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

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If I have posted anything that wasn't fact, I have clearly stated that it is supposition or conjecture or what-have-you.

Debtors need to do what's right for them, whether it be bankruptcy, settlement, paying the debt off according to its terms or stopping payment and letting it ride. What's right for them will depend on individual financial circumstances and on the state the debtor lives in (states with high bankruptcy rates tend to be those with vicious creditor remedies, states with low bankruptcy rates tend to be those where debtors are treated more leniently by state court systems).

Tennessee and Georgia debtors may want to take their obligations more seriously than Texas or Florida debtors ... or consider relocating.

For the record, I was called by Cardworks yesterday and my account has been in default since spring '09. I was offered 40% by the phone rep. He was neither surprised nor angered when I told him I wasn't going to be able to do anything for him. Compared to the Sentry, Phillips & Cohen and Sage reps he was quite a reasonable fellow.

Although it was reported in the press that Cardworks was only handling the performing portfolio, it appears that they're handling the entire shooting match, which means no buyer has been found yet for the portfolio ... although it appears that the portfolio is in the hands of a Deutsche Bank Trust, which was what was funding the portfolio in the first place. So in reality there may be no need for the FDIC to find a buyer, as the portfolio is devolving into the hands of the (formerly) over-optimistic Germans who funded it.

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What are the ramifications of a "Charge-Off"? Is it better to make a deal before or after that happens? Sorry, just never been in a pinch like this before. Thanks for the help though, very appreciative of that.

Hey Lets not let one Unregistered big mouth make this tread into something it's not.
We are all trying to help each other. It should be us against the banks ( Advanta).

could someone tell me if cardworks now owns the accounts as they answer the 1800 number and said that advanta still has the accounts and they cant make any changes to them at all the interest rates are set and can not be changed thanks again guys for all your help with the this matter its really stressing me out as im paying almost 30% interest every month its like loansharking as they wont lower anything

Pretty sure the internet terminology here is "Troll". The previous unregistered posters stink of CA's. I can assure you Marcello, Phantom and I are the real deal-customers shafted by Advanta!

Beware of the CA's who pretend to be empathetic, talk sweet and convince you to setup a payment plan to "put this all behind you". Settle for lump sum or don't pay them one cent!

Also don't make a deal unless it's in writing. Talk is cheap and the last thing you want is a CA not acknowledging an accounts satisfaction when you are ready to send the final payment.

You CA's are the scum of Banking and Finance. People are in trouble out here. The real Unemplyment Rate is double digit. The economy is in the crapper. To take the side of a crooked bank who took out rates from 6% to 30+ makes you a crook. Advanta was so disliked no Investor/Bank wanted to buy it for penny's on the dollar. It was the first FDIC takeover without a sponsor bank. What does that tell you????

All of you CA's can suck it!

Cardworks does not own the acounts. Cardworks runs ("services") the accounts for a Deutsche Bank Trust that owns the accounts (although the FDIC is still involved in some way at the moment). Although the press accounts have Cardworks running only the "performing" and slightly delinquent accounts, mine is charged off and has been charged off for a good long while and they called me, indicating that they've got the entire basket to look after...

While I too favor lump sums, if you're already holding the amount of the payoff, I think it's OK to negotiate to settle in up to 3 monthly installments--so long as you notate the memo fields of your checks that they are unmistakably part of a series of three payments and mark the last one as full and final settlement too.

I understand your desire to end a nasty chapter of your life. Can I suggest if they do aggree to three payments, that you send those payments to an Attny's escrow account.

Let's say he charges you a couple hundred bucks. Well worth the expense if he makes sure the agreement contains language releasing all interests.

You need to know this matter is over and won't resurface from the FDIC or Deutsche Bank.

I am now at going on 7 months in arrears. The calls are not coming in as frequent & don't bother me. What are the chances of a lawsuit from Advanta at this point? I have not heard anyone getting one - at least not on this thread.

I am on my 19th month since last payment to Advanta. Cardworks mailed me a letter offering a 50% settlement.

They have no idea how much easier it is for me to file BK right now than come up with that kind of money. Either they need to seriously lower thier expectations or get absolutely nothing b/c a $15k credit card is the least of my financial woes these days.

Clearly there is no communication b/c Phillips and Cohen offered me 35% before I told them to take a hike. So why would I take 50%???

Ain't happening!

Like I said before, banks are routinely settling SECURED debt (2nd mortgages) for 5% or less. Why anyone would want to settle UNSECURED debt for more than that is beyond me! In all reality though, the 2nd mortgages are really unsecured since there's no equity to secure them any longer.

I too attempted to get Advanta to work with me to reduce their interest rate which went from 2.9% to 37.4% all because I was late one time and even notified them why. Obviously, lack of cooperation on the part of their greedy executives resulted in their closing all customer accounts and now all they want to do is harrass customers who have repeatedly advised them of their financial status. Interesting that this started back up again when I finally filed bankruptcy. If they were so concerned about the monies that I owed them why did they not have representation at my hearing.

Someone needs to confront these clowns before it gets ugly. They will not say who they are and they are VERY RUDE on the phone.
It is time for NBC Dateline to get involved. There address is P.O. Box 9201 Old Bethpage N.Y. 11804. They use the phone # 877-487-5583 & 877-630-5816.

cardworks
refuses to lower any interset rates and they will not take any percent off if your current I thought advanta or cardworks lost all rights when they were taken over who acually owns these accounts does advanta still own thses accounts I thought they were no more does anyone have a contact number for who owns the acounts

Stop paying 8 months ago. Card Works sent me a letter for a 60% settlement or payments over 36 months. What are these people smoking?? P&C offered me a 40% settlement and I said make it 10% and I will think about it. I will fight these people all the way if I have to. I can't believe that with the FDIC take over they are still Sticking People with high interest rates.

As far as anyone can tell the actual owners of the accounts are now several trusts that were set up to fund Advanta's lending operations. The trusts are largely (or perhaps entirely) Deutsche Bank, a large German bank that was doing some very dumb things in the heady days of the housing bubble (they lost a bunch on U.S. residential real estate too).

When it was announced that some foreign banks would get help in TARP, etc. ... "some foreign banks" was pretty much Deutsche Bank.

does any one have a contact number as cardworks said unless I go behind on my account they will not lower any interest rate they are charging me 27.99 % it seems
they are punishing the current holders that are current and never missed any payments they really do not care if you fall behind on your payments in fact they wont talk to you unless you are behind crazy system

I settled with Advanta for 30 cents after getting a no on 10/20 after 6 months. They will do it.

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Over the phone, they (pretty sure it's CardWorks) offered 40% over 6 pmts and 30% in a one-time pmt. Supposedly sending the offer in the mail but so far haven't seen it in over a week. With my "normal" pmt date coming up soon, no way it will get here in time and then with enough time for me to send a Cashier's Check (as I wont' give them access to any bank account now). I wonder if this is a tactic they use of delaying the settlement papers so it continues further and further in default, even though I have verbally agreed to 30%. Note, they also use the phone number 877-630-5819...that's the one they always call me with.

Some of you have been saying the FDIC has taken these credit card accounts from Advanta over. FDIC did not takeover that part of Advanta. They took over Advanta Bank Corp. but only the depository accounts. I got this information from calling FDIC after a highly charged conversation with CardWorks. They said they don't handle credit card complaints and that I would need to contact the FTC. Cardworks supervisor says he is a servicer for Advanta, but I don't know. Just thought you might like to know that FDIC has nothing to do with this.

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Advanta rate hike triggered surge in defaults, report says
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Read more: http://www.philly.com/inquirer/business/20101006_Advanta_rate_hike_triggered_surge_in_defaults__report_says.html#ixzz1291jZfii
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ya think?
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When I read Advanta blaming the surge of defaults on the borrowers, I just want to puke! I was never late on a payment in my life. Yes times were/are tough but I was taking it one month at a time. Then in April 2009 I opened my statement and nearly hit the roof. They took my rate from 6-36% which quintupled my payment.

I called Advanta and got "India". There was no way I could afford a payment $1000 higher than it was before.

Then they played me like a fiddle and trashed my credit while I wasted so much energy and time thinking I would convince them to help. I applied to Bank of American to get a new card to payoff Advanta but was declined because of the recent late payment-I fricken payment at 36% I couldn't afford.

I blame our crooked politicians who let mafia-like business practices occur to hard working small business owners.

FDIC may or may not have anything to do with Advanta's credit card accounts anymore. In general, when a bank fails, the FDIC sells off the bank's assets (loans, good [performing] and bad [nonperforming]) to buyers. The program for selling bad loans is the "JDC" program, which was inherited from the RTC--the entity that cleaned up the Savings & Loan crisis of the late '80s (which was the dress rehearsal for what we have today).

Now, the question on the table is where exactly did Advanta's bad credit card loans go? And I think the answer will be a bit different than the usual JDC scenario because of the Deutsche Bank trusts that funded the loans in the first place. I think they're Deutsche Bank's.

Think of it this way. Let's say Joe the Ford Dealer has 100 vehicles on his lot and a floor plan with ABC Bank. If Joe goes under, the inventory doesn't get sold off to pay off Joe's employees or light bill or coffee service, the inventory goes back to the bank. Same here.

Shortly after Advanta Bank first failed, some lawsuits on its behalf named both Advanta and FDIC above the "v", but I haven't heard of that lately. It's fairly likely that the bank has been more or less fully wound down and the appointment of Cardworks probably marks the point in time when Deutsche Bank started calling the shots and the FDIC stepped away.

what about lawsuits? I never hear of anyone being sued by Advanta.

Yeah, there are plenty that have 'sued' Advanta, but I don't hear of anyone being sued by them.

-CC

But to get an idea about the prevalence of lawsuits in Florida, just go here and enter "Advanta Bank" into the Business Name search box, select type "Judgment" and do a reasonable date restriction (say, Oct 1, 2009 to Oct 1, 2010):

https://www.myfloridacounty.com/serv/MyFloridaCounty/ORI/Order?thisPage=MyFloridaCounty.ORI.Order.state.Start

Not all of the hits are suits initiated by Advanta ... sometimes they are a named party in someon eelse's suit.

7 mos. in arrears and no suit yet, knock on wood. Also, the collection calls have dropped off to zero in the last month. I have also defaulted on about $900K in underwater real estate loans and another $125K in unsecured debt not including Advanta. Oh, and by the way, I have no nonexempt assets, have a few thousand in a checking account which can go by-by in an hour and a car worth $3k, and own no other assets. Think they get the picture? A picture-perfect case of being judgment-proof and loving it!

Got a letter from Advanta today notifying me that they are preparing to charge off my account. Oh well, stuff happens !

The last two posters just made my day! If it wasn't so early in the a.m. I'd salute you both with a beer.

Nice to hear from someone real and in the same turd situation as me.

You rock!

We just went late on our Advanta business card payment and this number is now calling...877-630-5819. Anyone know who/what level of call this is?

If you have just gone late then it's probably just the regular collections department trying to get you to make a payment. You will need to wait 90-120 days before you get anyone that will talk settlement.

Thanks. I guess I'll answer one to see if its automated or what the story is. Pretty persistent right off the bat. Does anyone know if they will offer a 0%/5 year payout deal? Several of my other creditors have done that and so far I'm okay with that. But if they keep screwing me over I'll change my tune.

Well I've answered the call a couple of times and it just sits there with no one on the line and then goes to a busy tone. ??? WTF.

I have been paying way less than the minimum - really just a token payment - since they jacked my rate to 32.99 last May. The calls come every day from 877-630-5819 and I don't answer them. My question is this - Do you think I am better off to pay nothing or this pittance amount? I will never be able to pay this debt off anyway. Do you think I will receive a quicker and better settlement amount if I stop altogether?

Currently, advanta small business credit card does not show up on my personal credit profile at all. If I default on the payments, will it ruin my personal credit report?

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If you keep paying them, realize that you keep extending (tolling) the statute they have to file a claim against you. Either stick to a payment plan (if you need credit in near future) stiffing them 100%, or making a lump sum settlement. For me, it makes more sense to walk away 100% and wait it out. If they sue, I have already rendered myself judgment-proof.

If Accord & Satisfaction checks have a snowball's chance in your state, another option is to go ahead and try one of those. You may sleep a little better.

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You're starting a little late at "asset protection" but that's the lawyer's term for what you want to be doing. Essentially, you need to eliminate nonexempt assets, and when possible convert them into exempt assets.

Who served you with a lawsuit?? Cardworks or some other 3rd party collector. Let us know "WHO" and maybe we can try and help you with some info.

Yes, if you show you're current on all your other debt, that's why they "chose" you. On a credit pull, you come across as having the ability to PAY and that's what they look for. This may be a problem for me as well since I, too, am current on a couple loans. I let everything go. If they think you might have enough assets or income, they will consider you a target. How to render yourself judgment-proof? That's not a simple answer. Everybody's financial picture is different and that needs to be handled by an experienced asset protection lawyer. In general terms, it means 2 main things: no assets in your name and/or taking a loan against those assets (called "equity stripping") to prevent collection. Jut make sure you consult an attorney that specializes in asset protection, as most attorneys, even estate planning ones, don't know squat about domestic and offshore AP.

Too late for asset protection? Another thought: let them just get the default judgment. So what. Just make sure and keep all assets out of your name and don't keep a bank account with your name on it. You can set up an LLC or corporation. Wage garnishment (if you're one of the unfortunate who are employed by someone else) is an issue that you have zero control over unless your employer is willing to pay to a 3rd party or company.

I am a landlord, so I know all about being "on the other side", being a creditor. Just because I can obtain a judgment default from a tenant who flaked on the rent DOES NOT mean anything. Suing and getting a judgment - that's the easy part. Collecting the money? Only if a creditor is lucky. And in less than half the cases. If the debtor has no traceable assets or income, I am S.O.L., period. I always will have my attorney do an ASSET SEARCH before wasting my time and legal fees chasing a deadbeat debtor.

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