MBNA/Credit Card Debt

cloudybay13

Does anyone have any experience of MBNA and not being able to pay a debt with them. How do they proceed with chasing the debt?

Paulw

Contact them as soon as you can and explain your situation. Make sure you make as much payment as possible, even the bare minimum of payment is better than nothing.

The most important thing is for you to talk to them.

cloudybay13

Hi Paul,
Thanks for the reply, it's a friend of mine who has no job, no assets and was in a business where money was being thrown at her by financial institutions. She does not have the money to pay and they threaten to sell on the debt, whatever that means, or come to an arrangement with her, which is no good as she just cannot pay them. it's the worse case scenario I am wondering about coz that's what she is in.

Paulw

They will sell the debt to a debt collection agency. That agency will send loads of threatening letters, and finally take court action, which will effect your friends credit rating for years to come. I know the govt was proposing changing the law about prison sentences for lack of debt payment, but I'm not sure if that was done or not.

Worst case - your friends debt can mount, court orders against her, credit rating ruined for years to come .. and worse.

The more that she can pay the better ... €1 to €100, but ignoring the issue will only make matters worse.

It sounds like your friend needs very serious financial help, which won't be found on boards.ie. Go talk to a financial specialist.

cloudybay13

Thanks for that. Any idea of where she should go next? When you say financial expert - any ideas?

cloudybay13

ps..... she did pay credit card insurance but they just keep making requests for more and more information while the mbna are coming the heavy! it seems like such a scam!

jor el

cloudybay13 wrote: »

ps..... she did pay credit card insurance but they just keep making requests for more and more information while the mbna are coming the heavy! it seems like such a scam!

That will only pay the minimum payment amount, and only for 12 months. There's probably a whole load of criteria to satisfy before it pays too, so if she hasn't supplied the information requested, nothing will have happened.

She should make an appointment with MABS, but they are extremely busy right now. She can't ignore it, and she can't hope it'll go away.

cloudybay13 wrote:

or come to an arrangement with her, which is no good as she just cannot pay them

If they've tried to come to an arrangement, and she's flat out declined, then that's the worst case, and the worst thing she can do. If she makes no attempt to pay anything (even €1) then that will not look good if it goes to court.

This is a bigger problem than can be solved on an Internet forum. It sounds like she's facing bankruptcy.

dudara

Moved to Banking & Insurance & Pensions

dudara

cloudybay13

Thanks for that. I really appreciate it.I think she feels that she should hold out for the insurance company to do their bit. But I appreciate your input.

Paulw

cloudybay13 wrote: »

Thanks for that. Any idea of where she should go next? When you say financial expert - any ideas?

MABS would be the first point of call.

Other than that, most banks have financial advisers who can offer advice. She should contact her local bank.

cloudybay13

Again. Thanks for that. I do think financial institutions do have to take some hit for loaing money to people who had not assets, only the potential of making money with business which eventually failed. Iwill direct her to MABS. Thanks

Toots

cloudybay13 wrote: »

Thanks for that. I really appreciate it.I think she feels that she should hold out for the insurance company to do their bit. But I appreciate your input.

It could (will) take a while for anything to be sorted with the insurance, so her best bet is to make whatever payments she can in the meantime. As PaulW and jor el said, even €1 is better than nothing, and it will at least show that she is trying to address the issue. If it goes to court, the judge will not look favourably on her if she outrightly refuses to make any payments.

cloudybay13

Yes, She is making payments but coz she is so scared. She has to keep borrowing from friends to do this. By the sound of her dealings with the insurance company i'm not sure they ever pay out?

kaiser sauze

Ask MBNA to post out a Financial Statement form.

This will list all their income and outgoings in a summary sheet.

Return the form with it all truthfully filled out and even if the amount offered to MBNA is €1, it will stand to her should legal action be taken.

They will ask for lists of other creditors and the amounts outstanding, I advise you to list the amount owing and being paid and call them 'creditor 1, creditor 2...etc'. The names of these creditors is none of their concern at this time.

cloudybay13

Thanks, I'll tell her. I appreciate your help.

kaiser sauze

cloudybay13 wrote: »

Thanks, I'll tell her. I appreciate your help.

Be aware of one thing...

If they have other creditors and they are making vastly larger repayments to them in favour over MBNA it will look bad. So they repayments to creditors should refelct the amount outstanding, i.e. the biggest debt gets the biggest repayment.

Of course, if this is the only debt this does not apply.