MBNA AGREEMENT. Just received. Is it unenforceable?

[anxious1234]

Hi. Just received my agreement from MBNA albeit some 50 days (38 days late)

 

Can you good folks tell me if it is unenforceable please.

 

http://i574.photobucket.com/albums/ss182/q4k/MBNA/front0001.jpg

 

http://i574.photobucket.com/albums/ss182/q4k/MBNA/back.jpg

[alfwithhair]

Although it is an application form it looks enforceable to me as it contains the precribed terms on the rear of the document and this is refered to at the bottom of the front page, so not a chop shop job

But I'm not an expert, maybe wait for a second opinion

[anxious1234]

Hi. Thanks for reply.

 

Any more opinions??

[cds]

I would click the red triangle at the bottom of this post and ask a moderator to move your thread to mbna forum for more exposure.

 

did you recieve info on cancellation rights.

 

cds

[freakyleaky]

Thread moved to MBNA.

[anxious1234]

Hi. Since moving it, I cant find it. Any chance of telling me how to find it?

[alfwithhair]

If you look in

Bank actions Group

There is subsection MBNA

Its in there

[anxious1234]

Cheers

[anxious1234]

Can you have a look at the agreement to see if unenforceable.

I owe £18,000 and have received a letter from MBNA offering full and final settlement at £6500 ( they proposed £7500 2 weeks ago). This leads me to believe that it may be unenforceable. If enforceable then why offer this settlement figure.

 

Need to make a decision on what to do.

 

Thanks

[cosalt]

Hi anxious, I think it is clear that the agreement is a true copy..........however can I ask what your initial credit limit was ? The reason I ask is that you agreement ( in line with other mbna's ) only shows interest charges for limits of £4000, £7000 and £10000. It has been mentioned elsewhere that if your limit was different to these amounts then there is no interest rate shown, therefore making it unenforcable.

 

Cosalt

[cosalt]

Oh and I think you could be right, if it was enforcable then why offer a discount ?

 

Just bear in mind that if they offer you a 'discount' this is likely to be marked as a partial settlement, meaning they or a dca can still come after you for the balance. If you do intend to go down this road, then insist on confirmation it is 'full and final' in writing before proceeding.

 

Cosalt

[anxious1234]

Hi. As far as I know its always been £18,000. However, only have copies going back to 2007. If not £18,000 then I am sure it would have been £15,000

[toto003]

Hi. As far as I know its always been £18,000. However, only have copies going back to 2007. If not £18,000 then I am sure it would have been £15,000

 

Read your agreement VERY VERY carefully, especially the sections 1d to 1h.

 

I bring your attention to wording of 1h especially.

 

"The APRs Shown below apply after the end of any promotional period set out in paragraph 1e ..."

 

The table (as stated by already in this thread) only gives APRs for Agreements with limits of 4k, 7k and 10k.

 

A credit card is an instrument of "Revolving Credit" - and if you didnt have a limit of 4k. 7k or 10k, then MBNA have failed to state the prescribed term of the interest rate.

 

There may be other flaws with the agreement ... but this is the only one I have become good at spotting.

 

in my opinion - this one failure alone makes your agreement unenforceable.

 

but please check the wording very carefully and ensure I havent missed anything.

 

toto

[anxious1234]

Hi. Thanks for that. Will try to find some old statements to check on credit limit and also check the terms etc

[anxious1234]

Hi. Have re uploaded the terms which should be clearer.

 

Can someone check these for me. I understand that the interst rate is not showing as my credit limit was £18,000 but how about the rest of the terms. Any other dodgy ones.

 

Will the fact the the interest does not show for my given credit limit stand up on its own in court as being unenforceable?

[toto003]

Hi. Have re uploaded the terms which should be clearer.

 

Can someone check these for me. I understand that the interst rate is not showing as my credit limit was £18,000 but how about the rest of the terms. Any other dodgy ones.

 

Will the fact the the interest does not show for my given credit limit stand up on its own in court as being unenforceable?

 

 

Failure to state the rate of interest is a prescribed term and that alone makes the agreement unenforceable. there are other things wrong with it in terms of interspersing etc.

 

MBNA would of course try to deny that the agreement is defective.

 

however, you will need to satisfy yourself that the agreement is unenforceable. I dont know if I can explain it better than I already have.

 

are you asking this with a view seeking a declaration that the agreement is unenforceable ?

 

have you read the guide by Steve4064 ?

[anxious1234]

Forgot to attach

scan0001.pdf

[toto003]

Forgot to attach

 

Well there you can see at the end of point 1e

 

"We will then charge interest on transactions as shown in paragraph 1h"

They have stated the rate of interest for any promotional period only. Not for revolving credit. Edited April 26, 2009 by toto003

[anxious1234]

Thanks for reply.

 

So, are you saying its enforceable?

[toto003]

Thanks for reply.

 

So, are you saying its enforceable?

 

 

are you being serious?

[anxious1234]

LOL. I meant to say unenforceable. Thanks for your input.

 

If I understand it correctly then the fact that my limit was £18,000 and the rates shown are upto £10,000 only, means in my case they have not given a rate, making it unenforceable. Correct?

 

You also mention other things wrong. Can you enlighten me?

 

Given that they have offered me a 65% discount, would you accept this or fight it as unenforceable?

[toto003]

If I understand it correctly then the fact that my limit was £18,000 and the rates shown are up to £10,000 only, means in my case they have not given a rate, making it unenforceable. Correct?

 

It is actually worse (for them) They have only stated rates for three exact limits. So if the initial credit limit was £9,999 or £7,001 for example, then they would also not have the interest rate stated.

 

You also mention other things wrong. Can you enlighten me?

 

Please remember I am am amateur at this (as are most of the people on this site) - and this is a self-help site, I haven't quite got the gist of everything yet - and until I understand the other factors 100% - I will not try to go into detail explaining them, I can only try and point you in the right direction.

 

Here is a list of areas where your agreement MAY have issues -

(let me be clear - I CANNOT EXPAND ANY FURTHER ON THIS AS I DONT FULLY UNDERSTAND IT MYSELF YET)

 

 

Repayments - The timing of repayments must be expressed in the manner required by Schedule 1, Paragraph 12 and the amounts of repayments must be expressed in the manner Required by Schedule 1 Paragraph 13 if the agreement is to be properly executed. Regulation 6(1) of the Agreement Regulations requires the signed document embodying the regulated consumer credit agreement to contain a term stating how the debtor is to discharge his obligations under the agreement to make the repayments - Paragraph 5 of Schedule 6 (note - Prescribed for the purposes of Section 61(1) (a) and Section 127 (3) of the Act

 

Other areas that need to be looked at with mbna agreements are (but do not necessarily make an agreement unenforceable);

Forms of statement of protection and remedies

Variable Rates or items

Charges on default

APRs (must be calculated in a certain manner)

Interspersing (putting in waffle I guess?)

Prominence (Certain things have to have different lettering - I think larger or underlined than others)

 

Given that they have offered me a 65% discount, would you accept this or fight it as unenforceable?

 

I would read the offer they have made to you VERY carefully and ensure there isn't the word "Partial" - their offer must state Full & Final - and you must have it in writing.

 

having read what mbna have done to some poor people on this forum, I wouldnt want them to get a penny ... you may have a different view.

 

there is obviously the hassle factor of getting the debt declared unenforceable and if you wish to tackle this issue yourself , you will need to spend the time to learn how these lenders are likely to behave, only you can decide if it is worth the effort.

 

hope this helps

 

toto

Edited April 26, 2009 by toto003
Minor Grammar and Spelling corrections.

[anxious1234]

Ok. Thanks