Collection Agencies - CCL Financial - MBNA debt - help please - Canada

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RE: CCL Financial - MBNA debt - help please

Postby DebtFighter » Thu Mar 27, 2014 08:46:45 PM

They won't sue for 5k.Too little to go after and too much risk of losing money if they lose or should you fight. So a lien on your assets is totally out of the picture. So is wage garnishment.

If they already gave you a conditional offer to settle (even though it was withdrawn), that means that they are willing to negotiate a settlement and stay out of the courts.
Fighting debt collection: Knowledge is POWER! Disclaimer: I do not provide legal advice. I am affiliated with former debt collectors and only provide help to consumers who need assistance with debt collections. If you require legal advice, I recommend consulting a lawyer. I do not condone not paying debts on purpose and using strategies I provide to elude payment and responsibility.
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RE: CCL Financial - MBNA debt - help please

Postby HonestAbe » Fri Dec 13, 2013 05:19:00 PM

Those are the standard lies of a collection agency. They always say that to save a stamp. Next time they call, remind them of Section 21(4) of the Collections Act of Ontario, and tell them you won't talk to them until they obey the law and send you written notice of assignment.

http://www.e-laws.gov.on.ca/html/source/regs/english/2006/elaws_src_regs_r06103_e.htm
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RE: CCL Financial - MBNA debt - help please

Postby Annie16 » Fri Dec 13, 2013 04:22:15 PM

They never sent anything and when I talked to them, all they would say is that since it didn't come back to them as undelivered, they mark it as delivered. When I asked them to send me another letter, they said they didn't have to since they already sent one out, even though I never received it.
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RE: CCL Financial - MBNA debt - help please

Postby HonestAbe » Fri Dec 13, 2013 06:46:27 PM

Well, by law they have to give you a letter of assignment that they either bought the debt and are now the new debt owners, or they are acting as a 3'rd party collection agency for MBNA 6 days BEFORE they call you by phone.

It seems likely they bought it because MBNA typically sells off their bad accounts as soon as they pass the 6 month writeoff period.

You could always call MBNA or CCL to check who actually owns it now. In any event, you will need written confirmation before proceeding any further. It can be confusing because a lot of collection agencies are also debt buyers too, like CBV, CRS etc.
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RE: CCL Financial - MBNA debt - help please

Postby Annie16 » Fri Dec 13, 2013 03:33:23 PM

CCL says they own the debt now, but I know better than to trust debt collectors, what are the chances that they own the debt?

If no, do you think there is a chance we can contact MBNA and do it directly with them?
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RE: CCL Financial - MBNA debt - help please

Postby HonestAbe » Fri Dec 13, 2013 03:23:25 PM

They may do a personal property (PPSA) search to see if you have any vehicles with clear title worth seizing, check your income for potential garnishment value, or check your home through a titles search to estimate how much equity there is.

Even if your home has substantial equity, they often put a lien against your home AFTER obtaining a judgement. For $5K, they won't force you to sell the home, but they know the lien will have to be satisfied before the mortgage is renewed or the home is sold.

On other hand, they likely will sell it to a debt buyer who, in turn, may or may not exercise these options.
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RE: CCL Financial - MBNA debt - help please

Postby Annie16 » Fri Dec 13, 2013 02:08:14 PM

Last made payment was in June of this year. We do own a home, no mortgage or anything, but we are not in a position to be able to get a mortgage at this time.
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RE: CCL Financial - MBNA debt - help please

Postby Ottawa_Chap » Fri Dec 13, 2013 11:34:51 AM

How long has the debt been outstanding? Has it been over 2yrs since you made your last payment or acknowledged the debt in a written form? If so, then leverage is on your side and they're just fishing with various threats.
Infuriating one C/A at a time..
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RE: CCL Financial - MBNA debt - help please

Postby HonestAbe » Fri Dec 13, 2013 11:32:40 AM

You need to desribe the details concerning the account as well as your own financial situation before it's possible to predict whether they will sue.

Generally, lenders don't sue for those amounts unless there's a decent prospect of collecting on the judgment because the borrower has significant assets or income that can be garnished. Most often, MBNA sells off the account to a debt buyer like Aktiv Kapital after their internal collections department tries to resolve things by making written offers of 65% and then 50%.

If you are able to settle, MBNA used to be (and probably still is) a lender who is amenable to accepting the lowest ratio settlements - often 30% to 35%. Can't say for sure what they their parameters are now though.

Unlike most other credit card lenders, as soon as the debt goes R9 or reaches the 6-month writeoff stage, MBNA will sell it off as opposed to sending it to a 3rd party collection agency.
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CCL Financial - MBNA debt - help please

Postby Annie16 » Fri Dec 13, 2013 10:45:58 AM

I just got off the phone with these guys, and after trying to make a payment arrangement with them, they initially agreed to one, but then withdrew it. Its with MBNA for around $5k. They tried making me an offer of $4k to settle and we just do not have that kind of money.

So what is the worst thing they can do? They said they will file legal action if we dont pay the $4k by the end of the month.
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