Help needed - Goodwill payment offered for £390

[honda77]

I have recived the following ltter today from MBNA offering me a goodwill payment of £390 (I was asking for £873 in charges). Do I accept this or pursue them for the full amount? If I do pursue them for the rest is there a standard letter to send?

 

I have read other posts about partial refunds and am getting mixed messages about what to do next.

 

Can you help?

 

 

LETTER FROM MBNA:

 

"We refer to your recent letter dated 05 April 2006 concerning default fees on your account. I would like to clarify the situation from our prospective.

 

We have always set out precisely what our charges are in our agreement with you, as they are an integral part of the terms & conditions under which we are prepared to provide credit facilities. When customers pay late, we incur substantial costs in dealing with their default. Similarly we have set credit limits carefully for each Customer and for good reason. We expect every Customer to respect their credit limit. If a Customer goes over their credit limit, he or she is using the card in a way that is not allowed, in effect obtaining unauthorised borrowing. We, therefore lend more than we agreed to and take on risks, which were never accepted in the first place. In the case of both late payments and overlimit usage, and also where a cheque is returned unpaid, we look at the portfolio as a whole and set uniform charges reflecting our costs of dealing with such defaults of customers overall, as do all other major credit card providers. This approach allows us to be clear and upfront about all default charges and the basis on which they are applied.

 

Our view is therefore that the charges that you agreed to are valid, fair and enforceable. Term 3b of your credit agreement with us clearly states that you must pay £25 each time your payment has not reached your account within one day of your payment due date, or when you exceed your credit limit, or a cheque is returned unpaid.

 

We do value your custom and so we would like to resolve this matter. I have therefore credited your account with a goodwill payment of £390.00 on the basis that this is in full and final settlement of your complaint.

 

Please note that default fees will be charged in the future as set out in your agreement, and we will expect you to honour the terms of that agreement.

 

I enclose a copy of 'Our Commitment to You' leaflet for your information. If you would like to discuss any other matter, please contact my colleague Gareth Tunnicliffe, Customer Advocate on 01244 672628 during office hours.

 

signed

Steve Bailey

Head of Customer Advocate Office."

[EricTheRed]

it's the same letter I got - word for word. Surprise surprise.

[secrets]

I also recieved the same letter from Steve Bailey, but refunding only £100 as a credit to my card when I have been charged £950 in penalties. How does this guy pick the amount he's willing to credit?!

Any advice on what to do next would be appreciated? Also is he upps his offer do I have to accept it as a credit to my card?

[redgemini]

I got exactly the same letter yesterday - but offering me more than I had claimed!

I spoke to Gareth Tunnicliffe & he was really helpful, so a happy result for me!

 

Hope you get the result you are after OP!

[honda77]

I got exactly the same letter yesterday - but offering me more than I had claimed!

I spoke to Gareth Tunnicliffe & he was really helpful, so a happy result for me!

 

Hope you get the result you are after OP!

 

 

How much did you claim and how much did you recieve????

[angry cat]

From Angry cat

 

Ditto...

 

This is exactly the same letter that I received, also from Steve Bailey!!!

 

MBNA ARE OBVIOUSLY CHURNING THIS LETTER OUT TO ALL PENALTY COMPLAINTS

 

MBNA are as usual "Playing with Words" but....the letter does not answer the preliminary letter, it is from their prospective and at odds with the OFT ruling!

 

now this is only my opinion, but personally I wouild not accept half the money they owe you back and expecially in the form of a Good will payment. Remember that MBNA have stated in the letter "Please note that Default Fees will be charged in the future" and you can be sure that MBNA will Fine you.

 

Note, If anyone disagrees with my reply to this post, please correct me as this is "only my opinion.

 

angry cat

[Nightmare4banks]

Hi all!

 

Angry cat mate, I would agree and would say that MBNA or any lending company for that matter is clearly in breach of the rules especially following the recent OFT Ruling if they continue to apply charges however they wish.

 

I would tell any lender to feel free to do whatever it wants regarding future charges and if there was a very big difference between the "badwell offer"(sorry,I had to say this!) and the full charges amount claimed to carry on with court action because any lending institution that does this is taking the p*** and hoping to put you off persuing your claim at court.

 

Just ask yourselves one simple question - Why are "badwell offers" made in the first place if the lending company knew it had half a leg to stand on in a court of law?

 

If anyone disagrees with me,please let me know.

 

Good luck to all!

[honda77]

I have had a look at the figures and discovered something quite interesting.

I am claiming £873 which is made up of 16 charges @ £18.00, 13 charges @ £20.00 and 13 charges @ £25.00 = Total £873.

It appears to me that they have wokred out the difference between £12 set out by OFT and £18, £20, £25 charges and refunded me the difference, as this adds up to £369 and they have offered me a refund of £390.

 

So has it been decided by the OFT for deffinate that £12 is a fair charge? If so I may as well accept the partial refund or should I???

 

Please let me konw your thoughts.

[EricTheRed]

their offer to me is an insult and my LBA is on its way.

[angry cat]

I really dislike the response letter from MBNA's Steve Bailey-

It is not a reply to the (Library) Preliminary letter that everyone is sending to this American Bank. The letter is written from their prospective - Of Course !!

 

My suggestion is that if you, Break the letter down and analyse their wording/ every meaning line by line, para by para...So that if you decide to agree to their offer then you really comprehend what MBNA are suggesting. I must emphasise that this MBNA letter makes me very uncomfortable as to their real meaning and or intention about Penalty Fines!

 

Incidentally the OFT statement does not say that fines that are below £12 would not be considered to be unfair - that is up to a court to decide.

 

I urge you to read the OFT statement fully, about these Default Charges/ Unfair Penalties.

 

I quote MBNA "Our view is therefore that the charges that you have agreed to are valid, fair and enforceable"

 

It would appear that the OFT do not agree and after all it is the OFT who provide them with their Consumer Credit Licence! I would also suggest that the Treasury Select Commitee would not be in total agreement with MBNA's suggestions, that are mapped out within their letter.

 

Please Note, this is only my opinion as a simple consumer.

 

Kind thoughts

 

angry cat

[Nightmare4banks]

Hi all!

 

This comment is not just aimed at the response from MBNA.

 

What are these lending companies above the law and guidelines as laid down by the OFT?? - as you say angry cat,the folks that grant these banksters their consumer credit licences!

 

I would like to set out some brief points:

 

1.Anyway,I would refuse any wayout "badwill offer" as there is no reason why you should accept any less than the amount you are claiming.

 

2.Personally,I would not worry about what they say they may do in the future,concentrate on reclaiming the money owed to you.

 

3.Also,if I was overcharged excessively six months down the line. I would repeat the same process and sue them again!

 

4.Do not enter any argument with any lending company just use the following six words:

 

PAY UP OR I WILL SUE!

 

Also,if your payment includes the removal of negative information from the credit file,make sure this is confirmed in writing as well.The lending company can pay up but do a u-turn on the credit file amendment - which is admitting that the information on your file is incorrect.Something I understand that these companies hate doing.

 

5.The amount quoted £12 by the OFT is not laid down by statute i.e. like the DPA fee.As you said angry cat,it is up to the courts to decide.

 

So basically if the badwill offer is rubbish,go for it!

 

I hope anyone reading the content of this posting find it useful.

 

Any questions,please feel to ask.

 

All the best!

[honda77]

Thanks for your advice everyone. I think I will continue to the bitter end and submit my claim. (bitter for them and sweet for me)

 

Cheers

[Nightmare4banks]

Hi all!

 

Go for it honda77!

 

All the best!

 

Keep us posted!

[redgemini]

I claimed £225 & got £410 back - so nowhere near the same amount as some people are going after - but still a nice chunk

[thecornflake]

They have stated that they incur 'substantial costs' - I f I get this reply when I claim from them I will be asking for a full breakdown of these costs using a specific charge as an example. I might also ask them to copy in the OFT so that they can take back their ruling.

 

That could make it a bit more interesting.

[honda77]

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