MBNA (via AIC) partial/short settlement offer - pls advise

[clowders]

Hi all,

 

Its been a while since I have posted on here, but am wondering whether anyone can offer me some advice on MBNA's Partial/short settlements.

I have been given the 'opportunity' to pay £4,300 to clear a £10,500 debt. I think my mum will help with this.

 

Brief history; ill health during pregnancy, premanture child, made redundant, resulted in lots of debt.

 

My problem; I am very concerned that after I make this payment, MBNA will simply sell this debt on and someone else will chase the debt. Do you think the letter below will cover this; would a court for instance find favour with me if someone did pursue this debt a later stage or am I simply wasting my time.

 

My credit file is shot to pieces and am fed up of having this debt hanging over me so I am not too concerned about having a partial settlement showing on my credit file. I really would like to move on with my life, (copy of letter below) please advise.

 

Allied International Credit (UK) Limited

Anderston House

389 Argyle Street

Glasgow

G2 8LR

22 March 2010

 

WITHOUT PREDJUDICE

Dear Sir/Madam

 

Reference Number: 000000 MBNA

I am writing with reference to the money which you are claiming on the above MBNA account.

 

Regarding our discussions regarding the options of settling this account over the telephone. I confirm I may be able to raise £4,300 to offer an ex-gratia payment in return for a partial and final settlement of the account. This payment would be made by internet banking via a 3rd party.

This offer is made on the clear understanding that, if accepted, neither you, any associate company, any debt collector or other third party will take any other action to enforce or pursue this debt in any way whatsoever, that no other payments will be demanded and that I will be released from any liability.

 

I also request that, if accepted, you will make an entry on a credit reference agency file relating to the above account as "satisfied" and the balance set to £0.00/nil.

 

This offer is available until April 15th 2010. Payment can be made before 31st April 2010, if I receive your written agreement of this offer on or before 15th April 2010.

 

I apologise for any inconvenience to you but to ensure that there is no future confusion or misrepresentation written confirmation on the above is required.

 

I look forward to receiving your reply in writing.

 

Yours faithfully

 

MBNA

CC. MBNA

Edited March 20, 2010 by clowders
removal of account info

[F_DCAs]

Have you sent a CCA request to AIC? If they're offering a short settlement, it usually means they don't have a leg to stand on.

[Dotty50]

Hi Clowders,

 

Here is a recent thread related to your question but there are many more on here to read.

 

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

[clowders]

Thanks DCA and dotty, yes tried to CCA a couple of years ago, and have been paying £30per month without hearing a peep out of them. But I feel this debt is affecting my life choices and future plans.

 

I have a CCJ from Natwest, so I am not concerned about having a partial settlement recorded on credit file, but I just dont trust MBNA and wonder whether a court would find in my favour if they agreed to marking the outstanding balance as Nil, and stating that neither they or a third party would chase the debt and then chased the remaining debt.

[Pinky69]

I wouldn't trust AIC as far as I could throw them. You can be assured that whatever arrangement you make with them they will sell the rest of the debt on to another DCA and you won't have heard the last of it. I am surprised you are paying them anything if they haven't produced an agreement and proof they are lawfully entitled to ask for payment. They bought your debt for pence in the pound and are making a fortune out of you. I wouldn't pay them a penny.

[clowders]

Hi Pinky, you make a very good point about whether AIC are legally entitled to ask for payment. I will request confirmation of this in writing from both AIC and MBAN but MBNA refuse to speak to me stating that I must speak to AIC who own the debt (AIC, however have stated that they do not own the debt and are merely tasked with collecting).

 

I understand your viewpoint on why I am trying to make any payments, but for my health and sanity I need to close this debt off if possible and if a short/partial settlement is a valid option then i'm open to exploring it.

 

Hence, why I am seeking assistance in ascertaining whether this is just a ploy or a good way (if you can raise the funds) to end the debt.

 

My dilemma is if they agree in writing to set the balance to nil and not to chase me in the future or pass to a 3rd party, is whether to believe whether that would be the end of the matter or if it is just another ploy whether the courts would view favourably on me and my copy of the letter making these claims....

[twofoot]

Before you make any payment you must ensure they have an agerement. Ten bob says they won't have and you won't need to pay a penny unless you'd feel guilty over not paying these robbing morons.

[clowders]

Hi twofoot,

 

I will send letters on monday to MBNA to confirm who has the authority to collect and make settlement offers on their behalf. I think if they do not agree to the terms in my letter ie; set balance to nil and confirm that the debt will not be passed on or sold to any related or 3rd party company, then this must be just a ploy otherwise what is the problem with agreeing, right?

 

If this is the case I will simply inform them that the offer will be avilable under these terms for a further 10 days before being offered to my other creditors.

[Pinky69]

If AIC own the debt, and I expect they are lying to you that they don't if MBNA say AIC bought the debt, MBNA will already have a zero balance on the account because they will have written it off against tax and sold it on to AIC. If that is the case MBNA cannot negotiate you. I take it the offer was from AIC, who will want a quick return on their investment then sell on the residue. That's how these leeches work.

[F_DCAs]

I would send a CCA request to AIC if they're the ones collecting on it - but send it Recorded Delivery at the very least, and retain proof of postage (this is important).

 

If you send it normal post, they will deny ever receiving it. You should be able to find an effective CCA letter in the templates library.

 

What will happen is that when AIC get the letter and £1 statutory payment for fulfilment of the request, AIC will pocket the CCA payment and try to offset it against the value of the 'debt'. Don't worry - they're well known for this, even though they shouldn't be doing it.

 

For that reason, you need to emphasise that the enclosed £1 postal order payment (do NOT send a cheque, as it'll contain your signature) is to be used for satisfying the CCA request and NO other purpose.

 

I can't stress enough the importance of NEVER sending your signature or anything containing your signature to companies like this.

 

Retain the Postal Order number for your own records, or refer to it in your letter (which you should also keep a copy of).

 

AIC will probably never forward your request onto the client, but that's their problem. Moreover, if MBNA assigns anyone else to collect, just refer them back to AIC and the unfulfilled CCA request they received.