Short Settled? So who'll get the settlement?

[Drop-Drew]

Right...I've already short settled on two MBNA credit cards...I owed aprox £1500 on each (totalling aprox £3000) and I paid £1600 as a short settlement on both cards...leaving £1400 outstanding, and their letter said they will not persue the balance...

 

I have just worked out that I was charged aproximately £1500 in bank charges (without interest) which is £100 more than the £1400 balance which I haven't paid and they won't persue.

 

They have already sent me cheques for £290 and £440 which i can cash now and walk away smiling...BUT...if I claimed the charges back in court, would the full settlement of £1500 simply be taken off the outstanding balance of £1400, leaving me with only £100 to spend or will that be awarded to me as a cheque...

 

Of course what I'm trying to work out here is how to make the most money back from MBNA that I can actually use rather than getting awarded money that will simply reduce a balance on paper...

 

(I know this might seem irresponsible, and I if I removed the entire outstanding balance I could get the defaults removed from my record but I'm just past caring about my credit rating and I won't be in a position to get a mortgage until well after they have come of my credit file anyway...)

 

So to reap the most usable cash should I cash the cheques I have now...threaten them with court to get a higher settlement figure, THEN cash the cheques...or take them to court and go for the full amount, provided I know they won't simply take it off the outstanding balance...(will they?)

 

Many thanks...

[Bigmac versus]

Hi Drop-Drew as you may be aware the remaining balance wont go away and any settlement from charges they would offset against balance owed.

I know you said dont care about your file but you will one day and best to grab the bull by the horns so to speak as it will at least clear this up.

 

If you were to make your claim from the start only acceptable by cheque then they may indeed have to pay you, i remember someone else in a similar situation and they complained to the FOS at the end and they then got their cheque.

Hope this helps and best of luck with your choice.

[Drop-Drew]

Yes...I know you're right...Thanks...

 

I kinda wanted someone to tell me to take the cash...but you're right, I will need that credit rating someday...and I could clear the balance if I persued a claim...

 

Arse...and thanks...both...in equal measures...

 

(Have you been speaking to my mum???)

[Bigmac versus]

Lol, assuming she is telling you the same thing then

Mums always know whats best

 

You could at least say throughout the claim that settlement would only be accepted in cheque as when they agree to settle they agree on your terms.

 

If you are planning to do anything about it keep the thread updated so i can drop in and check your progress.

Good luck

[Drop-Drew]

Thanks...

 

I'm currently looking at the details sent back from MBNA listing the transactions and charges and trying to make sense of it all...

 

They have sent me a breakdown of all transactions of both credit cards with 2 "Breach fee summary's" for each card listing all the overlimit fee charges, overlimit fee adjustments, late fee charges, cash advance interest, credit insurance fees, cash advances ATM, cash advance fees, retail sales interest, payments, and a few others like special cash interest, electronic balance transfer fees and a few of the retail sales, but not all if i cross reference them with the statements...

 

These are subtotalled in two coloums..."Fee amount" and "Above OFT".

 

There is a summary at the top...

 

Most interesting is that someone has written in pen near the Total Breech Fee ammount...(ie, the money figure)...quote..."+24 from copy stmts 434".

 

I presume that this is refering to the charges that only show up on the photocopied record kept by A+L before MBNA took over the running of their credit cards, and 24 multiplied by £18 (the fee charged by A+L at the time) is 432...two out from their figure of 434...

 

However I can only find 6 of these charges on the photocopied statements and copies of statements between march 2002 and march 2003 have not been included...

 

This may mean that I didn't use the card between these dates, or that they simply haven't sent me those records...but that maybe where the missing charges are...or they are trying to confuse me deliberately...

 

Very frustrating...

 

I have to assume that they have sent me complete records and base my claim on the set of statements I have recieved rather than simply trust whoever wrote this on my breech fee account summary...

 

I suspect the card wasn't used between these times as my final payment in March 2002 was a lump sum of over a thousand pounds bringing the account to zero...so where are the other charges the hand written note referes to...unless they aren't unfair fees and refer to something else entirely...

 

I shall plod on...

 

Oh...and well done if any of you read all that...

[Bigmac versus]

They dont exactly fill you with confidence do they.

[rockinrodders]

I had a similar scenario with Cap One, where I partially settled the balance but they accepted payment as full and final settlement.

 

I was advised on my thread that as they had accepted the payment in full and final settlement that any charges I get back would not need to be offset.

 

In their early partial settlement offer they said they had refunded the difference between their charges and the OFT recommended £12 to my account.

 

I wrote back and told them that it was not acceptable to offset it against the account as it was already settled. I have had no reply yet.

 

I began court action last week and my claim is much more than the £250 of the balance they wrote off.

 

Unfortunately I do not have the letter saying that they accepted my payment as full and final settlement although they have reported that partial payments were accepted as full and final settlement to both Equifax and Experian.

 

I made the default removal part of my court claim so won't settle without this anyway, so it looks like it will go to court anyway.

 

If you still have the letter admitting that the partial payment was accepted as full and final settlement of the account, then you may be in a better position than me to insist on it.

 

The fact that they have already issued some cheques to you may well be an indicator that they accept they have no grounds to pay it off this written off balance

 

An exoert may be able to clarify one way or the other

[Drop-Drew]

Hello again...I was entering the details into the precourt spread sheet and I figured out what might have happened...

 

They have sent me records f0r 2001 twice and probably kept my copy of the missing statements, where these ellusive other charges are probably detailed...

 

Any advice on getting hold of these records...Write a letter? Saying what? Theaten with court proceeding for non-compliance...? Or a phone call...?

[rockinrodders]

you could try phoning them to begin with to say that they accidentally sent you 2001 twice but missed out 2002-03 statements.

 

It was probably a silly error that they will sort out quickly, usually it is the older statements for 2001 that they 'forget' to send and waste more time so that by the time you get them they are outside the 6 years.

 

They should agree to send th e missing pages quickly if your polite and reasonable. If they are @ssholes on the phone then follow up with the LBA for non-compliance from the templates area of this site

[Drop-Drew]

Did phone them and both I and she were very polite...She said they will try and send the missing statements and as soon as possible. I asked her how long it would take and shge said up to 28 days so i asked her to put a note on the request saying that I would make a complaint to the Ombudsman for non-compliance and she said she'd make a note of it...all very polite...I said by the end of the week so we shall see...

 

Rah...and ...thanks!