Query :MBNA have decided not to reissue card ......

M

mafrac

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Have a card with MBNA. I am within my credit limit and I make the minimum payments monthly (have been late a number of times in the past year). The card has never been over the limit.

I received a letter during the week saying the card would not be reissued when it expires which is fine with me as I don't use it for anything, I am trying to get it paid off.

Letter also states I need to keep paying off the account which I will do.

My question is is this a precursor to them selling off mt debt to debt collector or is this as a result of MBNA exiting the market ?
 
Could be just because of your low usage and bad payment record and only paying the minimum. It's now unknown for banks to withdraw a facility in either/both of those scenarios.
 
It will be the missed payments.

They love people who only make minimum payment , once the payments are on time.
 
Thanks for the replies.

One other thing, is it likely they will sell my debt on or can they do that once I am making the payments on time. I am up to date as of last June and have never missed a payment, but payments have been a week late and I have been fined etc.
 
As MBNA are soon to close up shop and leave Ireland it is likely they will sell their portfolio of debts.
 
On the other side of the fence, i had a CC whilst living in the UK. I paid in full every month and they decided to withdraw the card - obviously weren't making any money on me so was not a 'valued customer' so to speak!
 
mafrac said:
Thanks for the replies.

One other thing, is it likely they will sell my debt on or can they do that once I am making the payments on time. I am up to date as of last June and have never missed a payment, but payments have been a week late and I have been fined etc.
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Your main concern seems to be that they will sell the debt and you will have to deal with some unpleasant debt collectors?

I don't think that they will sell your debt because of its performance. They are getting paid and will be paid off over time. So there is no reason for them to sell this.

If MBNA as a whole is sold, it shouldn't affect you too much. They will just take over the assets of MBNA and manage them in the normal way. In fact, it is likely that anyone taking over MBNA would treat customers in difficulty a lot nicer than MBNA do.
 
Mbna say if you make an arrangemen with them to pay off the debt by freezing your interest it will affect you credit rating for11 years. 5 to pay off the debt and 6 thereafter. Is this normal??
 
It is normal.

But, ironically if you made no arrangement and paid nothing it only damages your credit for 6 years
 
Is this the same for all lenders ?? I thought your credit rating would be damaged for three years.
 
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