MBNA / LinkIDR Finance - claim form received... Help?

[kiruji]

I got into quite a bit of financial trouble some years back and,

through hard work and kindness from my family, managed to climb out of most of it.

 

Unfortunately, MBNA were one of my creditors and they weren't at all helpful in resolving my problems.

 

 

To cut a long story short, I paid off pretty much all of my debts apart from MBNA

who were receiving a minimum payment each month

(and I was watching the debt reduce by maybe 5% of the minimum payment).

 

I had a 20% pay cut and something had to give - MBNA were it.

I rang them and explained what had happened and asked for help;

they refused to give me any.

Eventually, I didn't have any choice but to stop paying them.

I'm now back on full pay, but

 

 

before that happened, I received a letter from Link Financial Outsourcing telling me the debt had been passed to them for collection

- all £8,000 of it.

 

 

Fair enough, my own fault. I rang them and asked the guy I spoke to if I could set up a repayment plan.

I racked up the debt, I expect to have to pay it back.

 

Somewhat unbelievably to me, he refused.

When I asked why, he said they like to give people time to try and arrange a full and final payment.

I told him that wasn't going to be possible and that I'd like to set up a repayment plan.

He refused again, again citing that I should be able to raise the funds. In three weeks.

I asked how he expected me to do that and

he said I could probably get it from family and friends.

 

 

I told him I wasn't going to do that, couldn't do that.

He said I'd have to try.

I accused him of being less than helpful and he said he'd been very helpful and very reasonable

- after all, he'd offered to reduce the final payment amount to £6000 and given me a month to raise it.

Then he terminated the call.

 

They called me a few more times to see if I'd raised anything.

Each time I spoke to them,

I asked them if I could set up a repayment plan as it wasn't going to be possible

for me to raise such an amount in such a short time.

They refused each time.

 

At one point, I asked why I couldn't pay them back over time..

. I was told that because I was a home-owner, they wouldn't accept a repayment plan,

they'd just take me to court.

 

 

I asked what they hoped to achieve from that, and they said it was their company policy.

 

This morning,

I've received a Letter Before Action stating that court proceedings will now be issued against me

by IDR Finance UK Limited (who?) without further notice.

I'm pretty stressed about this and I really have no idea what to do.

 

Please, please, help!

I am not trying to weasel out of the debt - as I said,

 

 

I made mistakes and I admit I owe money and I want to pay it off;

but there's just no way I can pay £8000 (or even £6000) in one go.

 

 

I'm terrified that they'll take me to court and somehow find a way to take my house.

I don't know if that's possible, but it keeps me awake at night.

 

 

I have a wife and three young children and times are tight.

All I want to do is to come to some agreement with them and start paying them off!

 

If anyone has any advice on what I should do, I'd be very grateful. Thanks for reading.

[ims21]

I don't suppose that you recorded these calls? There is a breach of debt collection guidelines here which is being advised to borrow money from somewhere else to pay a debt.

 

I would be formally complaining to the OFT about that..

 

Are there any unlawful charges such as Late Payment and Over Limit fees that you can claim back?

 

Don't worry about losing your house. That isn't going to happen.

 

If it does go to court then no judge is going to get you to pay more than you can afford.

 

Do you by any chance have all of the statements for the account?

 

If they have been offering a discount then that can be an indicator that all is not well with paperwork at their end.

 

Also when was the last payment you made on the account and when was the last time you acknowledged it in writing?

[havinastella]

Hi Kiruji

 

Link are not a nice company, that make up the rules as they go. I bet everything said to you was on the phone, so unless you recorded the calls, there is no comeback to them. They have breached so many guidelines but they always do.

 

Link DO issue Court papers and this can sometimes go in your favour as they are so inept, they often lose in Court.

 

You say they are only collecting, I wouldn't entertain them and would deal directly with MBNA.

 

Should this go to Court. do you have a paper trail offering to make payments, or was it all done over the phone?

 

Do you have PPI/late payment charges on the account. Although making 8k disappear will take some doing.

 

I would deal with MBNA directly, informing then that there agents have refused reasonable proposals from yourself.

 

Should you receive Court papers, post back here and we'll do all we can to help.

 

Jogs

[kiruji]

Guys, thanks for your (very quick!) replies!

 

Unfortunately, I didn't have the presence of mind to record anything and everything has been done over the phone.

Is it worth me sending them a letter asking to set up a repayment plan now?

 

Is it worth complaining to the OFT if it's my word against theirs?

And will MBNA give two toots if I contact them again to tell them Link are being unreasonable?

 

As far as I'm aware, Link Financial Outsourcing haven't added anything to the balance,

certainly not that they've told me about.

 

 

On the original MBNA account, there will be a whole host of charges though, I'm certain.

What constitutes an unlawful charge though?

The letter I received this morning says

"You may be liable for the costs of any action we take and statutory interest will accrue on your account at 8% for the full period.

We will also impose a maximum fee of £130.00 which you will be liable for."

- I'm not sure quite what that means,

 

 

however. As for PPI, I don't think I ever had any on the account,

although I couldn't swear to that.

 

IIRC, originally, the debt with MBNA was closer to £6000, so around £2000 has been added, presumably in charges and interest.

 

Sorry to question you, but if there's no danger of me losing my house,

why are they so adamant about taking me to court because I'm a home-owner?

 

I have some of the statements for the account, but by no means all of them.

I'm afraid I'm guilty of sticking my head in the sand when the proverbial initially hit the fan

- and leaving it there for quite some time.

 

If they don't have their paperwork in order, how do I find out for certain and how does that help me?

 

The last payment I made to MBNA was in July 2011.

I'm not sure when the last time I acknowledged it in writing was, probably before that

- I don't remember sending them any letters recently.

[havinastella]

Guys, thanks for your (very quick!) replies!

 

Unfortunately, I didn't have the presence of mind to record anything and everything has been done over the phone. Is it worth me sending them a letter asking to set up a repayment plan now? Yes, but deal with theorgan grinder, not the monkey. Make it clear you are dealing with them only and not there agents.

 

Is it worth complaining to the OFT if it's my word against theirs? And will MBNA give two toots if I contact them again to tell them Link are being unreasonable?

Always complain, many small matches make a big fire (Gosh, I sound like my Gran)

 

As far as I'm aware, Link Financial Outsourcing haven't added anything to the balance, certainly not that they've told me about. On the original MBNA account, there will be a whole host of charges though, I'm certain. What constitutes an unlawful charge though? The letter I received this morning says "You may be liable for the costs of any action we take and statutory interest will accrue on your account at 8% for the full period. We will also impose a maximum fee of £130.00 which you will be liable for." - I'm not sure quite what that means, however. As for PPI, I don't think I ever had any on the account, although I couldn't swear to that. The £130 is cost to submitt Claim to Court

 

IIRC, originally, the debt with MBNA was closer to £6000, so around £2000 has been added, presumably in charges and interest. You may want to send SAR to MBNA

 

Sorry to question you, but if there's no danger of me losing my house, why are they so adamant about taking me to court because I'm a home-owner? They want to try to make unsecured money secured. To lose your house would take numerous steps from that.

 

I have some of the statements for the account, but by no means all of them. I'm afraid I'm guilty of sticking my head in the sand when the proverbial initially hit the fan - and leaving it there for quite some time. As above, send SAR

 

If they don't have their paperwork in order, how do I find out for certain and how does that help me? If they issue Court papers and you manage to defend, the debt is wiped clean.

 

The last payment I made to MBNA was in July 2011. I'm not sure when the last time I acknowledged it in writing was, probably before that - I don't remember sending them any letters recently.

 

Hope that helps

 

JOgs

[kiruji]

So I should send an SAR to MBNA and at the same time, a letter asking to set up repayments and stating I will only deal with MBNA and not Link Financial Outsourcing?

 

Thank you again for your help.

[ims21]

If MBNA still own this debt then yes deal with them only.

 

You will be looking to reclaim all of the unlawful charges on the account for things like being late with payment, going over your limit and the like. You would also be claiming back the interest they charged you on those charges.

 

You will have a clear idea of what these amount to following your SAR to MBNA. There's a template in the CAG library, the link to which is at the top of every CAG page on green. Cost os £10 and they will have 40 days to comply.

 

Everything else is as jogs has said.

 

many small matches make a big fire

 

I like that

[kiruji]

Thank you! I will send the SAR off tomorrow. In the meantime, can I get Link off my back so they don't issue court proceedings?

[havinastella]

Thank you! I will send the SAR off tomorrow. In the meantime, can I get Link off my back so they don't issue court proceedings?

 

I doubt it!

 

Normally these are all just meaningless threats, but link do like issuing Court papers. If they are going to they will!

[kiruji]

I guess I'll cross that bridge when I inevitably get to it.

 

Is it worth while sending Link a letter asking them to consider a payment plan? At least then I have the beginnings of a paper trail I can point to in court? Or have I missed the boat?

[havinastella]

I would be sending the OP that letter, telling them that there agents are unreasonable and although you would like to repay this they are being obstructive and you refuse to deal with them!

 

When was this account opened?

[kiruji]

The account was opened in 2007.

 

Is there a template letter I can use as a basis, or should I write one from scratch? I'm literate, I'm just slightly worried I'll put the wrong thing into writing and give them more of an advantage!

 

I assume I should be sending it under seperate cover to the SAR; and by recorded delivery?

 

Sorry for all the questions, and thank you for your time!

[havinastella]

The account was opened in 2007.

 

Is there a template letter I can use as a basis, or should I write one from scratch? I'm literate, I'm just slightly worried I'll put the wrong thing into writing and give them more of an advantage!

 

I assume I should be sending it under seperate cover to the SAR; and by recorded delivery?

 

Sorry for all the questions, and thank you for your time!

 

I don't think there's one in the library. R/D will show willing if it goes to court!

Edited July 12, 2012 by havinastella

[kiruji]

Sorry, RD? I'm not sure what you mean that will show willing, even after reading the popup explanation!

[havinastella]

Sorry, Recorded Delivery

 

You can prove you sent the letter when they say you haven't tried to contact them!

[kiruji]

Aah, OK! Thanks!

 

Next problem is I'm not sure who to address it to! I don't have a contact name!

[havinastella]

MBNA Europe Bank Limited

P.O. Box 1004

Chester Business Park

Wrexham Road

Chester

CH4 9WW

[kiruji]

Thanks, that's the address I have - I don't need to send it to a person? Just reference my account number within the letter?

[kiruji]

I'm about to pop down to the post office, but can anyone cast their eye over these and tell me if they're OK?

 

Letter to MBNA:

 

Dear Sir/Madam

 

ACCOUNT NUMBER: xxx

 

I am aware that I am in default on the above account and this is a matter I take seriously. The recovery of the debt was recently passed to Link Financial Outsourcing Limited and I’m afraid that I have been unable to come to an agreement with them because they are being completely unreasonable.

 

I would like to repay the amount I owe you and make good on the account, however, Link Financial Outsourcing Limited will not allow me to set up a repayment plan and have been obstructive at every step of the way, demanding a full settlement – something I just cannot afford at the moment.

 

I request that in the future, I only deal with yourselves in this matter as I believe you would be more reasonable with regards to my financial position. As I said, I would like to repay the amount I owe you and would like to agree on a repayment plan to allow me to do that. I hope this is something you find agreeable and I look forward to hearing from you.

 

Yours faithfully,

 

Letter to Link:

 

Mr T Johnson

Litigation Manager

Link Financial Outsourcing Limited

Camelford House

89 Albert Embankment

London

SE1 7TP

 

13th July 2012

 

Dear Mr Johnson

 

LINK REF NO: xxx

ACCOUNT NUMBER: xxx

 

Thank you for your letter before action dated 9 July 2012.

 

I would like to request that you consider agreeing to a repayment plan in order to clear the outstanding monies owed. This is a request I have made several times to your agents on the telephone, unfortunately it is a request that has always been denied.

 

I am not sure why you, as a company, are so adamant in seeing me in court when I have tried multiple times to come to an agreement that will allow me to repay the debt.

 

I hope we can bring this matter to a conclusion that is satisfactory to both parties; allowing Link Financial Outsourcing to recover the monies owed and allowing me to make good on my agreement with MBNA and to clear the debt without having to resort to further lending (as suggested by your agents).

 

Yours sincerely,

I'm not sure if I should have addressed it to Mr Johnson or not, really - his was the name on the LBA I received yesterday.

 

Any comments before I get them in the post?

 

As always, thanks for reading and for any advice you can offer.

[havinastella]

I'm about to pop down to the post office, but can anyone cast their eye over these and tell me if they're OK?

 

Letter to MBNA:

 

Letter to Link:

 

I'm not sure if I should have addressed it to Mr Johnson or not, really - his was the name on the LBA I received yesterday.

 

Any comments before I get them in the post?

 

As always, thanks for reading and for any advice you can offer.

 

Both look fine!

[kiruji]

After a long back and forth with both MBNA (who say it's nothing to do with them now and I need to deal exclusively with Link)

 

and Link

(who say, essentially, we're taking you to court whatever happens),

 

I managed to convince Link to at least entertain the idea of a monthly repayment schedule without a court appearance.

 

Unfortunately, in the three months since I sent them a financial statement and proposed repaying them £75 per month,

my circumstances have changed slightly to the point where I'd struggle to make that each month.

 

Link now want me to sign a declaration that places a voluntary charging order on my property meaning I can't sell it without repaying them first.

 

They will not accept a monthly repayment without that in place as that is their ultimate goal of taking me to court in the first place.

 

In order to place that charging order, they also want to add the associated charges to my debt! I'm not massively happy about that, and wondered if anyone could give some advice.

 

Essentially,

if I don't sign the charging order, they will take me to court.

 

Am I better off letting them take me to court now?

 

I assume that if it did go to court I'll probably be in a better position to negotiate a lower monthly repayment?

 

Who would be responsible for paying for any charging order the court might place on my property?

 

I assume that it's a far lengthier process to get to that stage going via the court - wouldn't Link need to get a CCJ against me and then apply for a charging order?

 

Or should I just accept the charges being added to my debt, sign the papers and try and meet the £75 each month?

 

What happens if I miss payments with a charging order in place?

 

Are Link able to force me to sell my home to pay the debt after it's been put in place?

 

If anyone can offer advice, I'd be very grateful! I have no idea what to do and the stress is starting to affect me.

[AndyOrch]

Without knowing the total debt amount outstanding, an offer of £75 pm they do not require a CO as security and are totally being unreasonable.Let them pursue legal action..you have a good paper trail of offers to resolve the dispute.The court certainly wont set a figure of £75 even if they are allowed to pursue the CO route.

 

Just to clarify some of your misconceptions they have to attain a Judgment before applying for the ICO.(Interim Charging Order) They will then make application to turn the ICO into a FCO (Final Charging Order)..that is the end of the process they have security in your property.(assuming that its a joint debt and joint mortgage) if ts a sole debt and joint mortgage they can only apply for a restriction on the 50% share you have).

 

If they do issue a summons at least you have a chance to mitigate the amount re the unfair penalty charges and also have the Court to over see procedure...never ever sign a Voluntary Charge with this crew.

 

All payments are with regards to the Judgment (not the CO)that is purely for security.

 

Regards

 

Andy

[kiruji]

Thanks for your reply.

 

The total outstanding is around £8,500.

 

So, to clarify, they have to take me to court twice? Three times? To get to a FCO? And then can they apply to force me to sell my house? It is a sole debt/joint mortgage.

 

Also, to be clear, Link haven't added any penalty charges to the outstanding amount as far as I'm aware.

[AndyOrch]

Twice..to attain the Judgment and again to finalise the FCO. Forced sales are as rare as chickens teeth:wink:

 

Re the charges they mean the court costs and application fees?

[BRIGADIER2JCS]

I think they would struggle to get an order for sale on a joint owned property.