Merchants Credit Guide
Unlawful refusal to provide written balance history, Unlawful refusal to mail any payment acknowledgements, Dishonest reporting of actual interest being charged ripoff

On about March 15, I received a letter from a Merchants Credit Guide, Chicago, Illinois. I was informed that they were now representing NCO Financial Systems, who had purchased a defaulted account with Citibank. The last time Citibank had contacted me, they had closed my credit card account with a balance of roughly $4500.

The above (3-15-05) letter told me my outstanding balance was at $9115.40.

On about March 21, I spoke with a representative over the phone who verified the amount written in the letter. That same letter had given me an option to fill in an amount "affordable to me at this time." I promised to pay $75 per month, to reach them by the 15th of each month, "until my account is paid in full."

On May 25, after having sent 2 timely payments to MCG, I decided to call them because they never sent back any acknowledgement of payment, nor an adjusted balance. (Both checks had already cleared my bank). I wanted to see what my new balance was.

To my shock and horror, the man from the company (it sounded like his name was "Miguel Herraro") informed me that my current balance was now $9180.93, or $65.53 more than my balnce on March 15th. He explained that this was due to interest. I asked him how I could have send his company $150 in payments since 3-15 and, intstead of having my balance reduced, my balance actually increased by $65.53, or, a $215.53 turnaround. He insisted this was due to the company's 14% APR figures.

I was incredulous and let him know so, and furthermore, asked him how in the world I would ever be able to pay this debt. He then replied (after putting me on hold for 4 minutes) that as of 5-14-05, the day after they had received my last $75 payment, that as a courtesy the company is no longer charging me interest on this balance. I still found him less than credible, and especially so when, for my sake of peace of mind about this company's reputability, I asked him to produce for me a written daily record of my balance with his company for the past 60 days. He flatly refused.

I am dealing with a company that gives no written acknowledgement of payments, sends no written statements of current balances, and makes phone promises that they will not back up in writing. To my further horror, I am now being made aware through "usacomplaints.com" that other consumers have been subject to fraud through this same company, with at least one person serving prison time because of their fraud!

Please help me by telling me what to do next!

Company: Merchants Credit Guide
Country: USA
State: Illinois
City: Chicago
Address: 223 W. Jackson Blvd
Phone: 8882491033

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