I'm almost in tears I feel so powerless

[bunyan]

All,

I have been approved for a mortgage blah blah blah. I simply needed to have one collection showing a zero balance on my Credit Report. Unfortunately it was with Merrick Bank. Looks like they changed their name to or hired CardWorks Servicing to collect. At any rate I called them yesterday, they agreed to accept 50% and the account would be paid off. So I gave them my checking account number, and they took the 50% out of my account and said they would fax me a receipt.

 

So I check my fax today and this is what I have

 

SO I call CardWorks, speak with Mr. Brooks, and Lynn. I ask him to send me something showing the account will be paid in full, and he said I will not get that until I pay the remaining balance. I said once I paid the 50% it was supposed to be considered paid in full, and according to this letter I posted I am thinking that is correct.

 

Can someone else give me their opinion? I mean the letter I received clearly states that if I pay 50% the debt will be settled in full and the person I spoke with on the phone clearly told me my account would continue to be reported with the 50% balance until I pay the 2nd 50% which conflicts with the letter.

[MB82x]

Don't take my word for it but it looks like:

 

1) The account should show up as a zero balance, possibly marked "SETTLEMENT" or "Paid 50% of Balance - Settlement" or something like that...

 

2) This won't have the account removed from your reports - not that it looks like you're going for that.

[x-large debt]

Technically it is not "paid in full" but "settled in full" two different terms. Ask your home loan officer if a "settled in full" is ok for them to approve your loan.

Edited February 5, 2009 by x-large debt

[improper_validation]

Looks like one payment of $980.58(3rd and 4th bullets) will get you a 'Account Settled in Full(first para)' on your CR. Contact the state AG and local BBB if they don't stick with what they originally told you.

Edited February 5, 2009 by wcnghj

[jack1212]

1. stay off the phone here.

 

2. YOU should also have demands. These negotiations are NOT a one way street. If you dont agree with something, let them know.

 

3. Expect your bank account to be wiped clean if you dont change it.

 

4. If you dont have the letter in your hands that YOU agree with, there is NO DEAL. period.

 

 

jack.

[jack1212]

Also, i assume they know you are house shopping?

 

If so, they will be harder to deal with.

 

You can still get through it, it's not impossible.

 

Hang in there.

[chi]

1. stay off the phone here.

 

2. YOU should also have demands. These negotiations are NOT a one way street. If you dont agree with something, let them know.

 

3. Expect your bank account to be wiped clean if you dont change it.

 

4. If you dont have the letter in your hands that YOU agree with, there is NO DEAL. period.

 

 

jack.

I agree with everything jack posted (naturally )

 

Change your bank account ASAP.

[Lynn37]

Sorry bout this, My sister fell from the same CA scam. Settled is not the same as paid.

 

The only saving grace you have is that they said they will forgive the reaming balance. I would ponce all over that

 

I know you want your mortgage, But there is no way to prove the zero balance. Since they fax, I would have been faxing agreements and the terms of it, and not on the phone.

 

Time to play hard ball

[Melanie2009]

Hang in there.

[DragonFlyer]

Expect a 1099 for the remaining balance...but expect to only learn of it after the IRS notifies you that you failed to claim that as income.

 

I have a few "settled for less than full balance" accounts on my report with a 0 balance. One creditor was nice enough to send the IRS the 1099 but not to me. Then I had to pay penalties and interest for something that was reported done two years prior.

 

Right now, if I were you...I'd offer to pay the other 50% if they agree to DELETE. I only say that in light of the fact you are trying to buy a home.

[bunyan]

All,

Thanks for the kind replies. I spoke with my mortgage officer (He works for SunTrust) and he said he will give them a call in the morning. He said not to worry we will be fine, and he already gave my Realtor a pre-approval letter. Obviously I should have dealt with them through certified mail, etc but with time being of the essence I did everything by the phone. it's a crying shame that people who are trying to do the right thing get treated as such. And the supervisor I spoke with was so smug I get angry just thinking about it.

 

But that's ok, I'll see what happens in the morning...and I just checked with the Virginia Corporation Commission and I don't see them listed to do business in Virginia. I am thinking of checking with an attorney cousin of mine and seeing if I have a chance of taking them to small claims court to protest

 

#1 They are not honoring an agreement that any reasonable person would interpret as meaning that I would not be showing a balance

#2 their company is not even licensed to do business in Virginia, let alone go after their citizens with misleading claims and take their hard earned money

[bunyan]

Oh yeah! They already have the 50% payment. They got that today.

[JunkBuyersWorstNightmare]

#1 They are not honoring an agreement that any reasonable person would interpret as meaning that I would not be showing a balance

#2 their company is not even licensed to do business in Virginia, let alone go after their citizens with misleading claims and take their hard earned money

 

Never, EVER forget: 100% of collectors will lie 100% of the time.

[philly_mscl]

#1 They are not honoring an agreement that any reasonable person would interpret as meaning that I would not be showing a balance

#2 their company is not even licensed to do business in Virginia, let alone go after their citizens with misleading claims and take their hard earned money

 

Never, EVER forget: 100% of collectors will lie 100% of the time.

 

 

Did they also forget to tell you in the letter that when you gave your BAN to the collections agency, the 7 year credit reporting clock reset to 0...

 

 

So now this thing will be on your report for another 7 years.

 

 

 

It won't disappear off your reports until the year 2016.

[hurricanesfans27]

#1 They are not honoring an agreement that any reasonable person would interpret as meaning that I would not be showing a balance

#2 their company is not even licensed to do business in Virginia, let alone go after their citizens with misleading claims and take their hard earned money

 

Never, EVER forget: 100% of collectors will lie 100% of the time.

 

 

Did they also forget to tell you in the letter that when you gave your BAN to the collections agency, the 7 year credit reporting clock reset to 0...

 

 

So now this thing will be on your report for another 7 years.

 

 

 

It won't disappear off your reports until the year 2016.

 

 

there are ways to get rid of it much earlier than 2016.

[LKH]

#1 They are not honoring an agreement that any reasonable person would interpret as meaning that I would not be showing a balance

#2 their company is not even licensed to do business in Virginia, let alone go after their citizens with misleading claims and take their hard earned money

 

Never, EVER forget: 100% of collectors will lie 100% of the time.

 

 

Did they also forget to tell you in the letter that when you gave your BAN to the collections agency, the 7 year credit reporting clock reset to 0...

 

 

So now this thing will be on your report for another 7 years.

 

 

 

It won't disappear off your reports until the year 2016.

 

 

Really? Charge offs or collections can NEVER report for more than 7 years + 180 days PERIOD. Paying on a collection or charge off does NOT reset the time period for reporting. Where did you get that idea from?

[jack1212]

#1 They are not honoring an agreement that any reasonable person would interpret as meaning that I would not be showing a balance

#2 their company is not even licensed to do business in Virginia, let alone go after their citizens with misleading claims and take their hard earned money

 

Never, EVER forget: 100% of collectors will lie 100% of the time.

 

 

Did they also forget to tell you in the letter that when you gave your BAN to the collections agency, the 7 year credit reporting clock reset to 0...

 

 

So now this thing will be on your report for another 7 years.

 

 

 

It won't disappear off your reports until the year 2016.

 

 

Really? Charge offs or collections can NEVER report for more than 7 years + 180 days PERIOD. Paying on a collection or charge off does NOT reset the time period for reporting. Where did you get that idea from?

 

 

Prob another misunderstanding as to the Collections SOL being reset, and the 7 year reporting period SOL.

[frunk24]

Very bad idea to give them your checking/routing number over the phone. As already suggested, get that bank account closed and open a new one ASAP.

[jack1212]

You should've paid by credit card , so you can file a charge back.

 

 

I dont feel that would be the best route...

[bunyan]

All,

I have checkd the Code of Virginia and found this little snippet

 

***********

Banks and other regulated financial institutions are exempt from the Virginia Consumer Protection Act, which this Office enforces. The Bureau of Financial Institutions (BFI) is a division within the Virginia State Corporation Commission. The BFI has jurisdiction over Virginia state-chartered financial institutions and certain out-of-state entities that have been granted authority to do business in the Commonwealth.

***********

 

I then read this from the same page

***********

It is important to remember that the BFI does not act as the complainant's attorney. It also does not have the power to adjudicate complaints. If a dispute turns on facts that do not involve a supervised entity's violation of a specific law or regulation (such as a matter concerning internal policies or guidelines) the BFI will advise the complainant about other ways to pursue the complaint, such as through consulting a private attorney and/or initiating a court proceeding. Check the BFI's FAQs for more information about banking issues and complaints.

 

The BFI does not have the authority to resolve complaints involving entities that are not under Virginia jurisdiction. Some institutions are regulated by federal government agencies. For example:

 

Commercial banks having the word "National" or using the title "N.A." (national association) in their title, are organized under and subject to federal law. Requests for information or complaints concerning these national banks should be directed to:

 

Office of the Comptroller of the Currency

Phone: 1-800-613-6743

 

Savings banks and savings and loan associations having the word "Federal" in their name or which use the initials "FSB" (federal savings bank), "FSA" (federal savings association), "FA" (federal association) or "FSLA" (federal savings and loan association) are regulated by the Office of Thrift Supervision, a federal agency. Inquiries or complaints should be directed to:

 

Office of Thrift Supervision

Phone: 1-800-842-6929

 

Federally regulated credit unions are similarly identified by the word "federal" in their name. Inquiries and complaints concerning federal credit unions should be directed to:

 

National Credit Union Administration

Phone: (703) 518-6300

 

If the complaint relates to a mortgage loan that is secured by a property outside of Virginia, you should contact that state's banking authority.

************

 

So it looks like...if the CA is Nationally chartered then VA has no jurisdiction...Now what constitutes Nationally Chartered would be my next question. It appears in the text above they try to define certain things but of course there is nothing specifically for an agency such as CardWorks.

 

I guess my next step would be to see if they are Registered in Pittsburgh or locally. They did tell me they used to be Merrick Bank but they changed their name (Likely story lol)

 

bunyan

[jack1212]

FTC

[bunyan]

FTC

 

You're saying FTC can tell me if they are registered?

[jack1212]

Here's what i was reading recently.

 

It tells who regulates which CU's/Banks

 

http://www.ncua.gov/ConsumerInformation/Co...mplaintmain.htm

Edited February 6, 2009 by jack1212