Wolpoff & Abramson

[fivehua]

What is the name of your state? TX
OK, my wife had a MBNA credit card bill with a balance of $4,000 on it. She complained that it never went down and was paying $150/month for 3 years. (The initial amount was greater).

I looked at her past statements and found that she was being charged about $43/month in interest, and $53/month for a Credit Protection Plan.

I asked what that was and she did not know. I contacted MBNA and asked what it was. They told me it was aplan they offered that my wife signed up for by not refusing it?? OK, Take it off, I informed them.

I looked at all the past statements and saw that my wife was paying for the "Credit Protetion Plan" totalled about $1800.

In March 2004 I stopped paying MBNA until they made the proper adjustments. Well, they never did, They sent in Wolpoff & Abramson who took this to Arbitration with their brothers at NAF, and they won! go figure.

I did get a lawyer who wrote them letters demaning debt validation and that we do not recognize the arbitration from NAF.

I am presently working in Kuwait for the US Army as a contractor, my wife is home alone in Texas. Yesterday a county deputy served her papers that W&A is sueing her for $7,000. The initial total debt, interest & penalties & lawyer fees. She is scared.

W&A or MBNA never responded to my attorneys letters, nor did they explain what the Credit Protection Plan was or show proof she actually authorized it.

I told MBNA and W&A several times that I would settle in full for $2200. This is the initial $4000 minus the $1800 in scam payments, which were never authorized. They never responded to any settlement offer.

My concern is that I cannot get home until June 2007 at the earliest. Any recommendations??What is the name of your state?

 

[HappyHusband]

Any recommendations?

Tell your wife to go talk to her lawyer.

 

[Debt Guy]

Well, my initial reaction is you had an idiot for an attorney. Refusing arbitration and demanding validation are "stall tactics" the hardly ever work -- your case is a good example.

While I think the "credit protection" is a giant rip-off, you don't have much basis for trying to get that money back. It was fully disclosed every single month on the statement. Usually, clients agree to those things on the phone. Sometimes, they are marked with a "contract check" by mail. You get a small dollar check and agree to the service if you cash the check. There will be all sorts of literature explaining the program sent with the check. Anyone who reads the stuff will just throw it all away. Apparently, your wife did not.

This problem will be difficult for you to manage 15,000 miles and 10 time zones away.

What are your wife's choices?

1. Make some sort of deal with the lawyer representing MBNA. You can settle the account or set up a payment plan. The account can probably be settled for less than the amount of the claim but give up the idea of $2200 since that is just not realistic. If your wife feels not competent to handle this herself, I suggest you find an honest settlement professional.

2. Ignore it all and let MBNA be awarded a default judgment. Fortunately, you live in TX which does not allow wage garnishment or a lein on your home (note however they can cloud the title on the home which means you cannot sell it until dealing with the judgment). The judgment creditor can wipe out your bank account but that is about all. Moving a bank account to a new bank is not the hardest thing in the world.

3. File a response with the court and require MBNA to prove up the numbers. Typically, this requires an attorney (for God's sake, hire a smarter one who actually knows something about debt and credit). I know you think the $7000 is dead wrong -- but it will almost surely stand up to the standards of the court. All the fine print in the cardholder agreement gives them the right to tack on the national debt of Belgium if they want. It is not the burden to MBNA to show the amount is "fair" but only that it is "legally accurate".

Personally, I think that #3 is not a good choice unless you have an attorney who is convinced he can defeat the suit. It does not happen often -- but it does happen.

 

[HappyHusband]

Those credit protection scams begin with "It's absolutely FREE! ...for one month, $53 per month afterwards until you cancel..."

I find it disturbing that the wife did not bother to either read the monthly statement or question the $53 monthly charge. Will that credit protection plan protect her credit now?

That's one reason why I don't let my wife have a credit card.