Cardworks Servicing - Is this a collection agency?

Does somebody know if this is a third party CA? I'm getting mixed responses from them. They say they work for Merrick Bank, but yet give the mini miranda and say Merrick Bank sent account to them in July. They want me to pay to keep it from an outside agency but calls the outside agency "our" agency. Don't know whether I should DV them or not? The number is 866-210-9498. Thanks!

If they're reading you the mini-miranda, then they are likely a 3rd party. The OC's in-house collections would not need to recite the mini-miranda.

Straight from their website: "CardWorks is a focused servicing company that helps bankcard issuers across the country mitigate risk, increase profitability, and support their customers."

So, I'm willing to bet, based on the fact they have clients "across the country" they are third party. I would DV them.

Here's the link to their website if you're curious.

http://www(.)cardworks.com/

remove the () from around the . to make the link work.

I found this too that says that CardWorks is parent company of Merrick Bank. I asked them if they are a third party CA and they say no but then will contradict themselves so I'm not sure. Anyway they're sending me something in writing so will just go ahead and DV.

CardWorks Servicing

CardWorks Servicing, LLC, previously CMS, was founded in 1987 to provide servicing, operational support and portfolio management to credit card issuers and acquirers. CardWorks Servicing is now a nationally recognized, leading servicer of credit cards, national debit cards,pre-funded cards and other unique card products and is the largest privately held servicer of MasterCard(R)/Visa(R) cards. As a subsidiary of CardWorks, Inc., CardWorks Servicing, LLC provides third-party customer
service, collections, risk management, and portfolio management.

About CardWorks

CardWorks, Inc. is the parent company of CardWorks Servicing and Merrick Bank. CardWorks Servicing continues to experience exceptional growth as the premier third-party servicer of credit cards, and Merrick Bank is recognized as a premier issuer of non-prime credit cards.

Well as I understand it, and someone correct me if I am wrong, if they aren't doing collections under the name of the issuing CC, then they are a third party collector. They would have to have a CC under the name of "Cardworks Servicing" or be operating under the name "Merrick Bank" to be considered an OC.

Merrick Bank is an actual credit card, I have seen them advertised. So instead of "Cardworks Servicing" they would have to be answering the phone with "Merrick Bank" when you call them in order for it not to be third party. I have not, however, ever heard of a Cardworks Servicing Visa or MasterCard. So unless they are doing collections under the name of the credit card they are attempting to collect on, they are third party.

Even if they are the "parent company" of Merrick Bank.

Again, if I'm giving out bad information someone please correct me.

Good points FloridaRon, also what Nascar says about the mini miranda. I think they're trying to skirt around the fact that they are a third party CA. When they call, they just leave an automated message to call a number, never leave their name. If they're the OC, why would they do that? They're very slippery. Will wait for the letter they say they are sending and am going to treat them as a third party CA. Thanks for your responses.

The only way they would be 'in house' is if they are the collection division of Merrick Bank, they would not have a separate name at all. Even if there is any confusion, you could DV them anyway and make them prove they are in house.

They're a 3rd party collector. They have a bond posted with the TX SOS:

Principal Name: CardWorks Servicing LLC (fka Cardholder Management Services LLC) # 2

Address: 101 Crossways Park West
Woodbury, NY 11797
File Number: 20040177
Status: Active
Date Filed: 9/24/2004
Cancellation Date:
Phone:
Bonding Company: Hartford Casualty Insurance Company
Bond No: 12BSBDO7053

I would recommend that you go ahead and DV them anyway; don't wait for a letter from them. Since it seems they are a third party CA, they are required by law to provide you with their mailing address when you ask them for it. Or, you could just go ahead and get it from the website I posted the link for.

It has been my personal experience with some CA's (Il-Legal Mediation Mal-Practice is one) that you might not get that written notification. Or, if you do get it, somehow miraculously it will not arrive until after your 30-day right to dispute time frame has run out.

How convenient.

In other words when they say they aren't a collection agency, they'are lying.

Just called and asked for their address. They gave me:

Cardworks Servicing
ACS Lockbox Department
1000 Woodbury
Woodbury, NY 11797

and/or

Merrick Bank
P.O. Box 5723 or 5721
Hicksville, NY 11802

Now I'm totally confused. I just have a feeling they're being deceptive on purpose to get around the law.

I imagine you could still send your payment to Merrick and they would forward the CA's % to them.

Funny how they manage to give you the lockbox addy; so you have it convenient for mailing in payments. A DV letter to that address would conveniently "get lost", I'm sure. I checked their website and noticed their addy is conveniently left of there too.

Isn't that special.

I did a little digging and google-ing and came up with the following contact info:

CardWorks Services, LLC
101 Crossways Park West
Woodbury, NY 11797

Phone: 877‐487‐5583
516‐576‐0404

Fax: 516‐576‐3191
516‐576‐0194

Have fun.

Oh, and even found job advertisements for them too. If you're interested.

Looks like the have locations in PA as well as NY.

Option 1: Lump Sum. Will consider account settled, in full, if you pay 60% of the o/s balance.
Option 2: Extended payment option. Spread over 36 months.
After settlement is complete (for both), Merrick Bank will forgive any remaining balance and report to the credit bureau agencies the account has been settled.
Q. Will remaining balance be reported to the IRS via 1099?
I intend to question before participating.

1099's are kinda new to me still, but from what I have gathered, anything left over after a settlement is higher then $600 then they have to report that balance.

So, if the 'forgiven' portion is $600 or higher, it has to be reported to the IRS.

Makes you not want to do a settlement anymore.