Cardworks Servicing - Is this a collection agency?

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.

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.

:)

i just posted a request for an addy as the one above doesn't match anything i provided so thought maybe someone had tome new info? just in case. if dv letter doesn't get where its supposed to then no good.
also about this irs thing....can someone show me the actual "law"/statue about this? please read my new post of june 1, 2009 too.
i am just thinking that they have come up with a new tactic to scare people. it almost sounds to me and of course i could be wrong, that they have "turned around" with tricky wording the requirements so to speak, for the banks/credit card co.'s to report forgiven/written off debts. i mean i know about 1099's and they are like W2's basically for people that are not provided W2's, like self employed people, etc. to show profit/wages.
why would we have to treat old debts as wages? we add that on to our wages now? thats ridicuolous!
any one know??
thanks

I did research regarding the company and Form 1099C which is the form everyone is referring to. The information CardWorks gives in their letter is legit.

One more thing regarding Form 1099C it's not for individuals to file it's for financial instutitions, etc. to file only.

There is some info on this here: "http://www.merrickbanksucks.com/"

From the IRS, on the 1099C. If you can prove insolvency (your debts are larger than the value of your assets) then you could file for an exception (that linked form will tell you how). The reasoning is that the creditor wrote the debt off on their taxes so the IRS wants to collect those "missing" dollars.

According to the FDCPA, if a collector appears to be a separate company, then they are considered a 3rd party collector. For example, FIA Card Services is part of Bank of America, but they do not mention that on their letterhead so they are considered 3rd party. See Section 803 [15 USC 1692a(6)] of the FDCPA.

I am been paying cardsworks with some little coupons they provided. The coupons ran out, so I was waiting thinking they would send more. I call today and the lady was very direct and said they wouldn't send anymore coupons. She said she'd take the payment over the phone. I asked for the address and she didn't act like she liked it. She said she just wanted me to let me know it my account was two months behind. When I said I was waiting for more coupons she said I should have called. I said I am callng right now. She then said don't scream at me. I said I didn't scream at you. She gave me the address very quickly, so I didn't get the whole thing correctly....anyway they aren't the nicest people to deal with there.......

We were contacted by Cardworks Servicing about 6 months ago due to an unpaid amount on a Merrick Card of my husbands. We were informed that the card had been charged off due to non payment. My husband lost his job a little over a year and a half ago and it has been very difficult for us to keep up with our bills. He has a part time job now that pays no where near what he made previously, and I also work part time. We are managing to pay our bills and have arranged payment plans with some accounts. We have tried to do everything right by contacting our creditiors and cutting back on almost everything. Cardworks Servicing was one of those arranged payments that we made. Since contacting us 6 months ago, we are paying monthly payments on time which we mail to Merrick Bank! I was told by Cardworks when they initially called that they were a division of Merrick Bank. They offered us a 0% interest if payments were made monthly, which they have been. Recently, they have been calling again and not leaving a message. I spoke with a woman from Cardworks this morning briefly. She was extremely rude, asked for my husbands social security number which I did not give out because they should already have that and then she asked for my social security number. I refused to give it out and told her that my name is not on that account that it is an account that my husband opened in his name only and I will not give out my SS number. She became very rude, told me I had to give it to her since I offered to speak with her about the account. I still refused. I was told by the financial counselor that we are seeing that I do not have to speak with anyone who becomes argumentative and rude on the phone and to just hang up, which I did. I do have the telephone number of the man from Cardworks Servicing that I spoke with initially who was very nice. I attempted to leave a message on his extension, however his mailbox was full. I will call again later today, but I am now concerned that the offer they originally gave me was a lie. I do not have anything in writing from them that I am receiving 0% interest. They did initially offer a settelment when we made the arrangements to make monthly payments, however we were not in the position then nor are we now to take advantage of that offer. Not sure what to do when I call them or what they want they are definitely a C/A and I hope we have not been mislead.

I was doing a random google search and came across this forum.. as a former employee I thought I could share some insight.
Cardworks Servicing, is a division of Cardworks, which is the parent company of Merrick Bank. Cardworks has many different divisions . . Cardworks Servicing basically is just collections/customer service for both in house Merrick products.. and other bought accounts. Most of the Merrick accounts we called in collections are still open accounts.. they were not sold to Cardworks. I guess technically under the law it is a third party.. but its still one in the same. When we called accounts outbound collections.. we always identified as Merrick Bank.. not CardWorks Servicing.. depending which number you called inbound, you'd either get Merrick Bank, or Cardworks.. possibly even card holder management center (old name).
As far as not leaving messages.. we never did.. very very rarely, and if we did.. it would just be a generic message saying something like "This message is for mr. smith regarding a personal matter.. please call us back at xxx-xxx-xxxx." No one ever calls back to those messages.. so no, we usually never left one.
As far as the 1099 form.. thats for settlements and charged off accounts.. when you settle a balance the remainder of the unpaid balance is still charged off.. meaning basically the bank is eating that money, or "giving it to you".. if its over $600 its legally considered earned income and you must file taxes on it.

Do NOT do any business with (HARTFORD CASUALTY INSURANCE COMPANY) they are tied in with these clowns--Hit them were it HURTS. AND IF EVERYONE STOPS GETTING OR USING CREDIT CARDS THESE JERKS WOULD BE OUT OF BUSINESS. THE GREAT AMERICAN CREDIT CARD BLACK-OUT IS COMING SOON!!!!!!!

I wish people would stop using credit cards.