NEW MBNA Case Help

[adamfernadam]

Hi there after succesfully reclaiming all my other bank charges i am left with only an MBNA Credit card to fight for. I went through all the initial letters stages with no success and so my LBA went and the 14 days i gave them expired. On the 15th day a letter arrived offering me £380 goodwill payment of a £866 claim...where do they get these figures from?! And also threatining to close my account down. As i havent used the account in ages i today rang them and closed the account down myself before they got there 1st. The letter offering me £380 just said a cheque was on its way..this is strange because i didnt sign any agreement as i did with my other banks. I had already filled onut the moneyclaim form and worked out the total interest..total new amout is £1102.

 

What should my next step be though...do i issue my moneyclaim? Do i issue it with the £380 offer taken off the total? Do i send them a letter saying i accept the £380 but a moneyclaim has been issued already for the rest?

 

Any ideas greatly appreciated as i am very confused as to what to do for the best!! Thanks in advance!

[adamfernadam]

Anybody any ideas please? thankyou in advance

[CrispDust]

Yeah they sent me a cheque (only 25% of my claim) day after I sent my LBA, without any sort of agrrement or anything to return.

So just I cashed it and sent them another letter reminding them of only 7 days left on the LBA deadline. No repsonse so N1 claim went in Tuesday.

 

I don't think they know what they are doing/are panicing, or have some cunning plan....

[Glenn UK]

FWIW

 

If its a good will payment when you write back say thanks and perhaps suggest since its goodwill you will accept it as a gift or in compensation for all the grief.

 

If they say its an offer of partial settlement then accept it and write back telling them you will be pursuing them for the rest.

 

Dont alter your claim until or unless you have cleared funds.

 

JMHO

 

Glenn

[CrispDust]

Yes funds were cleared before N1 went to court.

[jimmelling]

I rang MBNA today to remind them that my access request deadline is next Monday. The customer service manager said he wanted to settle my grievance today... even though I hadn't yet made a claim.

 

He told me they'd charged me 550 in late payment fees over the last 6 years (did the work 4 me) He then offered me 216 - the difference between the 20 charge then and the 12 pound charge they make now. I suspect that was where your offer came from.

 

I said I'd take it as part payment, check my statements and then claim the balance. He then offered me 570 to settle. I agreed provided I could check my statements first...he agreed. Have to ring him personally on Monday and he'll settle. Lets hope his numbers are right and they settle!

[Glenn UK]

Just a point, if you settle now you have lost the opportunity to claim for interest you have paid or have lost as a result of them taking your money.

 

However, if you are satisfeid with their offer then go for it.

 

HTH

 

Glenn

[adamfernadam]

Thanks for all your help guys! Yeah i have no problems in going to through court procedures iv done is successfully with other banks already. I was sent the letter saying a GOODWILL cheque payment was on its way 5 days ago satating it could take up to 10 days for the cheque to be recieved. However all my deadlines are up and so i really want to start my moneyclaim. Should i wait until the cheque arrives and clears and claim for the rest? Do i claim right away minus the sum they are sending me? Should i send them a letter saying thanks for the goodwill payment this is good compensation for the grief etc but have now started a claim for remaining balance?

 

Thanks for your continuing advice!

[Markie99]

They offered me £200 for £425 of fees.

 

I wrote back and said 'Good Start' and the £200 appeared on my account this month.

 

I have just issued moneyclaim for balance of £225.

[adamfernadam]

Thanks Markie99,

So do you think i should hold back on the moneyclaim until i have recieved the cheque and it has cleared then claim for the total of the remaining balance? And send them a letter in the meantime stating what i am doing?

[Markie99]

It might be an idea - but I am no expert on these issues - just one of the sheep following along everyone else!

[paulpb123]

Hi Adam,

This may not be much help...but I filed my claim last friday. The next day I got a letter offering £970. The cheque arrived today. Not sure what to do but I'll probably inform the court that a partial payment has been made and continue the claim for the balance. lthough if this is a 'goodwill' payment, it might be worth accepting it as compensation for the grief and continuing with the full claim. Anyone any ideas on this? One thing that might be helpful if you are about to make a claim, though. Use compound interest at 8% - it works out much more than simple interest and its what the banks use so they can hardly object. Best of luck.

Paul

[adamfernadam]

Thanks Markie and Paul!!

 

My other cases against banks have been so much simpler! It seems MBNA dont know at all what they are doing!! My other claims i used simp,e interest..what is compund interest? Iv read a few threads about it but arent 100% sure what it is and how to work it out?

 

I think i will send them a letter saying thanks for the goodwill but i will be starting a claim for the rest of the balance and the interest ( or this compound interest if somebody explains it!) Also should i wait for the cheque to clear before starting my moneyclaim? Thanks alot for your help!!!

[Glenn UK]

FWIW

 

If its a good will payment then its is arguably nothing to do with the charges and therefore the claim should remain as it is for the full vaule.

 

However, shoud lit get to court i would advise the court that you have received it and make sure you tell them it was a goodwill gesture.

 

If they send you a cheque as a partial offer i believe that is different because that is in direct response to yuor claim.

 

EIther way tell the court and let them decide whether it affects the total value of yuor claim.

 

JMHO

 

Glenn

 

PS compound interest is where you calculate the interest on the original stake for the 1st step, the second and subsequent steps you take the preceeding value plus interest and use that upon which to base the value of the claim.

 

HTH

 

Glenn

[hugh52]

sent lba to mbna 10aug mbna sent my £10 back with letter{sorry ur unhappy we r in the right fod off} next day check for£740 goodwill, late payment and overlimit total is £1639+intrest ,do i need my lba because they sent me a print out of chages made of me i would to keep the 740 maybe as part payment what do u think what would my intrest be thanks for any help

[gbzstro]

Phone them first thing on Monday - be very nice and civil and dont be surprised if they offer you the lot! including compound interest.

[adamfernadam]

Please dont hijack my thread hugh52

[adamfernadam]

thanks glennuk for trying to explain compund interest but still abit confused!! I only used simple interest on my other claims so hve never used it before. Any other help with it? thanks!

[gbzstro]

OK compound....

 

owe £10 and then charged £0.20 interest. Next month you owe £10.20 and are now charged £0.25 interest next month you owe £10.45 + £0.30 interest. in other words you pay ineterest on the interest charge. After three months this is £10.75

 

MBNA seem to pay compound interest if you can speak to the Customer Adovater department - other wise it is just flat interest - which the the £10 in the example over the mon this would be £10 + £0.20 + £0.20 + £0.20 = £10.60.

 

Over three months compound interest seem like a small amount - over six years it will DOUBLE your claim - mine when from £1170 to £2.2K !!! simple interest was just £1440.