If Carson Smithfield has appeared on your credit report or is calling you, the debt is almost certainly a Merrick Bank credit card account. Carson Smithfield is a subsidiary of CardWorks, which also owns Merrick Bank, and court records confirm Carson Smithfield collects consumer credit card debt primarily for Merrick Bank.
Two class action lawsuits alleged that Carson Smithfield’s settlement offer letters were misleading about consumers’ right to dispute the debt. This guide covers who Carson Smithfield is, what those cases mean, and how to respond.
Who Is Carson Smithfield?
Carson Smithfield, LLC is a third-party debt collection agency that is one of three subsidiaries under CardWorks, Inc., alongside Merrick Bank Corporation and CardWorks Servicing LLC. CardWorks was established in 1987 and was acquired by Ally Financial, Inc. in 2020, making Ally the ultimate parent company.
Carson Smithfield is not BBB-accredited and holds a B- BBB rating with 78 complaints in the past three years. The company collects exclusively on behalf of creditors rather than purchasing debt outright.
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Why Carson Smithfield Is on Your Credit Report
Carson Smithfield’s primary client is Merrick Bank. Merrick Bank specializes in credit cards for consumers with limited or poor credit histories, and when those accounts go into default, Merrick typically refers them to Carson Smithfield for collection.
If you have had a Merrick Bank credit card and missed payments or defaulted, Carson Smithfield is the most likely entity to contact you. Confirming directly with Merrick Bank that the account was referred to Carson Smithfield and that Carson Smithfield is authorized to collect is a reasonable first verification step.
The Settlement Letter Class Actions
Two federal class action lawsuits specifically targeted Carson Smithfield’s collection letter language.
Sievert v. Carson Smithfield (E.D. Wis., 2016) and Vega v. Carson Smithfield (2017) both alleged that Carson Smithfield’s settlement offer letters confused consumers about the relationship between the settlement deadline and their 30-day right to dispute the debt under the FDCPA. The letters presented settlement offers with payment deadlines but failed to use the required “safe harbor” language explaining how the settlement deadline and the dispute right work together.
Courts have found that collection letters which create this confusion, suggesting consumers must act on a settlement deadline without clarifying that they can still dispute the debt during the same window, may violate the FDCPA. If you received a Carson Smithfield letter with a settlement deadline, preserve that letter. A consumer attorney can evaluate whether the language complies with current FDCPA requirements.
Settlement Offers Are Documented at 60 Percent
A letter from an actual Carson Smithfield case, filed in court records, shows a settlement offer of 60 percent of the outstanding balance as a one-time lump sum, or a monthly payment arrangement. This is consistent with what most Merrick Bank account settlements look like through Carson Smithfield.
Get any settlement offer in writing before paying. Confirm in writing that the settlement resolves the account in full, that Merrick Bank will show the account as settled, and what the credit reporting impact will be.
The CardWorks Servicing Parent Company Issues
CardWorks Servicing, the sister company to Carson Smithfield, has its own documented complaint patterns. Consumer complaints describe CardWorks Servicing representatives claiming to represent the FDIC, a government agency. Impersonating a government agency is an FDCPA violation. If anyone contacting you about a Merrick Bank debt implies they are calling from or representing the FDIC, that claim is false.
What Carson Smithfield Cannot Do Under Federal Law
The FDCPA applies to Carson Smithfield. Under federal law, they cannot:
- Send misleading collection letters about dispute rights: Subject of two class action lawsuits.
- Claim to represent the FDIC or any government agency: A documented CardWorks complaint pattern.
- Refuse reasonable minimum payment arrangements: A documented consumer complaint pattern.
- Call at odd hours: Contact is only allowed between 8 a.m. and 9 p.m. in your time zone.
- Continue calling after a cease-contact request: Written requests must be honored.
- Threaten arrest or jail: Consumer debt is not a criminal matter.
File complaints at consumerfinance.gov. New York residents can also file with the New York Attorney General’s Consumer Protection Bureau.
Verify the Debt Before Paying Anything
Send a written debt validation request by certified mail within 30 days of first contact. Ask for the original Merrick Bank account number, the balance at charge-off, and documentation confirming Carson Smithfield is authorized to collect on Merrick’s behalf.
Given that some consumers have reported confusion about whether they’re dealing with Merrick Bank or Carson Smithfield, getting written confirmation of the chain of authorization is worth the step.
How to Check Your Credit Report for Carson Smithfield Errors
Pull your credit reports from all three bureaus at AnnualCreditReport.com. Is the balance correct? Is it listed under Carson Smithfield or under Merrick Bank? Does the same Merrick Bank account appear under both entities as separate negative entries?
Any inaccuracy is grounds for a dispute with each credit bureau.
How Long Can Carson Smithfield Legally Pursue the Debt?
New York has a 3-year statute of limitations on most consumer debts. If you no longer live in New York, the relevant state is typically where you currently reside. Making a payment or acknowledging the debt in writing can reset the clock.
Your Options for Resolving a Carson Smithfield Account
Once you have verified the debt, consider your options:
- Contact Merrick Bank directly: Some consumers report being redirected back to Merrick when contacting Carson Smithfield. Merrick Bank’s customer service may be able to confirm account details.
- Negotiate a settlement: Documented settlements run at approximately 60 percent of the balance. Get any offer in writing before paying.
- Review any settlement letter for FDCPA compliance: Given the class action history, have a consumer attorney review the letter’s language.
- Dispute if inaccurate: If the account contains errors or appears as a duplicate entry, dispute with the credit bureaus.
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How to Contact Carson Smithfield
Handle all communication in writing whenever possible:
- Mailing address: Carson Smithfield, LLC, PO Box 9216, Old Bethpage, NY 11804
- Office address: 225 W Station Square Dr, Pittsburgh, PA 15219
- Phone: (877) 394-5975
Bottom Line
Carson Smithfield is Merrick Bank’s collection arm under the CardWorks/Ally Financial umbrella. Two class action lawsuits targeted their settlement letter language for FDCPA violations. Preserve any letter they send and have a consumer attorney review it before paying.
New York’s 3-year statute of limitations gives you earlier protection on older Merrick Bank accounts than most states provide.
Brooke Banks is a personal finance writer specializing in credit, debt, and smart money management. She helps readers understand their rights, build better credit, and make confident financial decisions with clear, practical advice.