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I have a credit card debt with MBNA which I aquired in 2002

 
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  • Answered by:John Knox
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Customer Question

I have a credit card debt with MBNA which I aquired in 2002 following a violent relationship to help me to support the 2 children. I was unable to make the necessary payments and the debt finally totalled £4,500. MBNA passed the debt to First Credit who took me to court and successfully obtained a charge against my property in 2006.
Whilst I have continued to pay the £35 a month, the interest continues to be applied and the debt now stands at £6,800.
What action can I take given that I do not have access to the £6800 to clear the debt?
The debt is an accumulation of charges, fees and interested coupled with a PPI.

Because of the Charge, I cannot obtain any credit to even pay the debt so find myself in an awful situation.

 

Optional Information:
System of Law: England-and-Wales

Already Tried:
CAB Their legal department to try to obtain an offer of final payment

Submitted: 288 days and 6 hours ago.
Category: UK Bankruptcy Law
Value: £43
Status: CLOSED
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Expert:  John Knox replied 288 days and 6 hours ago.

Hello,

I will do my best to help you with this.

Do you have equity in your property at all?

Customer replied 288 days and 5 hours ago.

I do have equity in the property, £52,000, but Halifax will not allow me to borrow further funds due to my credit score ( probably the Charge)

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Expert:  John Knox replied 288 days and 5 hours ago.

When you said the debt finally totalled £4,500 and a charge was obtained, was that after a judgment was obtained against you? WHat I am struggling to grasp is how the debt has continued to grow and reach £6,800.

Customer replied 288 days and 5 hours ago.

I dont have the details in front of me unfortunately, but the interest continues to be added at approx £.99 a day so after 7 years it has accumulated


 


Teresa


 

Customer replied 288 days and 5 hours ago.

this is the response yesterday from their solicitors regarding my offer of £1000 a full and final settlement


 


We have been instructed by 1st Credit Limited, in respect of the above account. Please direct all future communications to us rather than 1st Credit Limited or their in-house solicitors, LCS solicitors.


Our Client’s interest arises under a charging order made in proceedings in the Epsom county court, under the claim number as stated above.


The amount required to redeem our Clients interest of today is £6,843.62. Interest continues to accrue at a daily rate of £0.99. We have however considered your offer of £1000.00 from your email dated 24th June 2012 and can confirm we are not in a position to accept this in full and final settlement. We are however able to accept £3,173.71 in full and final settlement, on the understanding that this payment reaches us by 29th June 2012. If the matter has not been completed before then please contact us for a further redemption figure.


We can confirm that upon receipt of full payment of the redemption sum we will then send the appropriate forms to the Land Registry for removal of the entries against the above title number at HM Land Registry relating to the charging order. Should you prefer for the forms to be sent to you directly, for you to liaise with the Land Registry, then please advise us accordingly.

 


 

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Expert:  John Knox replied 288 days and 5 hours ago.

If you are able to offer £2,000 to £2,500, I would anticipate you will be able to settle this. Can you raise that sum?

Customer replied 288 days and 4 hours ago.

thats my problem, I dont think I can...maybe I need to just save money and return to them next year with an offer.


 


I had hoped there was a legal way to have the Charge removed given the time scale, and the nature of the debt.


 


I understand that Defaults are removed from Credit Files after six years and I thought that someone like Martin Lewis might have battled this through the courts.

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Expert:  John Knox replied 288 days and 4 hours ago.

Martin Lewis has just sold out for millions so I don't think he needs to battle anything anymore!

There are things that you can do but it depends whether the charge is based on a judgment against you, obtained through the Courts. That is why I asked you that. Can you confirm?

Customer replied 287 days and 7 hours ago.

the judgment was obtained at Epsom Court under claim nos 5XG56162


 


The judgment balance was £4778.87

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Expert:  John Knox replied 287 days and 7 hours ago.

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