topic Re: How to fix a Merrick Bank Charge Off in Rebuilding Your Credit

How to fix a Merrick Bank Charge Off

INITFORTHELONGHAUL — Tue, 02 Aug 2022 18:06:24 GMT

Okay.. I had this Merrick Bank card in 2016. When I divorced in 2018, I quit paying it. Stupid decision--paying the stupid taxes now. It was Charged-Off in 2019. I have been on a run for paying off all collections to fix my credit.

Here's my dilemma: I contacted Merrick Bank, who transferred me to Carson Smithfield, who gave me the number for North American Recovery, who told me they had passed my account to their attorney. I called the attorney. Paid in full the amount due via ACH. Got a letter showing zero balance due from the attorney. Called North American Recovery who said they cannot send me a paid in full letter since it wasnt technically paid through them. They did say that the paid in full was reported to Merrick.

I have since spent nearly 75 hours of my life on the phone with Merrick Bank customer service who cannot transfer me to any dept that can help me with a CO-paid in full letter. I sent faxes and have mailed a letter with my payment confirmation and attorney 0 balance owed letter to the dispute address over 30 days ago to no avail.

How can I get my charge off status updated through Merrick Bank? Does anyone know what dept I need to be in contact with or what the next step is?? This is my last collection over $150 to pay and Im ready to rip my hair out!!

TIA

Re: How to fix a Merrick Bank Charge Off

FireMedic1 — Tue, 02 Aug 2022 18:46:19 GMT

Any payment reciepts at all on your possesion? Does MB hava a outstanding balance after payment? If so. Send the CRA's proof of payment and dispute it. But wait 30-45 days for updates to occur on your reports. It isnt instant. Just like a job income. You have to pay taxes. You got goods and services and the bank took a loss.

https://www.irs.gov/taxtopics/tc431

Re: How to fix a Merrick Bank Charge Off

INITFORTHELONGHAUL — Tue, 02 Aug 2022 20:24:01 GMT

I do have the attorney's receipt, but no where on it does it show that the payment was for Merrick Bank's collection.

They are currently showing a balance, but for the exact amount that I already paid.

I understand that nothing is instant, but Im panicking because I still do not even have a letter stating that it was paid for my records...

Why would I have tax repercussions if it was paid in full? I thought it would only be taxed if I was given more than a $600 reprieve on the amount owed..

Re: How to fix a Merrick Bank Charge Off

OmarGB9 — Tue, 02 Aug 2022 20:30:54 GMT

@INITFORTHELONGHAUL wrote:
I do have the attorney's receipt, but no where on it does it show that the payment was for Merrick Bank's collection.
They are currently showing a balance, but for the exact amount that I already paid.
I understand that nothing is instant, but Im panicking because I still do not even have a letter stating that it was paid for my records...

Why would I have tax repercussions if it was paid in full? I thought it would only be taxed if I was given more than a $600 reprieve on the amount owed..

I think @FireMedic1 thought you settled for less.

As far as your issue, I'd keep pressing the issue with Merrick. If that still doesn't work, file a complaint with the CFPB and your state's AG.

Re: How to fix a Merrick Bank Charge Off

INITFORTHELONGHAUL — Tue, 02 Aug 2022 21:10:42 GMT

Funny story.. I actually filed a CFPB complaint and it immediately closed it out and told me I needed to file one with FDIC. FDIC doesn't have an option for credit reporting complaints. This is a terrible triangle..

Re: How to fix a Merrick Bank Charge Off

OmarGB9 — Tue, 02 Aug 2022 21:26:07 GMT

@INITFORTHELONGHAUL wrote:
Funny story.. I actually filed a CFPB complaint and it immediately closed it out and told me I needed to file one with FDIC. FDIC doesn't have an option for credit reporting complaints. This is a terrible triangle..

Honestly at this point, it may be worth consulting an attorney, as I don't know what else to suggest.

Re: How to fix a Merrick Bank Charge Off

FireMedic1 — Wed, 03 Aug 2022 10:10:16 GMT

@INITFORTHELONGHAUL wrote:
Okay.. I had this Merrick Bank card in 2016. When I divorced in 2018, I quit paying it. Stupid decision--paying the stupid taxes now. It was Charged-Off in 2019. I have been on a run for paying off all collections to fix my credit.
Here's my dilemma: I contacted Merrick Bank, who transferred me to Carson Smithfield, who gave me the number for North American Recovery, who told me they had passed my account to their attorney. I called the attorney. Paid in full the amount due via ACH. Got a letter showing zero balance due from the attorney. Called North American Recovery who said they cannot send me a paid in full letter since it wasnt technically paid through them. They did say that the paid in full was reported to Merrick.
I have since spent nearly 75 hours of my life on the phone with Merrick Bank customer service who cannot transfer me to any dept that can help me with a CO-paid in full letter. I sent faxes and have mailed a letter with my payment confirmation and attorney 0 balance owed letter to the dispute address over 30 days ago to no avail.
How can I get my charge off status updated through Merrick Bank? Does anyone know what dept I need to be in contact with or what the next step is?? This is my last collection over $150 to pay and Im ready to rip my hair out!!
TIA

I missed this nugget. You got a letter that shows $0 balance. So whos on your credit report besides MB?

When was this paid? Was it settled for less or PIF the total CO amount.

@OmarGB9I believe they satisfied the debt when @INITFORTHELONGHAUL said PIF. Thinking the updates havent occured yet.