Debt with MBNA - next move

ArtyM

Hi all
Sorry for another Credit card debt post but I hope some of you can offer some advice.
I have 2 credit cards with MBNA and am seriously struggling to keep up payments. I have contacted them to notify them of my financial difficulties and asked them to stop interest and fees etc. They gave me 2 options (1) a 5 year payment plan to clear the balance, pending a submission of income/expenditure.
(2)The only other option they give me is that the debt will be sold to someone else if I miss another payment.
The problem is that the amount that would be required per month on the 5 year plan is roughly what I am struggling to meet at the moment.
I have offered a smaller monthly amount, one that I can afford, but they wont accept it.
I have been to MABs site, and submitted letter as advised - my other creditors ave been much more flexible than MBNA.
I do want to pay the debt, but I dont see myself being able to pay at the amounts they are asking for.
How much worse would another organisation be to deal with if the debt was sold off, and if a court action was taken could a better payment plan be arranged through it?
Thanks in advance for any advice/replies.

travnett

if they sell your debt to a 3rd party then you don't have to pay. You have no contract with this 3rd party they have no legal or lawful right to come after you for the debt. You have signed nothing with the 3rd party saying you accept this as money that you owe.

MBNA are horrible to deal with. I'm also dealing with them, it's not going to be pretty (for them )

Marcusm

travnett wrote: »

if they sell your debt to a 3rd party then you don't have to pay. You have no contract with this 3rd party they have no legal or lawful right to come after you for the debt. You have signed nothing with the 3rd party saying you accept this as money that you owe.

MBNA are horrible to deal with. I'm also dealing with them, it's not going to be pretty (for them )

I'm sorry to be so blunt but these statements are rubbish. The standard terms and conditions of the credit cards will permit MBNA to sell the debt to anyone they want subject to Irish regulatory rules, i.e. if the debt is covered by the Consumer Credit Act, the purchaser may need to be licensed also. THe Customer agrees when taking out the card that the loan may be transferred to a 3rd party - you don't get a chance to choose the person nor to object later.

In these circumstances, it looks as if they offload their problem debts - in the good times, the good customers balances were sold to raise funds. Credit card debt is effectively repayable on demand. If MBNA has offered you a 5 year workout, that sounds very fair although it may still be more than you can afford to pay. Speak to MABS but I bet their advice will be to try and keep MBNA on board than have the debt sold off to someone who will be more aggressive and seek expedited payment.

Kennie1

MBNA make my blood boil!!!!!!!!!

Right here's the situation, if you enter into an agreement with them to pay off the debt over a 5 year period they register the debt as a default with the ICB. The period the default begins is the day the agreement begins so you would think that your credit rating would be ok the following year after you have paid off the loan...WRONG... The 6 years actually begins from the period you made the last payment so thats up to 11 years in total:eek:.

Now if you ignore all the calls and letters from MBNA, they sell off the debt to a debt collection agency (they dont bring people to court as a rule as this is too expencive) and they register this debt as a default and the clock starts ticking straight away so in 6 years time you can get credit again instead of 11 years. Funny thing about it is that the debt collection agency is supposed to a hell of a lot easier to deal with and will come to an agreement that suits your budget. There are several threads about this over on askaboutmoney and this is where I got this info from so maybe worth your while checking out!