Minium dividen % MBNA?? Please help!!

[mitchymoo]

Hi Guys,

Firstly i just wanna say thanks to everyone who as answered my question's previously, i think this forum is amazing, it as certainly increased my spirits!!

I just want to know what will be acceptable with an iva meaning dividen %??

I have heard MBNA will turn it down if it is less than 40% well ours is only half of this with them as this is my husbands only creditior than isnt linked to me!! i think together we have a 40% for the rest of our creditors!!

MBNA have been the best to deal with in our current position.....yet when we called about 10 months ago, explained our 30% apr from 5% was crippling us the advisor said sorry cant help.....yet the credit dept mbna said that this should never have happened and they should have delt with it months ago for us.....finally stopped all interest and charges and minimum payments!!

If anyone could help us we would really appricate it!!!

Thanks x

[kallis3]

I don't think MBNA have a minimum dividend, although I stand to be corrected on that.

Your IP would not put forward a proposal if they didn't think it would be accepted.

[MelanieGiles]

Who told you this silly story about MBNA not accepting IVAs which return less than 40p in the £? This creditor does not have a minimum dividend criteria.

It's great to see that they are supporting your proposals. I met with their insolvency team last week, and was very impressed at their attitude to client care, and some of the changes they are making to improve this further.

[mitchymoo]

Thanks guys for ur advise i really really appricate it!

Melaine it was on my iva adiver website, I am very happy with mbna the lady i spoke with in the credit difficulties dept was amazing if only everyone could be so supporting and helpful.

We are finding the bank accounts are the worst to deal with they are not interested in anything we have to say
I did think that Jan surely it would be a waste of there time drafting proposals that they know are not likely to pass!!

Once again guys thanks so much xx

[MelanieGiles]

Are you sure that this is a firm you want to entrust the next five years of your financial life with when they can be quoting such rubbish on their own website?

[stewpots]

I had £26,500 of credit card debt with MBNA

Standard 0% for years then up to near 30% APR which was giving £700 + interest and daily calls/letters. This was up to June, so recent

After 6 months froze interest (I wasn’t paying anything apart from £10 a month) so was up to £30.500ish

Just before my IVA they said they would accept payment of cira £8,500 for the £26,500.

I am paying 27p in the £1 (£85,000 of debt) through IVA

So with admin cost I assume MBNA cut is going to be much less then that. I could work it out but probably 22p?

Alternative was bankruptcy and they would get less then that

My IP costed it all out

I wouldn’t be too carried away with what you here about mins.

Any card carrier will look to see the max they will get back

Obviously I had a very high amount of debt; it probably wouldn’t be worth an IP time to handle £15,000 of debt on 27p in the £1

[kallis3]

IPs will look at each case on it's merits and there are some firms who take on debts lower than £15k and with a low dividend as well.

[MelanieGiles]

May I ask Stewpots where the £8,500 for the settlement with one creditor actually came from, prior to you entering into the IVA with the remaining creditors?

[mitchymoo]

Sorry Melaine not my actual ip website, its a website called 'My iva adviser'found it once i googled it, sorry for the way i wrote it.

Our debt together is around 28k......eeekks!!! Didnt even realise until we put pen to paper!! scary!!

I just hope it all works out X

[stewpots]

May I ask Stewpots where the £8,500 for the settlement with one creditor actually came from, prior to you entering into the IVA with the remaining creditors?

About a week before the IVA (so we are post 20 letter 50 phone call type stuff with MBNA) I told MBNA that I was going into the IVA

They said they would accept (legal binding payment cira £8.5k no come back) if I paid it all at once . Obviously I didn’t have the money and other creditors to consider

IF they were the only debtor I probably could have got the money off my sister

[mitchymoo]

Thanks Stewpots, who did u end up going up with your iva??

[steviebluenose]

Mitchymoo
We are going to come in on our IVA at approx 26% and MBNA accepted it at the first meeting. It was only LloydsTSB who didnt even turn up for the meeting, but all the others agreed it so LloydsTSB had to accept.
Also I suspect if I actaully get payrises in the next few years and my contributions go up slightly then it will be more than the 26% so they might be even happier with us
Steve

[steviebluenose]

We had (and still have) no equity in our property, and i remember the letter from PayPlan to the creditors basically said to the creditors to accept 26% or they will probably get nothing (if they forced us to go bankrupt). So thats another factor.

[steviebluenose]

Also ... just for a final update .... when we first told MBNA that we were having troubles and might go down the IVA route we actually got put in contact with someone in the UK, and they were really really pleasant to deal with. They tried to get us to agree a DMP but they were never pushy and were very supportive and understanding, even when I told them that we were persueing the IVA ... not that I would (hopefully) ever need a credit card again, and I wouldnt probably go back to them, but I would say that they were the most unpleasant people to deal with until we told them about the IVA, then they actually became the sort of people you would want to hear from ... they even wished me luck just before the IVA proposal meeting

[kallis3]

You were very lucky there Stevie!