Personal Finance

Credit Card Debt: already cleared 4 months ago but CCL still involved

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  • Sep 6th, 2015 3:37 am
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Newbie
Sep 4, 2015
3 posts
Toronto, ON

Credit Card Debt: already cleared 4 months ago but CCL still involved

I had about $1500 overdue Mastercard balance from last September and had paid them off in full this May.
I moved to Europe last year and therefore could not receive letters from MBNA. I called MBNA a couple times this year to ask for my remaining balance, and I paid off my balance in 3 separate payments(last one in May). I thought I'd have no more problems with MBNA until the new tenant from my previous apartment contacted me by email through my ex-landlord. He told me he's been receiving letters from MBNA and CCL financial for quite some time and he felt I should know about it.

I didn't know what CCL was so my immediate reaction was to call MBNA, I told the representative about receiving letters from CCL and she looking into my account and told me that it's because I have a 74-cent credit on my account, before I authorize them to write it off or let they send me a cheque, they couldn't close my account(That's all she told me from this phone call). I was relieved and told them just to write the remaining credit off and she assured me that "my account is now closed".

Meanwhile I emailed the current tenant of my previous apartment to ask him to open the CCL letter just to make sure, and the next day he replied me with a picture of the letter, with the situation totally different from what the MBNA representative had told me. The letter(sent in July) claims that they have purchased my debt and I have to pay them $423(and the amount increases everyday by $1). I called MBNA and this representative told me they indeed purchased my balance last NOVEMBER and he has no further information for me, he advised me to call customer service manager the next working day(next Tuesday).

Before calling CCL, there're a few things I'd like to find out:
1) When CCL purchased my debt(last Nov), does it mean that I should've made payment to them instead of MBNA?
2) If so, as I made payment to MBNA instead, while none of the previous representatives I've talked to this year mentioned anything about CCL purchasing my balance, even though the last representative said my account shows that they purchased it last November. Is it MBNA's mistake that I wasn't aware of any of this?
3)How was the remaining debt of $423 to CCL generated?
*$1500 is the total that I've paid this year before the balance was cleared.
4) Can I request MBNA to contact CCL to inform them about my payment to MBNA?

I really hope someone has an answer for me. I have the money to pay CCL but I really need to know how this 3rd party company functions and how the remaining balance generated before making any payment.
8 replies
Deal Addict
Apr 4, 2013
1274 posts
410 upvotes
First question that comes to mind - you wrote that you owed $1500 to MBNA and you made 3 separate pmts. Was the total of the 3 pmts more than $1500? You would have had to pay more than $1500 to cover the interest charges.
Newbie
Sep 4, 2015
3 posts
Toronto, ON
Thanks for the reply! I edited the question.
The $1500 was the total amount I've paid to clear my balance(which means interested included? as I think the actual amount I spent with the card was less).
Each time before I made an payment, I called MBNA to find out how much balance was left on my account.
Before I made the final payment, I called them again and they told me "your remaining balance is $700". I made a full payment and a few days later I logged into my online account and it says I have zero balance, and that's how I concluded that I don't owe them anymore money.
Yesterday when I called MBNA, they only told me that I have a 74-cent credit that's why they can't close my account.
Deal Addict
Jan 24, 2015
1021 posts
310 upvotes
Canadian in USA
You need to get a complete set of statements. Right now you don't know what happened. You need to see the account balance when you left followed by what payments you made, what interest was charged, and so on.

Once you have this you will be able to work out whether that is an extra amount you owe, or whether you paid that to MBNA. That will help you understand what your next step should be.

You also need to get your credit report and see what is listed there. If it shows a collection, try and dispute that, that will KILL your credit score.

Assuming you care about your Canadian credit... It will hang around for the next seven years.
Newbie
Sep 4, 2015
3 posts
Toronto, ON
Thanks for your help!
Should I ask MBNA for the report or CCL?
Should I call CCL directly or let MBNA contact them?
I know that calling CCL would be the direct way to find out why I am owing them $423, but I'm relatively soft spoken and I read from other people's post that CCL representatives are rather firm and they don't give you rooms for negotiation(correct me if I was wrong), my preferred way is to talk to MBNA and let them communicate with CCL.
Sr. Member
Mar 3, 2015
699 posts
95 upvotes
Scarborough, ON
man dont worry about ccl. i can assure you it wont be on your credit file.

i had mbna $900 debt which went to collections after 7 months of not paying due to tough time, it went metrocanada collections co who sent me flood of letters and calls. they still send me bills.

so i called mbna to settle and offer to pay them full $900 they agreed and assured me on my equifax credit report it will show debt as settled in good terms.

but still metrocanada collections co keep on calling me still as of today got phone call and last week letterr stating i should pay them $360 interest occured.

i called mbna and they told me to ignore them collections.

the only thing atters is check your credit report report if you have ccl name and debt on your equifax file, if you see it then its serious and u have no option but to pay to keep your credit file clean.

if you dont see ccl on your file then ignore them.

got approved 2 cc with high limits last 6 months and dont thing metro letters affect me.
Deal Fanatic
Jul 4, 2004
9473 posts
2650 upvotes
If you let the debt from CCL go for a minimum of 2 years in Ontario, it won't be court enforceable. So if you're planning on staying in Europe for the next year or so, they won't be able to serve you and it's doubtful they would in the first place for under $500. I'm just saying...
Deal Addict
Jan 24, 2015
1021 posts
310 upvotes
Canadian in USA
Yeah but if he really owed it and gets a collection on his credit record that will kill his score for the next seven years. If he knows he won't be back in Canada for seven years I guess he can just skip out, but if any chance he wants to come back...
Deal Addict
May 24, 2008
2799 posts
259 upvotes
Vancouver
If a company writes off your debt, you can still get a loan, it might not be a high one but it's possible, even before the seven years is up. You just need to rebuild your credit score after they write off your debt by using a pre-paid credit card daily, weekly...

I told a company who bought my debt to show me how much money they paid for my debt and they hung up on me and said they never want to talk to me again. I don't know if that means I can get a loan... or if they wrote off my debt, or what it means, really. I just know it happened and it's easier than having them call you a hundred times a day.

What they don't want you to know is how much they paid for your debt because once you know that, you are actually paying them back for not your whole debt, but for the amount they paid for it.

I don't know why investors buy peoples bad debts, it's a horrible investment.

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