www.iva.co.uk

Hi everyone, my first post on here although i've been a reader for a few weeks.

My IVA creditors meeting is later this month, I owe Virgin Credit Cards (MBNA) 9k. They have a 14% vote at my meeting.

They are saying that because I transfered a balance onto my car within 3 months of my IVA application then their rules mean they will exclude themselves from the IVA. They have told my nominee that if they are included then they will take legal action against them.

I have read on here about MBNA and their preference for agreeing outside and IVA so my nominee is investigating further to see if they are just trying it on.

I wondered out of interest if anyone had heard of this rule and if anyone knew if they can legally withdraw themsleves from the IVA on this basis?

Thanks

Hi Joozee

Assuming the MBNA debt is not secured, what they have told you is absolute poppycock.

MBNA is a creditor. They can elect to vote for or against your IVA, but cannot simply exclude themselves from any IVA they don't like. What they are claiming they can do is against the law.

However, what it does mean is that it is a realistic assumption that they will vote against it. Therefore your IP will need to get at least £27k worth of votes in favour.

ian

Thanks Ian,

As you say my debt is not secured so it did sound strange to me but of course I wanted to play things safe so just batted them back and spoke to my nominee about it. She said she hadn't heard of anything like that before and as you do, thought it sounded dodgy but wanted to check it out. i'll keep you informed as to what info she gets.

As you say it's likely they will vote against it if they are included. I just found it odd that they would block you for any spending (balance transfer) on their card in the previous three months.

Thanks again

I've not applied for an IVA but one of my creditors was MBNA.
I had an awful phone call from someone from this company when I was first sorting out my DMP. She said I'd been spending on my card after I knew I couldn't work.
Not having the statement to hand I didn't know what she was talking about. She said I'd bought items in the AGA shop and I'd purchased a new kitchen. and so on.
I thought maybe I'd gone crazy as I didn't know what she was talking about.
She was nasty so I was nasty back and told her to go to hell.
When I looked at my statement I had pre ordered a couple of items(NO KITCHEN OR AGA)these had been charged against that card automatically.
As soon as I had received them I had got someone to return them and the refunds were on the statement also.
Everytime I rang them after that I got someone nice , but because it had really scared me I offered them a short settlement which they took of 40% courtesey of my sister.
I think they do go for scare tactics. Hopefully you'll be fine. They'll probably even vote yes.

Suffice to say that many in the insolvency profession don't see eye to eye with MBNA as to where the informal/IVA line needs to be drawn.

Ian

They are clearly upset because you may have effected a transaction to their detriment in a period when it is probable that you ought to have known you would not be able to repay that debt.

As Ian says, your IP will need to work hard on the day of the meeting to secure sufficient votes to outvote the probable rejection, but there is no way that they can be left out of the IVA as they suggest.

In my experience, the MBNA callcentre do not appear to be that well versed in information about insolvency matters, but the insolvency team at their head office do a relatively good job, but not always to the agreement of insolvency practitioners.

We had a terrible time with MBNA several letters/postcards a week and phonecalls everyday.
They gave us so much hassle on the telephone, we found them very arrogant and threatening and they did not take a blind bit of notice of what we were telling them. They came across as threatening on the phone telling us we were being wrongly advised by our IP and that our IVA proposal would fail because we were not doing what they wanted us to do. After all the hassle they sold there debt to Max Recovery in the days before the creditors meeting. I am still getting letters from their so called managers chasing a debt they sold on. They do not seem to know what they are doing.
After all our IP was giving us sound advice.

I had a lot of trouble with MBNA, they kept calling me, using withheld numbers, mobile numbers, text messages, letters, e-mails and all sorts. I forwarded every single one to my IP and never responded to one - whilst they didn't go away, they were obviously getting the message I wouldn't talk to them. In the end, my IVA went through and they didn't even bother to vote!

Hi

I may find myself in the same situation as I have had to pruchase a cheap run around for work (£800) on my MNBA card. I havent put my IVA together yet but Im now thinking im going to have to scrimp and scrape for another 3 months until this time period has expired. I cant afford to lose any votes as my major creditor is NR.

and before anybody says no I couldnt get family to lend me the money (my only family is my mother who is disabled and getting to work is the overriding factor!!)

im having a crap day!

Hi Anais - sorry to hear that you are having a bad day - I had one yesterday.

Don't assume that Northern Rock are going to automatically reject your proposals. At the end of the day your IP will be doing their best to help and you did need to purchase a new car, in order to get to and from work. I would suggest that your IVA proposal could be based upon the £800 being repaid to MBNA as a duress payment, given that you took the credit out of desperation and for good reasons. Thus the £800 would be repaid prior to any monies being drawn for fees or dividend payments.

I am not saying that this would work, but it is definately worth having a chat with your IP about as a possibility, but you really must not use any more credit if you are seriously thinking of making a formal offer to your creditors.

hi everyone - sorry to hear that mbna can be so nasty. i'm just at the beginning of some kind of process and as i've always managed to juggle and pay minimum payments i think a number of my creditors are going to be surprised. mbna have alread started hassling me with phone calls as they are the first i've not been able to pay and have sent a token payment only, which they appear to have ignored (i sent it by postal order as i was advised by CCCS). i had a phone call yesterday morning in which i was informed that they could accept a payment over the phone despite my saying that it wasn't possible. i'm not answering the phone at present but calling people i want to talk to back. i have been contacted because of posting on this site by an IP provider but i don't think i'll qualify for an IVA so may have to write to everyone with an offer only. i think the important thing i have learned from this forum is that we are not alone and the encouragement to keep on is great. so please everyone who is having problems hold on - surely it must get better!

Before my DMP started I paid token payments as advised by Payplan. They were all ignored so I wish I hadn't bothered.
MBNA pestered non stop. I sorted out payments with payplan but they still never stopped. I had to come to a secret agreement with them to pay the extra that they wanted by a seperate Direct Debit. I risked my whole DMP by doing this but for peace of mind I did it.

This still didn't stop the letters. Threatening all sorts and saying they hadn't got an agreement with me.

This was why in the end, my sister, God bless her, paid for a short settlement. I now hold a confirmation letter of this which is safely locked away in my safe (I haven't got any valuables so thank goodness there's a use for it).They were always polite when I spoke to them except for the first caller but I have to say Good riddance to them.

Mbna use carrot & rod tactics, they work to specific criteria and are always keen to obtain a short settlement rather than sell on.

Some very attractive settlements can be negotiated - but you have to stay with it.

All the best alan

www.debtdr.co.uk

We have followed up Babs statement on an earlier posting on this thread
i have been contacted because of posting on this site by an IP provider

All forum data is confidential and not shared with any third party.
So naturally we needed to investigate and found that :

Babs filled out the wizard, leaving her phone number. The wizard recommended:
Recommended solution : bankruptcy
Monthly income : 600
Monthly expenses : 429
Disposable income : 171

ThomasCharles sponsor the wizard and zeb from thomascharels gave a
follow up courtesy call (which is explained in the wizard). This call is to offer her some free advice and see if she has any finance or technical problems that she needs answering.

admin

Hi
I must admit that the old alarm bells and red lights were flashing this afternoon when I read the post from Babs,but as Admin have stated she filled in the online Wizard that does state that you will receive a courtesy call back.
All personal data is safe and will not be used by a third party,rest assured
Andy