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MBNA collections


equislee
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The history is I have 3 cc accounts with MBNA that I have been trying to settle on since my husbands layoff last June. First they sent me to NCO (sent same settlement letters to NCO) then started getting letters from MBNA saying that the third party collection agency has returned the account (which I thought was funny)to them. Now I am getting letters asking to make certain payments are else and they give me three options that they may do 1-an other third party collection agency 2-Referring my account to an attorney for legally binding arbitration 3-selling my account to a third party. I have sent numerous letters again to the people stated in these letters about my financial situation, offering to make payment arrangements, and sending a small payments to show my good intentions. The problem is that every time they send a letter its a different person (how can MBNA have two First Vice Presidents?!) and they are purposely trying to get me to call them rather then send me a settlement in writting because they always leave me very little time to respond to their offer (which is usually crap, anyways) and they never have a cooresponding address for the persons name that is on the letter. Any body out their have any experience with this part of the collections with MBNA?

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I hate to say this, but for your sake I hope they go for options 1 or 3 because binding arbitration is BAD NEWS. BA takes away ALL of your legal rights and its 99% in their favor, mediator or not, MBNA rarely loses in that forum - its a fixed game.

They are trying, still, to turn the screws and scare you. I wonder now about mine, as NCO has 2 MBNA accounts of mine and its been since last Aug/Sept. that these were charged-off, however, only 1 of them went directly to NCO first. The other went thru 2 other CA's before NCO got it.

Anyway, you'll probably never nail down MBNA themselves to any settlement in writing with addresses and people you can write to. If anyone has had luck in this way, I'd be interested as well.

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MBNA has more than two First VP's, I can assure you because I know four or five personally. The collection letters typically originate from Hunt Valley, MD. (MBNA claims they have no collectors.) They want you to call them so they can scream at you, so my advice for what it's worth at this juncture is to totally ignore all further correspondence and send no more payments. Your account will probably be assigned to another agency. Decide what the long term solution is going to be, i.e. do you plan on a BK filing or eventually a settlement when your spouse lands a new job? MBNA also has a fourth option, lawsuits, however if there is little chance you can pay that option is usually reserved until the end of the SOL period. MBNA while still maintaining one of the lowest charge off ratios in the industry is having problems with more loans going bad and they're trying to be more aggressive with people.

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400 Christina Rd. Newark, DE 19713 is where I have sent all of my correspondence. They always send me a notice saying to call them; however I know they do have a settlement unit. This unit's phone and fax is (877) 838-6262 (302) 458=3456 you could always call and get an address. Also, they have a consumer finan. pre chrg off dept Sue Stevenson is in that dept. at 888 777-4059 x59134. Anyone in any dept can call a customer on a delinquent acct, which is why it's hard to stick with the same person. If you happen to call and get a person's name send the letters to that person and only that person, not to other names on the letters they send you.

They have offered me settlement amounts which have gone down. I am planning to settle, but my offers/agreement will be in writing only. But I got names of people who made me the offers and their depts.

They won't budge on removing derrogatory info on credit report though.

[Edit by Tee on Friday, March 28, 2003 @ 10:27 AM]

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I am also hoping that they go with the other options then BA, because I am already working with another account that was sent straight there and it is hard. I refuse to call any of these people because I got screwed once doing that already from Associated Bank, I got a settlement offer that I was going to accept (it was for 50% which is what I was after in the first place)but the due date to get the offer was too close to when I got the letter to rely on a check getting there in time so I called only to get screamed at for calling to make a settlement and it was their letter!!!. I ignore deadlines now. Live and learn, I will see what happens with them and post it again. I am hoping that with the bad economy that more OC are going to just charge off balances. I don't care about my credit rating right now I am just trying to stay secure until my husband is back to work or I get a better job which I am trying to do also.

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Getting your income secure has got to be the first priority because without the ability to pay collection is moot. Creditors will likely see an increase in charge-off activity through the rest of 2003, but unfortunately that doesn't mean they won't aggressively pursue debtors. Probably the worst-case scenario near term is they can attempt to garnish wages or levy bank accounts. Maybe more money under the mattress these days isn't such a bad idea. :D

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<blockquote>Originally posted by equislee

The history is I have 3 cc accounts with MBNA that I have been trying to settle on since my husbands layoff last June. First they sent me to NCO (sent same settlement letters to NCO) then started getting letters from MBNA saying that the third party collection agency has returned the account (which I thought was funny)to them.

This was done when your account most likely was in the last month that MBNA would be able to try to work out an arrangement before it was written on as an uncollectable debt and sold to a Collection agency.. MBNA does send some of their accounts from 60 day up to 150 days to an outside agency to work the accounts. Most of these are with Balances under 5k.. When the last month comes up, MBNA has the accounts the last month.

Now I am getting letters asking to make certain payments are else and they give me three options that they may do 1-an other third party collection agency 2-Referring my account to an attorney for legally binding arbitration 3-selling my account to a third party.

This will happen..

I have sent numerous letters again to the people stated in these letters about my financial situation, offering to make payment arrangements, and sending a small payments to show my good intentions. The problem is that every time they send a letter its a different person (how can MBNA have two First Vice Presidents?!)

MBNA has many Vice Presidents. It is a title that you earn with promotions within the Bank..

and they are purposely trying to get me to call them rather then send me a settlement in writting because they always leave me very little time to respond to their offer (which is usually crap, anyways) and they never have a cooresponding address for the persons name that is on the letter. Any body out their have any experience with this part of the collections with MBNA?

</blockquote>

They have given you 180 days to respond? You will have to call if you want the settlement. You can probaly get one for as low as 40%.. either a lump sum or in a 3 month time frame.. Most settlements are usually broken if done for a longer time frame..

RJ

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They offered only to get one of my accounts back to a current status if I made payments of 56.00 a month for the next three months, I sent a check for 56.00 and a counter offer to pay 50% in one lump sum and have my account reported as 0 balance and paid, but they did manage to send a letter turning me down. So the next time my payment came up I sent them a check for 10.00.

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They offered only to get one of my accounts back to a current status if I made payments of 56.00 a month for the next three months, I sent a check for 56.00 and a counter offer to pay 50% in one lump sum and have my account reported as 0 balance and paid, but they did manage to send a letter turning me down. So the next time my payment came up I sent them a check for 10.00.
I believe that was totally the wrong thing to do. First of all the person who cautioned you to look out for arbitration is right on the money. MBNA normally turns such accounts over to Wolpoff & Abramson who are even meaner than MBNA. They demand payment a time or two and then send it to NAF for arbitration. You aren't going to even get a chance in arbitration. You are a gone gosling the minute they get the case. W&A then typically gets the arb award reduced to a judgment in your local court system and then goes for garnishment and all with almost lightning like speed.

The average debtor hasn't a crying chance before the wolf is at the door and he isn't going to listen to the debtor telling him he should have brought a picnic basket either.

The only way of combatting W&A at arbitration would be to file for an award with NAF against W&A before they can get the case before NAF. That might work but I seriously doubt that it would. I doubt that NAF would even accept the case against them. But if they did refuse then you would have built the grounds for a law suit on the grounds of unfairness of arbitration as well as the original complaint.

That just might work for the very simple reason that more and more court cases are being decided in the courts in favor of those claiming that arbitration is intrinsically unfair. But those cases usually refer to labor relations or HMO type cases rather than debt collections cases. So I have no idea how one would fare if he brought an unfairness case like I suggest.

I would suggest that you get the rest of that payment in to MBNA and keep your payments current at all costs unless you are well prepared to file law suits on your own behalf as pro se litigant and be well enough prepared to take it to at least the higher appellate courts and maybe even the Supremes to win and I seriously doubt that you are anywhere near that knowledgeable in the law.

So unless you want a real rude wakeup call I'd suggest you get yourself on the best possible terms with MBNA. I can guarantee that fighting them using the methods I suggest would be more expensive than paying them and a lot less likely to succeed.

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  • 3 weeks later...

As far as paying them, when my husband lost his job last June we had about 100,000 in debt and my first priority is paying my house!. We had one account with MBNA that was the largest and they sent it to Wolpoff so I am well acquainted with them. They sent that account to the NAF I in return sent a full disclosure of my finances to NAF and they agreed with me that what I was paying was all I could afford and sided with me. I have and can deal with these quys, what I resent is not knowing who to deal with at MBNA!!!

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