MBNA Virgin Money 2005 – Tactics for Full & Final Settlement

[Limerick_Claret]

My second post and I need help from my fellow caggers

 

I stuck my head in the sand over the last few months and developed an arrear problem on my Barclaycard (opened account 1987) and a Virgin MBNA card (opened 2005). I’d like to deal with the MBNA Virgin on this thread. I’ll open a similar thread on the Barclaycard card. Both cards have a similar balance approx £9k.

 

I’ve been keeping them at bay with a minimum payment since the recession struck and the second child arrived since late 2007. But it’s time I got my head out of the sand and started to deal with my debt. My aim is to be debt free in 3 years. For information I now live outside the Uk and don’t really intend to return in the near future but as in all these things you just never know, hence the credit rating dilemma.

 

In a moment of weakness and in fear of people calling to my door and taking the kids Christmas presents I paid the 4 months arrears in mid-December, I now realise from reading the forums that this was probably a huge mistake and in some ways delaying my arrival at a full and final settlement position. Ah well you learn don’t you!!!

 

The aim of this thread is to leverage a full and final settlement from MBNA Virgin (if possible) or a debt collection agency as a last resort hopefully keeping my credit rating intact but this isn’t a red line and screwing up my credit rating would be ok if the settlement figure was low enough.

 

So I’ve reviewed the forums in the context of situation a number of points apply.

 

• MBNA are likely to plague me with phone calls.
  
• MBNA do give FFS as I’m aware
  
• MBNA use Global Vantage who also plague you with phone calls.
  

What to do first (member input would be appreciated).

 

• Put the account into dispute by requesting a CCA.
  
  • This might be a waste of time as this is a new card and opened online.
    

  [*]Stop paying minimum payment completely and put account into arrears.

  [*]Stop paying minimum payment and pay a minimal amount say £5.

  [*]Request a Subject Access Request (in order to reclaim fees? etc.)

I’ve prepare two letter to request a CCA could anyone advise me on the best approach.

 

Let the battle of wills commence

Edited January 10, 2010 by Limerick_Claret

[Limerick_Claret]

Sorry posted Thumbnails

CCA Letter 1

 

MBNA Credit Card

Cheter Business Park

Chester

England

CH4 9FB

Dear Sirs

 

Account number: XXXXXXXXXXXX

 

I write with regards to the above account with your organisation.

 

I respectfully request that you provide me by return a copy of the credit agreement which bears my signature. I require this as i have reason to believe that there may be discrepancies within the agreement which may leave it improperly executed. Obviously if the agreement is improperly executed i would be entitled to ask the court to consider the agreement and make a declaration of the rights of parties to the agreement.

 

I must stress this request is NOT made pursuant to section 78 Consumer Credit Act 1974 but is made pursuant to the Civil Procedure Rules (Pre action protocols and Part 31.16) and therefore unsigned copy will not suffice, only a copy of the original contract in its unaltered form will suffice in these circumstances

 

Please confirm if you still hold a copy of my signed agreement and that you will provide me with this document.

 

I do not view this as an unreasonable request given that by supplying the document which i have asked for it will allow me to assess if my case has merit and will help to resolve matters possibly without the need to involve the court and will undoubtedly save costs on both sides

 

I look forward to your reply and would ask for a response by 4pm on 4th February 2010.

Regards

CCA Letter 2

Dear Sir/Madam

 

Re:− Account/Reference Number XXXXXXXX

This letter is a formal request pursuant to s.77/78 of the Consumer Credit Act 1974. I require you to provide me with a true copy of the credit agreement relating to the above account, together with any other documentation the Act requires you to provide.

 

I expect you to comply fully and properly with this request, within the statutory time limit. You are reminded that should you fail to comply with my request, the provisions of s.77 will apply.

 

If it is your view that you are not the creditor, s.175 of the CCA 1974 applies in the case of a simple assignment, and places a duty upon you to pass this request to the creditor. In the case of an absolute assignment, you are a creditor as defined by s.189. If you contend that you purchased the rights but not the duties of any agreement, you are reminded that s.189 of the Act is clear that an assignment is of both rights and duties.

 

Your attention is drawn to ss.5(2), 3(b),6 and 7 of the Consumer Protection from Unfair Trading Regulations 2008 (CPUTR).

 

I enclose a postal order in the sum of £1.00, which is the statutory fee. Note that these funds are not to be used for any other purpose.

 

If you are unable to comply fully and properly with this request, you should confirm this in writing at the earliest opportunity, and certainly within the statutory time limit for compliance, and return the fee.

 

We look forward to hearing from you.

 

Yours faithfully

 

 

 

 

 

[usaname]

Hi,

 

I stand to be corrected but believe that if you do manage to get a F&F settlement from your creditors then they will mark your credit file accordingly.

 

If you want to become debt free in three years and with an intact credit file, don't try to avoid the debt - pay them.

[Limerick_Claret]

Well update please offer advice

 

I brought my account into good order and basically nearly financial crippled myself prior to christmas and MBNA wouldn't even talk about helping me manage this debt.

 

I now understand that if you try to do the right thing they assume your a mug and then keep screwing you for a minimum payment that you can't afford.

 

So I entered into a new strategy no payments for 5 months and requested a CCA and SRA. Got a very poor copy of my CCA almost illegible and a SRA file about an inch thick.

 

I'll post the CCA later but the SRA did tell me taht of the £9.9k I owe them about £9.8k is interest and charges.

 

Well guess what they want to talk short settlement I did a Income review with them (I have no money any way and my house is in nearly 6 figures of negative equity so whats their to loose) the MBNA account manager said they couldn't offer a payment scheme as I had no money left to pay them. (no surprise there then).

 

She suggested I ring family friends and the tooth fairy to see if I could come up with a settlement figure, any ideas of a value to start with?

 

This is a short settlement and my credit file will be effected and no offer to correct this yet (were negotiating, as anyone got MBNA to short settle and correct your credit file.

 

I know a DCA is sometiome easier to deal with but I'd rather settle this debt with MBNA and move on.

 

Is anyone else in this position and could you offer advice.

[Dotty50]

Hi LC

 

Have a look out for Broooooooooces thread, they have recently negotiated with MBNA. Actually I am subbing to it so should be able to find it for you. There are others too but it's not an easy task, obviously they want to get as much money as possible. Search under full and final and you will find some more.

 

I have 2 with them, one of which is Virgin and have not paid for over 12 months now, both sold on unlawfully.

 

Had intended to offer F & F's a while ago, but in the absence of CCA's for both, I decided not to bother, Credit file is shot anyhow so not overly concerned about that now.

[Dotty50]

http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/244809-final-settlement-offers-any.html

 

Here it is, but as I say, there are lots more.

 

Good advice is not to speak to them on the phone, they will promise the earth but unfortunately, not deliver!

[Limerick_Claret]

Can some offer me advice

 

I made a CCA request on my Virgin MBNA account and received the following copy.

 

Is this a valid CCA (account opened 2005)

 

MBNA CCA 1 on Flickr - Photo Sharing!

[Dotty50]

Hi LC

 

Best to keep one thread for this otherwise it adds to the confusion when people read through it.

 

Hit the red triangle and ask to get it merged

[maroondevo52]

Two threads merged.

[Limerick_Claret]

Dotty

 

thanks for the link, now I'm really confused.

 

I'm currently cashflow negative spending more money than I earn in my basic salary evry month, I can earn extra income and have ben using this to tread water. I've been trying to reduce my outgoings and will reach a neutral position if can get a result on MBNA and Barclaycard.

 

MBNA have offereda partial settlement to start, I realise this is worthless but it starts the conversation.

 

Barclaycard are a much harder nut and I'm on a payment plan at the minute, although Mercer are managing this. I speak to them every month to pay them and I get the impression they want to start talking. Your previous thread did reassure me that BC will offer Full & Final. Previously I thought this wasn't possibe. Thanks for that.

 

My question is is the CCA for MBNA legally enforceable, see link above. Can anyone offer me advice on this.

 

My SRA charges and interest account for more than the ouststanding balance with MBNA so I think this helps in getting F&F.

 

Please help

[Dotty50]

http://consumeractiongroup.co.uk/resources/templates-library/86-debt-collectors/609-mbna-agreementsapplication-forms

 

Have a look here to see if you can find one similar to yours.

 

Have you any unlawful charges you can claim back or PPI? If there is, you can put a claim in for a refund which will get your balance reduced before negotiating F & F.

[Limerick_Claret]

Dotty

 

thanks for the link my 2005 CCA is present and show

 

Enforceablility : signature and prescribed terms on various pages. Enforceablity depends on whether a court decides signature and prescribed terms are in the same document.

 

So not a open and shut case unless any one has any input?

 

Receive a letter today detailing a payment plan of £1 per month with suspended charges and interest.

 

However the letter did inform me that payment of this level will not be sufficient to prevent a default from registering. (then lots os bad things will happen to me)

 

I'm still awaiting the feedback from my full & final settlement offer from a third party. They promised to ring back yesterday.

 

As for charges on the account there were a number of £25 charges (£50 Total) at the start but mainly £12 (£564 total). Is it possible to claim these back at the moment. I didn't sign up for PPI.

 

Thanks for all the help.

 

LC

[Dotty50]

Hi LC,

 

My Virgin CCA is just a strip similar to yours but earlier than 2005 and it says the same on that thread for mine.

 

I guess the only person who would decide is the judge, IF it ever went to court and of course then, they have to produce the original agreement.

 

Yes definitely put in a claim for a refund of those charges, you can add contractual interest too, although I am not familiar with what MBNA pay out, there will no doubt be some posts on the successes thread.

[landy_alert]

Hi LC:)

 

With reference to Dotty's post regarding reclaiming charges from MBNA - I reclaimed charges plus contractual interest on one account dating from 2005 last year. The account had previously been sold to a DCA, but regardless of that fact MBNA refunded the full amount to me (well, my OH!) as a cheque.

 

However, I don't know if they've tightened up their refunding practices, but this year I put in a claim on his other MBNA account (dating from 2004) which had also previously been sold and they have dismissed it totally, not offering to refund a penny of the charges even though there are over 20 of the old style £25 type!

 

I have had to file this complaint with the FOS, but it's early days yet so don't know how this will pan out.

 

It would be interesting to know if there are other more recent successes........

 

Good Luck with your claim,

 

Landy x

Edited June 29, 2010 by landy_alert
typo!

[jason_mnm]

Well Just call them and tell them ur situation and offer the amount you can as full and final and I am sure they will accept it.. In fact I found dealing with MBNA direct was far better than dealing with a third pary.. so just call MBNA and tell them everything.. they will listen to you..

[landy_alert]

Well Just call them and tell them ur situation and offer the amount you can as full and final and I am sure they will accept it.. In fact I found dealing with MBNA direct was far better than dealing with a third pary.. so just call MBNA and tell them everything.. they will listen to you..

 

I'm afraid I think it far better to keep everything in writing (sent via recorded delivery so that you can track receipt), that way you have a paper trail as well as proof of what has been said. It's a well-known fact these people will say anything on the phone then deny all knowledge later on. Better still record your calls if at all possible

[Dotty50]

I tried to speak to them once after being given a contact name from someone on here but it didn't work for me, they did not want to know.

 

I have not tried since and they are presently receiving nothing!

[Limerick_Claret]

Dotty

 

thanks for your reply, I think were all in the same boat with the CCA, so its really not a good lever to negotiate a settlement.

 

I find MBNA to function quite disfunctionally, if you get the guys in India on the phone they simply request payment either now or latter, but it more an annoyance than sinister. However the Liverpool call centre can be quite forceful if your not comnmitting to anything.

 

The can't pay vs won't pay issue is big in the decision making process of MBNA so if your paying the minimum payment and your a long way from Defaulting don't expect to talk about Full&Final settlements. (I think MBNA see you as in some sort of domestic abuse victim too compliant to risk your credit history and stuck in an abusive relationship)

 

I've initiallised a strategy of paying nothing and pleading poverty (that the situation I'm in, so no need to be proud). Also they have become very aware of mental health issues so sounding very down on the phone seems to trigger specific activity at their call centre.

 

I've looked at claiming charges but I think the recent court decision on charges has made the banks feel they are likely not to have to pay out and hence they've decided to stop automatically paying out particularly on the £12 level.

 

Thanks for the input on charges Landy_Alert.your situation.

 

Has anyone recently got an offer of a Full & Final Settlement offer as they seem particularly married to a partial settlement offer (not a good idea I know). Can anyone offer advice here.

[Dotty50]

LC, I gave you a link to Broooooces thread in post 6, they have recently been successful with F&F to MBNA

 

As far as the charges go, if you don't ask, you don't get!

 

I have only recently had an offer from Cap 1.

 

You need to do some reading on here to give you more of an idea.

[Limerick_Claret]

Dotty

 

thanks for the response am reading everything at the minute

 

I called my account manager this afternoon and asked if they'd assessed my offer.

 

The person I was dealing with had changed and the new person would like to send details of them accepting my offer by email, however for data protection reasons I had to be sent an email first.

 

Anyway it arrived within minutes from

 

 

Name Blah Blah

DM - Dave Jones

with an email address [email protected]

 

Is this MBNA or a Debt Management company?

Can anyone help.

Edited July 6, 2010 by Limerick_Claret
typo

[Dotty50]

http://www.consumeractiongroup.co.uk/forum/mbna/247110-mbna-settlement-offer.html

 

Have a look at this one, it will give you some insight into MBNA and their email promises!

[jason_mnm]

Hi thr I was in ur situation. I called MBNA , they didnot wanted to talk to me.. then I called back, one nice lady told me that only MBNA legal team can help.. MBNA has in house legal team whom u need to talk to..that what I did and they listened to my problem and helped me out..

[Akamas]

Hi thr I was in ur situation. I called MBNA , they didnot wanted to talk to me.. then I called back, one nice lady told me that only MBNA legal team can help.. MBNA has in house legal team whom u need to talk to..that what I did and they listened to my problem and helped me out..

 

 

Any news here? Can you be more specific about the help you received? We want to know about figures, percentages, payment plan or settlement!

[jason_mnm]

lol.. I called the legal team of MBNA and told them what I am going through. The lady was nice and understood my problem and settle it for 35% of the balance. One thing I should tell you do not talk to their lawyer who send the CCJ claim form.. only talk to MBNA in house legal team.. You will get their number from MBNA customer service team based on your individual case..

 

It was the site team members and others of this great site who advised me in my this hard time.. so u r in good hand..

[wycombe]

If you are living outside the UK the first part of this thread may be of interest to you:

 

http://www.consumeractiongroup.co.uk/forum/legal-issues/265053-mbna-unlawful-recission-service.html