I had a call from a client who like many clients at present is struggling to pay her bills.
She has compiled a detailed cash budget and has made a reasonable offer to all of her creditors.
However one of her creditors a well known credit card company seems intent on ignoring her very reasonable offer and is refusing to accept it. Instead choosing to telephone my client day and night harassing her and adding extortionate interest, overdue and late fees etc to the debt.
Can anyone offer any advice on the best course of action?
I did suggest speaking with the CAB but they are inudated and cant offer any immediate help.
Liz
Replies (4)
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MBNA informal acceptance criteria is 20p in £, which is lower than most other banks, however they are aggressive and do not like IVA's. If the other debts are higher then the other banks will hold the majority vote.
As other poster recommends, your client should firstly seek a formal debt repayment plan through a specialist. If that doesn't work then the IVA may be a better alternative - it will protect her, stop interest & charges accruing and will give her the opportunity to compromise the debts.
I assume bankruptcy is not an option & she is a home owner with equity in her house?
Try Consumeraction Group website
You could try the forums at www.consumeractiongroup.co.uk which seems to provide easy access to help/support for people struggling with this type of problem.
I was reading some of the comments on the forums whilst researching one of the debt collection agencies, and the site does seem to have enabled some of those commenting on the site to resist inappropriate harassment.
Thank you
Thanks Fellowcraft - its MBNA.
It seems madness to me, this client is a decent honest hardworking person who genuinely wants to, and will I am sure pay her debts and just wants some help.
The balance is about £4,500 and she offered £50 per month.
The other creditors were fine in accepting reduced payments and have frozen all interest and charges but MBNA wont acknowledge letters, saying they are promarily a phone banking company, and no one will help on the phone. All the time they continue to add charges, interest late fees etc.
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Unfortunately you cannot compel the bank to accept the informal arrangement.
Your client could either seek a debt repayment plan from an external agency, or an IVA through a Licensed Insolvency Practitioner
Please advise the name of the bank and I'll give you their minimum dividend criteria for IVA consideration.