Merrick Bank told me my account was Charged Off - so I hung up

[RichieRich2]

Did I do good with that? So, for the last month or so, I've been getting emails from a company called January.. yes, like January Jones. That's the name of the company, first month in the year January. I was confused because they said they were collecting for Merrick. I had set up a payment plan with Merrick that closed my account sometime over the summer. Life ensued, and I was not able to pay Merrick again. 

 

Which brings me to the leading statement. I called Merrick after trying to log in on their site at the number they gave me. So now it's not just closed, it is charged off. This must have happened in the past month or so.

 

So, if January is a debt collector.. I haven't done this in a very long time. I know it means I no longer need to pay them the full balance, since they bought my account for pennies on the dollar. And while I don't know how many pennies on the dollar, I am most inclined to follow the advice of offering them 20% of the balance and see their counter or if they accept.

 

I have not responded to their e-mails.

 

So, I am asking.. what is the best way to attack this? They do say they are "collecting for Merrick" and Merrick just told me my account is charged off. So, since the cheapest route to getting rid of them wins the day.. what should I next do?

 

This is all recent in the last month or two and I am rusty. Can't remember the last time I had to deal with a collection agency. After this I have just one more to do and I'm looking good...

[CreditSucksNot]

6 hours ago, RichieRich2 said:

I haven't done this in a very long time. I know it means I no longer need to pay them the full balance, since they bought my account for pennies on the dollar.

 

You really haven't done this in a long time.  That is NOT what it means.  What a junk debt buyer (JDB) pays for the account is irrelevant.  They step into the place of Merrick and the entire balance is still legally owed.  They can sue you for the balance and get a judgment.

 

6 hours ago, RichieRich2 said:

I am most inclined to follow the advice of offering them 20% of the balance and see their counter or if they accept.

 

Depends on if they are a debt collector for Merrick or a JDB that actually owns the account.  There is a MAJOR difference.  The problem you have is that settlement is about leverage and you have none because if the account was charged off recently that means the SOL for a lawsuit is still active and they stand to do better with a judgment.

 

6 hours ago, RichieRich2 said:

They do say they are "collecting for Merrick" and Merrick just told me my account is charged off.

 

If they are collecting "for Merrick" then they are a collection agency NOT a JDB and they do not own the account; therefore do not have to settle for "pennies on the dollar".  Charged off is merely an accounting term and does not have any effect on your owing the debt.  It is a status for Merrick indicating the account is no longer an asset and is now a liability.

 

Edited to add:  I googled "January" and they are a legitimate BBB accredited debt COLLECTOR.  They do not buy accounts they are hired to collect on behalf of creditors.

 

6 hours ago, RichieRich2 said:

So, I am asking.. what is the best way to attack this?

 

If you want to settle make them an offer.  They either accept or reject it.  If rejected you can keep negotiating until a mutually agreeable number is achieved or they drop it, or simply refuse to settle and sue you.

Edited September 21, 2025 by CreditSucksNot

[Flyingifr]

Richie - Before you contact them let's go over your strengths and weaknesses in the collection business. In order to be able to help. we would need the following information from you:

 

Your State of Residence 

 

How much you owe (Round to the nearest  $100)

 

Your sources of Income (Be general, give out terms like Employment,m Pension, Social Security, SSDI, etc and the amount you get from each rounded to the nearest $100)

 

Do you have funds in a bank or brokerage account? Again, be general, and indicate whether it is a Retirement Account such as IRS or 401K or not.

 

A list of your other debts, also rounded to the nearest $100

[Why Chat]

Flyingifr gives good advice-- however---it may also be to your advantage to review the EXACT status of your account with Merrick. 

 

What KIND of account did you have with them? Credit Card?? if so what was the last statement you received-- ie did it show the account as closed?? If so ,what was the effective date of closure. When EXACTLY was your last ON TIME PAYMENT?  ( and of course answer "Flying's" questions.)

[Flyingifr]

Why Chat is looking at the FCRA expiration date for credit reporting, I am looking at the collectablity of the debt. BOTH are important.

[Why Chat]

15 hours ago, Flyingifr said:

Why Chat is looking at the FCRA expiration date for credit reporting, I am looking at the collectability of the debt. BOTH are important.

No I am looking for the SOL date for being sued. Some  States  have a 3 year SOL

[Flyingifr]

I think we are both looking for that. I live in on of the 3 year SOL States.

[RichieRich2]

Hi everyone!!! Sorry for the delay on an update. You have all helped out immensely. And it was a credit card, so your typical "Revolver" type deal.  I'm also getting more familiar with my fifth amendment right to remain silent.

 

That said,  And again given what I've shared, I went on the computer link since I saw that it wasn't just some scam company and that they actually service Merrick accounts (again,  We are on the razor's edge of how I was about 4 or 5 years ago or so and I didn't want a repeat of it so I'm doing what I can. With debts and charge offs and collections. Never again.)  So I went on their website and talked to their computer. The computer was able to knock off about $400 and left me with $660 to pay over 6 months. So it was a good outcome.

 

 

[Flyingifr]

18 hours ago, RichieRich2 said:

Hi everyone!!! Sorry for the delay on an update. You have all helped out immensely. And it was a credit card, so your typical "Revolver" type deal.  I'm also getting more familiar with my fifth amendment right to remain silent.

 

That said,  And again given what I've shared, I went on the computer link since I saw that it wasn't just some scam company and that they actually service Merrick accounts (again,  We are on the razor's edge of how I was about 4 or 5 years ago or so and I didn't want a repeat of it so I'm doing what I can. With debts and charge offs and collections. Never again.)  So I went on their website and talked to their computer. The computer was able to knock off about $400 and left me with $660 to pay over 6 months. So it was a good outcome.

 

 

Fifth Amendment only applies to criminal actions, and then only when the questioning is done by the Government. In civil actions, your right to remain silent is even more protected, because the Government can detain you and even arrest you, a Civil Debt creditor has none of these powers.

 

Word of advice - get the $660 offer in writing before you send any money. Creditors have incredibly long memories when you owe them money, but when it comes to any kind of settlement, they develop amnesia real quickly.

[RichieRich2]

On 10/10/2025 at 8:52 AM, Flyingifr said:

Fifth Amendment only applies to criminal actions, and then only when the questioning is done by the Government. In civil actions, your right to remain silent is even more protected, because the Government can detain you and even arrest you, a Civil Debt creditor has none of these powers.

 

Word of advice - get the $660 offer in writing before you send any money. Creditors have incredibly long memories when you owe them money, but when it comes to any kind of settlement, they develop amnesia real quickly.

 

I thought we were told e-mails and digital now count as writing? All I know is I knocked $430 or so off my debt and I'm as happy as a pig in maneur.

 

I thought "January" was fake at first but I'm in a better place now!

[RichieRich2]

I'm in Tennessee but I already cut the deal to reduce the amount of so I am okay with my progress here.

[RichieRich2]

I am doing pretty well. Proud of myself. Would you like to know more?