MBNA want me to sell my clothes!!!

[sunshine star]

I'm in a bit of a sticky mess at the moment and wondered if any kind souls would share their worldly wisdom in this sad scenario.

 

Basically I've got 2 credit cards, one with Lloyds (£7,600) and one with MBNA (10,400). I've had the accounts for over 10 years but didn't have any balance (or used them either) for the past two years. Early last year I made a few cash withdrawals to help my Dad out as his house was due to complete on a sale (I don't have savings to that amount!). The sale fell through and my Dad couldn't pay me back. Since then he's been made insolvent. My partner has been making the minimum repayments on the accounts but now can't afford it. I've made all payments by DD until January when I stopped it and sent a £5.00 payment to each.

 

I know I am responsible for the debt but just wanted to explain the situation fully.

 

I get £150 per month in benefits. I do not own any assets as in car house etc. Apart from jewellery which is already trying to be sold.

 

I contacted both lenders at the beginning of January by recorded delivery letter explaining the situation and offering a payment of £5 per month each until I can resolve the financial crisis.

 

Lloyds have been great, responding to letters, quick calls and freezing the interest and charges. They will accept the £5. for 12 months and review the situation.

 

MBNA however, have not responded to any letters (I've been sending them copies of all the letters to Lloyds for information - all recorded). They haven't rang me either.

 

Today I got a phone call from RMA Collection Agency asking for an immediate payment of £85.00 which is the short fall of January's payment. I explained the situation and told her I'd not received any reply from MBNA. She said unless I could make the payment to her there was nothing I could do therefore I needed to go back to MBNA.

 

I called their collections department and went through the above. I was interrogated on the phone! I went over everything I had said in the letter and what Lloyds had agreed to. She wouldn't accept the offer of £5.00 it had to be a minimum of 0.8% of the balance. She asked about benefits and I told her about them and she said I should go back and get more so I could pay the debt. I said I would enquire. Then I was asked if I had anything to sell. I have got jewellry in a local shop to the value of £2,300 which they are selling and I have offered them a 50% share with Lloyds as soon as it sells. She then asked me to take it to a pawn brokers (I have and they will only give me £300) then at least I could make this month's payment. I explained long term that this would not be suitable but she was insistant that this payment should be met. She kept asking if I had anything else to sell. But couldn't suggest what when asked! She also asked me to see if either of my parents or friends would help me out so I could meet their minimum payment.

 

Her final comment was to either make the monthly payment of £85.00 where they would keep the debt in house and freeze the interest or they would sell it on to a collections agency.

 

I've read through the stickies etc and looked at letters to send but not sure at which point I should send anything.

 

Can anyone advise on next steps please? It's a sad case but I'm in a right pickle at the moment.

[gemspan]

Hi there

 

I have had dealings with MBNA through A&L credit card and they are terrible to deal with. I really do think that you should send them another letter and a list of your income and outgoings and offer the £5 as ALL that you are able to reasonably afford.

 

To be perfectly honest MBNA will say anything to you to get money out of you. If it is any consolation they said they would have somebody round at my door in half an hour!!!!! That's how low they go!!!!

 

You could also get in touch with either Payplan or The Consumer Credit Council - do a search in google - and they will help you come up with a plan. Creditors take their intervention as being serious. Sometimes they just wont deal with the customer on their own.

 

Good luck.

 

Kind regards

Gemspan

[gizmo111]

Hi,

 

This is truly outrageous tactics by a call centre.

Is £150 benefits your only income - if so you are below the benefit threahold and need make no morethan token payments of a £1 per month. Is your situation klikley to improve so that you can pay these debts in say the next 5 years?

Have a read here http://www.consumeractiongroup.co.uk/forum/general-debt/56970-insolvency-dealing-debt.html

and see if any of the options would be suitable for you , post back a bit more of your circumstances so we havea bigger picture to see best how to proceed - are you claiming back charges on these debts?

[Brasic]

I'm so sorry to hear that you have been having such a hard time with MBNA. I've had to do this in the past and they were much worse to deal with either Lloyds (who were very reasonable in the circumstance) or Barclays who weren't quite so.

 

I would suggest that you may be have a look on the National debtline web site there is a bit on there about how to deal with companies who do not accept your offer. I won't try to repeat what is there but may have some of the answers you need. Have a peak at the "funders" on that site. MBNA is in there along with various other high street banks who have has a fair few mentions on this forum , however don't let that put you off I have personally used some of the advice from that site and found it to be realistic but helpful!!!

 

I think that the girl who dealt with you was appalling, do MBNA staff get paid commission for trying to make people pay amounts they cannot afford even when you've explained the situation, and surely it's would benefit MBNA and Lloyds if you do sell personal items, that you get the most that you can for them so that you can give them a higher amount even if they have to wait a bit for it?? I hope KARMA eventually catches up to her and bites her on the bum!.

 

I would check with the office dealing with your benefits that you are getting everything you are entitled to but they will not give you a higher amount because you have debt. They would probably advise you to go to your local CAB or something.

 

I do hope you can get this sorted soon

 

Sorry if I haven't been of much use but good luck anyway

 

Brasic

[diskmandave]

Absolutely outrageous! Do MBNA on wiki !

 

My debt to MBNA is with Wescott now (3800) and paying 10.00/mo

 

CCCS

 

 

Regards - Dave.

[sunshine star]

Hiya, thank you to all for your responses. Here's a bit more detail:

 

I'm not entitled to any further benefit at the moment, I currently have an appeal going through dating back to 2005. When I did mention this to them they said the money was provided to give me food, clothing and shelter - not to pay off creditors!

 

I certainly hope my situation will improve in the next 5 years - this year with luck! I am looking for a job but I can really only manage a term time position with having the boys. The problem there is I'm over qualified! I get interviewed and they then question why a part qualified accountant and Board Directors PA want a receptionist job on min wage! Can't win. Anyway, benefit wise is a no go. The boys are fine as their Dad pays for everything for them.

Just remembered, the woman at MBNA said i should take up temp work even though I don't have any childcare! Leave my kids at home?

 

There weren't any charges on MBNA - but there is now! They've got the £12.00 a few times for the bounced DD etc. Lloyds refunded all their charges.

 

I'll take a look at the National Debt Line and call CCCS. Other companies haven't been very helpful so far - as soon as I knew my Dad was in trouble I called a few of them and they said bankrupcy was the only option. That is the last thing I need.

 

Will post back to keep you up to date. Thank you very much once again

[sequenci]

give CCCS or National Debtline a call straight away. they will offer you some really good assistance.

[sunshine star]

Wow, how good are CCCS? Spoke to a really nice guy who said keep on paying them £5.00 a month. He's right in saying they can't take what I haven't got. he said they'll probably sell it on and the DCA wont have anymore powers than them. The worst thing they can do is go to court and issue a CCJ to pay more. But as he said if I can't afford to pay more now then a Judge wont see how I can pay more just because I visit him!

thank you all for your advice. Feel much better now. I'll keep you posted on progress.

[stevesj]

As your debts are more than 15k you could consider an IVA....i'm not an expert but - its an alternative to bankruptcy, you pay a reduced affordable amount (Ok it messes up your Credit Ref for 6 yrs), but if you stick to the plan it gets you debt free. As you are on benefits, the Creditor can't impact / enforce via a court, so they will try and force more out of you.

 

Because you react, they press on, and on.

 

If an IVA is viable - your two creditors will have to back off - they won't like it, but it is legal and they only receive a reduced amount of the debt.

 

DON'T GIVE IN TO THESE BULLIES!

[gizmo111]

As your debts are more than 15k you could consider an IVA....i'm not an expert but - its an alternative to bankruptcy, you pay a reduced affordable amount (Ok it messes up your Credit Ref for 6 yrs), but if you stick to the plan it gets you debt free. As you are on benefits, the Creditor can't impact / enforce via a court, so they will try and force more out of you.

 

Because you react, they press on, and on.

 

If an IVA is viable - your two creditors will have to back off - they won't like it, but it is legal and they only receive a reduced amount of the debt.

 

DON'T GIVE IN TO THESE BULLIES!

 

On total income of £150 per month an IVA is not a viable option.

 

Are you claimng everything you are entitled to

 

check here entitledto it seems a very small amount with 2 children - are you claiming tax credits.

 

As you are in the financial sector then Bankruptcy is probably not an option as it will affect your future employment chances.

[sunshine star]

Thanks, unfortunately an IVA isn't suitable. On paper I can't pay my outgoings at all. The budget statement shows basics such as food, clothing etc - I end up with a huge deficit! Even if I take out the essentials such as clothing, personal products, socialising etc I'm still short. I'm not on the breadline as I'm fortunate enough to get on with the boys Dad so when I'm short he gives me some money. It's not a regular payment but as and when I cry and tell him I'm in need! (This whole sceanrio has resulted because he wouldn't pay the debt, which I understand).

 

The boys stay with their Dad half the time, plus he pays the school fees, clothes - anything they need he pays for. He also provides me with a car to take them to school. In all he pays far more than he should to be fair to him (he's a good Dad and loves his boys - just not to me!). I am getting £41 a month tax credits but that was awarded when I was living with him. I've been told that will probably change now. I'm applying for income based JSA but I can't push it too much as I've got an appeal going through for contribution based jsa.

 

Everyone has been really helpful bar MBNA!

[Brasic]

Tedsbird

 

Glad that your chat with CCCS has made you feel more positive.

 

Definitely check out the tax credit angle, depending on you current situation, ie if you are now a lone parent I'm fairly sure that you'd be entitled to more than £41 per month.

 

Take care

 

Brasic

[stevesj]

why are you claiming IB JSA? - There is a clear case for instant eligibility to Income Support, based on you having custody of the boys and being a Lone parent.

 

You will get a personal allowance for you, the boys are a premium and the Job centre advisors (sh)could get you through the tax credit system to up your income. Then there's your child benefit.

 

If you are in rented accomodation a case for a proportion of, if not all the rent to be paid,plus council tax allowances and free school meals - if you want some help with this pm me.

[sunshine star]

The job centre call centre said as I shared custody 3 days one week four the next but he still sees them when they're with me, (but they called it something else) and the fact he paid for their every need they wouldn't consider it. I didn't want to lie to them because their Dad will be writing down every penny incase I ever chase him for cash or someone else does on my behalf. He literally does pay everything from haircuts to clothes, school trips, playgroups for the baby etc. I just don't see the cash as he either gives me a cheque made payable to them or pays it direct himself.

 

I think they've gone down the IB JSA as I'm appealling against a decision on CB JSA from 2005. As I haven't made any NI contributions since Jan 05 I can't get CB now. Also, I am eligible to work - albeit term time etc - so it's probably why they've suggested that benefit.

 

I thought you only got tax credit if you worked? I;ll look at the web for that.

The child benefit is what I get now.

I;m staying at my parents old house as it is mortgaged out so they didn't consider it in the insolvency - rent free at the moment. It's not been long since being in this situation so I'm not sure what I'm going to have to pay out.

[gizmo111]

Rubbish shared parenting doesn't mean you have to go without for half the week. If he wants to informally but the children gifts and not make a formal mainternece agreement that is his lookout. Claim Income Support and check out tax credits - it is child tax credits you should be claiming - check out entitledto that I suggested earlier.

 

How old are your children - as i just did a quick calc on there for aged 6 and 7 and you should be getting around £78 per week tax credits, before Income support and child benefit.

[Brasic]

Hi

 

If you are a lone parent and receive child benefit you can get child tax credit (CTC)beven if you are not working, for your children, this is not the same as working tax credit which you might get if you were working 16 hours a week or more.

 

Income support and Income based jobseekers allowance are both means tested benefits and any maintenance you get from their Dad for your boys can be taken into account when assessing either of these claims (but not for CTC). In theory regardless of which one you claim you should receive the same amount. EDIT you can only get IS as a lone parent if you get the child benefit.

 

If there was a CSA involvement then the amount of shared care may be relevent if they were assessing the case however I do not think that they would if there was already a voluntary agreement esp when that agreement was more favourable.

 

My only concern is that with JSA you have to be available and actively looking for work for each and every week that you claim - if you are available term time only this would mean that you would not get JSA for school holidays.

 

Brasic

[stevesj]

I see the point, but an argument can be given thus -

 

He pays for upkeep of children as and when they need things - maintenance, whether it's voluntary or not, is paid to you for the children - if he supplies the kids directly, you maybe entitled to IS / IB JSA at full rate as you are the one with the Child benefit in pay. Equally, the JC plus people will want to see what the consistent pay from him is before they can disregard and pay IS etc. it may be he pays for their needs, but it also may be averaged to your benefit. Child Tax Credits (CTC) are paid in respect of the financial situation you're currently in- hound the IR&Customs to get you your entitlement - if you are working it is added and based on Working Tax Credit for previous tax years (another mess).

 

sorry it's detracting from the MBNA situation, I think we all want you to get what you can, and be able to climb out with your head up high!

[sunshine star]

I'm on a mission. thanks for the advice.

[sunshine star]

How old are your children - as i just did a quick calc on there for aged 6 and 7 and you should be getting around £78 per week tax credits, before Income support and child benefit.

 

The boys are 3 and 10.

 

I think I need to go to the Job Centre for this. There seems to be so many different angles to look at it. I'll print off these pages and then I wont forget what I'm told!

 

 

Just back onto the MBNA thing; even if i do get more bens they can't expect me to pay more out of that can they? What I really want (although that's different to should) do is pay them the £5.00 for now, get myself on the right road and when I've got a job sort out paying them back with larger amounts. If they can get more out of me I'm not going to get myself in a good financial position.

 

One thing as I'm discussing my life story, the ex did say if I got a job and could pay the mortgage he would give me the deposit for a house - part of a leaving gift me thinks. If I'm still on a debt plan of sorts where does that leave me if I've got equity in a property. This is a long way off but I'm trying to think positively and what's going to happen in the future.

[nemogbr]

Good luck with the action against MBNA.

 

I used to be the Royal bank of scotland card and then the account was transferred to MBNA.

 

My balance was at £1,500, but with difficulties in my life, I now owe them £2500.00.

 

I'm in the process of finding out about all those £50.00 charges they have been gouging from me.

 

Feeling better that I can do something about my situation.

[sunshine star]

Good luck with the action against MBNA.

 

I used to be the Royal bank of scotland card and then the account was transferred to MBNA.

 

My balance was at £1,500, but with difficulties in my life, I now owe them £2500.00.

 

I'm in the process of finding out about all those £50.00 charges they have been gouging from me.

 

Feeling better that I can do something about my situation.

 

Fortunately I'm not up to the stage where there are lots of charges but I know there will be many here who will talk me through it! Best of luck

[gizmo111]

The boys are 3 and 10.

 

I think I need to go to the Job Centre for this. There seems to be so many different angles to look at it. I'll print off these pages and then I wont forget what I'm told!

 

 

Just back onto the MBNA thing; even if i do get more bens they can't expect me to pay more out of that can they? What I really want (although that's different to should) do is pay them the £5.00 for now, get myself on the right road and when I've got a job sort out paying them back with larger amounts. If they can get more out of me I'm not going to get myself in a good financial position.

 

One thing as I'm discussing my life story, the ex did say if I got a job and could pay the mortgage he would give me the deposit for a house - part of a leaving gift me thinks. If I'm still on a debt plan of sorts where does that leave me if I've got equity in a property. This is a long way off but I'm trying to think positively and what's going to happen in the future.

 

 

For tax credits you need to claim from inland revenue see here HM Revenue & Customs: Tax Credits

 

Your main problem would be geting a mortgage with adverse credit as you would likely end up paying a higher interest rate.

Did you and your ex own property together?

It would be a good idea also to formalise some sort of maintenance from him so that you can include in your budget - in any event income support are likely to want his details from you.

[sunshine star]

There's a development! RMA called again today stating that I hadn't paid when they called on 1st Feb and had my situation changed so I could make a payment. I said no, not in two days. I told them I had spoken to MBNA direct and would deal with them direct. (My brother is now going to loan me the 80 to make their minimum as I'm really freaked out about it going to an agency and the adverse credit thing). The guy said as they had taken over the account they would still ring every other day until MBNA took the account back. I asked how he got my details as I hadn't given my permission for it to be passed onto a 3rd party. He said they were still part of the company just a separate entity. i asked why he was going to continue to call me even though I would be making my payments direct to mbna. he said as it is an automated system he couldn't do anything about it. Anyway, I said I wouldn't answer anymore calls from them to which he replied we will then start calling you twice a day until you do. When i suggested this was harrasement he basically said tough. They can't do this can they? He wouldn't give me an address to write to or a phone number. Where does this leave me?

 

CCCS said they would try anything but the last thing I need now is two companies chasing me.

 

Also if I pay ~MBNA £85 do I have to let Lloyds know? They wont be happy if I pay MBNA more than them will they?

[gemspan]

http://www.consumeractiongroup.co.uk/forum/bank-templates-library/37006-harassment-telephone-response-letter.html

 

 

Send the letter above to MBNA advising them that you are now dealing with CCCS. Do not pay them the £80 but send them £1 as a token payment, but wait for CCCS to talk to you and take you through your budget. Your credit rating has probably been affected anyway so dont worry about it. At the end of the day you are unlikely to want to get any hire purchase at the moment being on such a small income.

 

Settle down, got and have a cup of tea and then send the letter. Send it recorded delivery so you know that they have it.

 

Hope this helps. As I said I have had serious problems with MBNA so know what you are going through. They are bullies but dont let them bully you.

 

Kind regards

Gemspan

[gizmo111]

Basically you cannot afford to pay £85 - you are not paying a debt just getting into more debt with your brother.

you prob have a couple of late payments on your file anyway. At some point in the near future your credit rating will be affected by the factthat you can't pay anyway - so when it happens doesn't really matter.

It is unlikey that even when your benefits are sorted you will be able to make full payments, so there is no point doing it now.

What paln did you make with CCCS?

Just to clarify in your first post you say you live in your parents home - but your father is BR - what are the plans for this property?