MBNA - reasonable behaviour?

[Roctiv Werdlem]

I've been repaying my MBNA Credit Card account via Stepchange for some time now, and MBNA were happy with the amount I was paying and, in that respect, my account was up-to-date

 

On the 19th August I received a latter that stated "We are writing to give you notice that we are ending your MBNA credit card agreement in accordance with Clause 18 of the terms and conditions. This will happen on 22/10/2016

 

The letter then goes on to say that if they sell the debt to a 3rd party, they will tell me "as soon as is reasonably possible"

 

I get home today, 14th September, and my latest statement from MBNA is on the doormat. I open it to find that they have already sold the debt, and this was done on the 8th September.

 

My question is, having given me notice that this wouldn't happen for another month, and they would tell me ASAP if it was to be sold, are they within their rights to do what they have done? eg terminate the account a month early and sell without telling me first?

 

Just seems very underhand to me. Being in debt is stressful enough but behaviour like this just makes it worse... Out of all my creditors, MBNA have been the worst by far!

[Bazooka Boo]

IMO, you're in a better place now than when you were paying them a reduced amount.

 

The fact that they are flogging it would suggest that, they have taken what they know they are legally entitled to, and are now passing the remaining toxic part of the debt off.

 

How much of this is charges or reclaimable fees and interest?

 

How much have you left to pay on this?

 

When did you take this out?

[Roctiv Werdlem]

Hi,

 

Thanks for the reply but I'm not clear how I'm in a better place? I would rather deal with the lender than a parasitic DCA!

 

Very little of the debt is made up of charges and the interest was significantly reduced when I went on to the DMP with Step Change.

 

I took the account out in 2008, got into difficulties in 2014 and have been maintaining regular payments via the DMP ever since which they have been happy with.

 

Current balance outstanding is £2,933 and I was repaying £89 a month.

[Bazooka Boo]

Interest reduced??

 

Interest should have stopped all together!

 

On the contrary, if the OC has been happy in the past, and now they are flogging it off, then the powerless DCA can jump through all of the hoops you put in front of them and pay £1 a month.

 

Was this the only debt you had in the DMP?

 

£89 a month seems steep!

[Roctiv Werdlem]

No.. I went into the DMP with just under £50k of debt ( I had a messy divorce and went off the rails financially a bit ). I have a good income which is why my DMP payment is quite high ( over £800 pcm )

 

The majority of creditors haven't defaulted me, including MBNA, and I wanted to keep it that way. Indeed my credit report shows the account as "up to date" albeit with an AP marker. MBNA confirmed only 6 weeks ago that the account wasn't in arrears!

 

Since 2014 I've repaid just over £20k of the debt so am getting there slowly...

[Bazooka Boo]

Excellent well done, you;re doing well then.

 

Although the AP marker is just as damaging as a default TBH.

 

So, you had an agreement to pay MBNA and now they are reneging on that agreement and breaking it?

 

If they are in the DMP, then they get dropped, and revert to £1 a month IMO.

 

A default on your CRF lasts six years then drops off, never to return, paid or not.

 

Who are your other creditors in the DMP?

[jackreacher]

What does clause 18 say? Seems unreasonable to me. You are doing everything you can to pay back. You are not behind under your new agreement..Yet you end up with a marker ?

 

The DCA only want to be parasitic..they have no power.

[Roctiv Werdlem]

Excellent well done, you;re doing well then.

 

Although the AP marker is just as damaging as a default TBH.

 

So, you had an agreement to pay MBNA and now they are reneging on that agreement and breaking it?

 

If they are in the DMP, then they get dropped, and revert to £1 a month IMO.

 

A default on your CRF lasts six years then drops off, never to return, paid or not.

 

Who are your other creditors in the DMP?

 

I've attached my latest DMP statement with the personal info removed..

 

Allied International Credit is for American Express.. rest should be self explanatory

[Bazooka Boo]

Hmm, I'm now thinking looking at that, that there might be some irresponsible lending?

 

How close were those PDL's taken out?

 

When was that Tesco card taken out?

I don't condone paying a powerless DCA, especially Robbersway, it simply gives them profit to harass and bully others.

[Roctiv Werdlem]

Hi,

 

Thanks again for the reply and your insight.

 

Tesco Loan was taken out in 2009 I think. Defaulted in 2014 and sold a couple of months ago, despite my being in an arrangement to pay with them which was up to date. Strangely, this account doesn't show on either Clearscore or Noddle anymore...

 

I tried the irresponsible lending route with the PDL's, Lending Stream agreed and wrote off £500. The others told me to go forth and multiply...

 

Given I'm going to have this DMP round my neck for another 4 years nearly, at the tune of £806 a month, I'm wondering if there's any way I can speed this up / reduce what I owe quicker?

 

I've got a bloody good final salary pension I've been paying into for over 20 years but I'm not 55 for another 10+ years so I assume that's not an option to tap into?