Trouble with credits cards.

[downanout]

I wonder if someone could cast an eye over the following letter for mbna's query into my high housekeeping budget, not sure if there is too much info and I have tried very hard not to be snarky.

 

Dear Sir/Madam,

Thank you for your letter dated 10th January 2013 enquiring as the the higher houskeeping sum. I assume you will have also noticed the extremely low amount of £35 per month for the electricity costs. As a comparison our monthly electric bill in Britain was £130 per month with another £50 per month water charges. However we had a lower housekeeping bill as food costs were much lower.

Here in Sweden the electric costs are a lot lower, but the housekeeping is a lot higher. 25% vat across the board and 12% vat on all fresh veg and fruits. My husband recently had to have dental work (all dentists are private here) which cost 370 sek (about £350) that came out of the housekeeping. Visiting a doctor £15 per visit, that is without treatment. These are unexpected expenses.

I really cannot see how you can apply British living costs to Sweden.

We have done our budget and this has been accepted by you on the lower credit amount owed to you for both the payment and the freezing of interest charges.

I wonder if you could explain to me why the same budget is causing such a problem for the other two credit card amounts. Surely the payments offered would have been rejected before the request of freezing the interest would have been considered.

[citizenB]

That looks good to me. Send it recorded delivery if you can afford it.

 

I am ashamed to say, I missed the fact that you are not living in this country.

[downanout]

No my fault, I should have made that clear. The only good thing is the huge gap between sending and receiving replies from mbna. It surprises me that they post the letters to Sweden and still query the living costs. I will take your advice and send it recorded delivery. Instead of sending two letters I will put both accounts numbers on the one, keeps the cost down.

[citizenB]

In view of your location, I have alerted another ST Member who knows about overseas stuff.. Wait a while until he has had a look at your thread

[cerberusalert]

MBNA are a bunch of numpties & I'm afraid you'll find that you are wasting your time either trying to explain or even negotiating with them. They have their own agenda.

 

Unless you have assets here in the UK they cannot take enforcement through a UK court, you are a non-resident & have told them so which prevents them from applying for a CCJ here, they would need to pursue through a Swedish court which they are highly unlikely to do given the costs to them in time, energy & money and especially if they are uncertain of obtaining payment even if they win.

 

Personally I would just pay what you can reasonably afford, eventually they will sell the debt to a third party.

[downanout]

Thanks, will do.

[downanout]

Thanks cerberusalert,

I'll send the letter anyway, you're right about the lack of any empathy. I have kept all letters from them just incase further down the line I do end up with a third party. We have a house which has dropped into negative equity, so can't sell yet. So, onwards and upwards!!

[Staraker]

This might help...........................

 

http://www.ons.gov.uk/ons/rel/family-spending/family-spending/family-spending-2012-edition/art-chapter-1--overview.html#tab-Household-expenditure

 

I'm not sure if thats accurate and it's from 2011 ?

 

“Alcoholic drinks, tobacco and narcotics £12.00”

 

That's an interesting endorsement of certain lifestyle choices!

[downanout]

Hi there,

On a Barclay's credit card, they have accepted the lower payments but are still adding interest which they've kindly reduced by 1.167%. Not sure what to do next.

Not heard anything from MBNA since letter sent end of Jan. Feeling nervous!

[downanout]

I have finally had a reply re the higher household expenses. They can't help with "my" query, so have sent it to another department. The letter is dated 18th March. I am to receive a reply within 5 business days. Nothing so far. In the mean time I still get statement showing added charges and interest as normal. Also letters to say I have missed payments and so on. I'm still paying the lower amount each month. Is there anything else I could be doing or do I just sit an wait for the next move from them.

[BRIGADIER2JCS]

You could give tham a reminder of their ''promise' of an answer in 5 working days.

[downanout]

Dear all helpers,

Today I received a letter acknowledging I have an overseas address and that I had missed a payment (which may have slipped my mind). In the same post I also got a statemnet showing the payment I had made as I do every month. Even though the payment is on time and shows a faster payment made, there are charges for late payment also added, plus interest. So the amount owing is increasing at what is for me an alarming rate.

Further into the letter they have said they will pass the demand for payment to an overseas debt collection agency. I am getting pretty scared now and frustrated with mbna as it is quite obvious that there are a number of people within the organisation that don't know what each other is doing. We continue to pay the lower payments each month. And have kept and filed all correspondance.

Where do I stand with an overseas debt agency. And is there an ombudsman (UK) that I can contact and submit evidence of inconsistancy and general unhelpfulness by mbna?

Any advice would gratefully received.

[downanout]

Hi,

What happens if mbna cancel my agreement?

And give the debt to an overseas agency?

The last letter demanding full payment, they have given the details of the Co-operative bank PLC, overeas financial services based in London.

And of course they are here to help if we are having difficulties. Can anyone give me advice please?

[BRIGADIER2JCS]

I think depending where you are now resident MBNA will have a problem collecting the debt, there is more likelihood of them selling the account on to some some unsuspecting pond life in the debt collection industry, MBNA certainly do not seem to hang on to delinquent/difficult accounts for long.

[downanout]

Thanks Brigadier2JCS,

 

I am living in Sweden and have been since July 2011, so almost two years. We are not trying to get out of paying our debts.

re cap....We first wrote asking they accept a lower payment and to freeze the interest. We sent them a household budget breakdown.

We have three cards with the following rough amounts owing

1. £650 they accepted the household budget and froze interest

2. £6000 they refused the household budget saying it was too high. I wrote explaining that if they studied what I had sent them, they would see that day to day living is exceptionaly expensive here, but if they looked at the utilities we had only recorded a small amount as they are cheaper. I also pointed out they had accepted the budget for the lower amount. No response explaining the decision.

3. £5000 same response as for No2

I wrote again and received a letter back stating they would have to send it to another department as they could see we had an overseas address (they knew that as they were writing to us) and could expect a reply within five days. That was dated 18th March. I have had not response.

However, I have continued making the lower payments. On the higher amounts the statements show faster payments made and later payment charges as well as full interest added. So the debt is increasing.

I am a little confused by the latest letters regarding the co-operative overseas financial services. Is mbna part of the co-operative bank now? Do I respond to them as mbna are demanding I make an imediate payment to the co-operative bank to bring my account up to date?

 

In their 'we are here to help section'. If you can't make an imediate payment, please call us to let us know how you intend to maintain your monthly payment, as we may refer your account to an overseas debt collection agency that may contact you to collect payment in the full balance.

This does worry me as in Sweden anyone can get your full details as they believe in everything being in the open and you have ID cards. Data protection is non exsistant here.

[downanout]

Dear all,

It's been awhile since I've been on here. I have recently received a letter saying that mbna are going to sell the debt to a third party. Also, threatening court etc. I'm wondering if I should ask for a CCA from them at this time. The last letter I sent them explained that our circumstances had worsened and I/we would reume paying when things improved. I have done a rough calculation on one of the cards which is now about £6000 and we have paid roughly £13000 just in interest.

Can anyone give any advice on what to do next. Please.

[downanout]

Bump

[BRIGADIER2JCS]

Please be patient, someone will answer you when available, it is a weekend and the site is all voluntary.

[Old Cogger]

They will sell it off as there once a default on it, once you receive default notice and the days grace has passed, it is normal for them to terminate the account after usually geting DCAs to chase for a while then get rid of it as a loss for tax reasons etc if no joy getting their money.

 

Just informing them you cannot pay but will continue later is a no go with any business, temporary arrangments can be requested but it would be up to MBNA to accept/agree, even then they can terminate and shed the account.

 

Others will comment also so doubt.

[Peterbard]

HI

 

Is this your only debt or do you have other unsecured borrowing, have you considered a deb management plan ?

[downanout]

Thanks guys,

We have done the debt management plan back at the beginning of the year, twice. Mbna were not interested, they refused to freeze or even reduce the interest. We have a house in UK in neg equity and we had a mortgage plus the rent of our present address to pay. I have kept them informed as to our situation. We have other unsecured debt which we are paying regularly. There is only the one wage coming in at the moment.

[Peterbard]

Thanks guys,

We have done the debt management plan back at the beginning of the year, twice. Mbna were not interested, they refused to freeze or even reduce the interest. We have a house in UK in neg equity and we had a mortgage plus the rent of our present address to pay. I have kept them informed as to our situation. We have other unsecured debt which we are paying regularly. There is only the one wage coming in at the moment.

 

There is nothing wrong with sending a CCA request and seeing what comes back.

 

I am surprised to MBNA's attitude regarding the DMP, usually they are open to these, did you use one of the free agencies or did you try doing it yourself ?

[downanout]

Thanks Dodgeball

We used the free agencies. They did accept the plan for the lowest card which was about £600 and we are still paying towards this one, but they would not accept the same debt management plan for the higher amounts. I will send for the CCA and see what happens.