Mbna - Settlement Offer On 2 Cards

[HULMEC]

I have been sending reduced repayments to MBNA for the past 2 years. The total amount on both MBNA cards is just over £16,300.00 to which I make pro rata payments to all creditors these get £49.00 per month.

 

I get the usual phone calls etc all of which are ignored and the standard threat letters etc.

 

The calls over the past 2 weeks have increased ten fold ….but Oh whatever!

 

Last week I received a letter from them basically stating that due to the low payments they are scheduled to be written off as a bad debt and passed to external debt collection etc.

 

The letter then stated as a final attempt to demonstrate our good faith to resolve the debt they were offering me a reduction to £6300.00 to settle the accounts and would mark the accounts with a partial settlement and they will not pursue the remaining balance of £9700.00

Which is a good offer…However they are asking for me to call and one thing I do not do is call them and the offer expires on 27th June, 2009

 

Today I have received a letter from them sent via wait for it….SPECIAL DELIVERY…with a handwritten envelope and they are now stating that as a total final offer they will accept the following:

£159.00 per month for the next 125 months and no further action

Or as a total final gesture if I agree to pay £4000.00 against the full debt of £16300.00 MBNA will then consider writing the remainder off, this will be reflected on my credit file and even if I cannot get the funds immediately there are alternative options and this offer will only be valid up to 29th June, 2009

So in essence they must be totally desperate and I am seriously considering taking their offer up but I am not stupid enough to fall for their if’s or buts or considers....

 

What advice I would like is some direction on to how I can respond to them with the view of settling the debt. I cannot raise the funds within the next month so has anyone had experience into exactly how the response should be worded to cover all bases as I do not want as I have read on here the remaining balance being pursued in 2 years time and also how many months does anyone think I could repay in I thought over 3 to 4 months

[dx100uk]

sounds like they have no cca which is typical of mbna.

 

have you cca'ed them on these cards?

 

if not i would do so.

 

and when they fail to produce, it will put you in an even stronger possition to offer a very low F&F

 

dx

[Coactum]

This is so similar to what I'm getting from them http://www.consumeractiongroup.co.uk/forum/mbna/203820-very-strange-behaviour-mbna.html I think this is just another sign of their peculiar ways

[CAG Dolphin]

I've had something similar and just started my own thread.

 

This is what they've written:

 

As per our conversation today, I am pleased to confirm that Mbna have accepted £XXX to partially settle your credit card account. The current balances on the account is £XXX. Once the £XX is full paid sixty days after the first payment from June 2009, the remaining balances will be written off and you will no longer be pursued for the debt.

This will register as a partial settlement on your credit file for the next six years.

.............

Kind Regards,

XXX XXXX

MBNA

 

IF genuine then I'm interested, but also wary of the if's and buts.

[Coactum]

They have written to me in an email "the remainder of the balance will not be pursued by mbna nor any other company" and it looks as if they are saying something similar to you. I guess that if you can afford to settle and know that that is an end to it then it is a tempting offer.

[HULMEC]

Thankyou all for your replies.

 

Coactum... it seems they must be so desperate with the current situation that they are prepared to make such offers....It is not that I can really afford to settle it is just weighing up the balance of probabilities to see which is the best deal for me and not them and how it will affect my life as I am dealing with multiple creditors.

By giving them £4000 yes it will be a massive saving against the current £49.00 per month they get as I have no concern of who they eventually pass the debt onto and also I cannot think of a more undeserving 'Bunch of Bankers' to give that amount to... but then again it is very tempting...

 

I have basically sent them a response via recorded delivery this afternoon asking them to verify and confirm what they mean by all their maybes and considers contained within the letter and in not so many terms said that I do not trust them until I see the whole terms in black or white and under no circumstances are I coming to any agreement over the telephone or until I get every point clarified...I will see what happens and keep you updated...

I probably wont even get a response from them now...In whcih case I will carry on as before and maybe they will reduce the offer further....but somehow I doubt it very much.

[lee32uk]

Please make sure that you get it in writing that it is a 'FULL AND FINAL SETTLEMENT' and not just a 'PARTIAL SETTLEMENT'.

They can and will sell the remainder on to a debt collector (probably Aegis) whereas if it's a full and final settlement then they cant do anything

[HULMEC]

Thanks for that Lee32uk

I totally agree that it must be a FULL AND FINAL and in writing - anything else other than that will not be considered

[dx100uk]

i would even go as far as F&F on its own is no protection

you need to get them to agree that themselves nor any of their agents can pursue further payment.

 

just remember, in UK law there is no such thing as an F&F.

it is only a local agreement between two parties.

 

dx

[CAG Dolphin]

Like everyone else, I want to be sure that if a settlement payment is made, but what are the views on the reply received by Coactum:

 

"the remainder of the balance will not be pursued by mbna nor any other company"

 

Is this sufficient?

[Coactum]

Ignoring whether or not they sell on the balance for a moment I have another thought here. If MBNA sell the debt whoever buys will only pay pennies in the pound because they know that they might be buying into debts that might be unenforceable. If so, then what makes them think they are going to get payment where MBNA have so far failed?

 

I suspect therefore that for MBNA this is a damage limitation excercise. Whatever they can get in from you directly will undoubtidely be greater that that a third party would pat and therefore if negotiating settlement it would be handy to know how much those others will pay.

[dx100uk]

Like everyone else, I want to be sure that if a settlement payment is made, but what are the views on the reply received by Coactum:

 

"the remainder of the balance will not be pursued by mbna nor any other company"

 

Is this sufficient?

 

i would be happy with that, but i would also insist the CRA file says SETTLED IN FULL, without any ref to partial.

 

dx

[CAG Dolphin]

This is the latest response I've received from them:

 

Attention XXXX

 

As per our conversation yesterday I am pleased to inform you that Mbna have accepted your offer of £XXX to partially settle £XXX of your credit card debt with Mbna.

 

 

 

This means that the remaining balance of £XXX will be completely written off and you will no longer be pursued for the debt going forward. This will register as a partial settlement on your credit file. However, will be full and final settlement with your dealings with Mbna.

 

Again, Mbna re-iterate that you will never be pursued for the remaining balance of £XXX and no other third party sources can pursue you for this ever.

 

.......

 

I think this is clearer, but any views on this would be welcome.

[sazmo]

I have had virtually the same message from MBNA.

As previously stated neither MBNA or any other company will pursue the remainder of the debt.

I am really tempted by it but dont want to get caught out. I have not found a single person who has managed to get a full and final settlement in writing from MBNA - does anyone else know of anyone?