Help Dealing with Merrick Bank

[Anonymous]

Hi! I have a weird situation and need guidance. Apologies in advance for the long story.

Back in 2006, I applied for and received a Hooters MasterCard. I used it for several years. At some point, Merrick took over the Hooters card and then ended the Hooters branding. I was sent a new Merrick card.

Flash forward to 2013. I used the card for the last time and then paid it off. I destroyed the card but never terminated the account. In 2015, I saw it still reporting as open on my CRs. I decided that having a mid-range card ($5200 CL) would be a good idea. So I called Merrick and ordered a new card. I never received the card. I was also locked out of my online account. Life happened, and I moved on, not thinking much about it again.

Then, yesterday, I’m reviewing my free annual CRs and see Merrick listed as open and reporting on two CRs. No use had been reported over the last three years. Surprised to see the account still open, I called Merrick to close the account. The CSR found no record of my last known account number, my SSN, or even my name. She said she can’t close an account that doesn’t exist for an account holder who doesn’t exist.

This makes me really uncomfortable, and I have no idea what to do. If there’s an open account, I want it closed. Any suggestions on what to do?

[RobertEG]

FCRA 623(a)(4) specifically requires a creditor who has reported an account to a CRA to provide notice to the CRA in their next regular reporting cycle of anyrequest for closure of an account by the consumer.  

If the account is showing in your credit report, they are subject to section 623(a)(4), and it is thus a violation of the FCRA for them to decline to report closure of the account by the consumer to the CRA.  

If they cannot locate your account, they could then delete all reporting, but cannot have it both ways.

I would send them formal written notice of your request to close the account.

If they then formally decline to make the required update, you have a documented and willful violation on their part of the FCRA, subjecting them to civil damages under FCRA 616 which can include punitive damages and costs of the action, including court and attorney fees.

[Anonymous]

Thank you very much! Good info to know. I’ll work on a letter today.