by footloose » Fri Dec 10, 2010 06:56:10 PM
Contact MBNA and ask to speak to the person who offered you a settlement of about 30% of the outstanding debt. If both you and MBNA can come to an agreed amount that will settle this debt in full, ask to speak to a manager or supervisor who will confirm this agreed amount. Be sure to get the name and position of the manager or supervisor for future reference, if needed. Then, request a "Debt Settlement Letter" under both the name and signature of a manager who has authorization to act on behalf of MBNA.
When you receive this letter, it MUST contain the following information:
1. Date the letter was sent.
2. Your Account Number. or Credit Card Number.
3. The current balance owing.
4. A statement confirming that MBNA will accept $XXXX in full settlement
of the outstanding balance of this account or credit card.
5. Upon receipt of your payment, and within the time specified, MBNA
will report to both credit bureaus ( i.e. Equifax and TransUnion ) that
this account has been settled in full. P.S. They may report that this
account has been settled, but for less than the full balance. Also, I
do not believe MBNA reports to Equifax, only TransUnion. If you have
credit reports from both credit bureaus, I don't think that you will see
any inquiries from MBNA on your Equifax report.
6. A 1-800 number to contact when payment has been made.
7. A date and time when payment must be made; otherwise, the
settlement offer is null and void.
8. The letter must be properly signed ( not a signature that looks like
a snake that's been trampled on ) and the name of the person signing
the letter and his/her position with MBNA.
When you pay this account, DO NOT pay by personal cheque. Always pay by Money Order which can be obtained at the Post Office or at a bank. If you are purchasing a Money Order at a bank, DO NOT purchase it from your bank but from a different bank. Any payments by debtors are carefully noted as to their source. You don't want MBNA or any other credit grantor or collection agency to know where you do your banking.
Also, send this Money Order by courier, NOT by mail. If it is mailed and arrives at MBNA after the deadline stated in the letter, the offer is now null and void and MBNA will now regard the payment as a partial payment towards your outstanding debt. Request a confirmation from the courier that the payment was delivered including date and time. Included with your money order, include a request for a "Release Letter" from MBNA stating that this debt is now paid in full. You will need this letter if MBNA does not report to the credit bureau(s) and you have to now deal with either credit bureau.
Good Luck and have a GREAT DAY