Query re ICB / Credit car debt / Settlements

[Sean Bateman]

Hi

My sister had two large credit card debts, one with MBNA (€12,000) and one with Halifax (€12,000).

She was back and forth with MBNA trying to agree some sort of repayment plan but it never went anywhere. She hasn't heard from them for circa 2 years and her ICB record states "Written Off".

With Halifax, she tried to agree a repayment plan but was unable to. They passed the debt to a third party to whom she now pays €80 per month. For this one, her ICB record says something else ("Withdrawn" I think).

The MBNA balance on the ICB report is dated two years ago but the Halifax one is pretty current.

My queries are whether people think that MBNA have "gone away for good" and whether a settlement with Halifax's debt collectors will trigger a further 5/6 year problem period on her ICB record. As things stand, it appears that her record will be clean in Q4 of 2016.

Many thanks.

 

[Negotiator]

Interesting that it states 'withdrawn' on the ICB. I'd imagine that it kinda triggers it to start again.

Because it's been passed over to a third party collector then it's almost certain they've paid no more than 10% of the debt and can even be as low as a 2%. With this in mind I would go back to them and offer them between 5% and 10% of the debt as full and final settlement as you need closure on the matter. Stand firm with them or they'll have you for breakfast!

 

[Sean Bateman]

Interesting that it states 'withdrawn' on the ICB. I'd imagine that it kinda triggers it to start again.

Because it's been passed over to a third party collector then it's almost certain they've paid no more than 10% of the debt and can even be as low as a 2%. With this in mind I would go back to them and offer them between 5% and 10% of the debt as full and final settlement as you need closure on the matter. Stand firm with them or they'll have you for breakfast!

Cheers.

Her concern is the ICB side of things.

On her ICB report, both debts state "Date of Removal from ICB Record" (or similar) in 2016.

Our worry would be that a "short settlement" would trigger a new entry on her ICB record which would push her "return to normality" out to 2018/2019.

Regards

S

 

[Gerry Canning]

If she is paying anything it is probable the icb will run 6 years from her last payment.
The 3rd party collector may not have bought the debt and are solely collectors.
She needs to contact the lenders in writing (keep copies)and get their agreement to a final settlement.
And do not be (bullied) by them , they will accept sensible offers.

 

[Sean Bateman]

If she is paying anything it is probable the icb will run 6 years from her last payment.
The 3rd party collector may not have bought the debt and are solely collectors.
She needs to contact the lenders in writing (keep copies)and get their agreement to a final settlement.
And do not be (bullied) by them , they will accept sensible offers.

Thanks.

The odd think though is that her ICB report states that the Halifax debt will disappear from her record in 2016 (basically five years from when the debt was passed to the debt collector) but that it says that the outstanding balance is correct as of March 2013.

Has anyone any sense regarding whether MBNA have "gone away"? It's actually more than two years since she's heard anything from them. There was some messing on their side (harrassment, ignoring of a written complaint, abusive phonecalls etc) which was documented so perhaps that's a factor for them in whether they just write something off? Financially she's a basket case but she could be helped out if it's advantageous to do so.

Thanks again.