Should my father accept this offer from MBNA - Partial Settlement - Visa. Thanks

[1971clt]

Hi

 

Firstly, I would just like to say a massive thank you to so many people on this forum who have helped me in my research relating to Visa card companies accepting “full & final payments” to clear Visa balances and with trying to get my father debt free. The information available on this site is incredible.

 

My father has 3 Visa cards with a total of around £11,000 and 1 Egg loan with a total of £2,300. I have been in contact with 3 of his Visa companies to try and get them to accept a “full & final payment” on his balances. I am also in contact with Egg to get them to pay back the PPI for which he has paid £1,222.00. He is currently only paying £18.00 per debt, per month as this is all he can afford.

 

We have been unfortunate that Mint have wrote back and not accepted his 1st offer but we have just received a letter from MBNA agreeing to a “Partial Settlement”.

 

I would like clarification that what they are offering my father is correct.

This is what we have received from them:

 

--------------------------------------------

Dear Mr ******

Thank you for your recent correspondence regarding an offer of settlement. We confirm your offer of £2350.50 will be accepted in Partial Settlement of your account.

 

Our agreement is conditional upon payment being received within 21 days from the date of this letter. Upon receipt and clearance of the payment, we confirm no further action will be taken to recover the remaining balance.

 

Your account would be registered as a Partial Settlement with the Credit Reference Bureau for 6 years.

 

Please be aware that a statement will be sent to you confirming receipt of your Partial Settlement payment, which is your information only as your account will subsequently be closed.

 

Further use of your card will void this agreement, therefore, if you have not done so, please return your card and any unused credit card cheques.

 

Please make your cheque payable to MBNA Europe Bank Limited, and forward to:

MBNA Europe Bank Limited

Royal Avenue

Widnes

WA88 1AS

 

Please ensure your account number is quoted on the top left corner of the cheque.

 

Yours sincerely

Sally Moran

----------------------------------------

 

 

I just want confirmation that a “Partial Settlement” can still clear an account. I thought it may need to be “Full Settlement”. I know it seems to clearly state that in this letter but I want your views please.

 

He is also unconcerned that the Credit Reference Bureau will have these details for 6 years, as he will not get another Visa card of loan again in his life. He is 62 years old.

We are happy with this offer as he owed them £4.800.00 (However, he had paid around £2,500 in interest over the time he had his card).

 

We have also just received a letter from Egg (currently his balance is £4,700.00 - we have offered £1,350.00). They have agreed to look at the possibility of accepting a Partial Settlement but they need more information regarding his outgoing etc.

 

What I have agreed to do is pay these offers for my father on one of my Visa cards at a rate of 6.9% until the balance is paid off - a lot better than the 33% he was paying!

 

Cheers again for your help and support.

Chris

[Talbot]

Hi,

 

I am fairly new to the game myself so someone will give better info than me but I am nearly 1000% sure that a partial settlement means they can sell that debt on to a debt collection agency within the 6 year timeframe AND THEY WILL. Please do not pay anything until one of the guys or gals on here confirms the agreement is correct. If no-one responds keep putting a reply on. These companies cannot be trusted;)

[pompeyfaith]

If you do go ahead with the offers DO NOT SEND THEM THE CARD BACK EVEN IF YOU HAVE CUT IT UP as there are instances on this site where MBNA have used a card in court as verification to a judge that an account did exist because of there being no agreement.

 

Just say to MBNA sorry because of the data protection act i have taken the liberty to cut and dispose of the card myself

[Cardiac55]

I believe that a partial settlement means just that... they may sell the debt on. So in theory they will not chase you for the remainder but someone else most certainly will... probably Aegis.

 

Any repayment offer that you make should be in full and final settlement.

[Lula]

Have you requested a copy of the signed CCA from the creditors?

[toto003]

There are many other threads about this issue. Partial Settlement means exactly what it says on the tin. Partial Settlement = i.e. Part payment.

 

If you wish to settle this matter once and for all - it must be FULL AND FINAL SETTLEMENT - and you must get that in writng before you pay up.

 

Please do not allow yourself to be misled by MBNA

[1971clt]

Cheers for your views - I think I'm going to ask them for details regarding my fathers agreement and to see what information they have on file. I'm also NOT going to send any money until we receive a letter confirming full and final settlement.

 

Can someone please give me the link to the thread regarding the first letter that goes off to a Visa company asking for information about signed agreements. This site is too big .

 

Thanks again

Chris

[1971clt]

Hi

 

I just want to show you the letter from MBNA that my father received on the 20th January for your views.

 

Dear MR ******

 

Thank you for your recent correspondence regarding an offer of settlement. We confirm your offer of £2,350.50 will be accepted in Partial Settlement of your account.

 

Our agreement is conditional upon payment being received within 21 days of this this letter. Upon receipt and clearance of the payment, we confirm no further action will be taken to recover the remaining balance. Your account would be registered as a Partial Settlement with the Credit Reference Bureau for 6 years. Please be aware that a statement will be sent to you confirming receipt of your Partial Settlement payment, which is for your information only as your account will be subsequently closed.

 

Further use of you card will void this agreement, therefore, if you have not done so please return your card and any unused credit card cheques.

 

Please make your cheque payable to blah blah blah......

 

 

 

......he has also received this on the 24th...

 

In relation to our conversation on the 22nd January 2009, I am pleased to inform you that we provisionally accepted your offer of £2350.50 in payment for the above account. MBNA are prepared to accept this significantly reduced payment in short settlement of your outstanding balance of £4915.24. In return MBNA will not take any further action and the account will not be pursued further.

 

Remember this will report on your credit file as being settled which would be more favourable than a default for further aplications for credit.

 

 

 

 

What do you think???

 

CLT

[macie]

"short settlement" = "part settlement",

 

if you accept it will show as a balance outstanding on the register and will be harassed for the balance.

 

I wouldn't accept a settlement offer that didn't include the words "full and final".

[Talbot]

I agree, don't be underthe illusion these guys play fair. It does not say this debt will not be sold on to a DCA. DO NOT acccept unless it is full and final and even then you need to post the letter on here for everyone to look at before accepting. This is in y humble opinion. I will find the link and send it to you with the template letters.

[Talbot]

http://www.consumeractiongroup.co.uk/forum/bank-templates-library/516-1-data-protection-act.html

 

here is the link

[Talbot]

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html

 

sorry wrong one this is the correct link

[1971clt]

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html

 

sorry wrong one this is the correct link

 

 

Thanks for your time.....letters are on there way. Hopefully we'll hear something this week. CLT

[Grummy]

Honestly, just ring them. If your'e not authorized on the account, call up and put your father on the line, get him to clear security then add you as an authorized user, then you can speak to them directly.

 

you will go through to the TACS department, basic grunts who pick up the initial calls, and they may be able to find out for you, if not, you will be transfered to the collections department and they will answer the uestion for you. You can ask them for a definite answer if this payment will be the only payment and the account will be cleared then closed down. If they say yes, ask them for a letter stating as such, then feel free to pay it. If they don't, then avoid them.

[Talbot]

Honestly, just ring them. If your'e not authorized on the account, call up and put your father on the line, get him to clear security then add you as an authorized user, then you can speak to them directly.

 

you will go through to the TACS department, basic grunts who pick up the initial calls, and they may be able to find out for you, if not, you will be transfered to the collections department and they will answer the uestion for you. You can ask them for a definite answer if this payment will be the only payment and the account will be cleared then closed down. If they say yes, ask them for a letter stating as such, then feel free to pay it. If they don't, then avoid them.

 

I agree but remember what they say on the phone is irrelevant it is only legal when followed up with the correct letter. As grummy mentions if you get the letter feel free to pay. Post it on here first though.

[1971clt]

I agree but remember what they say on the phone is irrelevant it is only legal when followed up with the correct letter. As grummy mentions if you get the letter feel free to pay. Post it on here first though.

 

 

...will do, thanks.

[1971clt]

Oh dear, oh dear.

 

I've just had a phone call from my father to say that MBNA will not be offering "full & final payment". They will offer "Partial" or "Short" payment but can not guarantee that a debt collection agency will not come after the remaining money owed.

 

He has also been informed by Mint that they too will not accept "full & final payment". We await a letter from Egg but I presume that it will be the same answer.

 

I have sent all 3 companies the same information. ie total outgoings, what my dad can afford to pay etc. He has gone to see Citizens Advice and he has done exactly what has been asked. I have sent MBNA and Mint template letters that are available on here and really can't think what else to do.

 

They will not accept full & final payment to clear the debt and feel the only other option he has is to go bankrupt or just let them take him to court. (He is paying them £18 each per month - should be close to £200)

 

However, there is around £40,000 equity in the house and I was wondering IF he does go bankrupt would the judge tell him he has got to sell the house?

 

Is it worth taking my dad off the deeds now - only then to have my mothers name on the deeds. All the debt is in my dads name.

 

Any help is appreciated (god, you've got to love your parents eh! )

 

Cheers

C