I got a "final" offer from MBNA today...50% of balance with no deletions. Should I just take the offer, or let it charge off and negotiate a better deal with a CA?
Try for a "non-disclosre" agreement. They disclose the debt or the settlement to no one, including the CRA's. When you verify they won't answer and you get a delete.
Martig, Very clever. Thank you... Is there particular language that I provide to them, or just ask for it and let them draw something up? Susanna
Susanna, I have a CO with MBNA and I have to tell you, I would do just about anything if I could go back and make sure this never got charged off. It has been an IMPOSSIBLE situation to resolve with MBNA or the CA!! If you can believe it, I am actually at a point now where no one wants my money! Sounds like good news, but it isn't really because it is KILLING my score! This has been my biggest credit/debt nightmare! Do what you can to resolve it now. G
Gillian, Thank you for telling me. I have read the posts here on MBNA and they are very tough to deal with -- heartless, in fact. So, I appreciate your warning me about the CO status with them. I'd better get the deal done.
I wouldn't let it charge-off. 50% is better than nothing. But remember you do need an emergency fund. How about this: 50% Settlement and an extended offer in the future to reestablish this card with the other 50% of the balance owed and non-disclosure to the CRA's of status.
On your non-disclosure agreement, don't mention the CRA's, just phrase it as "any third party". That'll automatically cover the CRA's without telegraphing your intent. Dancer
Dancer, They are asking their legal dept about this -- so I am not too hopeful of getting an OK...But, if I do, woohoo... If I can't get the NDA, I wonder if the "settled" tradeline is any better than a chargeoff. I understand that the CRA's apply an R9 rating to both. So, what do I gain from settling without deletion and an NDA? Just weighing my options here... I am not feeling a "win-win" here at all. MBNA gets half their money and I get lousy credit for 7 years...
Darkdoj, They will not go for non-reporting to the CRAs -- it's like a religious principal to them. They had a senior VP look at this and say "no" to deleting any info...I keep asking, and they keep saying no. I think they understand our situation. They know we are poor -- have no assets -- and are borrowing this money from family to pay them. They also know that we had BKs filed against us, unemployments, etc. Yet, they will not budge. Our reward for not filing BK is ruined credit for 7 years...In retropsect, we should have filed BK and ruined our credit for 10 years, just 3 more years than the 7 we'll endure. At least, we wouldn't have this huge sum of money to pay back to my mother-in-law... Now, we are worried that because of our credit rating, we won't qualify for financial aid for our son's college tuition next year. Anyway, thanks for letting me vent and for your very good advice. This board has been a godsend...
No matter how you settle it, do ANYTHING you can to keep it from charging off.. That means you'll have to make some sort of payment soon, because if you go past a certain amount of time without making a payment (120 days? 180? I can't remember), they HAVE to charge it off. Then your problems are multiplied. jmart
Jmart, Please tell how my problems will be multiplied...I have to make this decision soon. Thanks, Susanna
Here's an update... 60% now (they sent out a letter on Monday), instead of 50%, no deletions, no NDA...What do you all think? Settle or chargeoff?
Do you live in a state that enforces A&S agreements? And is their payment center in one that does also? If so, does anyone here think a A&S letter requiring the to delete if they cashed it accompanying her check would solve anything? Dancer
If you let it charge-off: A. You'll be on the MBNA blacklist for years B. You'll have a charge-off entry by MBNA C. They will send CA's after you for the balance, but they will not be able to get the MBNA entry deleted even if they want to. Your only hope is hoping that MBNA won't verify when you dispute to the CRA's, and in my experience, they're VERY good at verifying. jmart
Jmart, Sorry, but none of your reasons are that compelling. My credit is ruined for 7 years whether I get a "settled" or a "chargeoff" -- the only difference is that I get to pay 10K for the account being "settled." Do you work for a CC by any chance?
Dancer, My state allows A&S on checks...MBNA is located in NY, which doesn't, but the mailing address is in Delaware.
Hell no, I don't work for a CC! heh Here's my experience: In 1998 I had financial difficulties, and had 4 accounts in trouble: MBNA, Citi, Cap One, and AMEX. At first I let some accounts charge off...Citi and AMEX. Cap One sent me a settlement offer, so I took it at 50%, and settled that account. All 3 of those accounts hurt my credit the same, you're right. MBNA was about to charge off, and I decided to suck it up and not let another account charge off or settle. Instead of doing either, I called a couple times until I got a nice customer rep, and got them to reage my account if I brought it current (I believe I was 90-120 days late at this point). They agreed to reage it, and waive all future over the limit fees, so I slowly paid the account off over 2-3 years. Basically, I've gotten the Citi and AMEX charge-0ff accounts off of my credit report by paying the charge off in full (years later) and making many many calls and pleads. They were the hardest. I got the Capital One account off of my credit report by paying my remaining balance (after settlement). It was a pain, but not as hard. My MBNA line is a pretty good credit line that shows years and years of ontime payments. It's an old account that was at a high balance, and is now paid in full, R1. I'd say that your only two options are not charge-off and settle...try to get the account re-aged. Keep trying until you get a nice CSR or supervisor. If you choose to go the route of chargeing off or settling, definitely settle. Both entries will affect your credit score about the same, but if you decide to get a car loan or mortgage in the next few years (yes, you can with baddies on your report), they will NOT give you a loan if you have an outstanding charge-off usually. If it shows you've settled the account to MBNA's satisfaction, they're much more willing to overlook it. jmart
