CONTACTS 
0201 - Maryland Bank                        800 441 9977
020101 - Mr. Kelly Jackson; Account Manager =800 309 6365 ext 56959
020102 - Customer Assistance  =800 421 2110

SUBJECTS
MBNA CDW Fails Honor RMA Defective HP Notebook Computer
MBNA Mishandled Check #2565

0604 -    ..
0605 - Summary/Objective
0606 -
060601 - Follow up ref SDS 47 0000, ref SDS 45 0000.
060602 -
060603 - Received letter from Kelly, and he called offering to settle pending
060604 - disputes by Welch paying $26K on a balance of $44K, in monthly amounts
060605 - of $3.3K.  MBNA feels this would settle pending disputes that caused
060606 - Welch extra expense. ref SDS 0 L36O Kelly reported in a telephone call
060607 - that these terms can be adjusted to reflect our agreement for MBNA to
060608 - accept $100 for a few months while cash flow is addressed. ref SDS 0
060609 - LW4K  He, also, reported that the balance owed needs to be adjusted
060610 - because MBNA got the credit of $4.5K from CDW for the defective
060611 - merchandise. ref SDS 0 UJ6M  Analysis of MBNA's offer shows that
060612 - adjusting for this credit and the improper interest charges, would
060613 - make the settlement amount about $21K.  With other refinements this
060614 - seems like a good offer. ref SDS 0 F49I
060615 - ..
060616 - Submitted ref DIT 1 0001, thanking Kelly for a good effort in
060617 - formulating a settlement.  Request that MBNA review comments below,
060618 - ref SDS 0 F49I, and that Kelly call to finalize this matter. Included
060619 - printed copies of...
060620 -
060621 -     1.  This record.
060622 -     2.  Kelly's letter on 001127, received today. ref DRT 1 0001
060623 -     3.  Letter to MBNA on 001130. ref DIP 2 0001
060624 -     4.  Letter to MBNA on 001118. ref DIP 1 0001
060625 -     5.  Record on 001010 telecon with MBNA. ref SDS 41 0001
060626 -     6.  Record on 001002 telecon with MBNA. ref SDS 33 0001
060627 -     7.  Record on 001108 reporting a letter from MBNA. ref SDS 40 0001
060628 -     8.  Letter to MBNA on 000525. ref DIP 4 0001
060629 - ..
060630 - Recommend MBNA give further consideration to use email and the
060631 - Internet to expedite communication, and to avoid further errors in
060632 - handling daily working information. ref DIT 1 MU7M  This aligns with
060633 - the record on 000327 showing this step saves time and money,
060634 - ref SDS 4 3971, per telecon with Kelly on 001127. ref SDS 45 UR4K
060635 -
060636 -     [On 001215 received letter from MBNA. ref SDS 48 0001
060637 -
060638 -     [On 010103 received letter from MBNA. ref SDS 49 0001
060639 -
060640 -     [On 010131 responded to call from MBNA. ref SDS 50 0001
060641 -
060642 -
060643 -
060644 -
0607 -
0608 -
0609 - Progress
0610 -
061001 -  ..
061002 - MBNA Offers Constructive Ideas to Settle Disputes
061003 -
061004 - Kelly said MBNA has still not received our letter, ref DIP 1 0001,
061005 - submitted on 001118. ref SDS 43 0001, confirming understandings that
061006 - payments on the account are being deferred pending resolution of
061007 - disputes.
061008 -
061009 - Kelly further advised that he has not received the interim payment on
061010 - check #2368, submitted in our letter, ref DIP 2 0001, that reflects
061011 - our agreement on 001130 for interim steps while resolving disputes.
061012 - ref SDS 47 1W3H
061013 -
061014 -     This reflects the record on 001002, when MBNA reported delay in
061015 -     receiving mail that caused significant problems in managing
061016 -     payment issues. ref SDS 33 0001, including the erroneous request
061017 -     for a stop payment on a check. ref SDS 33 C3RJ; yet, later on
061018 -     001108 MBNA processed the check after having caused a stop payment
061019 -     to be issued. ref SDS 40 0001
061020 - ..
061021 - Kelly said the good news is that MBNA has received credit from
061022 - CDW for the defective merchandise, which CDW incorrectly claimed
061023 - entitlement to payment of $4,449.60 in accordance with understandings
061024 - from a call with MBNA on 000920, ref SDS 29 4W92, and confirmed later
061025 - by another call from MBNA on 000927. ref SDS 31 4J7I
061026 -
061027 -     [On 010103 MBNA's letter issued on 001223 was received and reports
061028 -     it will not correct improper charge by CDW. ref SDS 49 0001
061029 - ..
061030 - I explained that his letter 001127, ref DRT 1 0001, confirming
061031 - our telecon on 001127 ref SDS 45 KY3N, was received yesterday in the
061032 - afternoon mail.
061033 -
061034 - Kelly asked to review the letter during our call.
061035 -
061036 - MBNA's letter offers to settle all disputes by accepting payment of
061037 - $26,500.  They want monthly payments of $3,312.50 beginning on 001205,
061038 - which is yesterday. ref DRT 1 4R6F
061039 -
061040 -     [On 010206 MBNA offers to settle for $16,400. ref SDS 51 WO5O
061041 -
061042 - Kelly said that since the mail was late, MBNA will adjust the payment
061043 - schedule.
061044 - ..
061045 - We discussed continuing the $100 per month initial payments for
061046 - the near term, as discussed on 001130, ref SDS 47 1W3H, then
061047 - converting to the schedule MBNA has in mind.
061048 -
061049 - Kelly said MBNA will do this.
061050 -
061051 - I agreed to consider MBNA's plan, and submit a letter on resolving all
061052 - disputed matters.
061053 -
061054 -     It appears that the new project with PG&E, reported on 001129,
061055 -     ref SDS 46 VV5N, will provide sufficient revenue in a few months
061056 -     to meet Kelly's planning today.
061057 -
061058 - I asked to submit the letter via email in order to expedite
061059 - consideration and resolution?
061060 -
061061 - Kelly said MBNA has still not incorporated this capability into the
061062 - work practice available for his department.
061063 -
061064 -
0611 -
0612 -
0613 - 1101
0614 -
061401 -  ..
061402 - Analysis Shows Equitable Solution May Fit MBNA Framework
061403 -
061404 - We are currently operating under an interim payment schedule of $100
061405 - per month for the next 3 - 4 months, ref SDS 0 LW4K, and pending final
061406 - settlement on the following issues....
061407 -
061408 -    1.  MBNA proposes payment by Welch of $26,500 to settle all pending
061409 -        disputes against a balance MBNA claims is owed in the amount of
061410 -        $44,128.08. see MBNA letter dated 001127, ref DRT 1 0001, and
061411 -        MBNA statement dated 001113
061412 -
061413 -        MBNA's calculation of the balance owed includes the amount of
061414 -        $4,449.60 (see for example MBNA statement dated 000913), which
061415 -        was charged by MBNA contrary to instructions by the customer in
061416 -        a letter to MBNA, ref DIP 4 0001, on 000525, ref SDS 19 0001
061417 -        Since this amount was not actually owed, and since MBNA has
061418 -        assessed finance charges on this amount for 6 months, MBNA's
061419 -        proposed settlement should be adjusted by approximately $5,400,
061420 -        resulting in a settlement of...
061421 -
061422 -                              $21,000
061423 -        ..
061424 -    2.  Since MBNA caused Welch to lose the opportunity to obtain
061425 -        a favorable interest rate of 1.9% by transferring this balance
061426 -        to another vendor, as reported to MBNA on 001110, ref SDS 41
061427 -        TO6H, MBNA should, therefore, further reduce the amount owed by
061428 -        the difference in the cost of the loan over the life of the
061429 -        payment period.  This amount is estimated at $3,000.
061430 -        Therefore, the actual amount owed under this analysis is
061431 -
061432 -                              $18,000.
061433 -
061434 -        Alternatively, MBNA can convert the balance of $21,000 to a
061435 -        payment plan with an interest rate of 1.9%.
061436 -
061437 -           [On 010206 MBNA offered to settle all issues for $16,400.
061438 -           ref SDS 51 WO5O
061439 -        ..
061440 -    3.  MBNA should disclose all negative reports it has issued
061441 -        to credit agencies, and it should issue corrective reports
061442 -        notifying credit agencies that prior reports were incorrect,
061443 -        and were the result solely of MBNA's failure to follow proper
061444 -        procedures, as reported by Lorraine on 000927. ref SDS 31 6P9I,
061445 -        and discussed with Vanessa Benjamin on 001110. ref SDS 41 4674
061446 -
061447 -        MBNA must take this action regardless of the outcome of
061448 -        settlement of disputes.  If MBNA fails to the correct the
061449 -        record, this will cause substantial damage to Welch for which
061450 -        MBNA will be liable.
061451 -
061452 -          [On 010206 Peter Sheff advises MBNA wants to avoid reporting
061453 -          mistakes to the credit bureau. ref SDS 51 VY4N
061454 -
061455 -    4.  The post script in Kelly's letter on 001127, ref DRT 1 00W3,
061456 -        requires clarification under para 3, above.  Recommend in the
061457 -        letter to MBNA that they use a uniform print so that important
061458 -        information is not overlooked. ref DIT 1 OH6I
061459 -
061460 -
061461 -
061462 -
061463 -
061464 -
061465 -
061466 -
061467 -
0615 -
0616 -