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

Someone with NFT or NST or somesuch (was Phillips & Cohen) just offered me 45%.

If I stop paying Advanta, will this affect my personal credit report? They are not listed on my personal report, and I closed my small business.

Yes, it will. I had three business accounts, Advanta, BofA and Chase, and when I closed my business and cancelled my EIN # with the state, the Advanta and BofA were reported to the credit bureaus when I defaulted on them. Chase is still floating about in limbo somewhere, but the other two are now a part of my credit reports. :cry:

Just keep an eye on them in the news and on their Wikipedia entry. I would expect some interesting developments soon that will give debtors a better idea where they stand.

NCB Managemetn Services out of Langhorn PA is the next stop after Phillips & Cohen, collector-wise.

Bloomberg carried a story yesterday that basically said Advanta announced that the way forward for them was to find ???a plan for new business opportunities??? after posting a second quarter loss of $330 million.

The best plan would be to hang Dennis Alter and burn the Advanta building. Now THERE's a good new business opportunity.

A rough equivalent is likely in the cards, courtesy of the FDIC and perhaps also the Justice Department.

I lost my Job over a year ago and tried to work something out with them ..but they would not work with me at all..So I cashed in what little I had in a 401k to try and stay on top of this... I could not do it..... I was late on one payment ..they raise my interest to 40%....... I was with them for over 10 years and never missed a payment........ I tried calling and calling and calling.......no one and I mean no one who could speak English would talk to me.......they treated me like crap.........in fact I had one manager call me stupid............ I made one payment of $25 because that's all I had at the time..... The manager on the phone laughed at me..... I swear he laughed at me........ then I got a call today from a collection agency.......The lady really tried to push me around and treat me like I was stupid......she really got me upset...... I told her to leave me alone and if I will talk to her again when she wants to be realizitic. .. When it all started I owed $10k now it's up to $39k with there Fu&^i*g late fees and 40% interest rate. She tried to settle today for $16k.......Last week it was $18k...I figure if i wait long enough that they will get back to $8k..... or maybe advanta will go out of Business..... but where I am now is that I really don't like them.........for what they did to me and how they treated me........In a way I hope they try and take me to court....If you are trying to settle your debt and they do nothing but treat you like a sub human.... and are out right rude to you ....Take control of the converstation and you ask the questions..... You tell them what you will settle for...Dont let them tell you....

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Charge-off rate looks better at 24.02%, but June's 56.95% was aberrant due to a change to charging off at 120 days from industry -standard 180 days. 30 day lates went up from 8.28% to 9.98% though ... meaning more and more charge-offs ahead.

Hello Folks I am a newbie and will keep it short and sweet. Have been a loan officer for 20 years.

Never late on a payment in my life. Middle Score was 808. Two months ago Advanta took my rate from 7% to 30%.

I have given up trying to make them understand I will not pay that rate.

If the only blemish on my credit report is a crooked company, I can live with myself!

I will show-up to whatever court date they set and-yes they sent me one of those mock complaint letters to the courts.

Stay tough everyone-these guys are slime bags!

There are takeover rumors, but the only one I can see taking them over is the FDIC. More likely someone started the rumor in order to unload a big position on some panicked short sellers who feel the need to cover their exposure.

As for advanta's mock complaints ... the complaints themselves should be mocked. A first class creditors' attorney is going to write a much better complaint than that piece of garbage.

I have a 30 day late on my Advanta account that is showing on my personal credit report. For the past two months, I have been making the monthly payments but I can't get that late off my report. I even tried calling them to see if they would overlook my mistake and delete it but they refused. Has anyone been able to remove a negative advanta account from their credit report? If yes, how? I've already disputed with the bureaus and it was verified.

Pay the account off as rapidly as possible. With any luck, you will finish paying before the FDIC takes Advanta over.

Once Advanta goes bust, dispute the account ... Advanta's nonexistence will preclude a reply by them to the dispute. The tradeline will likely go "poof".

Well, this is the first month for me that they took the rate from 7.99% to 24.99% on $30K. I made the usual call to India where no one could help me. No loss mitigation department. Nothing. When I told the rep that I would just stop paying the account he said OK.

I have never not made a payment, not even a late payment, on any of my cards, and I'm scared to death that this will start me in a downward spiral that affects the rest of my cards, and rates (some locked in for life at 3.9%).

I really would like to tell them to go to hell, since it looks like they're expecting that, but does anyone know the current state of affairs with them? I don't want multiple collection calls a day, letters from attorneys, court dates. But I also can't afford to pay the rate.

Can anyone tell me what happens next when you stop paying, and how bad it gets, so I know what to look forward to?

Thanks. And I'm shocked to read all of this about Advanta. I can't believe that someone isn't trying to help us. This surely must be illegal? What about the changes to the CC laws that were promised? Are they too late? Hellllllllllllllllllllllllllllllllllllllllllllllp!!!

If Advanta won't lower your rate. Stop paying. They WILL start calling you and will offer you an extended payment plan before it hits your personal credit report if it is a business card. Just hang in there. They offered me 9% for 60 months to pay it off. I took it, only to put them off until I can finish my settlement process with another creditor.

I have an Advanta account I could not pay, along with several other credit card accounts, due to health and financial issues. The first time I spoke with anyone about it was when I saw I might be late for a payment. I contacted them and the first person was really nice and I worked out an agreement with him. I subsequently received a communication from someone else who was a foreigner and who was accusatory, abrasive, and insisted there was no agreement and no authority for the person to have made an agreement. Due to this I could not meet a payment schedule with them and let it drop. After talking with several people there I was disillusioned as it seemed they were not at all going to listen to the fact that cannot pay is not the same as do not want to pay. I reported them to the Better Business Bureau, and received a conciliatory letter and an apology, and never received another call from the foreign guys again.

Later, I began to receive around ten calls a day from them, which I did not answer. I finally sent them a letter explaining my position and that I could not take calls as it was my only work phone and was limited as to minutes in the daytime. About the forth month I started getting fewer calls, but more threatening sorts of things about possible legal action. (This was when I sent them my letter.)

I got a recent call which I answered and from a guy that was polite. I talked with him about the situation and that my finances still suck. He was OK, but still suggested I needed to pay or face a lawsuit.

Today I got a call from possibly the same guy. He offered a sizable reduction in the overall sum if I pay them off. When I said I could not do that as I have no money he then informed me that it would go to a lawsuit right away. When I pointed out that I have no appreciable assets and no money and can barely pay rent he started saying they would sue anyway because they have to do that to clear their books of Toxic debt. I strongly doubt this is true, but then, what do I know? When I tried to point out that it was a waste of time and that it would simply add unnecessary stress to the situation he simply repeated what he had already said. Then I happened to mention my letter in which I had also asked not to be called, but be contacted in writing he started getting aggressive and angry and basically made it out that I was a sleazy person for not meeting my obligations. He also said they would call or do anything else they wanted to do in order to make collections.

My take on these guys is that they should not be in business. I cannot see that they have to treat people that way who simply are in an embarrassing situation. I have four other much more sizable debts to credit cards and none of them have been anything but nice to me. They do charge automatic fees and such, but no one yells at me or makes me wrong for my situation and I have even been told to take care of myself first as it would not be OK to sink myself trying to pay them. I would pay if I could and always did when I was making money. This is the first time I have had anything like this happen and it pains me not to be able to pay. They did nothing to deserve me not paying as I almost always had great interest rates and friendly service.

I do feel they have too much freedom to unilaterally change their agreements, but that is another story. And I also know that the job attracts some slimy characters who just love to have it over others. I have been lucky not to run into this very much. The Better Business Bureau seems to be a good recourse for some of the BS I received. I got good action from them. There are some reliable debt settlement services, but you can arrange as good a deal on your own and not have to pay the monthly required fee to them, so doing it yourself will save money. Even though they are non-profit there is still a monthly fee. It is different for each state. There are LOTS of places out there that will rip you off so if you use one of them, check them out first at the BBB and other places.

Got a call this morning. I am over 3 months past due. I stoped paying after they jacked my rate to 33%. I also had to close shot at beginning of June. = no money. They offered a 9.99 oer 5 years = 187 a month based off the 8200 I owe. They also said if I pay 187 per 3 months, they'd remove the 3 months late on credit report. While this sounds nice, I told them to send paperwork as I have no $ in bank and need to get a money order together. My deadline is the 11th, next Friday. I'm a little uneasy about the deal. Does Advanta hold true to what they say over the phone, or just another trick to get something from you so they can drain your account for all it's worth?

TA

Advanta news tends to come out the 10th or 11th of the month. Based on how things are developing, I imagine that an upcoming Friday in the next couple of months will be "FDIC Friday" for Advanta.

They did call me on the 10th and said the account MAY go to legal so they can review it and take further action. No money = no way to repay. Still same 2 options. 1 year at 2.99% or 5 years at 9.99%. both sound good, I just have no money right now to pay anything but the bills to survive. I'll keep you'll up to date.

TA

For whatever it's worth, Advanta now calls begging me to take a 50% payoff to "put this whole issue behind us".

I have been edumacating myself on the whole FDIC take-over buisness and strongly suspect it is just a matter of time. Had no idea they keep that list "secret", but if alphabetical, Advanta has to be #1!

Honest Employee's of Advanta-leave that company and go work for your local mafia as they have a better rates, a clearer conscience and more reputable business model.

They called today and added the 50 % offer in 6 payments of 720ish. And after the 6th month, the rest would be forgiven. Has anyone taken the 50% offer and has it pained out for you?

TA

"Forgiven" should scare you ... they'll have to issue a form 1099-c on that and you'll have to pay tax on it (if the "forgiveness" exceeds $600). They're toothless, prostrate and moribund ... what's motivating you to pay?

Hey...dont pay them.....make them call you ....ask for someone who speaks english....Wait a few months ....do not pay them at all....make them settle with you for a lump some..... keep your payments and dont spend the money......play the waiting game.... Dont be scared It totally is happening to me..... I owed 30k also ... 5 months later they are trying to settle for 11k....swear to God that I am telling you the truth....dont let them push you around.....







Quote:

Advanta announced that its chargeoffs had declined to 22.19%, however 30 day lates had risen to 11.57%

Quote:

Can anyone provide a good number to call for a debt settlement ???

Quote:

Copied from Streetinsider.com

Advanta Receives NASDAQ Notice Related to Minimum Bid Price.....

...the Company is no longer in compliance with the continued listing requirements for The NASDAQ Global Select Market. The common stock classes of the company (Class A and Class B) are separately deficient as a result of each having closing bid prices below the $1.00 minimum requirement for 30 consecutive business days...

...The Company intends to monitor the closing bid price for each stock class and will consider whether to implement any available options to regain compliance with the continued listing requirements.

Advanta's Actual Regulatory Filings

You can look 'em up. Most recent ones are for the end of June.

https://cdr.ffiec.gov/Public/ViewPDFFacsimile.aspx

Fun Fact: Advanta is recovering 1.3 cents for every dollar in defaulted debt.

Hi
New to this
I have a Advanta Business Card $7000 Balance, I have been dealing with bi daily calls for about 1 month. Very hard to understand and deal with. They offer a settlement of 95% I was able to get Chase to settle 40k for 24k without barely getting behind, and Chase was the most fair card along the way. Unlike Advanta!
It was a Business Card to a businees that no longer exists and it doesn't show up on either credit reports I have had pulled. Does that give me more leverage/time to get them to deal with me? I am refinanceing my home to pay off all of my debts, and I really want to try to get some of my money back from the Advanta Loan Sharks

Marcus Dimitri
Advanta Bank Corp
Portfolio Manager
800-451-3213 ext 7784

This is the person calling me, has anyone had any dealings with him.

Debt settlement with advanta

what is the lowest Advanta has settled with anyone?

Got another call today. They are trying to push me into a 40% pay off. I told them my business closed and I'm on food stamps. These people don't get it. At least they have foresight. They know that the credit card industry is going to burst and they want their money before that happens. 40% of 8300 = 3320. Who has 3K dollars these days. I'd pay them back if they would put it in writing. They somehow just don't do that. Well, I just somehow have no money EVER for them until they put it in writing, lower my interest rate from 33% back to 9.99% where it originally was, and remove all late fees and interest from the 33%. That means it'll never happen. So this is the only card I'll be defaulting on. The others totally understand and never raised my rates. What criminals, reform my azz. Obama is nothing but a socialist. This country it totally screwed.

Advanta, if you are listening, go fck yourself, TWICE.

TA

TAT, It does not matter what these people tell you over the phone. Nothing matters unless it is put into writing, which will never happen anyway. So why bother speaking with them? This company is doomed because of miserable business practices. (self inflected) Yet the CEO still pays himself a $1m salary.

Why isn't this mainstream national news? It is as crooked and corrupt as any scandal conceivable. Yet we do not see it on any major TV network.

I get through the harrassing obnoxious phone calls knowing one day I will take this case to court to REALLY get it in writing then permanently deleted from my credit report.

It goes against my core belief but I now wish Advanta a slow and miserable death. They have hurt so many business owners that they too need to suffer then go away.

I'm close to three months behind. I received a letter from them today they MAY file a lawsuit against me, even attaching a SAMPLE lawsuit. Should I be worried? My balance is 10K.

Is anyone interested in a class action lawsuit against Advanta. They are trying to kill everyone financially. I will pay what i borrowed from them but I cannot and will not send them $2500.00 again and $2000.00 is posted to interest and only $500 to principal.
Together we can stand divided we will fall. I will pay the attorney fees if anyone wants to join.

It happened to me yesterday. Advanta was only on my business credit. Now suddenly they appear on my personal credit report right at the top stating I was 30 days late. My score dropped from 780 to 715 overnight. I wonder how low it will go if I continue not to pay. I suppose you can dispute it somehow in the notes though.....

Quote:

Quote:

On June 30th 2009 the FDIC passed a ruling against advanta to cease and desist their misleading and deceptive business practices, and to pay restitution to the consumers they defrauded.

If your account is in good standing they must send you a check with an explanation of why you are receiving it.

If your account is over 30 days past due, or is in charge off status, they were ordered to credit your account for the reduced amount and report to the credit reporting agencies the reduced amount of your account.

According to the Federal Trade Commision Act, (article 45, section 5, letter L) They have 120 days from the final date of the order to comply with the ruling or they will be subject to fines of up to $10,000 per incident... per day!

On October 28 2009 it will be 120 days since the FDIC ruling took effect. So on October 29th 2009, check your advanta account balance and your credit report. If they have not complied with the FDIC order on your account, then we all need to file reports (complaints) with FTC and send advanta into the abyss of bankruptcy oblivion where they belong!

If you have received a restitution check from advanta, then by cashing it you will be agreeing not to pursue any further legal actions against them. If you don't cash it, then you can still probably sue them for their unjust enrichment through deceptive and misleading business practices.

Just think, all of this mess could have been avoided if they kept folk's rates at what was promissed.

Instead we have:
1-1.1 million small businesses struggling even harder
2-The owners of those businesses with blemished credit who simply cannot afford to make the massive interest payment
3-700 Advanta employees laid-off

The CEO of Advanta is a moron. Some business model buddy! Quadruple everyone's rates and that will make it all better.

Then to add insult to injury, outsource the collection calls to India.

Eureka!

I cannot believe our country's future is in the hands of such crooks! Talk about killing the goose that lays the golden egg! Pretty soon there won't be any hard working folks left to contribute. Advanta is an example of exactly what's wrong, and it didn't have to be this way--greed greed greed! I sent emails about Advanta to Bill O'Rielly, Fox News, and the Huffington Post. Maybe they will take notice if they get a few more. I think our government is asleep at the wheel, and Advanta has tied their foot to the accelerator.

I got one of the checks even though my account was past due by 45+ days. For some reason I stopped getting calls from them, I was getting called every 2 days but haven't been called in over a week.

Could it be because I requested by fax a copy of my original signed card agreement?
I was told that if I only signed as a personal gaurantor, for a small business I was helping run, they couldn't report me personally to my personal credit report. Is there any truth to that? They sent me a letter saying they reported the business under its tax id #, but that businees has been gone for over 2 years now.

For some reason they have quit calling, they are unwilling to settle, but I am thinking of just not paying them all together.
Input?

Along with CIT Group, Advanta's failure is impacting small businesses hard.

Jaybone, they can report you personally ... however that personal guarantee may be tough to enforce in court, particularly if the Junk Debt Buyer (and realistically, it's going to be a JDB because Advanta's time on this Earth can be measured with an egg timer) can't come up with a signed agreement ... and there's a strong likelihood that the "media" (original paperwork) will simply be unavailable.

Advanta stinks! Dennis Alter is the worst CEO in the world. I've been dealing with their vultures Phillips & Cohen for a couple of months; owe 3500 and they only offered 50% to settle. No go boys ~ At least 30% of that is your own stupid fees, jacked up interest and late charges. Now I'm holding out for 20-25% and hopefully in time can get it. Otherwise, I'll just sit back and enjoy the game.

Advanta called me tonight, first time in a couple of weeks. Get this.. the person spoke english as their first language. I said I have been waiting a couple of weeks now for a copy of my signed card agreement. She said she could see the request but didn't know why I haven't received it. She acutally offered me a Settlement $5859 on what is now $7250. Its not great, but its a start.
I work at a small bank and my bosses know my situation, and getting a car loan in the future won't be a problem.
I really hate to pay Advanta anything, their such crooks
If I can scape the $ together do I want to pay them before it goes 90 days, or has the damage already been done going 60+ and settling with them and others?

A class-action shareholder suit against Advanta is being cranked up.

Advanta has just had 3 class action lawsuits, on behalf of investors, and 3 lawsuits on behalf of employees, filed against it. And I don't think they were hit with "sample" lawsuits either like they sent theor customers. A little taste of their owm medicine. I for one love it!

Has anyone's account actually been sent to litigation? Someone called me this morning and said my account will to go to litigation on Friday if I don't pay them.

Last time I checked Advanta hadn't actually filed any suits since June of last year in my area (S. Florida - economic meltdown ground zero). I suspect it is the same across the country. Now if you are talking about a JDB that bought the account from Advanta, I guess it's possible.