to be cajoled into defaulting me effective 2006.

 

So onwards and upwards with my referral complaint to the ICO.

 

I hadn't considered sending a pleading letter for a GOGW to update the file. It can't hurt and in the unlikely event they agree, it will be significantly quicker than the many months I anticipate the ICO to get to a decision.

 

Today I sent my SAR via the MBNA online contact form - maybe I will get lucky and they will comply without the £10 fee

 

In the meantime, it has occurred to me from reading other posts on here last night, that I have never contested late payment / default fees etc on my credit card and current accounts. As most of the companies did suspend all fees & interest on commencement of the DMP in 2006 then I suspect I am too late to recover much, but I do recall that Cahoot kept on charging fees on my bank account for several years and only recently agreed to backdate a default - so maybe there is some mileage in pursuing this?

[dx100uk]

you can certainly reclaim PENALTY charges on loans & Credit Cards back 6yrs and beyond if you wish to press to court.

 

as for bank accounts

you'll have a hard job before nov 2009 when BCOBS comes into play

 

dx

[user2001]

Here is section 3 of the Handling Information Complaint Form which I fired off to the ICO today.

 

A wide range of reasons why MBNA should have issued a default.

 

I'm going to send a copy of this complaint form to the case officer at MBNA with a cover note asking them to remove the CRA info as a GOGW

- I don't care if they choose to do it themselves now

or are forced to do so later by the ICO

but the sooner the better I suppose!

 

Failing to issue a default on a credit agreement when full contractual payents ceased in 2006 when the account came under a Debt Management Plan. MBNA acknowledge that they suppressed fees & interest from the start of the DMP and all but 1 of my other creditors issued defaults within a few months of this time so they are inconsistent with industry practice and the action of my other creditors (including those with the same product type as this account). I have been dissadvantaged in that a timely default means the account would no longer appear on my credit file but as it stands, my credit file will be impacted until 29/01/2016.

 

As you can see from the financial statement originally sent to MBNA when the DMP was setup, my budget allowed £150.12 per month after priority debts and bills to service a total debt of £71671.10 means it would take over 39 years to clear my debts. They were aware that the reason I had found myself in this financial situation was my wife's diagnosis with Multiple Sclerosis and her rapid decline in health such that I had to give up work to become a full-time carer and I was surviving on State Benefits. This was never going to be a short-term situation.

Referencing version 3 of the ICO guidance notes on defaults I feel the following points are of relevence:

Section 4: in 2009 MBNA recorded a series of 5 status 6's

Section 6+7: The other credit card creditors (except Lloyds) defaulted immediately or soon after the start of the DMP

Section 9: I was making payments of £13.77, well below the contractual payments

Section 10: The account was under a DMP

Section 11: I was more than 6 months behind with the payment due under the contract by Jan 2007 according to the CRA file

Section 17: My DMP budget equated to token payment against my total debt level so a default should be issued (as it was by my other creditors)

Section 19: I am certainly in a worse position than someone who made no attempt to pay and would have been quickly defaulted (so this account would no longer appear on their CRA files)

Section 21: Arrangement to pay should be a maximum of 6 months, the Equifax file shows 27 consecutive AP status' on this account.

Section 24: My DMP when setup was set to last for over 39 years so should have been immediately defaulted

 

I continue to be disadvantaged by the actions of MBNA due to the negative impact on my CRA files which is excluding me from remortgaging with a mainstream lender to come off an a high-rate SVR mortgage (4.54%) to a significantly lower 2-year fixed rate mortgage with HSBC (1.79%)

 

I would request that MBNA be directed to issue a default on my account and consideration be given for compensation to be paid at a level deemed suitable to the ICO.

[dx100uk]

you seem intent to keep kicking and threatening people that ultimately you want help from.

if you've not sent that off yet, pers i'd hold on it.

 

send a simple letter to the guy at MBNA asking him

politely, if as a GOGW on his behalf

will he please rectify the default situation without the need to involve other agencies

 

dx

[scarer]

Hi, I wondered how you got on with this?

 

I am in the same situation as you with MBNA only applying defaults once they sold my two debts on to Moorgate, 4 years after starting my DMP in 2007. They are also duplicated on my record, so it looks like I have 4 defaults instead of 2.

 

I have just been able to pay off the last of my debts this month and have started to try and clean up my credit file.

 

I hope it was a happy ending?

[dx100uk]

threads more than a years old

you wont get seen

 

you need to start a new thread

 

 

of your own

 

 

dx