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Merrick Bank is not actual bank but they want you to think that, they are Utah based but all contact info they provide is Pob 9201 Old Bethpage, NY 11804 so I don't know whose laws to follow(I'm in Illinois). I sent PFD letter but they will not delete info under no circumstance, that's also other people experience.
Date opened: Oct, 2004
Date of last activity: Mar, 2009
Date closed : Sep, 2009
Credit limit: $2,800
Largest past balance: $3,374
Descriptions: Unpaid balance charged off
Current Status: Charged off as bad debt
Past Due Amount : $3,374
I need to apply for a home loan(FHA) within a month or so and I don't know what to do since I read here that settling chargeoff can actually lower your score because it updates to newer date. Also, they can do hard inquiry before settling some peole say. Worst thing is that balance of $3374 is being calculated in debt ratio, only other debt I have is $300 student loan. Any experiences how score might react if account is settled for less and being reported like that? Thanks in advance.
If the date of last activity is 2009, paying or settling will cause your score to drop. It will update to a current date making it look like it is new.
Are you applying for a mortgage or something?
I would leave it unless they tell you it has to be paid, hopefully at closing.
ETA: I see in your original post you were applying.
I just received letter 5mins ago from Phillips & Cohen Associates telling me to pay full amount and my credit history will be updated to reflect that this matter is resolved. I guess this would just turn to paid chargeoff that would still cause my score to drop.
I am thinking of sending PFD letter again offering 50% of the amount for complete deletion or nothing else. Otherwise, I will need to consult with consumer lawyer and go to court. Anyone know on what grounds I could file a lawsuit?
I contacted Merrick to inquire about my charge-off. I had several with different banks from 2008. Merrick is the only one that was still reporting a balance so I hoped to clear it up. Merrick told me that they could not talk to me/work with me on this, I had to deal with Phillips Cohen. I refuse to speak to anyone on the phone so I dug up an email address for them.
Not 30 minutes after I fired off an email I had a phone call from them that went to VM. I then fired off another email letting them know of the phone call and that I have a policy against this so please respond to my email. No response.
I emailed again and finally someone responded telling me that they have removed my number and will not call again. I asked him if he could help me in settlting this matter and was told that wasn't his position within the company and he would get someone on it. Well that was two weeks ago.....nothing since.
just wanted to give you my experience with this so far. I was hoping to settle for way less than they claim to be owed, as I know, like you, they won't delete.
@sandrachicago wrote:I just received letter 5mins ago from Phillips & Cohen Associates telling me to pay full amount and my credit history will be updated to reflect that this matter is resolved. I guess this would just turn to paid chargeoff that would still cause my score to drop.
I am thinking of sending PFD letter again offering 50% of the amount for complete deletion or nothing else. Otherwise, I will need to consult with consumer lawyer and go to court. Anyone know on what grounds I could file a lawsuit?
Unless there is something inaccurate with the TL that you have tried to have them correct and they won't, I see no lawsuit happening. Not even an attorney who would take on a case without cause.
I thought Phillips & Cohen Associates was a law firm because they used the attorney "lingo" in their letter, but I researched further and found that they collect dead peoples debts and at the bottom of the letter in micro writing says this communication is from a debt collector. How do I respond now? Do I send DV letter or cease & desist -are all types of communication included or just stopping phone calls? Does this mean Merrick sold my debt, can they still report full balance on sold debt? I'm sorry but I was never this confused before
They are considered a CA because they collect debts for a living, attorney or not. Send them a DV.
No, if Merrick sold the debt the balance would be 0. If they assigned the debt, both Merrick and the CA can show a balance.