Is this REALLY a government law or am I being bamboozled?

[Icydius]

What is the name of your state?What is the name of your state?What is the name of your state?What is the name of your state? MD

I have 3 credit cards with MBNA -- 2 of which are current in their payments. I found out (by accident) a few days ago that one is NOT currently up-to-date. In August of last year, I left my job after suffering a nervous breakdown. I was unemployed for about 2.5 months. During that time, I could not make any payments on my credit cards (I usually can only make the minimum payments each month, and for all three, the total is usually $212). In January of this year, I received a letter from MBNA telling me that I needed to pay all 3 credit card balances in full within 2 weeks and that if I couldn't to call them and they would set up a payment plan for me. I called them on Jan. 18th to let them know I couldn't pay the balances in full and that I wanted to work with them on a payment plan. They set up a payment plan for me whereby if I schedule 3 consecutive payments on all 3 accounts for the next 3 months (Jan., Feb., March), they would bring my accounts up to date (all 3) and reduce my interest rate to 14% from 22% on all 3 cards. I was told that I would first need to be approved by their Special Payment Plan Department (something to that effect) and that I would receive my 3 letters of approval in about 2 weeks. I received at least one letter (I can't remember if I ever received the other 2 letters but I guess I hadn't -- I hadn't noticed at the time). When the time came for my first payments to post to my checking account, I noticed that about a week after the due date, 1 of my payments hadn 't been deducted from my checking account. I called MBNA and was told that the person who set up my payments hadn't entered my checking account number correctly in their system. It was fixed and that problem was solved. The next problem came a few weeks ago, when I went online to set up my next 3 payments. It showed that 2 of my accounts were still behind despite my having paid all 3 on time for the last 3 months. I called MBNA again (April 4th) to inquire as to why 2 were still showing delinquent and was told that the day I initially set up my payment plan, (Jan. 18th), they had experienced major computer problems and only 1 of my accounts was actually submitted for the payment plan. I was told that the other 2 accounts would be resubmitted for the same payment plan and to check back in a few days. The account rep also told me that he would make my payments retroactive to January when I initially signed up for the plan. I decided to check back in 2 weeks (just to give them time to straighten it out). Within those 2 weeks I received my letters of approval accepting my other 2 accounts into the program. I went online to try to set up my next 3 payments AGAIN and found that the same 2 accounts were still showing delinquent. I called MBNA again and spoke with the same rep who had initially set up my payment plans in January (I always document the person with whom I spoke, what was told to me, the date and the time I called) and again inquired about the 2 "delinquent" accounts. This same rep that told me in January that if I made 3 consecutive payments on all 3 accounts, my accounts would be brought current, now tells me that it would take 6 months and not 3. I adamantly told him what I was told back in January and still he insisted that their policy was 6 months. (I never told him that HE was the one who set up my payment plan in January as I'm sure he already knew from looking at my account notes -- I didn't want to embarass him) After going back and forth for a few minutes, he admitted that it WAS 3 months at the time I set up my payment plan but that it was changed to 6 months in March. Frustrated, and not believing him, I thanked him and hung up. I called another MBNA number a few minutes later and spoke with a young woman this time. I explained my situation to her and she told me that 1 of the 2 "delinquent" accounts should show up as current on my next statement but that I had exhausted all my chances to bring the other account current. She said that there is a government law that states a credit card company can only give you 3 chances within a 5 year period, to bring your account current -- for example, by allowing you to make 2 payments (even if you're 5 months behind) to bring your account current. This seems like it would be the credit card company's decision. I tried looking online earlier to see if such a law truly exists, but I wasn't successful. Does anyone know if this law exists or if she was just trying to get me off the phone?

[Veronica1228]

Originally Posted by Icydius

What is the name of your state?What is the name of your state?What is the name of your state?What is the name of your state? MD

I have 3 credit cards with MBNA -- 2 of which are current in their payments. I found out (by accident) a few days ago that one is NOT currently up-to-date. In August of last year, I left my job after suffering a nervous breakdown. I was unemployed for about 2.5 months. During that time, I could not make any payments on my credit cards (I usually can only make the minimum payments each month, and for all three, the total is usually $212). In January of this year, I received a letter from MBNA telling me that I needed to pay all 3 credit card balances in full within 2 weeks and that if I couldn't to call them and they would set up a payment plan for me. I called them on Jan. 18th to let them know I couldn't pay the balances in full and that I wanted to work with them on a payment plan. They set up a payment plan for me whereby if I schedule 3 consecutive payments on all 3 accounts for the next 3 months (Jan., Feb., March), they would bring my accounts up to date (all 3) and reduce my interest rate to 14% from 22% on all 3 cards. I was told that I would first need to be approved by their Special Payment Plan Department (something to that effect) and that I would receive my 3 letters of approval in about 2 weeks. I received at least one letter (I can't remember if I ever received the other 2 letters but I guess I hadn't -- I hadn't noticed at the time). When the time came for my first payments to post to my checking account, I noticed that about a week after the due date, 1 of my payments hadn 't been deducted from my checking account. I called MBNA and was told that the person who set up my payments hadn't entered my checking account number correctly in their system. It was fixed and that problem was solved. The next problem came a few weeks ago, when I went online to set up my next 3 payments. It showed that 2 of my accounts were still behind despite my having paid all 3 on time for the last 3 months. I called MBNA again (April 4th) to inquire as to why 2 were still showing delinquent and was told that the day I initially set up my payment plan, (Jan. 18th), they had experienced major computer problems and only 1 of my accounts was actually submitted for the payment plan. I was told that the other 2 accounts would be resubmitted for the same payment plan and to check back in a few days. The account rep also told me that he would make my payments retroactive to January when I initially signed up for the plan. I decided to check back in 2 weeks (just to give them time to straighten it out). Within those 2 weeks I received my letters of approval accepting my other 2 accounts into the program. I went online to try to set up my next 3 payments AGAIN and found that the same 2 accounts were still showing delinquent. I called MBNA again and spoke with the same rep who had initially set up my payment plans in January (I always document the person with whom I spoke, what was told to me, the date and the time I called) and again inquired about the 2 "delinquent" accounts. This same rep that told me in January that if I made 3 consecutive payments on all 3 accounts, my accounts would be brought current, now tells me that it would take 6 months and not 3. I adamantly told him what I was told back in January and still he insisted that their policy was 6 months. (I never told him that HE was the one who set up my payment plan in January as I'm sure he already knew from looking at my account notes -- I didn't want to embarass him) After going back and forth for a few minutes, he admitted that it WAS 3 months at the time I set up my payment plan but that it was changed to 6 months in March. Frustrated, and not believing him, I thanked him and hung up. I called another MBNA number a few minutes later and spoke with a young woman this time. I explained my situation to her and she told me that 1 of the 2 "delinquent" accounts should show up as current on my next statement but that I had exhausted all my chances to bring the other account current. She said that there is a government law that states a credit card company can only give you 3 chances within a 5 year period, to bring your account current -- for example, by allowing you to make 2 payments (even if you're 5 months behind) to bring your account current. This seems like it would be the credit card company's decision. I tried looking online earlier to see if such a law truly exists, but I wasn't successful. Does anyone know if this law exists or if she was just trying to get me off the phone?

Your instincts are correct, there is no such law. This is actually kind of funny (not your situation, but the rep at the CC company). I hope you got her name because she either needs more training, or to be reprimanded for lying.