MBNA - default

[cr15py]

I have had a letter from MBNA saying that my account is "seriously overdue" and that I/my account may be put in to "default". How will this affect my IVA, the meeting is on the 11th January.

What does "default" actually mean?

[Chris30]

I wouldnt worry to much about this. I had the same letters and phone calls off them all the time running up to my creditors meeting but I ignored them all. Then about a week before the meeting MBNA sold my debt onto Eversheds who voted "Yes".
A Default notice is simply a record placed on your file by creditors stating that you have been in default in some way. Such notices may have been placed without your knowledge and despite a subsequent remedy to the default.

Under the terms of your credit agreement you will probably have agreed that the lender has the right to inform the credit agencies of any default

[cr15py]

Ah right, thanks for that. The default would stay on my record for 6 years if I recall correctly, which is the same term as my IVA, so I guess it doesn't really matter either way.

I'm kind of hoping that MBNA sell my debt to Eversheds, because they seem to vote "yes" more than MBNA do.

[Chris30]

Good luck for the 11th, keep us posted on your outcome.

[Adam Davies]

Hi Cr15y
All part and parcel of arranging an IVA.
You are correct in that a default notice will stay on your credit file for six years,same as an IVA.
The default could well be part of the process MBNA adopt prior to selling your debt on.
It could have a positive affect on your IVA application
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[frequentflyer]

I can confirm that MBNA always do this, they will try every trick in the book to get you to stop going for an IVA and make them a payment. My IVA has been approved & they are still sending me letters threatening to do this and that I just ignore them all. With reference to Eversheds..aka max recovery, I received a letter 1 day prior to my meeting informing me that MBNA had sold my debt to Max recovery represented by Eversheds who funnily enough voted in favour.

[iva.com]

Hi Cr15py,

As Andy says, this is often part of the process of going into an IVA and nothing to worry too much about.

Good luck for the 11th. Please could you let us know how the meeting goes and whether MBNA sell your debt on.

Kind regards,
Terry Balfour
IVA.com

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