I am about to go 120-days late on an MBNA card and finally decided to call the bank about the "options" they mention in their messages. Here are the facts: My debt with them is $6k, and my next payment is $640.00 (due Wednesday). The percentage rate is 25% and the late fees are $35.00 each. I do not use the card and do not need to keep it. Here the options: 1) Take a special one-time election that allows me to pay $140/mo. for three months to become current again; or 2) they will close the account (CR will be given a "Grantor Closed" designation) and I can pay off the balance at 6%. I told them I would think about it. What is best way to handle this? Should I offer a settlement? Is it too early for that? I'm worried about the designation "Grantor Closed" - should I be? Should I just take the $140 option and then close the account? Any ideas would be greatly appreciated. There seems to be a ton of great posters on this board with incredibly useful information. I would cherish your help. Thanks in advance.
After i went right before chargeoff 150-180? days, they offered to settle for $3,100 on a 7k debt because I ignored them for the entire time. Never communicated, they sent me a letter. Of course, I ignored that too. They have so many violations they will end up paying me if they ever try to get a judgement. My advice, wait and see what better comes up.
Hi Scott, Try calling 1-800-487-0396 ext. 57840 & speak with Mike Taylor at MBNA. I had the same situation @ 120 days & a bunch of previous lates. I called about 25 times before I actually got to Mike, who ended up really helping me. Previously, when I'd call no one wanted to give me other options or be flexible. I guess they thought bullying would make me pay! I ended up making monthly payments on my 7k debt @ $225 a month. Mike wiped out all of my lates (not at 1st, I kept calling him back asking for more. He'd do a few each time ... probably just to shut me up). As it stands now, 13 months after I started the re-payment program, all my lates are gone & my account shows an R1 rating & "account closed by consumer". MBNA is one of my few positive tradelines. It's worth a shot, maybe he can help you too! Good Luck
