• Report:  #39105

Complaint Review: Merrick Bank - Draper Utah

Reported By:
- Dallas, Texas,

Merrick Bank
PO Box 5721 Hicksville, NY 11802-5721 Draper, 84020-5000 Utah, U.S.A.
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Merrick Bank took over NextCard Visa a few months back. When I received my first statement from them, my interest rate not only shot up from 18% to 29.7%, but this also added almost $200 on top of my balance. They also include a $10 monthley fee on each statement as well.

This is not only a rip-off, but it keeps people from being able to actually pay off their debt. There are unneccessary charges that they're attaching for the benefit of themselves.

I called twice and asked if there was any way they could lower my interest rate so that I may pay off my debt much sooner, but I was informed that Merrick Bank took over quite a few Nextcard accounts and that there were too many for them to sift through to determine who gets what interest rate.

They told me to call back, which I did and they still aren't able to lower my rates. Isn't there some law that this is breaking? I can't imagine a credit card company just raising your APR when you've been good on payments. I can understand maybe raising it a little, but adding all types of fees and raising the interest to a ridiculous amount is not only overwhelming, but it makes me feel like I've been taken advantage of.

Does anyone know if there are some legal issues at hand, and if so, what are they and what rights do I, as a consumer, have? Please help!


Dallas, Texas

1 Updates & Rebuttals


West Springfield,
Be fully prepared before you call Merrick

#2Consumer Suggestion

Fri, December 27, 2002

Gather all your records showing at least one year of on-time "Paid as Agreed" history with NextCard, AND pull your credit report off all three credit reporting agencies. Make photocopies of all this information and Mail to Merrick in a certified letter. Include an introduction letterhead, asking for an account review and reduction in your rates based on your (a) good credit and (b) proven history of on-time payment. Don't forget to include copies of your credit reports and copies of your canceled checks and NextCard statements. COPIES.. Not originals. Send a copy of your letter to Merrick (and the attachments) to your local Attorney General's Office of Consumer Affairs. In this letter, complain about Merrick's interest rates as "predatory lending" ( use that exact phrase )and line out all your account numbers, address and SS number. Better safe than sorry. Merrick did finally reduce my interest rate substantially after reviewing my history. It's still not below 9.9% where my other cards are, but it's much better than the 29.9% APR I was hit with. Be persistent. It took several follow-up conversations with Merrick Bank people to get this done. They all were most pleasant to deal with, but they move very slow. Merrick Bank may and can still refuse to drop your rates based on your total debt to income ratio, but if you show them in writing that you have "good" credit and a proven history of paying on-time, they should at least set your account up for a review. It won't hurt to point out that their NextCard takeover interest rates are higher than the rates they give to "C" credit Secured Card holders as published on their web site. One final comment.. Mail your payments to Merrick the day you get the bill. Merrick takes a LONG time to post payments. From where I live in MA, 12 working days from day of mailing on average.

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