Scary MBNA

[PriorityOne]

There is absolutely loads of advice on here... much of which I wouldn't touch with a barge-pole !

 

Firstly, never send a copy of your driving licence or any other form of i.d. through the post to these people. They have had no problems with your identity in the past... while collecting payments from you, so requesting information through an SAR is a silly tactic that would deserve a suitably-worded response. If they do stall, exceed the 40 day limit for compliance, continue to hassle you, etc.... keep everything that they send to you through the post... and do not get into any conversations over the 'phone, at all. If they do attempt to hassle you on the 'phone, there is a bog off letter. which anyone on here can give you the link to.

 

Secondly, there is no guarantee that the account will be sold to an external DCA if you default on payments. They may well use one of their own DCAs... or, they may just take you to court for a CCJ (in the hope that you won't defend it), whether they have the correct legal documents or not. It's been known to happen. My creditor tried this on with me not so long ago.... but they received a CCA request before they could get away with it.

 

To get the interest frozen on the account, you must put your request in writing. I cannot say whether they will do this or not, but a written request must be made (rec. delivery).

 

Also, send the SAR by rec. delivery (keep the receipt) and make the request for full disclosure.

 

Send a CCA request at the same time... for the heck of it. You will get a faster result if they cannot come up with an Agreement within 12 working days from receipt of your request.... because they will then be in default of a legal request, which means that you would be within your rights to withhold further payments until the Agreement can be found and re-enforced in court. Making a CCA request will also stop them from trying to get a CCJ (if that is their plan) because non-compliance is a complete defence in any court claim that is issued against you.

 

They have 40 days to comply with a SAR. If they do not comply with this request, you can then contact the ICO who can force them to comply under the Data Protection Act, 1988... providing you keep hold of copies of all correspondence, rec. delivery receipts, etc.... as proof that you have made these requests on certain dates, etc.

 

The main point of this post is to let you know the importance of protecting yourself against all possible scenarios. Making legal requests protects you. So does maintaining payments. Only make the payments you can genuinely afford to make however.... In my experience, this has been enough to push them into making silly mistakes, at no cost to myself.

 

[PriorityOne]

Also with MBNA debt the DCA's know every dirty trick in the book has already been tried so they will tend to be very accommodating with those who propose payment plans.

 

 

Not if it is a low one... £1 - £5 a month. That's what I would do instead of withholding payment altogether, but each to their own.

 

[PriorityOne]

Hi everyone - thanks for all the posts and advice. To be honest I feel scared to death - Im just a normal girl with a normal life who has got into a mess with her finances - probably like may others. I am confused by some of the advice on here - im not clever enough to take mbna on and dont understand some of the terms used on here to do this - SARS, DCA's etc

 

Pixie, all of us on here are just normal people with normal lives... just like you. I also started off scared to death... just like you. The only difference between you and I now is that I took a very deep breath just after Xmas and sent out the letters necessary to stop a particular creditor from going after a CCJ (County Court Judgement) followed by a property charge. I had been paying them regularly for 4 years....the threats came out of the blue and I became angry.

 

They wasted no time getting over the New Year and contacted me on 2nd January with these threats... so I decided that it was time to start the New Year how I wanted it to continue.... and posted off my letters re. 2 accounts.

 

One of these was with a DCA (Debt Collection Agency), who have never contacted me since, despite stopping all payments to them (£900 outstanding) and the other couldn't come up with an Agreement - £3,800 outstanding)!

 

I just want to be able to get rid of the MBNA debt - ive been paying them for years - never missed a payment but feel ive more than paid off what i owed to them.

 

I can relate to your feelings... enough is enough. Time to act now.

 

Is there anywhere on this site that someone can help do all the paperwork on your behalf and advise me what i need to write. Half of my fear is not saying the right thing in my letter and making things worse.

 

There are companies who do the same things as we do on this site, but who charge you for that service. It is not difficult to do... you are not breaking any laws by requesting documents... they are legal requests. The only time you might run into difficulties is if you stop payments altogether. In order to cover yourself, write to them and explain that you can no longer maintain the payments that you are making at present... and reduce them to £1 a month, if that is all that you can manage. I made a £5 a month payment on a massive debt several years ago... which was far more serious than anything you have described on here. If that is all you can afford, then that's all they can get.... even a judge wouldn't dispute that. If MBNA choose to sell the debt because of this (likely), then you have covered yourself by upholding payments, albeit small ones.

 

Would a solicitor of the citizens advise help me here - or would that make things worse also?

 

You would be told exactly the same as on here, but it's up to you.

 

 

Have a read around the site and familiarise yourself with other people's experiences. When you are ready, make sure that everything is sent by rec. delivery and keep all receipts.

 

[PriorityOne]

Hi Priority One - thanks ever so much for the post - ive read it 5 times now. Its made me feel a lot better.

 

Just to get this straight - i write to MBNA requesting a copy of the original agreement - is that the first step. In this letter do I make any reference to feeling ive more than paid them back - or is that the next step.

 

You have obviously taken the time to help me out here and I really appreciate it. Could you read my other thread if you get a sec? Its on Lloyds ppi. Im in the process of sending them a letter regarding their loan protection.

 

thanks again

 

Reading from people who have had experience of MBNA, you could go along 2 different routes.

• Contact them in writing and reduce your present payments down to token payments (between £1 - £5 a month) which will hopefully cheese them off enought to sell the debt on....or,
  
• Make a CCA request now... rec. delivery & keep the receipt. If they do not have the Agreement, they can take a hike. If they do have the Agreement, you can propose token payments then and do a SAR for any unlawful charges.

There is not a lot of difference other than MBNA is the original creditor and if they sell it, you will be dealing with a DCA, but seeing as MBNA treat their customers like DCAs do anyway.... the choice is yours.

 

Whichever one you go with... you are covered and that was what I was trying to get across. Firstly, by maintaining payments (however small) and secondly, by requesting a legal document. You would be surprised at some of the battles that can be fought and won by covering your bases, so to speak.

 

I have not dealt with MBNA personally though.... so it important to get extra input on this....

[PriorityOne]

Hi priority one - thank you

 

will do - i'll ask for a copy of the agreement. lets hope they havn't got it!

 

Fingers crossed for you !!

[PriorityOne]

Just had a thought.... here is the link for a CCA request :

 

Creditors and DCAs - Letter Templates & Budget Planner

 

Scroll down to Letter N. Send by rec. delivery and keep the receipt.

 

[PriorityOne]

Hi - well, ive just called and spoken to MBNA re the interest they are charging on my card. I asked them if they could do anything about the interest rate - 20.9% - theyve lowered it to 14.9 - surely if they could do this over the phone why havnt they done this before? I aasked if they could freeze the interest - they said no - not without affecting my credit rating. They alsdo just tried to sell me a loan. I asked for copy statements - they will provide these at a cost of £2.50 per statement!

 

You asked them on the 'phone ? Everything has to be in writing Pixie.

When I told the guy on the phone that I was paying £130 per month and only £5 was coming of the balance and that I would be paying it off til I was 80 - he laughed and then tried to sell me a loan

 

I really dont know what to do next. Can they have charged me this much interest and then lowered it so quickly with just one phone call?

 

They do what they like on the 'phone....

 

What I would like to do is have the balance adjusted to the new rate - can I do this? If so - how?

 

 

Much of the advise I have received regarding MBNA is to over low payments - Im in reality only paying £5 per month - the other £125 is interest

thanks - a confused pixie and MBNA are scary!

 

If you reduce your payments down to £5 a month, stipulating that all interest needs to be frozen on the account.... they will probably get so cheesed off that they will sell it on. They are trying to back you into a corner by making you think it's hopeless.... there is no way that they will be prepared to collect on this account until you are 80.... You need to put the "request" in writing though and enclose a chq. for the £5. The only other option that's been suggested is to withhold payment altogether in the hope that they will sell it on.... but this will look bad it if goes to court and it doesn't protect you.

 

 

[PriorityOne]

It's very difficult to negotiate with a company like this because they give the impression that they don't care about your circumstances and are unwilling to help.

 

If you want the debt sold on then IMHO, the best way to do that is to offer (and enclose) token payments each month until they get fed up with collecting them from you. In the same letter, you also need to say that these payments are conditional upon all interest being frozen on the account. The logic behind this is that if interest continues to be charged on the account, then you will not get anywhere with the debt.

 

The other option is to make a legal request for a CCA in the hope that they cannot supply it, but if they do (as the original creditor), then you will be back where you are now and will need to negotiate from there. On the other hand, they may not have it... in which case, you can withhold payment until a copy is produced and re-enforced in court.

 

If you default on your payments, your credit file will be affected. If they are the legal owners of the debt, then they are within their rights to default you if you cannot maintain regular repayments.... it depends how much this matters to you. In my own experience, it was far more important to put food on the table and keep my home than worry about any defaults, but I already had my home..... your situation may be different.

 

You need to weigh up what you want the most out of this... and take your decision from there.

[PriorityOne]

Indeed. This is because they really don't care about your circumstances, and are unwilling to help. They sometimes use various tactics to convince debtors otherwise, but are about as genuine as a New Labour press release.

 

The need to deal with them only in writing is paramount.

 

Yes, most DCAs come across as total barstewards.... but, I was trying to be tactful. It all boils down to mind games in the end.... and eventually you become quite good at them.

 

[PriorityOne]

The name William Wareing rings a bell in conection with MBNA. Battleaxe will confirm, if you PM her.