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MBNA & Abbey cc, full and final settlement advice.


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Got home last night to a letter dated before my email.

 

They are offering to settle for £987 so they obviously don't have the agreement.

 

Im holding out until I have a reply to my email

 

Feeling hopeful!

mbna - no agreement provided - settled for 31% of balance!

halifax - no enforceable agreement - account held

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Have received a further email. Details below... Any thoughts? I'd like to go for the settlement offer, but it will have to be on the understanding it clears both of my accounts, which I am sure is unlikely. Also I need confirmation that I won't be chased for the outstanding. However, I'm not too worried about my credit rating at this time as it's screwed anyway. But AGAIN they say to call, no matter how many times I say writing only. Anyway here's the email:

 

I am aware that you are in a difficult financial situation at the current time. In order that I can assist you, please call me to discuss a reasonable monthly payment plan that is unique to your circumstances whilst fulfilling MBNA’s minimum requirements.

We may be able to accept the following, subject to terms and conditions:

 

1 .Account **** **** **** **** £65 per month.

 

I can stop all interest and fees, on the understanding that payments made will clear the outstanding balance within a 125 month period. I am more than willing to review the fees and charges that have already been applied to the account.

 

2. Partial Settlement

 

If you are able to make an offer of £xxxx against this full debt of £xxxxx then I will consider writing off the remainder, this will be reflected on your credit file. Even if you cannot get to the funds immediately, there are alternative options.

 

These offers are too good not to consider. Please call XXXXXX and speak to your Account Manager on ext XXXX or XXX to discuss this further. These offers are only valid up to XX August 2009.

 

 

Any thoughts?

 

Thanks

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Guest janensteve

option 2, we went for this, though they suggested £1,800 to settle £5,500 debt, we offered £1,500 and if they didn't accept , then we said that as the money was coming from a third party, the moment would be lost forever.

 

they accepted £1,500

 

i guess they need to pull the money in and i rest easy cos, they are getting more money quicker than otherwise.

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Your email is very similar to the letter I received but I didnt have the sentence about not having to pay the full settlement figure in a lump sum

 

Im also concerned that mine said they wouldnt chase me for the remainder of the debt but it doesnt mention anything about 3rd parties.

 

I emailed offering a lower settlement with stiplulation that they put it in writing and that they guarantee no one will chase the rest of the debt and that they clear my credit file

 

Do you think they are likely to go for that?

mbna - no agreement provided - settled for 31% of balance!

halifax - no enforceable agreement - account held

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Hi Susiemac,

 

Thanks for your post, though you may be better off starting you own thread. Then you can post all the details of your problems and follow the replies more easily. Your also more likely to get answers to your questions that way I expect.

 

Good luck with everything though. I hope we get the results we want!

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Does anyone else have any thought on my email? How should I proceed? Like I said I'm tempted by the second option but need to be sure I won't get chased for the remainder by a third party. And I also want a deal that will cover both of my accounts...

 

Thanks

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Hi KB

 

Just to let you know I have had a couple of emails from MBNA over the weekend. They turned down my £500 offer but are willing to accept £750. They tried to get me to pay normal monthly payments for Aug & Sep which would count towards the £750. I would then get an offer letter about 10 days later and then the rest would have to be paid within a 60 day period. The wording was quite wooly and nothing seemed definate - I got the impression it was pay the 2 months and we''ll maybe settle. I also wasnt sure enough - like you - about the 3rd party thing. They also wanted a detailed income & expenditure and a list of all my creditors, with balances.

 

I emailed back telling them I would pay the £750 in 3 installments, within 60 days on the condition that I had it it writing that it was definately a settlement and that neither mbna or ANY 3rd party would chase the debt. I also said that since it was an ex gratia payment they had no need for any of my other financial details.

 

I had an email back within 5 minutes telling me I would have the definate offer by email today as soon as it was approved by a manger.

 

Like Jane said, I think they are just desperate to get payment from you so if you want to settle, put exactly what YOU want from it writing and if they dont agree, dont settle.

 

I will let you know if and when I get the definate email and start the settlement process

mbna - no agreement provided - settled for 31% of balance!

halifax - no enforceable agreement - account held

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I have some experence with this.

 

They offer you a settlement figure because they are resigned to the fact that without you taking a settlement the debt will end up defaulting and they will sell it off at a signitive loss to themselves.

 

If you have a debt of 10K and they offer you a 4K settlement they get back 40% of the debt, if on the other hand the account defaults and is then sold off to a debt collector they may only get 20% so its more cost affective for them to settle with you.

 

From your point of view if you settle for 40% you save urself 6K because if your debt goes to a collection agency they will look for the full balence.

 

There is a reason they ask you to mke a payment this month and next and then final payment within the 60 days.

 

The account is close to default and any further payments missed will mean the account will default before the full settlemnt amount is in and therefor would b null and void, by making the paymetns you are covering the oldest missed payments and this prevents you from defaulting while coming up with the money.

 

The letter they send you once you agree should say somethink like

 

this will register on your credit file as a partial settlement for 6 years mbna will write off the remaining balance of which you will have no further responcibilty for and will not sell your debt to any third party

 

hope this helps

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Many thanks to susiemac and omega, both very interesting posts. I'll be checking my private email at lunchtime and will let you know if there are any developments. Fingers crossed it's coming to an end...

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Hi kb_ba1:)

 

I'm pleased to see that the end is hopefully nearly in sight for you over this:D

 

As the others have suggested you must make sure they settle on your terms and if you are not happy, don't agree to anything.

 

Will keep subbing and hoping to see a successful outcome for you - you deserve it!

 

Regards,

 

Landy x

LTSB PPI on various loans (current/settled) - Refunded inc 8%

 

MBNA 1 Charges - Refunded inc CI

 

MBNA 1 PPI - Refunded

 

MBNA 2 Charges - Refunded inc 8%

 

MBNA 2 PPI - Refunded

 

MBNA 2 Accident Ins - Refunded

 

Swift Advances (settled) Mortgage Charges -Partially refunded

 

Swift Advances (settled) Mortgage PPI - Refunded inc CI & 8%

 

Sainsburys (settled) Loan PPI - Refunded inc CI +8%

 

Sainsburys (closed) Card Charges - Refunded inc CI + 8%

 

M&S Money (closed) Card Charges - Refunded inc CI

 

M&S Money (closed) Card PPI - Refunded inc 8%

 

Direct Line (settled) Loan PPI - Refunded inc CI + 8%

 

Debenhams Card (closed) PPI - Refunded inc 8%

 

Swift Mortgage Charges -Refunded

 

Hitachi Finance (closed) Charges - Refunded

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Hi KB

 

Quick update

 

Had an email stating it was definately a settlement offer at £750.

 

I then made a payment of £65 yesterday to clear the oldest arrears (to stop it going into deafault next week) and will receive a formal settlement letter within next 10 days. I have 60 days to pay the remainder of the 750 but as long as I have paid £65 in August and £65 in September, I can pay the remaining £620 as it suits me within the 60 days.

 

I will then receive a letter stating the account has been settled and my credit file will be marked "agreed partial settlement" and my arrears will cease to show.

 

They have been surprisingly easy to deal with now that its got to the stage of dealing direct by email with a specific person

 

Oh and they havent insisted on the income/expenditure/list of debts that I told them they had no reason to get for an ex gratia settlement

 

FYI my settlement has worked out at just over 30% of my balance and Im happy to pay that (I initially offered £500 knowing they would refuse but hopefully come back at less thatn their initial offer of just under £1000)

mbna - no agreement provided - settled for 31% of balance!

halifax - no enforceable agreement - account held

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Hi KB

 

Quick update

 

Had an email stating it was definately a settlement offer at £750.

 

I then made a payment of £65 yesterday to clear the oldest arrears (to stop it going into deafault next week) and will receive a formal settlement letter within next 10 days. I have 60 days to pay the remainder of the 750 but as long as I have paid £65 in August and £65 in September, I can pay the remaining £620 as it suits me within the 60 days.

 

I will then receive a letter stating the account has been settled and my credit file will be marked "agreed partial settlement" and my arrears will cease to show.

 

They have been surprisingly easy to deal with now that its got to the stage of dealing direct by email with a specific person

 

Oh and they havent insisted on the income/expenditure/list of debts that I told them they had no reason to get for an ex gratia settlement

 

FYI my settlement has worked out at just over 30% of my balance and Im happy to pay that (I initially offered £500 knowing they would refuse but hopefully come back at less thatn their initial offer of just under £1000)

 

err. have they confirmed they will not sell on the remainder of the debt?

 

S.

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"Oh and they havent insisted on the income/expenditure/list of debts that I told them they had no reason to get for an ex gratia settlement"

 

 

 

Ah... I've just sent that over. Wonder if it will effect my chances. I was quite scary to see that my outgoings are a hell of a lot more than my incomings that I realised. Wish I had read your post before and said the same as you.

 

At least now I am dealing with someone direct over email and it does make me feel much happier that I'm able to communicate with someone rather than have my letters ignored.

 

Just hope there really is light at the end of the tunnel. There were times when I really did feel suicidal. So fingers crossed it won't be long. :)

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KB

 

I know exactly how you feel!

 

Wouldnt worry about the income/expenses thing - if its clear that you income is less than your commitments it will be clear to them that you couldnt sustain normal payments

 

Good luck, hope you resolve it a level that suits you

Edited by susiemac77
spelling!

mbna - no agreement provided - settled for 31% of balance!

halifax - no enforceable agreement - account held

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KB

 

I know exactly how you feel!

 

Wouldnt worry about the income/expenses thing - if its clear that you income is less than your commitments it will be clear to them that you couldnt sustain normal payments

 

Good luck, hope you resolve it a level that suits you

 

 

This is the reason why they ask for the income /expendure. once it shows on it its more cost affective for them to settle the debt, then the quicker they will agree a settlemnt

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This is the reason why they ask for the income /expendure. once it shows on it its more cost affective for them to settle the debt, then the quicker they will agree a settlemnt

 

 

I sure hope so! I pay 'em with a spare kidney if I have to!

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Should have read my emails before posting... Sent my income/expenditure info yesterday (though now seems I didn't need to). Anyway, was then asked for my total number of creditors and thought 'well that was in the info I sent you'. However it would appear they actually wanted the total amount I owe. Though I wouldn't have thought "I need your total amount of creditors, for example you have 5 creditors totallying 20K" actually means that. Anyway before I say do I need to? I'm guessing they are now plugging for the reduced payment plan. Which I don't want. Basically they either get what my partner is willing to give them or I consider going bankrupt and they get nothing.

 

Now what do I do? Was feeling better yesterday and now I've got my stress on again... :(

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Have also received an automated email stating they are left with no choice but to default me as I won't communicate with them... What about all the letters I've sent and the offers I've made???

 

I want to cry...

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Guest janensteve

it is likely to be more a case of left not knowing what right is doing. despite entering nto an agreement to pay redcued settlement, they seemes unable to turn off their computer system, so we kept getting letters that were inconsistent.

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