Advanta Bank is not willing for debt settlement - what to do?

I have a $7600 still owed to Advanta and have been paying current with them. I still receive statments from them. Now that the FDIC owns them, do I need to remain paying off the debt or would any debt left over with them be written off?

Never late with Advanta,

Debts owed to Advanta's carcass are definitely NOT popped into nothingness like soap bubbles just because Advanta is tits up.

They are just owed to the FDIC. Which does not change their character from run-of-the-mill debt into governmental debt (the kind you can't discharge in bankruptcy or that has an administrative claim on your federal tax refund) ... and the FDIC is not in the collections business. FDIC will sell all the debt to someone. Most likely the performing debt owed by creditworthy borrowers will be sold to buyer A, and the nonperforming stuff will go to junk debt buyer B.

B may find out that the stuff is not that easy to sue on. But that remains to be seen.

Regards,
Anonymous

I am about 90 days late with Advanta. Just got the "draft" legal letter in the mail. Not really too concerned. I talked with them a few days ago and said I was putting together a settlement offer with the little tax return I was getting. They said to call them back. I am only offering 10%. Has anyone's "draft" legal letter turned into anything. BTW, I have completely stopped getting bills, statements. nothing from them. I sure would like to get this out of my hair!

How would I go about offering 10%. Do I just call them up or should I do it writing??? What do you guys think?? Got 19K balance.

I owe 16k and I am one day shy of 4 months past due....just agreed to a 50% settlement spread out over 6 months. I did this because I still have a good job and didnt want to take the chance of wage garnishment.

I tried to offer less than that and they wouldnt budge

We are self employed. They can't garnish. I sent them an email from their web page as well as a certified letter offering the 10% settlement. I know it is pie in the sky but it will at least get them talking. I have been offered the 50% but that is too much. I really think if I wait a little longer it may get better just b/c they don't have money for legal action and they need to get these debts liquidated...just my opinion. I will keep you all posted.

They won't even talk to me! I've been paying all along as I didn't want my credit affected by this but just couldn't pay last month without putting up a fight. I called them, obviously got India, and they wouldn't even talk settlement with me! Geez! I'm afraid of stopping the payments....at least the interest is a deductible business expense...and would rather go the route of legal action or class action suit. Doesn't anyone know of a good lawyer or a class action that might be pending in New Jersey?

While self employment raises PRACTICAL concerns for a creditor, at least in Florida they're LEGALLY sitting a lot prettier. If they can find a source of ongoing payment to the self-employed person (like, say a steady client) they can get it ALL, not just a garnishment percentage. Yuck.

I would call DS Financial they settled my account with Advanta for less than 30 cents on the dollar. They can be raeched at 866-833-6398.

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I'm 4 month late and I just received one of those letters saying they are taking me to court. should I take this seriously? any input!!

Did the "model complaint" come in the cheesy fake "rush first class mail" envelope like mine? With the cover letter in color emphasizing "seriously delinquent" in RED? So they have color laser printers and know how to use MSWORD and mail merge, big deal. I logged in to the website and was offered a 16.99% rate if I paid the 3 months backlog of interest and late fees. Yeah right, I might settle for that amount...

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yes is exactly like you described it, is this a scare tactic?

Would love to settle this with them at 10 to 20%. Has anyone gotten a better deal that 50%?????
Why would DS finical be able to do 30% and we can't personally make a settlement directly with Advanta???

They will eventually sell it to a collection agency who then will deal with a settlement company but I urge you to just be patient and try to make a deal with the creditor yourself. Advanta is aggressive and will sue the second they hear you are in a DS program as will AMEX and Discover. Do not waste your money on a SCAM like settlement.

If a Sheriff or process server did not give it to you you were not served to appear in court. It is a scare tactic by the creditors

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Law Office of Philips and Cohen contacted me..claiming i had a claim against advanta. ive never claimed anything. as anyone else been contacted by thyem? i am nto sure what these peopel are up to.

I received a call from an attorney..phillips and cohen. i called them back. i owe advanta $10,500. The "attorney" said he could settle for $4000 today. I told them I need to get back with them. Has anyone else gotten this call?I spoke witha David Carrerra and his number is 18665045612 ext 4254. This settlement seems to be at about 38% which is still high. Has anyone been able to negotiate lower?

Not sure which is worst... them saying they represent Advanta. Or that you really believe them. If the FDIC took over Advanta's assets who does P and C allegedly represent?

Next The FDIC is one of the few trusted governmental agencies left. P and C are midevil con-artist wanna-be lawyers. I was the 300 something complaint on them in just the State of Florida for 2009.

I recommend giving your money to Bernie Madoff before handing P and C a 1% settlement.

DS Financial got Advanta to settle at 28 cents on the dollar for me. They can be reached at 866-833-6398.

Talked to Advanta. It is set to charge of May 18th. I offered 10% they said NO. So I just started politely chatting with the girl. She told me that I will get a better off after it "charges off", but this is not the real charge off..whatever that means. She says it could go to an attorney but that I was right that 1. Advanta has no money to sue 2. And they really are not going to sue for a $4,000 balance. She just got hired and is working as an internal collection person a company hired by Advanta. She doesn't know how long they are going to be sticking to their guns on these dumb settlements and "hardship" programs they are offerening b/c no one is taking them. She says the consumers are smart and she can't believe what she has seen come across her desk...interest rates that were jacked up to 40% in some cases. So I will wait this out. I think I will call the day before the supposive charge off and offer the 10% again and then just see what happens. Not paying these crooks a cent more. (This is luckin10 btw, couldn't log on for some reason)

Phillips and Cohen tend to be the first ones assigned the larger Advanta balances. If they fail, it is sent to Sentry from Washington state. P&C folks who say they are lawyers are quite likely misrepresenting themselves.

Smaller balances are collected by ACT or ACE or something, I forget the exact name.

Do you know at what point (days late) they send these accounts over? What kind of settlements can we expect?

Luckin10 ... I sent them accord and satisfaction checks (there were a couple of Advanta accounts in our household) for 7% of each (highly inflated by ridiculous interest) balance. Now when someone calls from ACT or Sentry I just laugh at them. If and when it ever gets to a lawyer I'll send 'em a copy of the canceled checks with the settlement language on them. Chances are they'll pass on going after us ... but if not, they're not getting summary judgment ... and that's worth a lot of discount at the negotiating table.

Hey Lucken10,
Why 7% for accord and satisfaction check. I thought you can send in as low as 3%??
Please help me out by explaining why you chose 7%.
Thanks

Here is how you deal with Advanta: Advanta is a bunch of criminals, and everything they do and say is a lie and empty threat. True, business debts are not governed by law, but there is something called "ethics" You can sue anyone for anything at any time, so if they want to take that chance, after YOU threaten to sue them, ( I did) then that is on them. Here is what will happen. They will stop calling and just sell your account to someone else. I've written this letter 7 times, and all they do is sell my account. At this time, I know that they have no contract or anything, so it would be easily disputed in court.

All of my other business debts have vanished into nothingness.

BTW, I think its fair to mention that before the bank crisis, I had a 850 credit score, and never late in my life.

Bank of America did what Advanta did too. They try to screw the people with good credit , by changing so called "contracts" to force others to pay.

I just defaulted on all the loans.

Send them this validation letter certified mail. The calls and any further action will stop.

Be advised, all responses must contain the full, legal name of the individual responding and contain a sworn statement as prescribed by law attesting to the facts stated therein (authenticated). Also, all communications from me are being sent under Notary Seal to insure the public record. Per the provisions of the FDCPA your response is required within the allotted time. Please be advised that from this point forth, ALL communication MUST hereinafter be addressed to the Notary. Any response not meeting the prescribed requirements of the above noted laws and regulations and/or addressed to the Notary, will be deemed a NON-response.

Unless mail is addressed in the proper manner, I will not accept it. Any mail received and mistakenly opened will not waive any of our explicit rights and will not consist of an acceptance as it pertains to any waiver of legal rights.

Good Luck!!

Did some research on the incorporators of this shame,
#910376, expired on 01/31/2010.Howell M Goldstein, Kathleen A Sweeney, Randy S Cook

Advanta is realy scrapping the bottom of the barrel these people seem to be fallen mortgage brokers. You google the number, their name comes up under every category!!!!

I've got google voice, and everything is recorded. At least 3 times a day, they were calling threatening to FORCE me into bankruptcy... What a crock.. they are not even attornies... I laugh at these people. this is actually a joke to me.

Survivor23 - Did Advanta ever make you a settlement offer? If so what % and how many days late?

Yes, they did. They offered 7.99%, with the same amount owing, which was $19,000, (they illegally jacked up the amount to $22,000).. I refused the offer, and let it charge off. Last payment made was September 99, and the offer came in January, exactly 30 days after the collection firm was supposed to give me authentication of debt. I issued their collection firm a "notice of dishonor" , and right after that, I get the settlement.

I was not looking for one, however.. They can bite me.. I paid my debt, when the interest rate went from 2% to 38%, and they gave a restitution check for what, $500?

They can get bent.

I wish they would issue me a summons, so I can kick their butts in court. But they wont bite. They just will sell your account. Eventually, I hoping I will be able to sue someone. Most of them settle though.

I have been away for a day or two..this thread is getting interesting. I am wondering if someone (anyomous?) could explain to me this "accord and satisfaction checks"...not sure what that means. Survivor 23...great validation letter..I will keep that handy..they really have left you alone?? All your business debts?? How is the credit..what are they reporting?

credit of course, took a hit.. Advanta is reporting a charge off, but get this, my credit score actually went up because the debt to ratio is now down. But still, my credit is ruined, since a charge off is death, regardless of credit score. I will get it off my credit report and start challenging it when some time has passed. (I had an illegal charge off my credit report from American Express about 10 years ago, and it did come off when I challenged them)

and yes, they have really left me alone. They literally disappear. I had one phone conversation with this one guy, and I told them that the issue had already been litigated, (via notary protest) and how they are in violation of reselling the account, to the tune of $250,000, per my debt validation letter, and issued notice of non performance. The guy on the other end asked, "so what was the outcome" I said, "the out come was that they had the wrong party.. and keep in mind soliciting for monies and making claims over the phone, and in writing constitutes fraud.. I am looking for to kicking yours guys butt in court.

The next day, the account was sold to Sage. Advanta just keeps selling the account. Each debt collector gets scummier and scummier and more lazy and stupid.

BTW, I know my credit is taking a hit, but in these times, good credit means nothing either. I know people with 850 credit scores that can not get a loan

You the man! (or woman).

Please keep posting. My scores were in the 800's too. My industry took a dump and I still can't afford my bills. I am deliquent on so many loans it is a shame. Only thing worst is how stupid my other lenders are. (Regions, Chase, Wachovia,) They should take a small settlement because if it gets just a tiny bit worst, I'll go BK and be done with it.

Greedy bastards.

I know things look bleak and you want to entertain the idea of BK, but in these times, it may not be necessary. Just challenge everything. I know people who beat foreclosures due to violations in the contract. You can beat these people by siting contract law.

I had an MBNA account from 1998. It was a business account. During 2000, they called my company several times soliciting more business. One of my employees or assistant, called them, making a payment on my account, and they actually offered to wire a $40,000 line of credit in my name, into the bank account she was paying out of. They were aggressive and did a hard sell. They said,"this money is going away unless you make a decision now!" She knew she was not authorized to make that decision, but she panicked, and within 2 days, I had $40K, in my account. She was my assistant, and she knew I would want the money. She did that 3 times, and my account got as high $120,000.. 0%. Every time the low interest rate offer went down, they would offer more money at 0%.

Then, Bank of America purchased MBNA, and everything went to crap. they changed the terms, they upped the interest rate, cut the line down after I would pay it off, they made the cash advances as high 27% so now my payments were $32K per month, how stupid..

so naturally I defaulted.

We went to court, which I was expecting, since a lot of money was at stake.

But once we got to court, they could not prove anything, they did not even have a plaintiff to be cross examined. The supposed contract was a hodge podge of taped together arbitration letters that had different years and the page numbers did not even go in chronological order. I told them someone else at the company must've accepted the funds, as I had no knowledge, I was on maternity leave and home with my kids at the time.

the judge had to rule in my favor, because the other side had NOTHING.

Yes, you are correct, about them being greedy bastards, but more so, they are criminals.

We are both business owners right? What happens when we screw our customers, well naturally they do not pay and we lose them as a customer. There is such a thing as ethics, and contract law, consumer protection, etc.. and their are remedies available.

the banks, they failed, and they are just trying to pass the buck. Calling the office and speaking to my secretary, that is not much of a contract.

Hey survivior23,
Thanks for the info.... I too had a 820 score before advanta slam me with 38% - you are aware that advanta has been taken over by the FDIC.
Not sure if it wise to try and sue the FDIC. After a lot of searching and reading online I am under the impression that the FDIC will sell off the Advanta accounts and we should try and deal with who ever buys them??

Is Phillips & Cohen a legit firm I can settle with? seems advanta turned my account over to them around 2 months ago and need some advise from anyone who has dealt with them???

Hey Hate Advanta, no, I was not going to waste the time and actually sue them, as they no longer exist.

I was talking about the scumbag debt collectors that keep reselling, and then calling with bogus claims. All it takes is literally one conversation to tell them how they are violating the law, (name specifics) and then they stop calling.

I hear a lot of people say that we do not have an offense because its business debt, and not covered by laws. Well, there is such a thing as civil procedure, jurisprudence, contract law, etc.. I am just saying, when they know they are dealing with someone that can not be bullied, they typically will go away.

No Phillips and Cohen is not a legit firm. They are a scumbag debt collections firm. I sent them a debt validation and cease and desist, which they violated. Per my authenticated letter, detailing criminal violations of fraud, (not just the fair debt collection practices act) they ran up a bill to the tune of $50,000, and I threatened to sue them for $250,000 if they sold my account illegally, since they do not have any claim to me. They immediately stopped calling.

I entertained the idea of actually suing them, but honestly I have better things to do. A friend of mine who is helping me with all of this, said I would never get a judgement, (only if they did not show up) and all they would want to do is erase the debt. So I would not get any money more than likely.

Has anyone ever sued a debt collector? and actually got money out of them?

Steven Katz (author of "Debtsmanship" has sued debt collectors and collected $36,000 over the years). There are in the range of 125 consumers around the country who actively sue debt collectors on their own (according to industry figures). Others use attorneys, or are one-shot deals.

I'm the one who sent the 7% checks. I based that on the figures in Mark Hankins's e-book "Debt Hope: Down and Dirty Survival Strategies" ... he explains his rule of thumb in there.

Phillips & Coen just offered me a 25%settlement for an Advanta account....Catch is they want the funds by 9:00pm EST tonight but i bought some time (12 noon tomorrow)...I can get the funds but what exactly do I need from them in writing to make sure I dont get burned??? I will not give them bank account # but rather western Union the money....There really putting the pressure on and this is the best offer I've got $20k balacne settle for $5500....Please, any help appreciated....sound like I sould take the offer ??
Here is what the letter(fax) from PC says:
"Pursuent to our telephone conversation, Phillips & Cohen is the authorized representative for Advanta Bank Corp.
We have been authorized to accept a settlement on the above referenced account for $_____in accordance with the sechdule below
Anount___$
Upon reciept and clearence of the above referenced payment you will be released from any further obligation to Advanta Bank Corp. regarding the above refernencd account. This arrangement will be cancelled if payments are not made in accordance with the indicated schedule"

Anything Missing??? Once again, thanks to all...this will be my 1st settlement...6+ months of misery

Here's one for all of you. Filed a complaint with FDIC about Advanta, just got a reply from them, saying my account is being handled by Phillips & Cohen on FDIC's behalf and to contact these people to work out payments arrangements that are suitable. And let me tell you all, I did contact Phillips & Cohen and what I call suitable payments are not what they call suitable

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Hey MLB,
I would try to at least make them bleed and offer them less. Make sure you get it writing. You can always call the Advanta main number and speak to FDIC rep and ask if this settlement is on the up and up. Try to get names when talking to these people for your records.

What is the phone number to Phillips & Coen

This number keeps calling me 267-525-4218. Web Search brings up Advanta. Can anyone confirm it's Advanta and should I pick up and talk. I just went past 60 days late. I want to settle, but not sure if I should wait until it gets moved out of advanta.
I am one of those that got jacked to 37% and paid all the way to Feb 2010 and then when I just couldn't pay any more the FDIC came in and closed them.

What to Do??

I got a call today from 215-244-4200. They want to settle for 20% I offered them 10%. I can barley afford the 10%. I am going to holdout. This phone number is the same number I have been getting calls on for over 6 months. I asked them to fax me the offer in writing I never received the fax.