Merrick Bank Charge Off Advice Needed

kjel · ‎04-29-2013

Now that my student loan rehabilitation is complete, I am focusing on getting the rest of my negative credit items dealt with-most are straight forward but this is the perplexing one!

I had credit card with Merrick Bank with an original balance of $750 that I have not paid since May 2009. The account now shows on my CRs as a charge off with a balance of $1494.00 under the name of Merrick Bank. I have not received any written communication from them in several years. TU is not counting it against my utilization but EX and EQ are.

I searched the number that calls my phone several times a day and it is for Carson Smithfield (formerly Cardworks) and appears to be a subsidiary corporation of Merrick Bank so I think that is why the TL is still reporting Merrick Bank. Carson Smithfield's website is https://www.solvethatdebt.com/.

The debt is mine and the delinquency info seems accurate per my recollection. I have scoured MyFico as well as outside sites and there seems to be no record of success in terms of getting a PFD. It appears that they like to settle for 40% of the balance and per their website will report this to the CRAs: "The Current Creditor will report your account as "settled as agreed" with a Zero balance" and then send a 1099 for the excess above $600 forgiven.

Is it worth it to try and settle this?

kjel · ‎04-29-2013

Anyone?? I swear any post regarding Merrick results in crickets. Or maybe it's just my posts

Hopelives2 · ‎04-29-2013

I'ts not you

I think, if it were me, I'd somewhat ignore the websites that report negative experiences with PFD and try it yourself. If you try to PFD, and the company refuses, what are you out?

A letter, some time, a little anticipation, a bit of hope but really, you are in no worse shape.

IF, however, they accept a PFD it is win-win. They get their money, you get it off your credit report.

Let's say that they won't PFD but are willing to settle for pennies on the dollar. Offer them say, 30% and wait for their response. If they accept, send the 30% and wait for update on CR.

Then, start with another PFD for the remaining 70%.

Again, they could continue to say no but what does it hurt to ask?

And one last unrequested piece of advice, if your writing skills are good, write to the CEO, COO, VP or other such executive and ask for help in resolving the issue. Own your part of the delinquent debt, do not blame the company.

Good luck!

Anonymous · ‎06-13-2013

So any updates? LOL I agree with Merrick and crickets! I have been searching the web as well and find lots of people asking for contact info on who to contact to settle with Merrick and cannot find ANY thread ANYWHERE that has ever been updated! I don't even care about getting a delete at this point just want to settle it so they will quit updating each month. I sent a letter to cardworks about 3 weeks ago offering to settle for 50% (did'nt ask for anything in exchange) and have heard nothing back. This is my only baddie and I just want to pay it!

kjel · ‎06-13-2013

I haven't tried yet because I don't have the cash to pay in full if they come after me since I am still within the SOL. They call me every day though but never leave a message. I don't receive any mail from them either. I will likely leave this one until the end of the year since I don't want to make payments to them, just rather do the one and done treatment.

jennylocha · ‎06-13-2013

I tried PFDs with Merrick and I even disputed it on the BBB website, but nothing.....they won't budge at all. So I made arrangements with them and they settled with me for less than what I owed. When they reported that the account was settled my score did go up 10-15 points on all three reports. This is also my only baddie and according to my Transunion report it will remain until 2017.....BASTARDS. Anywhoo, at least I don't have to worry about them anymore. Now my main goal is to work on the positive rebuild of the cards that I currently do have open and to garden the hell out of them as I have many inquiries. One year of positive rebuild should put me right up there in the 700 club!

Current Score: TU 671 / EQ 675 / EX 682
Goal Score: 700 Club Across the board!

AndySoCal · ‎06-13-2013

A settled account is also considered a serious derogatory FYI... That said financial circumstances are also a big factor in resolving problems like this. Another route could be to call and work out a payment plan see if they will waive some of the late fees and or interest. .

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LifeSAVERS · ‎01-30-2014

"My First Post"

Merrick ($970) is the only delinquency showing on my TU CR (636 myFico score 1/30/14) as well, and scheduled to fall off in May 2015. I have 2 current CCs, 1 11 yrs, 1 1 yr, and this is the last of old credit card debt remaining from 2006-2008 finance issues. If I PIF, which is what I would like (and now finally able) to do, would I cause the fall off date to now move forward another 7 years to 2022. I am reading that most are having issues with PFD with Merrick, but wonder if that is the first step with them, prior to PIF. This happened on my old HSBC cc that the account actually closed, but I continued to pay and paid it off in 2011. Experian monitors my credit and when I disputed that card as showing on my account beyond the 7 years of FD, since it was back 8 years now, they will not remove stating that it has payments recorded within the current 7 years. and is scheduled to now fall of in 2018 (should have been early 2013 based on original first delinquency).

My goal is to get a card of $2000+ limit and Barclay is the card I am working toward, but want TU to look as good as possible,as I understand they hard pull from TU.

Any advice or experience with Merrick or pay off of credit card charge off changing the CR fall off date is greatly appreciated!

Off topic, I want to thank all of you who post your APP/CLI results, advice for every credit issue, and helping those of us to rebuild. As well as, giving us hope by seeing the results of your labors to arrive at your scores and credit limits!

RobertEG · ‎01-30-2014

If they wont do a PFD, the next best option is a settlement for less WITH their agreement not to report that they settled for less than the full debt.

They are required to report paid, $0 balance if they accept payment as satisfaction of the debt, regardless of the amount they accept.

However, if settled for less, they can optionally report that fact to the CRA, which is always a negative comment, as it informs others that you did not pay the entire debt that you obligated. Thus, the creditor took a loss. Not a factor that is conducive to any future lending decision.

Get their agreement not to report paid/settled for less. It will then appear to anyone reviewing your CR the same as if you had satisfied the entire debt.

You then have the real benefit of no longer having an unpaid, delinquent debt in your history that can come back and bite you.

LifeSAVERS · ‎01-30-2014

Thank you RobertEG..Speedy!

I will first send a letter requesting a written agreement for a PFD, than if needed, follow up with a request for an agreement for settlement for CRA report of $0 due and Paid (without "settled" note).