MBNA short settlement

tony glenn

Any advice on the following much appreciated. I have an MBNA debt of around 25,000, and through a combination of ill-health and the recession I am no longer able to make even the monthly minimum payment. My business has ceased trading and I am now on long-term disability with no prospect of future employment.
I have been in contact with MBNA and completed all the required income/expenditure forms etc. My best repayment scenario was 40 euro per month. Then I noticed the 'short settlement' option on the forms and offered 5,000 (all I could raise). I was told to come back with an increased offer, (I might have a buyer for my van), so I offered 7,500.
This again was refused, and now apparently they will proceed with whatever they do next (letters, threats, court etc). What amazes me is that they will end up getting about 40 euro a month if it goes to court. It will take over 15 years to pay the 7,500 I can offer now.
Anyone know the short-settlement percentage that would have been accepted? I can't raise any more cash, but it would be interesting to know what they would have said yes to!

ABC2222

Good question and always one i was looking for to be answered.
I just settled during the week with mbna.
15000 owed, offered 30% and settled on 38% €5,775.
I read on many a board that a partial settlement is not final and the remaining debt can be then sold on to a DCA.
When i told mbna this they said they will deffo not be looking for anymore cash and the account will be dead.
I asked for them to send me a letter stating that this is a full and final settlement but said they coulnt because it wasnt a full payment and for them to send me that i would have to agree to the full payment.**makes sense**.

The key is the worse the account is ran with them the better settlement you will get. I ran mine 6 months in arrears for 6 months....;)

tony glenn

At last a reply! Thanks for the info.......glad you got a deal. I've been contacted again recently and their attitude seems to be more understanding. I can raise 8k on 26k now (just over 30%) so I'm going to try one last time to sort it. If not I'll just have to let them proceed with their evil plan! I'm concerned that you couldn't get anything in writing...did you sort your deal on the phone or do you have any written proof (e-mail, letter etc) in case you need it? What happened when you made the payment? Did you get some sort of receipt with any key-words (final payment, thanks for that, we won't call again etc. etc?)
Anyway, congrats again. It must be a great feeling to get them off your case.

DIF

tony glenn wrote: »

At last a reply! Thanks for the info.......glad you got a deal. I've been contacted again recently and their attitude seems to be more understanding. I can raise 8k on 26k now (just over 30%) so I'm going to try one last time to sort it. If not I'll just have to let them proceed with their evil plan! I'm concerned that you couldn't get anything in writing...did you sort your deal on the phone or do you have any written proof (e-mail, letter etc) in case you need it? What happened when you made the payment? Did you get some sort of receipt with any key-words (final payment, thanks for that, we won't call again etc. etc?)
Anyway, congrats again. It must be a great feeling to get them off your case.

Hi Tony,

Did you manage to agree a figure with MBNA - if so was the figure close to 38% like ABC2222?

cheers

Don

tony glenn

Hi...still 'work in progress' and going nowhere fast! I told them I could raise 8k, they said 'raise it and get back to us'. I put everything in place, then they turned it down and asked for 12k. I told them I couldn't do it, they came back and asked for 15k. I gave up then even trying to sort things out. Now they're coming back and saying maybe 8k is OK. Problem is, they've left it so long that now raising the 8k is dodgy for me. And each month they add another 300 euro.
They keep waving the 'we'll sell the debt on' stick. I'm thinking... is my debt really 'sell-able' ? I'm on long-term disability, jobless, rented house, no assets left worth having...who'd want my repayment prospects?
They have made thousands from me over the years. Maybe they'll cut and run! To be honest, I'm past caring. 45 years following the rules, the bankers get rich and we end up back where we started. As Shakespeare said (probably) 'F***k this for a game of soldiers!'
Keep smiling!

MuffinsDa

Hi Tony,

Any chance you could update us with how you got on with them at the end?

tony glenn

They went right to the wire, and finally settled for 7.5k....which was a good deal but still cleaned me out. And all the guys that had been ringing and writing to me for months? They lost their jobs a few weeks later when the Irish office closed. And now I'll never know what would have happened if I'd not paid. Doh! Good luck, hope this helps.

MuffinsDa

Thanks a mill for the update Tony. I know 7.5 K is a big whack but at least you don't have it hanging around your neck anymore, I think it's a good result for you in you look at the big picture.

Well they are still operating here. My brother just told me they've written to him to increase his interest rate from 10.9% to 18.9% from August! He has a 20K debt with them and is not able to service it any more. I can lend him a few grand if he could settle it with them (maybe 5-6k!) but he is not in arrears so they probably won't entertain it!

ABC2222

Thats great Tony, God it doesnt seem like it but I settled a year ago now and no contact has been made at all from them. Letters and calls stopped!!!!! Huge weight lifted and now doing the same with other loans and cards. Just hit the HALF RULE on my suv so Lombart if you are on here you will soon be the proud owners of an X5 another 30k debt wiped:eek:
When it comes to banks and settlements everyone needs to understand you need to run the account badly to get a settlement so if you want to settle and not in arrears you need to start today.
Just to be clear I believe in paying a loan back that you borrowed but for the lenders that abuse and screw you when they can they will have to pay the price!!

tony glenn

Agreed....you have to let yourself go into arrears to get their attention! I was nearly 30 years self-employed, following all the rules and working all hours.....and I'm back to square one thanks to reckless bankers and speculators. DON'T LET THEM SCARE YOU, keep in contact but also make a note of each converstaion (date, who said what etc.) Don't be rude or smart with the callers, they're just doing their job. Remember, they are anxious to do deals now, so be polite but stand your ground. You're not alone. This thread was great comfort and support to me when I needed it, come back to it with updates and finally remember the most important thing....your health is your wealth.