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MBNA nightmare in CA from 2001 to 05 ... please help


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Hi well I dont know where to start here but I'll try to be as detailed as I can. and this is a MBNA story

Along time ago MBNA approved me for a 1k loan which I took. Of course since I was only 18 I didnt understand what interest was. Well taking the loan I began making payments... after seeing it not going down my family came to my aid and paid the balance in full about 6 months after I was struggling to pay it.

About a year + later Im trying to move and MBNA offers me a new loan of 3k which I take thinking it will be a life saver. That was in '99 and seeing my payments NOT making a dent in the loan I spoke to one of their reps in 2000. The rep said out of my payments of $12x.xx only 10-20 was going to the loan the rest to interest. Since the interest was over 18%.

I explained my work and living conditions and asked if they could give me a break on the interest. Because the way its going now I couldnt live like this. I mention I had a previous loan with them I paid off so I should qualify for alittle help. He looks at the loan and says I did pay it off.. but because I TOOK TO LONG paying it off they refuse to lower the interest. I explained how it wasnt that long but he said by their standards it is...

I told him unless they can work with me I cant pay the loan. For this he explains the hell of creditors.. and I told him... If you cant help me how can I keep my responsibilty to you and the call ended.

Now I couldnt keep up with payments around early 2001... its 2005 now and the loan has been boosted to over $53xx.xx ... I still get regular notices for reduced payment offers...

Im confused because I live in CA and was told after 4yrs it should be written off.

But like word of mouth Im told no its 7yrs now.. no its 5...


I did a credit check over 6 months ago..and I only had 3 bad marks..

2 cell phone bills both under $300.00


>.< I only took the loan because I had NO credit history... and my family said any history.. even bad is better than none...

Can someone help me please.. I will answer any questions regarding this mess...

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Write off is an accounting term. The debt is still collectible I believe. If you settle you may have to pay taxes on any forgiven debt- just something to keep in mind. Is the debt still with MBNA or with a collection company? If it is still with MBNA ask to speak with the special debt department or write a letter to the CEO.

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Well at this point its with some group called asset collection..

Im not sure about any of this now. I heard after 4yrs according the the site this forum links to the SOL is reached. But someone I work with said they went to a credit counselr and they said its 7yrs. :?:

I just want it behind me.. this loan is getting inflated SO much now its pointless I think to even try paying it off. Especially since Im trying to go to school next year.

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The seven years the credit counselor was refering to is the limit for reporting. The item can be on your report for 7 years. The SOL just means that after the SOL has run, if they sue you, you have a defense in court and they can't win.

The credit industry deliberately tries to confuse the issue.

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I suspect you mean ASSet Acceptance ??

If you've never made any payments after 2000, the SOL for legal action has expired. Send ASSet a cease and desist letter telling them to get lost, the debt is time-barred.

ASSet makes is biggest profits on old debts like yours and they sue and win on them too because people are too scared to stand up to them in court. If you stand up to ASSet, make it hard for them to collect and cost them money, they WILL back down, tuck tail and leave.

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umm let me check the letters..

They send them almost every 2wks to a month. What is odd is the last 5 months they maybe sent 2... the last 1.5 months they've sent me like 4 of them....

How does this letter work? Im going to call MBNA to confirm the last payment that went to them....

So is it right after 4yrs the SOL is gone so they cant keep adding interest to it???

Sorry for sounding so dumb but this is how I got into this mess.. I have no clue what this was or what its doing to my credit.

I tried to get a used car and this MBNA loan is why I keep getting turned down :( Kinda scares me since I have only 3 marks..

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found this...

Sound accurate?


Debt Collection Statute of Limitations:

Open Acct. Reduced to writing 4 Years, Not in writing 2 Years. Written Contract 4Years in California. - Domestic Judgments 10 Years and renewable at 10 Years - Foreign Judgments 10 Years commencing with judgment and debtors commencement of a California residence.

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I just called MBNA

Loan last payment was Aug 31 2001

So 4yrs would have been Aug 31 2005

They did say that the loan was sold to another company.. which Im guessing is Asset

So.. SOL is expired right?

What type of form letter should I send to Asset.. and does this mean some of the fee's they tacked on goes away?

Sounds like the SOL has expired. You were getting frequent letters near the end of the SOL to scare you into making a payment - which would (I believe) reset the SOL clock back to zero. Find one of the letters on this site and modify it to your needs. Tell them that the SOL is out, and c & d collecting on this time barred debt. Good luck.

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some things others failed to mention here

you can be served on this debt 10 years from now, there is no law preventing that, If you are served at any time you must answer the complaint or appear to defend yourself or you will lose by default and the judgement is good for ten years. the good news is it sounds like you can use the SOL for a defense should you be served.

send the CD letter and remind them that this debt is time barred, your fairly stuck with the CR until the 7 years runs out, but you're young. If you can, save your money. don't borrow if at all possible.

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But what is this part about the 10yrs?

The expired SOL doesn't keep them from suing you, but it IS an affirmative defense to stop them if they do.

The expiration of the SOL doesn't make the debt uncollectable - unless you live in WI where its ILLEGAL to attempt to collect or sue on a time-barred debt. They can keep TRYING to harrass you to pay until hell freezes over, but the expired SOL makes it difficult for then to ever win in court if they sued.

You'll just have to send out cease and desist letters to each one that crops up, eventually it will die.

Here is an excellent letter to use: http://whychat.5u.com/nottoca.html

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Thank you very much for the link. Sorry I havent responded as I was shocked since the last post I got approved for a new apartment to move into. :p

The form letter requires a reference to California civil code. I read some links but I cant find an exact reference to put. If anyone can spare a moment the form letter requests this..

"" The Rules Of Civil Procedure of my State of California provide a Statute Of Limitations limiting the time frame for any legal collection activities.

Under my State of CA Code #__________

the subject account has a 4 year limit for filing any legal action for collection. ""

I edited it per your advice's for my state but -- wow reading the codes is.. fun.

Any help is always welcome thank you :)

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