MBNA Partial Settlement - payment due by??

[lisalegs11]

Hello!

 

I have been paying MBNA via my payplan agreement for some years now.

Out of the blue I had a Partial Settlement offer of £581, I owed £1680.

 

I was pleased with this and took them up on it (I would struggle to pay it but it was just about manageable after a work bonus and over 2 months) - however I just had the letter today confirming it - they require £33 by tomorrow (which luckily I can do as my bank does instant payments) but they want the rest £548 by 10th October.

 

I called them up and said I thought I had 60 days to pay this...she says they are very strict and thats date they want payment by!

 

Is this the case? Can they demand the partial settlement by paid in less than 2 weeks after the letter is sent to me?

 

Thanks!!

[MeeBroke]

I'm no expert but 'partial settlement' still means you'll owe the rest doesn't it? 'Full and Final' settlement means they will clear the debt at a reduced rate.

[lisalegs11]

well...the letter definitely says Partial Settlement, then further down says we confirm that no further action will be taken to recover the remaining balance and your account will be registered as a partial settlement for 6 years

 

So they are saying if I pay £581 , they are writting off £1000 pretty much!

 

I was surprised to get it but I rung to confirm the amount - they never told me the 60 days didn't apply until the letter came, I rang today to say I cant pay in 11 days! She said it used to be 60 days but as of 1st September it all changed - but 11 days to pay from the day i got the letter (1 day to pay the first amount off £33!) is silly!

[MeeBroke]

Does it say that they won't sell off the remaining debt to a DCA, who will then chase you for it? Sorry to be cynical but I know just how slimy MBNA are!

[lisalegs11]

No, it says they confirm no further action will be taken to recover the outstanding balance - so I have that in writing - if they sold it to a DCA that would be 'further action'

[vint1954]

It probably says that no further action will be taken by us to recover the outstanding balance.

 

Partial or short settlement leaves them able to sell the ballance on to a third party. The collection process will start again with them. They do this as the partial settlement is more than they would get from a debt purchacer. They then sell it for a second bite of the cake.

 

Be very very sure, that they will not sell it on. To ensure this, it should be a Full and Final settlement.

 

READ THAT LETTER VERY CAREFULLY. or post it here to be checked, minus personal details.

[lisalegs11]

I will type the text

 

''Following your recent communications with us regarding an offer of settlement ,we confirm your offer of £581.20 has been accepted in Partial Settlement of your account (they initially approached me and I rang them to say ok send me a letter to confirm)

 

This offer is conditional upon payments being received by the dates specified below. Upon receipt of the full settlement amount, we confirm that no further action will be taken to recover the remaining balance and your account will be registered as a partial settlement with the credit reference agenecies for 6 years

 

£33 30/09/09

£548.20 10/10/09

 

Failure to make the agreed settlement payment by the due dates above will result in your account being registered as a default with the credit reference agencies for 6 years. if a default is registered, your account will be closed and the outstanding debt may be sold to a third party. ''

 

then it lists how to pay.

[vint1954]

I would not trust that 100%

[LilyLou]

This offer is conditional upon payments being received by the dates specified below. Upon receipt of the full settlement amount, we confirm that no further action will be taken to recover the remaining balance and your account will be registered as a partial settlement with the credit reference agenecies for 6 years

 

So if you go for this it will be on your credit report for a FURTHER 6 years anyway?

 

 

 

Regards

 

LilyLou

[lisalegs11]

This offer is conditional upon payments being received by the dates specified below. Upon receipt of the full settlement amount, we confirm that no further action will be taken to recover the remaining balance and your account will be registered as a partial settlement with the credit reference agenecies for 6 years

 

So if you go for this it will be on your credit report for a FURTHER 6 years anyway?

 

 

 

Regards

 

LilyLou

 

Is that not the case if its what was mentioned by vint1945 - if its full and final does it go on the credit record for less time then?

 

Well seeing as they seemed to be trying it on some way or another I told them I wasn't prepared to continue - I couldn't pay within the 10 days anyway!

They said I will have to continue to pay via payplan - which is £1 a month while I am on Maternity leave.

I asked if I was to get the £580 together and contact them again in a few months would they accept the reduced amount and she said they would consider it - BUT when i do I will ask that the letter states it is Full & Final Settlement!

 

Thanks people!

[vint1954]

Is that not the case if its what was mentioned by vint1945 - if its full and final does it go on the credit record for less time then?

 

Well seeing as they seemed to be trying it on some way or another I told them I wasn't prepared to continue - I couldn't pay within the 10 days anyway!

They said I will have to continue to pay via payplan - which is £1 a month while I am on Maternity leave.

I asked if I was to get the £580 together and contact them again in a few months would they accept the reduced amount and she said they would consider it - BUT when i do I will ask that the letter states it is Full & Final Settlement!

 

Thanks people!

Doubtless they have already issued a default notice and marked your CRF accordingly. This should be removed, 6 years from the date of DN, although there is a chance that this may come down to 3 years in the future, to come inline with EU regs.

 

If you do offer any settlement, make sure that it is without prejudice and is in full and final settlement. Also insist that your CRF marker is removed at that point.