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

I forgot to mention the ICB timing issues...

When you enter into an instalment arrangement or repayment plan with the bank, your ICB record is tarnished until 6 years after the debt is repaid (i.e. for 11 years in the case of a standard instalment arrangement).

When your debt is charged off, the "offence" takes place, and your ICB record is tarnished for 6 years from that point.

So in the event of your debt being "charged off", your ICB record is restored more quickly and the people you deal with are more practical and pragmatic.
 
Another update - MBNA have officially suspended our accounts, just checked online. Hoping this is the beginning of the payment plan, but have had no official confirmation. Thanks for all the posts, glad to see we are not the only ones to be treated like criminals. If they say no to plan, it seems we would be better off letting them pass debt on to 3rd party anyway. Will ICB bad rating be 6 years from the date they pass on the debt, or 6 years after it is paid in full to that 3rd party??
 

The former - 6 years from the date that they pass on the debt. That's the default or "credit event".
 
So I should just play along with their demands for details and payments until it gets passed onto a 3rd party and then agree a repayment plan with them instead of organising it with MBNA?
 
Gekko's post and it's addendum should be merged as a key post on this. Excellent post on how MBNA works.

I know someone whose debt with MBNA was written off. They ignorred everything from MBNA and MBNA gave up. It was a hopeless case (no job, no dole, negative equity) and for under 10K so MBNA were realistic.
 
I had a meeting with MABS today, it was the best thing I ever did. They are now going to take over my contact with MBNA, I was told if the debt (which it more than likely will be) is sold to a third party, they will automatically stop the interest being added to the account and you just pay them what you owe..... so to all those who are having the problems with MBNA maybe you should think of letting this happen, at the end of the day why should anyone have to pay MBNA anymore interest! they have taken enough from us over the years!!!!!!
 

At last a positive result - MBNA just called to confirm payment plan. Interest and charges frozen and we have 5 years to clear the balance on both accounts paying at 1.67% of current balance for 5 years. We can pay a bit more if we have it, but if we pay less or are late with a payment the deal is cancelled and we will be subjected to full charges and added interest. Im thrilled with this deal as I want to clear my debts, even though it will be very tough in the current climate at least I know in 5 years I will be ouy of this nightmare. Thank you to all posters, information was very helpful.
 
Hiya Netz...... well done on finallly getting MBNA to come around and do something decent for once!

Just keep an eye on them and make sure that they are not adding any charges on to your account at all.
 
Hi all,

great thread.... I'm glad to see I'm not the only one having trouble with this crowd of tools.... Like other posters I was told "send us your details, fill out forms, we'll work out a plan, freeze your interst..." blah blah, I did all this and told them I could guarantee payment of 300 pm off 2 cards balance about 16000 (so 150 off each). Was told in no uncertain terms that I don't qualify for this "plan" and they do not accept my offer, asked me if I could get anymore work?? Yes that's what I'll do, cos I NEVER thought of that myself!!!! I'm a single parent and if I work anymore than I do, I have to pay for childcare (to someone who has a car as school is 15 miles away) so I would be working, paying for petrol to get there and any money would end up going to the childminder - believe me, I have looked at this!!!

I also asked them to merge the two accounts, if that would make a difference... told no they can't do that, they are "not the credit union", about 8 years ago I had 6 yes SIX cards with MBNA, 4 had limit of 1000 and one had 4000 the other 3000, I got them to transfer the limit on the 4 cards of 1000 to the others and ended up with 2 cards with limits of 5000 and 8000. Now they had no problem doing that but can't do it now....

I was practically crying to my "account manager" on the phone, saying what else do they want me to do... I also have a credit union loan that I was able to negotiate down from 600 pm to 150pm now that's some drop and am extremely grateful that I could do it, but again all I got was "well we're not the credit union" I literally worked out my money so that I have accounted for every penny, leaving maybe 20euro a week for "sudden bills" (lets hope they are never more than 20), if I don't use it, then I'll use it to pay off debt.

But I can't believe how unhelpful MBNA are... they keep saying "can't you get the money from someone... but if you pay 3000, we can work it out" Hello????? don't have money, don they not think if I had 3000 that I'd bloody pay it.. Anyway got letter this morning for one of the accoutns, again saying, pay 3000 and we won't sell on your debt, otherwise we are going to sell it on..... I don't know what to do, I can't phone them until this evening, I'm going to end up listening to the same thing again from them and we are going around in circles....

I should mention, that I have fallen into arrears about 5 months, has had expenses (medical & car service/parts/nct - which I need to get to my job, without it I couldn't get to it as its 70km's away) that threw a spanner in the works but they just don't care.

What do you think?? Should I still pay what I can to them (the 300 pm) and let them sell it on, will I have better luck with the 3rd party they talk about, as in will they be more reasonable.


REALLY SORRY FOR SUCH A LONG POST, BIT OF A RANT.

p.s. they told me last week when I phoned to make payment that "your vodafone bill is no longer being paid from your card" I asked what do you mean? the cards have been inactive for 2 years, how can a bill be paid from it? "oh i don't know, but it's stopped now"!!!
 
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You would be better off letting them charge off the amount owed, thus freezing the interest.
 
Hiya Macca, I myself have had a lot of problems with MBNA, have you thought about going to MABS, I did and it was the best thing I could have done.

To be honest I wouldnt pay them anymore as you are just going to be going around in circles, I would let them sell your debt to a third party and at least then you can negotiate and you will not have any more charges added to your account.

Def think about MABS though they really are helpful, they have taken charge of my MBNA account and I no longer have any dealings with them... although they did try to ring me in work the other day and when my colleague told them i wasnt in the man shouted at her and hung up on her!!! charming haha...
 
thanks for the replies

I will give MABS a call tomorrow, although I heard there is about 2 months waiting list to get to see them :-(

I was getting about 4 calls a day, and even if I answered one, talked about both accounts, i'd still get the other calls, because they were treating the 2 cards as 2 different accounts, I changed my mobile.
 
Well I gave MABS a call today, great help. The girl I spoke with was a great help. She gave advice like others have done above. Basically said that they "tick boxes" when filling out forms and if they don't "add up" they refuse you for the payment plan. For example, if you are part-time, but they want you to be full-time, you don't pass. I actually said to her 'you sound like you have dealt with more than one call regarding MBNA' she said I was the first,that hour, it was 5 minutes past 3. haha... at least I had a bit of a giggle with her... Anyway, she told me to put everthing in writing, the fact that I can pay 300 a month shouldn't be ignored and said if they do sell it on, then I'll just deal with the 3rd party, that alot of people can't even afford 50 per month, let alone 300. so I can relax a bit, no one will be banging down the door (I don't own the door so they won't get anything there anyway) thanks for your help
 
In my experience they will only accept a financial statement prepared by Mabs!
 
Hi Mister Markie! I have the same problem with MBNA. They refused my offer. What happened to your problem with them? Did they finally offered you a payment plan?
 
Hi Colette, it's still unresolved but am keeping communication(by letter) on going with them. I'll update the thread as to how it develops.
 
Hi All, my payment plan is working well, all interest and charges suspended and so far we have managed to get 2k off the balance,in fairness, it is really hard as the payments are high. But the thought of getting debt free is a good incentive. But one thing to bear in mind, on the first month of payment plan you actually have to pay on the double as you need to clear the payment due, and also your agreed payment - if this happens to you try your best to get the money up - this happened to us and we literally lived on Lidl noodles for a month, but got us on to plan. Good luck, and keep us updated cause the more info shared is helping someone else!!
 
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