Key Post How best to deal with MBNA if you can't pay the balance due

I received a letter today from MBNA stating that my debt with them will be sold on to an agency. Can anyone advise me on this. Can I then negotiate a repayment plan with them and how open are they to offers?
 
Im getting the same letters about them selling on my debt, I have tried communicating with them by letter explaining my situation as i will not answer the phone to them but all i get back is the same letters stating they are selling on my debt, what happens when they sell on the debt???
 
How to deal with MBNA -MABS

I had a similar problem with MBNA. I had a credit card that I hadn't used in a couple of years and struggling to pay it off, I couldn't work due to illness. I contacted MABS who negotiated a settlement on my behalf. The interest portion of the amount I owed was half the total, so it was going up every month. Contact MABS, they'll help you work out a Financial statment for MBNA and how much you can really afford to pay back. Financial Institutions tend to listen to MABS. They also see that you're making an attempt to sort your debts out , and not just ignoring them. And you won't have to answer any more scary letters, which is such a relief! My debt was halved, although I had to wait for a while for the whole thing to be finalised. Best thing I did. :)
 
Bilbo1971 said:
Great to read this netz. Did you negotiate the payment plan without an income and expenditure form filled out? I'm in a similar situation and would be really interested in some advice. I can't see an option to pm you.
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Hi - sorry for the late reply, Ive only seen this now - Yes I did negotiate a plan WITHOUT I&E form. It was all done over the phone, and then I had to wait a few days for a decision. Plan still going strong, and we have gone from 22k in MBNA debt to just over 17K, so nearly 5000 paid off so far. It is hard,as we are paying 360 a month. The double payment at the start is a killer, but so worth it.
Another good tip is to make yourself up a debt payment excel sheet, and as your debts are going down, have an automatic total so you can see on a weekly/monthly basis how much you are reducing your total debts by. It is really hard struggling with debts and I do feel sometimes like Im getting nowhere, but looking at how much I have paid off since I first contacted MABS is a great confidence booster. And I did it myself too. I got information and help from MABS, but I didnt need them to negoiate or open a credit union MABS account, so a double bonus for me. Good luck with your journey and keep us posted
 
I too have had the letter about sending both mine and my wife's c.c debt to a third party.My wife tried to negotiate over the phone,but was left in tears with comments like ,can't you eat less that's an awfull lot of money your spending per week to feed four people.(220 euros including our lunches for work and kids lunches for school which are all homemade.Paying 260 per month off combined cards with total debt of circa 17k.We have sent endless correspondence and got nothing but threathening phone calls and letters.They now want me to ring them but from posts on here and my wife's treatment over the phone I know I won't get anywhere.Owed B.O.I 9k and they immediately over the froze interest and late fees and allowed us to pay 175 p/m and will review in 12 months time so balance is reducing.
With mbna 12 years and they have got a lot of interest off us down through the years,but I now know that counts for nothing.
Not looking for any easy way out,we want to pay but these guys are relentless.
Any options?
 
Firstly all correspondance should be in writing. Today write a letter to MBNA and state that you only want to be contacted in writing. Send this by recorded delivery. Also complain about the treatment your wife received on the telephone. Be open and willing to repaying the debt. Ask for interest to be frozena dn penalties waived etc.

Have you done out a statement of your income and expenditure, that's a helpful start.
 
Yes they are a curse to deal with. I did have a MBNA credit card a few years ago. I borrowed money from the Credit Union to pay them off. I offered them 60% of the outstanding balance as full and final settlement. They are a pain I know- constant phone calls at work and home. Try it it may work but I had other debts as well at the time.
 
This is a real issue if it replicates what is and has happened in the UK. I am aware of a friend who had a card in a similar position and the debt was sold on. The upshot of it was that the interest rate was pushed out to 35% making the situation all the worse. Do everything you can to rid yourself of this debt including selling off surplus stuff, these people are heartless.
 
Someone I know (coughs into sleeve), has just negotiated a settlement on their MBNA cc.

outstanding balance €12700
settlement amount €4200

I believe that the immenient personel insolvency rules have them running scared.

The proposal (not certain) would allow distressed debtors to write off 75% of the debt and enter into pay,ment plans on the balance. So with a badly distressed debt they are better off settling, you must be prepared to play hard though.
 
Currently in a similar situation with MBNA, constant phonecalls from private & mobile numbers in relation to cc debt of around 5k(Small fish in big pond). Have been to MABS (to be honest whom we've found less then helpful, except for preparing a financial statement, but that's another story) and we sent this financial statement to them offering a payment of what we can afford to pay monthly. I've been told this won't be accepted and the debt will probably be sold on to a third party, but I intend to keep paying this amount. The constant phonecalls are starting to get annoying and feel that if they continue I will threaten to report them for harassment, what is the limit that a company can call you?

What I really need to know is will a third party take on this debt knowing that they're only going to be offered exactly what MBNA has been offered and if it goes to court, what I'm reading is that judges won't look too favorably knowing that they have been made a payment offer? Anyone have experience of this, thanks in advance.
 
Incidently, I have a CC with MBNA (UK) and they were absolutely no problem to deal with. Got into some financial hardship with a balance of £9,200 - One phone call and a disussion on my income expenditure and they froze the interest and agreed a payment plan to clear the debt over 60 months. I have never had to speak to them since, 32 payments in and no contact except a monthly statement.

Same experience with a MINT (RBS) card - Smaller balance but same treatment. Though they do ring to increase payments on a 6 monthly basis - Silly thing is I'm now paying twice what the minimum payment would have been!

Only one i had issues with were Lloyds TSB (whom I have a current account with there still to pay these DDs) They would not budge on any payment plan unless I went through a third party - Finances have improved since so I'm concentrating all my efforts of them before i up and leave them for ever.

It seems that in the UK, these sort of deals are more readily available on a one to one basis as the CC companies are afraid of their customers going into Bankruptcy or an IVA, in which both situations they stand to lose more than being acommodating and coming to a mutually agreeable plan.

Hopefully the same will happen here.
 
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selling my debt

hi guys ok same story as all the above
mbna big debt
keep calling me
ignoring them
using their messaging system to communicate
letter today saying they will sell my debt

can anyone actually tell me what that means
i should be paying 250 a month but can only afford 125 a month
so they sell my debt, does that mean harry heavy and his mob of mobsters can call around to my house looking for money or how does it work+

i am worried and anxious over this

thanks so much
 
number7 said:
Someone I know (coughs into sleeve), has just negotiated a settlement on their MBNA cc.

outstanding balance €12700
settlement amount €4200

I believe that the immenient personel insolvency rules have them running scared.

The proposal (not certain) would allow distressed debtors to write off 75% of the debt and enter into pay,ment plans on the balance. So with a badly distressed debt they are better off settling, you must be prepared to play hard though.
Click to expand...

Just seeing this post now. We have combined debt with MBNA of 16,000 and have not paid anything now for 3 months on one card (they suspended this card). We do not answer their phone calls (have a message on phone that do not answer private nos). Have some cash coming in from a once-off job (4000) so wondered if we should add to this and try to settle with them?
 
I have a CC with MBNA -balance of 3500.00 unable to pay the mininum payment - rang them spoke with them - we came to an agreement of set amount per month which is working fine and no phone calls from them. They did offer me pay 1700 and debt would be cleared but at the moment cannot do that...

My advice - clear the debt if you can and stay clear of them
 
Bilbo just write to them and state that from now on you are only available to correspond either by email and or post. I did that and they wrote back to me and agreed.
 
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