How to Resolve Debt With CardWorks Servicing

CardWorks Servicing confuses many consumers. People wonder if they’re a bank, debt collector, or something else.

CardWorks, Inc. is the parent company of Merrick Bank, CardWorks Servicing, and Carson Smithfield. CardWorks Servicing collects debts for creditors across the country.

The company claims nearly 35 years in business. Their BBB profile shows a dismal 1 out of 5 stars. Consumer complaints paint a troubling picture of their practices.

Common Consumer Complaints About CardWorks

Most complaints focus on three main issues:

• Failing to identify as a debt collector during communications
• Falsely claiming to represent the FDIC, a government agency
• Using misleading tactics to collect debts

Google reviews average 3.8 stars. Most positive reviews come from CardWorks employees. Consumer reviews tell a different story with much lower ratings.

CardWorks must follow strict rules when contacting you. The Federal Trade Commission enforces these regulations. You can file complaints if they treat you unfairly or abusively.

CardWorks May Violate Federal Law

The Fair Debt Collection Practices Act protects you from abusive collectors. CardWorks violates the FDCPA when their collectors:

• Lie to you about the debt
• Fail to identify themselves as debt collectors
• Call you repeatedly to harass you
• Contact you after 9:00 pm or before 8:00 am
• Use profanity or call you names
• Make threats against you
• Share your financial details with unauthorized people

You could receive compensation for FDCPA violations. Filing a countersuit could earn you up to $1,000 per violation. Our partner Solo helps you respond to debt lawsuits effectively.

Send a Debt Validation Letter

CardWorks often claims they’re not a debt collector. Then they read you the Mini-Miranda statement anyway.

The Mini-Miranda confirms you’re dealing with debt collectors. Your best response is sending a Debt Validation Letter immediately.

A Debt Validation Letter requires CardWorks to prove the debt within 30 days. They must stop contacting you if they can’t validate it. Many collection agencies give up after receiving this request.

Send your Debt Validation Letter to:

Make sure to send it certified mail with return receipt requested. You need proof they received your letter.

Stop CardWorks From Contacting You

You don’t need to tolerate debt collector calls. A Cease and Desist Letter stops contact immediately.

The letter states your intentions and demands they stop calling. Send it certified mail with return receipt requested. Once they receive it, CardWorks cannot contact you to collect the debt.

They can only call about specific legal action they plan to take. You’ll gain peace of mind and focus on what matters.

Request to Pay Your Original Creditor

You have options even after debt goes to collections. You’re not stuck dealing with aggressive collectors.

Contact your original creditor’s customer service department. Ask to pay them directly instead of CardWorks.

Request a repayment plan that fits your budget. The creditor may accept or deny your request. Acceptance ends CardWorks’ calls and restores your peace of mind.

Report Misconduct to Authorities

You can report CardWorks misconduct even without an attorney. File complaints with the BBB, FTC, and Consumer Financial Protection Bureau.

Visit CardWorks’ BBB profile to read other consumer experiences. Your report helps protect others from similar treatment.

Recognize CardWorks Contact Attempts

CardWorks operates from 101 Crossways Park Dr W, Woodbury, NY 11797. They use multiple phone numbers to reach consumers:

1-800-267-2256
1-800-727-3348
1-516-576-0404
1-516-576-8720
1-866-889-9179

Phone numbers may change or expand over time. CardWorks may use additional numbers not listed here.

Your first step should be sending a Debt Validation Letter. CardWorks gets 30 days to prove the debt belongs to you. They must provide legal documentation showing all account information is correct. Errors or inconsistencies could eliminate your liability.

Respond to a CardWorks Lawsuit

CardWorks filed a lawsuit against you for debt. You must file a written Answer in court to defend yourself.

Follow these six tips for drafting a winning Answer:

Don’t Tell Your Whole Story

The burden of proof falls on CardWorks, not you. You don’t need to explain everything in detail. Over-explaining can actually hurt your case. Let CardWorks prove their claims. You just respond to each claim in the Complaint.

Deny Most Claims

Attorneys recommend denying as many claims as possible. Denying forces CardWorks to prove everything with documentation. CardWorks will likely dismiss the case if they lack evidence.

Include Affirmative Defenses

State your affirmative defenses in a separate section. These give reasons why CardWorks has no case against you.

Common affirmative defenses include:

• The debt passed the statute of limitations
• You were sued in the wrong state or county
• You never received proper Summons notification
• CardWorks lacks standing to sue you
• The debt amount is incorrect

Use Professional Formatting

Your Answer needs clean, professional presentation. Use standard font, font size, and formatting. Include a caption with court information, parties, and case number.

Add Certificate of Service

The certificate of service proves you sent the document. Include the address used and delivery method. Certify you sent the Answer to CardWorks’ attorney at the address on your Summons.

Sign Your Answer

Courts require your signature at the end. Without it, courts will reject your Answer. Check if your court accepts electronic signatures or requires handwritten ones.

Our partner Solo makes responding to CardWorks lawsuits straightforward and affordable.

Negotiate a Settlement With CardWorks

Settlement often costs less than the full debt amount. CardWorks may accept 40-60% of what you owe.

Get everything in writing before making payments. The agreement should state the settlement amount and confirm full debt satisfaction. Never agree to payment terms over the phone without written confirmation.

Settlement affects your credit report. The account will show as “settled” rather than “paid in full.” Settled accounts stay on your credit report for seven years.

Know Your Rights Against CardWorks

Federal law protects you from abusive debt collection practices. CardWorks cannot threaten, harass, or deceive you.

Document every interaction with CardWorks. Keep records of calls, letters, and voice messages. These records become evidence if you need to file complaints or countersue.

You control how and when collectors contact you. Exercise your rights to stop harassment and take back control of your financial life.