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Are you in any form of IVA or debt management plan please?
Yes we are in a debt management agreement with the recovery solicitors
Thanks. Is the debt more than the refund?
No the debt is less than the refund
Finally from what you say MBNA have not sold the debt to a third party but are still collecting it themselves?
The solicitors are collecting it on their behalf so I understand.
Thanks,. If MBNA had sold the debt on then they could not offset any payment. However if the debt is owed to them personally still they will have a contractual right to retain sufficient part of the refund by ay of set off against the debt owed. Usually this is a good thing in the long run as it will in your case mean that the debt as well as interest is paid. Obviously it reduces the amount of cash you will receive.
From what you say they have already sent you a cheque. It is possible for them to stop the cheque at any time before you bank it and it clears. If you are concerned that they do not do this consider banking it sooner rather than later.
Obviously if it clears, the debt would remain payable and they may seek to change the terms of that debt repaymen plan as a result.
Is there anything else I can help you with?
Can I help you with anything else?
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We have banked it already today and surely this is insurance money and nothing to do with the card. If they had not recommended this insurance in the first place or had paid out on the insurance when we hit hard times we would not be in this situation.
True enough but they have refunded you the payments and presumably interest so I do not quite follow your line of thought. Presumably you can use this payment to either repay the debt or choose not to and spend it on something else in which case the debt will remain owing until repaid. Are we at slight cross purposes?
No we are not at cross purposes, the simple question is 'is it legal for them to stop the cheque at this stage'?
Yes normally they would have a contractual right to off set the refund against any debt owed to them or to any other company in part of the MBNA group. This being the case they could still stop the cheque though the chances are that they probably won't do this in time at this stage.
Is there anything I can clarify for you any further?