Mbna Partial Settlement Help Please

[chmai1]

i was sent a letter from mbna offering a partial settlement.saying:

call and discuss the possibiliy of settling your account with a payment of £5,945. if accepted the account would register as a partial settlement; however we would not take any action to recover this amount.

 

so concidering i owe £17k i thought i would ring up.

 

so to cut the story shorter, by the end of the conversation they said i could get away with paying £4200. i must pay £360 at the end of this month then the same next month. then the following month i need to pay the outstanding balance of 4200-the 2 payments.

 

so i was very happy with this untill today reading this forum!

 

people on here are saying if the account is recorded as partial payment the amount left not payed can be chased from me by debt collection agencies.

 

i was obviously thinking if i made these payment nothing more would be payable to anyone, i.e finished closed done!

 

is this true?

 

i would much appreciate all input as i need to know what to do about the first payment i need to do very soon.

 

many thanks

[the_shadow]

i was sent a letter from mbna offering a partial settlement.saying:

call and discuss the possibiliy of settling your account with a payment of £5,945. if accepted the account would register as a partial settlement; however we would not take any action to recover this amount.

 

so concidering i owe £17k i thought i would ring up.

 

so to cut the story shorter, by the end of the conversation they said i could get away with paying £4200. i must pay £360 at the end of this month then the same next month. then the following month i need to pay the outstanding balance of 4200-the 2 payments.

 

so i was very happy with this untill today reading this forum!

 

people on here are saying if the account is recorded as partial payment the amount left not payed can be chased from me by debt collection agencies.

 

i was obviously thinking if i made these payment nothing more would be payable to anyone, i.e finished closed done!

 

is this true?

 

i would much appreciate all input as i need to know what to do about the first payment i need to do very soon.

 

many thanks

 

See if you can get them to put the quote in writing and confirm that any outstanding balance will not be chased by them or passed onto a third party... if they dont do this then yes its a partial settlement (short settlement) and they'd write off the loss in tax AND sell it onto a DCA:(

[WelshMam2009]

Ok, I have had the same partial settlement offer as will have many others. It is first a tactic to establish whether or not you have the means to pay and also, are willing to pay.

 

It is not a full and final settlement and you will still be pursued by DCA's for the outstanding amount.

[chmai1]

mmmmmmmmm.

 

thats not good then, there is no point in me getting into futher debt with a family member if they are still going to chase for the full amount.

 

i might as well just let the sell it to a dca then eh?

[WelshMam2009]

Have you CCA'd them yet?? That would slow things up for a while!!

[chmai1]

hi, no i didnt know about it untill today!

 

but wont thas **** them off, and then take any settlement offer away?

[WelshMam2009]

hi, no i didnt know about it untill today!

 

but wont thas **** them off, and then take any settlement offer away?

 

Don't be fooled...it's NOT a settlement. It's a way of getting a lump sum off you asap!! They will write off the remainder of the debt against tax and then flog your balance to a DCA.

[chmai1]

so should i call them up and tell them i have done some research in how they deal and tell them to stick it up their a***?

 

and say i am going to request the cca?

[the_shadow]

Don't be fooled...it's NOT a settlement. It's a way of getting a lump sum off you asap!! They will write off the remainder of the debt against tax and then flog your balance to a DCA.

 

Chmai1.. see my advice in post 2 (although this would involve contacting them)

 

They wont put it in writing as a F&F and hence you know its a worm on the end of a hook.

 

PmW

[chmai1]

ok cool i think i will call them and say that no payment will be made unless i get a singed letter saying its f&f and wont be passed on to a third party for the rest of the ballance.

 

if they cant do that they i will do the cca request. i cant remember when i got the card but it must be at least 8 years ago.

 

i am so gutted today! i though things were looking good, then i decided to have a look on this website. BUT ITS JUST AS WELL I DID.

[WelshMam2009]

ok cool i think i will call them and say that no payment will be made unless i get a singed letter saying its f&f and wont be passed on to a third party for the rest of the ballance.

 

if they cant do that they i will do the cca request. i cant remember when i got the card but it must be at least 8 years ago.

 

i am so gutted today! i though things were looking good, then i decided to have a look on this website. BUT ITS JUST AS WELL I DID.

 

Sorry Chmai...but I have ten or so of the same letters sitting with me now. Each time, the discount increases...think it started at 30% and now up to 60%. However, the letter clearly states that this is a partial settlement.

 

Let us know how you get on...but there is a similar thread to this where someone asked for the details in writing and all he received was a rather vague letter with no specific details, asking him to ring to discuss the terms!!

[chmai1]

hi, phoned up today, was talking for ages and they said it would be marked as partial settlement satisfied and told me 100% that this would be the end of the account and not them or anyone would chase me for the balance. i have asked for it in writing. it does seem ok to me. i am not bothered about it saying partial settlement satisfied on my credit record as long as that is the end of the account.

[the_shadow]

hi, phoned up today, was talking for ages and they said it would be marked as partial settlement satisfied and told me 100% that this would be the end of the account and not them or anyone would chase me for the balance. i have asked for it in writing. it does seem ok to me. i am not bothered about it saying partial settlement satisfied on my credit record as long as that is the end of the account.

 

Not wanting to sound paranoid or over suspicious.. can I suggest you post up or type out the offer minus personal details to ensure it is kosher and will stand up legally [someone else will need to check that, I havent a scooby] that they wont chase or sell on the remainder of the debt...

 

PmW

[WelshMam2009]

hi, phoned up today, was talking for ages and they said it would be marked as partial settlement satisfied and told me 100% that this would be the end of the account and not them or anyone would chase me for the balance. i have asked for it in writing. it does seem ok to me. i am not bothered about it saying partial settlement satisfied on my credit record as long as that is the end of the account.

 

Honestly, that is crap. Are they prepared to put that in writing?? If they are not going to pursue the debt then they may as well mark it as full and final don't you think.

 

Sorry to appear negative, but you aren't exactly dealing with a company renowed for it's integrity!!

[WelshMam2009]

Not wanting to sound paranoid or over suspicious.. can I suggest you post up or type out the offer minus personal details to ensure it is kosher and will stand up legally [someone else will need to check that, I havent a scooby] that they wont chase or sell on the remainder of the debt...

 

PmW

 

I don't believe that there will be an offer as such yet...it will either be a standard letter with a big box printed at the top offering a discount or else a statement detailing alternatives.

 

My latest says:

 

3. Call and discuss the possibility of settling your account with a payment of £X. If accepted, the account would register as a partial settlement; however we would not take any action to recover this amount.

BUT, they don't say that they won't sell the debt on to a DCA for peanuts who will try and recover the monies.

 

Naturally, I want Chmai to do what's best for them. However, I also don't want them to be conned into believing that this is the end of the matter.

[chmai1]

when i get the letter i will pop it on.

 

is there any posts on here that have accepted the partial settlement and had problems after. i cant find any?

 

the way i see it is that obviously they wont mark it as full and final because its NOT full and nowhere near. but as long as the remaining debt wont be chased then its fine. i wouldnt expect them to mark the account as being 100% paid and making my credit rating good again.

[WelshMam2009]

This is a quote from another thread from reputed member 'Banker Rhymes With'

 

Tread carefully with any form of discounted offer from a banker, and especially Amex.

 

Many bankers throw out offers like confetti and, in many cases, they are not at all sincere. The vast majority are just blunt tricks to try and get people to Telephone them, the larger the discount, the more they hope people will knee jerk into picking up the Telephone.

 

You can see their logic: if someone is interested in Paying 20%-40% of the alleged Debt, if nothing else, it tells them they can and want to Pay 20%-40% of the alleged Debt. That is probably the whole purpose of the offer. It may, for example, make the Debt more sellable to a DCA, as they can say the Debtor has indicated a willingness and desire to Pay £x, thus making the Debt much more attractive when it goes up for tender or auction sale in DCA Land.

 

However, whilst some offers are a little more sincere, most of these real offers often carry a nasty little sting in the tail. These are the ones that can be called Short Settlements, i.e. they offer a lump sum discount, but neglect to point out they can still chase you for the balance.

 

What you need, assuming you have the funds available to pay any offer, is a binding Full and Final Offer, one that includes a written undertaking from the banker concerned that when you make the Payment, that is the end of the matter for good, no strings attached whatsoever. You'd be wise to include other specific clauses such as the removal of any adverse Data, along with an undertaking that they will desist from ever mentioning the alleged Account ever again, to anyone.

 

Get all of that in Writing before you Pay them a penny, and make sure the F&F Offer Letter is signed by a real banker, not one of the facsimile signatures and invented names you see on many banking letters. For example, one bank in particular seems to use a number of names that do not appear to relate to real people. Amex may do the same, so make sure any Signature is signed in ink, by hand, and by someone with the appropriate level of authority within their organisation.

 

I think you can now see that any offer has to be taken with a pinch of salt, and it may not mean very much. By that, I mean it may not be a reliable indicator of the strength or weakness of their position.

 

Indeed, 97 times out of 100, it's just a vehicle being used to convey other less palatable intentions.

Short settlements are the same as partial settlements.

 

Link here for you...

 

 

http://www.consumeractiongroup.c o.uk/forum/show-post/post-1771581.html

[chmai1]

yes i had read that befor. but there doesnt seem to be any posts of people experienceing problems after paying the partial settlement, well i cant find any.

 

so it makes me think that it my be ok.

 

surely if someone had paid the partial settlement then got chased for the balance after they would be straight on here saying so? dont you think?

[WelshMam2009]

Ok, clearly you don't want my advice so I shall bow out gracefully.

 

However, all I will say is that the only way you can guarantee that you won't be pursued for the outstanding balance is to have a FULL & FINAL SETTLEMENT.

 

I'm beginning to wonder if you're not an MBNA employee...

[chmai1]

i am just trying to do whats best. i am in a hole that i want to get out of. maybe i am trying too hard to be possitive.

 

but i would like to see some feedback from someone who has done the partial settlement to see what happens after. dont you think that is a good idea?

 

have you read any posts regarding the above.

 

i much appriciate your help. dont get annoyed with me!

[chmai1]

also i would never beleive that a company would write off the account as full and final when they have only had 25% back??

 

has this ever happened to anyone?

[the_shadow]

i am just trying to do whats best. i am in a hole that i want to get out of. maybe i am trying too hard to be possitive.

 

but i would like to see some feedback from someone who has done the partial settlement to see what happens after. dont you think that is a good idea?

 

have you read any posts regarding the above.

 

i much appriciate your help. dont get annoyed with me!

 

Perhaps it would be wise just to sit and wait for the letter to come and then post it up.

 

PmW

[WelshMam2009]

From another thread posted on 21 Feb 2009

 

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.

 

http://www.consumeractiongroup.co.uk/forum/mbna/180496-should-my-father-accept.html#post1994640

[atwozee]

Your choice to take the offer or not – but wouldn’t you want to know if they had a valid agreement in the first place? For your own peace of mind you should request that the offer is put in writing before you hand over any payment.

There is nothing to stop MBNA taking your lump sum payment and then selling the debt on and in 2 or 3 years time a DCA comes a knocking on your door asking for settlement of the balance – which has now racked up a few grand in extra interest.

And what will you say? I paid them a lump sum and it was in full settlement of the whole balance. And what will they say? Tough luck – we bought this debt legitimately so pay up or we will issue a claim.

Think about how you are going to prove that the lump sum payment was full and final – not today but in 2 or 3 years time.

[chmai1]

well the best thing is to wait and see the letter i get.

 

but i am yet to find any posts that have had problems after.

 

if anyone has read anything please post