Goodwill payment offer from MBNA

[Mini-Pear]

I sent a DPA letter to MBNA with a £10 cheque asking for all my statements from an account I paid off and closed last year, I had no idea of the total amount of the charges but knew there would be some.

 

I have received a letter from Rachel Nixon (Customer advocate office manager) offering a goodwill payment of £360 to be sent to me by cheque in the next 10 days on the basis it is 'full & final settlement of my complaint'.

Added up my charges come to £820. Is there a letter template to send stating I want the full amount? Also, should I be adding interest to this? If yes, does anyone know the interest rate I should add?

Please help! Thanks!

[moneydragon]

Hi Mini Pear

 

I sent SAR to MBNA over my abbey credit card, they return my £10 cheque and as a gogw they paid into my account £300. I politely wrote back sayiny I would accept this as a down payment and continued for the rest. Today in reply to my 2nd LBA they wrote saying that they have paid into my account a further amount of £519 which was my full settlement amount. I now only owe these people about £20.

 

This is the letter I sent and I enclosed a copy of all my charges:

 

Dear Mr Johnson,

 

Thank you for your letter dated 5th March 2007. I respectfully decline your offer of settlement and request, that you return to me all charges imposed on this account and interest, totalling £XXX.

 

I will accept the sum of £300 offered only as part settlement and on the clear understanding that I will pursue recovery of the remainder, with a County Court claim if necessary.

I have outlined the basis for my claim below and attached a detailed schedule of charges.

 

My request

I am writing to ask you to refund to me the charges which you have levied from my account over the last five years.

I now understand that the regime of fees which you have been applying to my account in relation to direct debit refusals, exceeding overdraft limits and so forth are unlawful at Common Law, Statute and recent consumer regulations. If you say that they are not, then will you please demonstrate this by letting me have a full breakdown of the costs to which you have been put by as a result of my breaches, in order to reassure me that your penalties really do reflect your costs.

Additionally, it has now been confirmed that your particularly high level of penalties are considered to be unfair per se by the OFT who reported on the 5th April 2006 and are therefore presumed to be unlawful in the absence of specific proof to the contrary.

 

Your responsibilities

I would draw your attention to the terms of the contract which you agreed to at the time that I opened my account. It is an implied term of that contract that you would conduct yourselves lawfully and in a manner which complies with UK law.

I am frankly shocked that you have operated my account in this way as I had always reposed confidence in your integrity and expertise as my fiduciary.

I consider that your repeated representations that your charges are fair and reasonable are deceptive and that they have deceived me into agreeing to pay them.

Your concealment of the true nature of your charges has prevented me from asserting my right until now.

What I require

I calculate that you have taken £XXXX plus £XXX which you have charged me in interest for the sum which you have taken. Total £XXXX .

I enclose a schedule of the charges which I am claiming with this letter

My targets to resolve this matter

I hope that you will enter into a sincere dialogue with me about this matter and I am writing this letter to you on the assumption that you will prefer to do this than merely respond with standard letters and leaflets.

I will give you 14 days to reply to me accepting, unconditionally, my request in principle and letting me know a date by which I will receive payment.

If you do not respond, or you do not respond positively, within this time period, I shall send you a letter before action giving you a further 14 days in which to reflect. I believe that these targets are more than sufficient for a large company such as yours with dedicated staff and departments.

After that, there will be no further communication from me and I shall issue a claim at the expiry of the second deadline.

 

Yours sincerely

 

So keep at them they will pay the full amount.

 

 

Hope this helps and good luck:)

 

Hope this

[Mini-Pear]

Thanks a million Moneydragon! Great letter, I will def be copying that and posting asap! I closed this account last year and don't know the interest rate they were charging me, what rate did you use if you don't mind me asking?

Cheers! Mini P

[moneydragon]

Hi

I used a spreadsheet that is available in the Bank templates library under interest spreadsheet, I used the credit Card - England-advance excel.

 

This worked everything out for me I just entered the date of charges and the amount - easy.

 

Good luck and if you need anymore help just post here, but I am sure you will be fine, it was that simple!

[Mini-Pear]

Thanks for your reply, much appreciated.

I already found the spreadsheet but the interest amount is set at 12.5% and I'm sure the interest rate I was charged on my balance was more like 24%. Don't want to come across as stupid but not sure what amount to put and would like to get as much out of MBNA as possible!! Does anyone know?

P.S. Well done on getting your full amount back Moneydragon! Nice one!

[Cornucopia]

Thanks for your reply, much appreciated.

I already found the spreadsheet but the interest amount is set at 12.5% and I'm sure the interest rate I was charged on my balance was more like 24%. Don't want to come across as stupid but not sure what amount to put and would like to get as much out of MBNA as possible!! Does anyone know?

P.S. Well done on getting your full amount back Moneydragon! Nice one!

 

Mini-Pear, everybody's is different. I would suggest calling them and asking or checking your last statement (if you still have it) and it will show you what rate you were being charged.

 

Regards,

 

Corn x:)

[brett48]

Hi Mini-Pear

 

I had exactly the same letter from Rachel Nixon in response to my SAR with a 'full settlement' of £390. Unfortunately, unlike yourself, I don't know my full charges but based on the figures quoted earlier in this thread, I reckon they must be in the region of £1000.

I sent my £10 cheque back, re-requesting the SAR and stating that I was accepting the £390 as part payment. That was about a month ago and I am still waiting for a response.

I phoned Chester towers earlier this week to be told that the 40 day time limit started with my second request, not the origanal SAR receipt, so I still have another week to wait! They are trying every trick in the book as delaying tactics ......

[Mini-Pear]

I never received the form to send back with ID for a proper full SAR, which shows the interest they have charged me on my balance. Does anyone have a blank form that they could fax me or email me? Or does anyone think I should not bother with the interest and just claim back the charges to save hassle???

Thanks

[bigjohnk]

I've just used the spreadsheets to calculate the interest on my claim & it more than doubles it!!!

 

Go for it!!!

[Mini-Pear]

Thanks Bigjohn! I WILL go for it!!

[brett48]

Hi Mini-Pear

 

Personally, I think claiming interest is too much hassle and initially I go for the simple approach of just the charges.

However, if it goes to N1/MCOL (as I am currently doing with Lloyds TSB), you can whack on 8% interest there. I aggree with Bigjohnk, the amount can almost double if the majority of the charges go back a few years.

[DARKNOIZ]

Mini-Pear, everybody's is different. I would suggest calling them and asking or checking your last statement (if you still have it) and it will show you what rate you were being charged.

 

Regards,

 

Corn x:)

 

 

The interest rate on my last statement shows 1.7366% retail & cash, how does this relate to the spreadsheet, is this the daily rate and how to i covert this for the spreadsheet?

 

I am probably being dense, but you advice would help:?

 

Thanks

[empowered]

The interest rate on my last statement shows 1.7366% retail & cash, how does this relate to the spreadsheet, is this the daily rate and how to i covert this for the spreadsheet?

 

I am probably being dense, but you advice would help:?

 

Thanks

 

Are you claiming CI? If so, just x 1.7366 x 12 = 20.84% APR.

[DARKNOIZ]

Are you claiming CI? If so, just x 1.7366 x 12 = 20.84% APR.

 

 

Thank you , that sorts that one out.

[su2402]

FOR THIS GOOD WILL PAYMENT WERE YOU JUST CLAIMING THE FEES OR THE INTEREST TOO?

sorry for shouting lol new to all this and looking to moan at virgin (MBNA) and also halifax bit scared with halifax as we have current account and mortgagew ith them too. sent 3 letters off to lloyds on tuesday but that was for 2 closed accounts and a closed credit card

OMG this is all so hard to understand have been reading solid on web for over a week

[empowered]

FOR THIS GOOD WILL PAYMENT WERE YOU JUST CLAIMING THE FEES OR THE INTEREST TOO?

sorry for shouting lol new to all this and looking to moan at virgin (MBNA) and also halifax bit scared with halifax as we have current account and mortgagew ith them too. sent 3 letters off to lloyds on tuesday but that was for 2 closed accounts and a closed credit card

OMG this is all so hard to understand have been reading solid on web for over a week

 

My Goodwill payment came without even asking for refund! All I had done was send a SAR - now that I am in possession of my charges I have accepted it as part settlement and issued a Prelim letter. Hope this helps:)