Chloe v Virgin (MBNA)

[chloebug75]

Hi all, I have recently posted another thread regarding the debt that we owe but was advised to start a new thread for each CC. So here it is.

 

We have a Virgin CC, taken out in late 2005 and currently balance is 11800. Initially my husband called Virgin to discuss our financial problems and was told 'tough you got yourself into it we aren't prepared to help' ....nice! Since then we have drafted a letter and sent outlining our difficulties and asking for a reduction or freeze in interest (currently 35%) and a reduced payment plan. That letter was sent 26th July. Yesterday we received a reply saying that they could not help without further details and want us to send an SOA and telephone them. After reading threads here I understand we do not have to send an SOA and certainly not to call them so not sure what to do there yet....send another letter?

Anyway we also sent letter (template from this site) requesting the original CCA. Letter sent with £1, recorded delivery on 20th July. Guessing they are not outside the statutory time limit. However interestingly (or not) they have credited the £1 onto our account. I am thinking that this is not normal, the letter we sent clearly states that it is to be used for the purpose of the CCA and if they cannot supply it then they should return the £1. Am I right therefore in thinking that they are already in breach? and also if they have credited the £1 unlikely they have an agreement. Also to add the application for the card was completed online. It was not automatically approved but had to go for further authorisation (think at the time we had not long moved house), anyway they telephoned a few days later to ask about my husbands employment and said it was approved. Recieved card a couple of days after that, no agreement was sent and therefore not signed. Any input from anyone greatfully received. Thanks.

[silverfox1961]

Morning Chloe,

 

Firstly, I would be writing to them to demand that they remove the £1 payment added to your account as this restarts the Statute Barred clock. I know that doesn't matter at the moment, but it may at a later date.

If the 12+2 days have run out, send them the in dispute letter (if you need the link, shout)

 

Online applications after a certain date are acceptable but I can't remember when they became so.

 

If you want to maintain payments, send them what you can afford, not what the demand.

[LOVETHEBANKS]

If the application was made on-line in late 2005 then it would have only required a little tick as a signature.

 

However they are required to issue you with a copy of the agreement when the application is accepted.

 

If you haven't already done so I strongly recommend you send of a S.A.R letter as this will bring up lots of useful information.

Once you've got this you'll be able to get a better idea of your position.

 

Personally I wouldn't put too much reliance on the cca request as they don't tend to help too much (i.m.o).

[wycombe]

It does help if you register with the CCCS or the Community Legal Advice people (or both) as they will negotiate (or try) with MBNA to accept a payment plan. MBNA will, as with me, probably reject all such approaches. But it does show a Judge that you are being pro-active in dealing with your debts and that MBNA are being their usual intransigent selves. I am presuming you own or have a share in a property? If yes it does explain MBNA's attitude as their sole intention is to go for a Charging Order on your assets in order to turn your unsecured debt into a secured one. Makes you wonder what happened to this current government's pledge to do away with charging orders on debts under £25,000!!

[chloebug75]

Thanks all for the advice. Wycombe yes we do own a property and in fact the first thing they suggested when we mentioned financial difficulties was taking a secured loan...however our house is currently in negative equity so doubt they'll get much that way.

[wycombe]

The very last thing you want to do is take out a secured loan to pay them off. Let them go through the rigmarole they usually go through to try and get a Charging Order.

 

However - I am wondering whether it may be to your advantage to point out to MBNA that you are in negative equity and there is little point in them chasing you through the system for a CO. With any luck they will then sell your debt on to some bottom feeder. But don't do this without further advice as I'm simply putting thought to paper here and have no idea if there are advantages to this or not.

[chloebug75]

Hi I have received back our CCA (was 2 weeks past statutory time limit but never mind!!). I will scan it when I can but my scanner is playing up at the moment. Anyway as I explained before the application was made online with no decision made at the time, instead they called about 10 days later to offer the card. No further copy of the agreement was received afterwards just the card. Anyway I digress, looking at what they have sent there are about 4 pages in the first part with key financial information etc. It lists the percentage rate as APR rather than rate of interest. It does say how the payments will be allocatted. There is no credit limit- instead it says 'we will choose your credit limit and tell you what it is. We may vary it at any time and write to let you know' (the first we knew how much the limit was was when the card arrived. Anyway these details are all on the first page. The last page has none of the prescribed terms (don't know if it is supposed to for an online application?) and just 2 boxes, one which is the electronic signature tick box acceptance of terms and second box about ppi (which we did not take)

I know it is difficult to tell without seeing the agreement but what I am trying to find out is do they need to have the credit limit on the agreement or is it ok to just say 'we will decide what it will be' and also do the prescribed terms need to be on the signature page if it is an online application? Thanks for your help