Merrick Bank - Carson Smithfield Called Today

[Anonymous]

I have an old chargeoff from Merrick Bank.  There collection is being handled by a company called Carson Smithfield.  They are advising that I owe them $1307.00.  However, they will settle with me for $326.00.  I have not heard from them in a couple of years.  Per my credit report, this chargeoff is due to fall off 03/2020.  They have not updated anything on my reports since 01/2014.  I would like to know if I should settle with them.  I asked the represenative if they would do a PFD, but he said that he only knows that they will update the credit report according to what I paid.  Basically "settled for less" is what I think he was getting at.  I need some help as to what to do.

[RobertEG]

Has the debt collector already reported a collection?

[Anonymous]

It's reported as a chargeoff. There is no collection agency assigned to it. I think Carson Smithfield is similar to "internal collections."

[RobertEG]

If a creditor uses any name that might imply they are a third party, then they are considered to be a debt collector under the definition provided in the FDCPA, and can report a collection to the CRA.

You can make a pay for not reporting offer to the debt collector, and if accepted, would prevent any reporting of their collection.

[Anonymous]

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@RobertEG wrote:

If a creditor uses any name that might imply they are a third party, then they are considered to be a debt collector under the definition provided in the FDCPA, and can report a collection to the CRA.

You can make a pay for not reporting offer to the debt collector, and if accepted, would prevent any reporting of their collection.

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After doing some research, they do seem to be a bonafide collection agency.  I am not sure why they have never reported themselves as such on my credit report.  I need some advice as to whether or not I should pay the settlement amount.

[jdxprs1]

So if this is a charge off, but still showing a balance owed, it's affecting your utilization and will probably give you a nice bump in your score if paid.

Def try to get them to delete, but settling for 300 out of 1300 to get it off utilization is worth it imo

[Anonymous]

I agree with jdxprs for each CO that I settled for less I gained around 20 points. It was my experience that if the CA isn't on your credit report the OC still held the debt. Does your credit report say that the debt was sold. If the debt was sold I wouldn't pay it because the OC will not change their tradelines balance to zero. You would have to dispute the tradeline for inaccurate balance.

[Anonymous]

Ok. Thank you for the advice. I am gong to double check my reports again. Is it possible that they are not counting against my utilization? I can settle with them, but what should I push for as far as updating? I would hate to pay and then wind up worse off.

[RobertEG]

Was the account reporting by Merrick a revolving line of credit or an installment loan?

[rmduhon]

If the account was sold the OC has to update the balance to zero.