Turnip's UE diary

[Turnip]

OK...just starting out on my UE journey with MBNA.

My background is that for many years I was keeping my head above water with regard to money and work, but I'm self employed and the past 18 months or so have been very difficult business-wise.

Approx. 11 months ago (July 2010) I asked MBNA if I could defer my monthly minimum payment for just 1 month. MBNA declined. I simply didn't have the money so I couldn't make the payment. Then the incessant phone calls from MBNA started. Then they added late payment charges and over limit charges, and whilst I struggled to catch up on the arrears it wasn't cleared until around January 2011.

I'm faced with making minimum payments to MBNA on a credit card balance of approx. £11500 at an interest of 35%+, which at the current repayment rate will take forever to clear. It looks like money is going to be very tight again for me this coming summer as uncertainty about my work continues. Reading other people's stories on this wonderful web site has given me the confidence to make a proper start on sorting out this mess.

[Turnip]

Re: Turnip's UE diary

Background details:

Type of account – Credit card account
Date commenced – Not sure exactly, but definitely some time in the late 90s.
Approx. current balance – £12000
Last payment – £350 made June 2011
Status – Up to date with minimum payments
Account owner – MBNA

[Turnip]

Re: Turnip's UE diary

MBNA

2011-06-21 Sent CCA request
2011-06-24 CCA request delivered - confirmed via postoffice.co.uk Track & Trace

2011-07-11 Received from MBNA copy of application form. See here: Scanned MBNA Application form
2011-08-03 Emailed copy of CCA response from MBNA to Niddy.
2011-08-03 Agreement declared enforceable by Niddy

[MustGetStraigh]

Re: Turnip's UE diary

Just wanted to say welcome, Turnip.

Your story is not unusual - it doesn't matter how good a customer we've been - when we are honest with our creditors and ask for a bit of breathing space, that's when they start piling on the pressure (and the charges).

You're in very good hands on this forum, Niddy's advice is fantastic.

[nanna58]

Re: Turnip's UE diary

hello turnip and welcome xx

[bobogosing]

Re: Turnip's UE diary

Hello Turnip

Just wanted to say good luck on your UE route and this is an excellent forum. Niddy and the Mods are brilliant, their advise are priceless.
Before I found this forum, I was a wreck, didn't know where to go for help. The so call professionals charge ridiculous prices.
This forum have given me my confidence back and has helped me to see there is a light at the end of the tunnel.
Turnip, you are in safe hands!

[Turnip]

Re: Turnip's UE diary

Thanks for the warm welcome. I guess many people don't realise how stressful life can be when you're faced with sudden changes in circumstances and companies start applying pressure and making demands.

The support from this forum is quite amazing and fingers crossed all goes well!

[MrsD]

Re: Turnip's UE diary

Hi Turnip

and you are very welcome. The strength of this forum is its very friendly and knowledgable members, see above!

just a few details so that we can be sure you are on the right track
are you still paying at the moment?
you realise if you take the UE route and cease paying your credit record will be shot and it will make it very difficult to get any credit for some time to come?
is this your only debt?
do you know if they defaulted you when you missed the payment?
just take your time to get back to us and have a good read of everything on this site, its a bit of a war and knowledge is power!!
oh and for the moment at least don't answer the phone to MBNA until we sort out exactly what route you are going to follow. knowledge is power for them too!!
good luck and keep posting

[Never-In-Doubt]

Re: Turnip's UE diary

Best of luck, bear in mind what Mrs D has said above, cessation of payment will affect your credit file so think carefully, although to get away with £12k for a default is a swap i'd take, for 6 years of no credit, it'd be like a £2k per annum decision.

Sold

Keep us updated with developments, you need to also consider if you're going to stop paying or carry on...

[Turnip]

Re: Turnip's UE diary

Getting stuck into research and will post more details after the weekend. Thanks again!

[Never-In-Doubt]

Re: Turnip's UE diary

Have a read here mate: ---> Unenforceability

[Turnip]

Re: Turnip's UE diary

Hello again.

It's been a few days since I received a bumper response from MBNA and it included a number of separate items:

(i) A simple cover letter.

(ii) 1-page document titled "Your Section 78 Response Frequently Asked Questions".

(iii) Copy of a scanned MBNA application form signed by me in 1997 (see here: http://imgur.com/a/mE5tC).

(iv) Copy of a scanned page headed 'Terms and Conditions of Use' (see here: http://imgur.com/a/mE5tC).

(v) A 4-page computer print out headed 'Terms and Conditions', with a document footer that says 'MB 04/97' on each page.

(vi) An 8-page computer print out of a document that is supposed to be an updated copy of my credit agreement but which has no space for a signature and seems to contain errors and inconsistencies, e.g. I don't recognise the figures provided for 'total amount payable' or the 'total charge for borrowing'. Also the penalty charges for late payments, etc. are different between the the 'Terms and Conditions' document (£15 per incident) and the updated Credit Agreement document (£12 per incident).


I've done my best to check whether any of this looks like a properly executed agreement and I don't think it is based on my interpretation of "A Full Guide to Unenforceability":

1. The 'agreement' seems to be spread across a number of separate and unrelated documents - it's obviously not contained in a single document.

2. The applicable credit limit is not stated on either the scanned application form or on the scanned 'Terms and Conditions of Use' page.

3. The interest rate is not stated on the scanned application form, and whilst there is a table of interest rates shown on the scanned 'Terms and Conditions of Use' page, because no credit limit is stated then it is not possible to confirm the interest rate that might be applicable.


I am still currently making minimum payments to MBNA but - depending on the assessment of these documents - I am prepared to cease payment and accept the consequences of this action on my credit record.

What do people think? I would value greatly any opinions that you could provide.

Thanks!

Turnip.

[Deepie]

Re: Turnip's UE diary

:---> User Guide - Sending your Agreement to Niddy

Send over to Niddy for a look please

[Turnip]

Re: Turnip's UE diary

Thanks - will do it once I can access to a scanner again.

[Never-In-Doubt]

Re: Turnip's UE diary

Thanks - will do it once I can access to a scanner again.

Or take a photo and email it to me.....