Please review my PFD/Settlement letter to Merrick?

[LearningToFly]

Here is the letter I propose sending to Merrick to get the charge-off removed or changed to a more agreeable status (still with Merrick not a CA, still showing a huge balance, unbudged by previous attempts at validation, Jack Attack, and numerous attempts to get removed via CRA disputing channels). Still within SOL for another year or so and I am in the process of cleaning up the last few negs on my account in prep for apping for a mortgage later this year so it will have to be removed or paid before then. Let me know what changes you think I should make before sending. Thanks in advance.

 

 

Re: Account Number XXXXXXXXXXXXXXXX

Reporting amount: $1418.00

Dear Collection Manager:

 

I recently pulled copies of my consumer credit reports and found a charge-off account listed by Merrick Bank. Please understand that this letter is not an acknowledgement of this debt as I have not received any documentation verifying that I in fact owe what you state I owe. This letter is an attempt to resolve this matter to our mutual benefit.

The charge-off item on my credit reports states an outstanding balance of $1,418 on an original balance of $1,000. I propose the following arrangement to resolve this matter:

(a.) I will pay the amount of $450 within 45 calendar days of your dated response
(b.) You (Merrick Bank) consider this account settled and paid in full and agree not to sell, trade, transfer, or otherwise pursue collection activity on any other amounts associated with this account
(c.) You (Merrick Bank) remove all entries of this account with all credit reporting agencies (Experian, Equifax, Transunion, etc.). I understand that the Fair Credit Reporting Act compels you to report accurate information should you choose to report. Alternately, if you will not consider removing this reporting;
(d.) You (Merrick Bank) agree to change the reporting status on this account to “paid in full; closed by credit grantor” and remove the notation of charge-off.

Please send your written response agreeing to these terms by private fax to XXXXXXXXXX, or via email at XXXXXXX@XXXXXXXXX.XXX or or via postal mail to the address listed in the top of this letter.

Thank you for your time. I hope you are open to the aforementioned arrangement and we can settle this matter quickly in a mutually beneficial way.

Edited February 13, 2013 by LearningToFly

[LearningToFly]

bump

[Hayday0502]

Merrick is a tough nut to crack.. They will not do a PFD but they will do a settlement.

 

Well at least that was my experience and I fought back and forth with them for almost a year

[548ficoNtexas]

Merrick is a tough nut to crack.. They will not do a PFD but they will do a settlement.

 

Well at least that was my experience and I fought back and forth with them for almost a year

+1

[ubermama]

Well written. Hope you don't mind if I try this with my tough nut.

[LearningToFly]

Hayday & Texas, yes that's what I've read here extensively - that they do not really give an inch, but I have to give it a try. This is killing my utilization, and I'll need it paid at least when I'm ready to app for mortgages.

ubermama, you're welcome to paraphrase the format (I've combined several letters I've found through different sources online).

I'll update this thread and let you all know what the outcome is.

[Hayday0502]

Hayday & Texas, yes that's what I've read here extensively - that they do not really give an inch, but I have to give it a try. This is killing my utilization, and I'll need it paid at least when I'm ready to app for mortgages.

 

ubermama, you're welcome to paraphrase the format (I've combined several letters I've found through different sources online).

 

I'll update this thread and let you all know what the outcome is.

 

I will say that once I settled and had a 0 balance my utilization did improve a lot.. And that was without a PFD.. It was the last thing I needed to do to get my mortgage thru the final stages of underwriting.

 

Good Luck!

[LearningToFly]

I did not receive any response whatsoever to my PFD so I'm taking another tack. If it works I'll update this post with full details.

[Hayday0502]

Good Luck..In my experience they would not do the PFD but they would settle the debt.

[LearningToFly]

Okay, PFD to Merrick was met with no response. I also sent a PFD to CardWorks which was also completely ignored.

Does anyone who has done a settlement with Merrick / CardWorks have any suggestions for me? I plan on following up my PFD with a settlement offer. Successful offers I've read here have been in the 40% range, and I'm trying to decide if I should offer based on the original $1000 limit or if I should base my initial offer on the $1418 balance? How low should I start?

Thanks in advance for any input.

[LearningToFly]

Also emailed a CS Exec at Merrick asking them to 'please assist me in finding the right contact to help me' and that was met with no response.

So those who have settled with Merrick (no PFD, just straight up paying to get a paid notation), how did you get a settlement? I'm hesitant to call because... well... I've been reading this forum and the phone is scary.