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

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They jacked up the rate on me in June 2008 up to 37 percent. My X quit paying them this past July. An A$$hole named Frank Jokic offered to settle me at 75 percent with payments way higher than I could afford. I complained to the FTC. Another loser named Justin Holmes offered me half ($6300) but never would answer what the terms were. I've asked for the terms in writing three times and I got nothing. Thier latest was sending me a TEXT MESSAGE telling me it was going to the "next level" whatever that is. If they were expecting me to pay lump sum I got news for them. I can't afford to make high payments so I am going to ride this out and see if the FDIC steps in.

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Ok
I received a call from Sage Financial about my charged off Advanta Account. He was nice enough, said he was a 3rd party trying to spend about 10 days trying to settle my account with Advanta before they take legal action on me. He offered me a settlement alot higher then the one Advanta botched up on me. I talked with him a little and then basicly thru back a 30% offer to him. He said he would have to check with Advanta on that and get back to me and a day or so.
What do I need to do with this exactly? Send them a Debt Verification Letter and make sure everything checks out? This is a Junk Debt Buyer Correct??
Paying them should put this behind me correct?
Sorry am just confused to on how to continue this.
Thanks Again

There is some really misinformation being stated here. First, it's true that Advanta can sue your business in another state. They can sue you personally in another state. Anyone can sue anyone anywhere, practically. However, actually getting that judgment enforced is another matter entirely. To do that they have to register the judgment in your home state and if it's a default judgment its easily disposed of. So suing you in another state is as a practical matter pointless. It's a waste of money. Second, they will either sue you personally or sue you and the business jointly. I have never heard of Advanata suing just the business where the card was personally guaranteed. It would be a stupid legal decision to do so. Finally, to the poster above there is no such thing as a "personal card hiding under a business card" that's just plain idiotic. A creditor can report anything on your credit report for which you have assumed some degree of liability. This includes business cards in the business' name if you are an authorized user. The question is who has legal liability, not the mumbo jumbo on the card.

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To the person who willing to pay a JDB 30% on the dollar-What the heck are you thinking??? They didn't pay more than a few bucks for your debt. The JDB will only threaten to sue you, if they do hire an Attny it's done in hopes you will not fight back and they win a judgement by default.

Advanta is the one in trouble, not you. They are a FDIC insured company. Heavily regulated by the Gov't. They were served a cease and decist back in July, filed BK in November and yesterday their board held an emergency meeting to try to stave off a ton of lawsuits which are real (not bluffs). Their own employees were screwed by upper management for "allegedly" inflating financial information which over priced stock values and employee profit sharing. That complaint holds more merit than any Advanta's claims about it's cutomers.

Advanta is the one in trouble here folks. Chances are they will be raided any given "Friday" in the near future. When that happens, you and I should be able to talk with a reasonable banking institution and if not, then we should sue them for sure.

They took so many perfect payment historys at 4-7% interest and shot them up 30% or more without cause nor warning.

They mailed me a b/s check for a couple hundred dollars with the notion if I cash it, I can't sue them. My Attny sent them two certified letters copying the FDIC and they mailed it back to him unopened.

The remaining people at Advanta are crooks to the worst degree. Their debt collectors are too.

Screw them all!

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to all the posters questioning my judgement. I am not wrong. And i made sure of it before reposting by researching and asking others. Fact of the matter is the law is the law and the judge MUST rule by the law and the letter is a legal document that must be upheld no matter what "mood" he is in or what he ate for lunch. it is a binding legal agreement between you and the creditor period. meaning that it is NOT meaningless its proof and its important. know the "facts"

[COLOR=#444444]Re: Advanta BusinessCard Account Ending in: XXXX 1/14/2010[/COLOR][COLOR=#444444]Dear Screwed Customer

Bring your account payments up to date and be rewarded. Advanta is offering you an opportunity to bring your account current in order to become eligible for a reduced interest rate.

Just make a payment to be received by us before your next due date in an amount sufficient to bring your account to a current status and we will lower your rate to 16.99%. (which we jacked you to 29.99% from 7.99% because we are filing Chapter 11)[/COLOR]
[COLOR=#444444]
In order to enroll in this program, you must call 1-800-533-3686 or log on to Advanta.com. This is a limited time offer, so act NOW.

We look forward to receiving your payment.[/COLOR] [COLOR=#444444]

Sincerely,
Kevin Walsh
Senior Vice President[/COLOR]
[FONT=Arial][COLOR=#444444][/COLOR][/FONT]
WHAT A JOKE!

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Got calls today on Sunday at least 4 time they called, I answered, got a man named David Parker with a heavy Indian accent spoke, I asked him to spell his first and last name he said David Parkar, I said what then he changed it to David Parker, I then asked him where he was calling from and that it was Sunday he said India, I then said "India" and that I didn't beleive his name was David Parker, I asked him if David Parker in India was his real name he said No it was his business name, I then said It is Suday and that I do not discuss my finances with anyone from another country, and for him to tell his supervisor not to call anymore on Sunday, and to call me back on Monday during normal business hours. He then went into his normal routine with no reguard to what I just said, I then stopped him and stated that Advanta had taken advantage of me and I was disputing the rate changes from 7.99% to 29.99% and all the fees added in without any notice or my authorisation, and that He would not get a payment out of me and that I knew if he gets accounts he calls to send any payment he would get a bonus, I then said I have to go as I was cooking Beef on the BBQ. The numbers they use to call from are
1-800-533-3686
215-385-3300
919-872-2430
303-583-8753
305-533-9889
Many of these are rerouted from India to hubs in the US.

They're also using Century Credit ... collectors are American there ... they call from 425-740-5400.

It's been nearly a year since I've paid a dime, and I've told their collectors to F.O.A.D. if you know what I mean. Still no suit, still no attorney involvement.

I don't expect this to change unless and until the debt winds up owned by someone else ... Advanta just can't afford to run the cases.

I wonder if this is going to happen to some of the other credit card banks?

Received my follow up call from Sage Collections tonight. He said Advanta rejected my 33% offer. He said he would try to keep it on his desk a few more days and see what he could do with it. He said maybe the end of the month he "may" be able to squeek in.

He said now that Advanta is under new BK restructuring, they have to Charge Off accts sooner and press legal action quicker as well.
I understand thats all BS. However I do want to put this behind me and get it out of the way. But I don't have a ton a money and can't afford to overpay.
Suggestions?

For whatever it's worth I stopped paying Advanta back in June when they quadrupled my interest rate without warning.

Yesterday I did a search for nearby counties in my State. I was immediately apparent that yes Advanta did sue tons of customers up to 2006. However I could not find one single credit card lawsuit from 2007 to present.

Interestingly I did find Advanta listed as a Defendant in one on-going case. Imagine that!

Lot's of smoke and mirrors with those scum bags at Advanta.

Just started dealing with my second rate-jacking attempt by Advanta. Can???t wait for the calls from India! The first time I continued paying and wrote letters to them and the BBB of Utah for four months until Advanta relented. This time I am refusing payment until they lower the rate back down, I do not care what happens to my credit score at this point. I am fairly certain my local banker will understand when they review my credit report and see that it is stellar with the exception of the Advanta thieves & liars. Can't wait for Advanta to be taken over so I can deal with a reasonable entity and pay off my debt under a realistic interest rate. What a bunch of criminals.

That Debt Hope Book is available to read for free over at scribd.com. The author says it won't stay up long though.

Everytime we get a call from a so called "Advanta" rep, We are friendly and I simply ask them where they are calling from, If they will not say then I hang up, if they tell me India, I then say that we do not discuss any financal terms with any foreign country or persons calling from outside the USA! They always hang up. Plus when they call we ask them for full name first and last and how to spell it (which will be their business names and not their real names), Most time they mess up the Name and or the spelling, then ask them what their real names are, then say if you are going to lie to me I will lie to you, they will hang up. If they call and I miss the call I will call them back as soon as the "Rep" gets on the phone I wait about 30 seconds then hang up. Advanta it is a two way street. Your call centers are getting overworked and not producing. Lower your rates remove your fees and maybe we will talk.

Since they canceled the service isnt this a breach of the "terms of agreement" and therefore constitutes a "breach of contract" ?

Advanta are crooks! They hiked my APR up to 28% for no good reason.
I have asked them repeatedly to lower it and they won't budge. So, I just stopped paying them! I sen them a letter to stop calling me about the debt, which by law thay have to.
I know it will affect my FICO, but at this point I truly don't care. Credit card companies take you hostage by threatening to lower your FICO - it isn't right 0- they should have been strictly regulated by the FED a long time ago. I hope they send me a summons... I guarantee that in court, I'll pay pennies on the dollar towards the debt, or at the very least get a very low APR. I've already negociated 6% APR with Chase. Advanta are the only theives who don't want to listen... No wonder they went into BK....

There's a national debt revolt movement brewing, and YouTube phenom Ann Minch is one of its leaders ... stay tuned.

It looks like many here are having the same problems, Advanta will not lower their rates or remove fees and charges, instead all they do is threaten people by reporting to the credit reporting companies. It seems to me that a company that is themselves in default and have filed for BK that the Credit reporting agencies would ignore their threats until they themselves prove worthy and fix their own credit problems. It looks like a very simple matter of retro-active reinstating everyone interest rates back to agreed contract amounts and remove the fees and charges they imposed and stop the threats. This way many will continue to pay on time and the original amounts agreed upon. Then Advanta would have more capitol to work with on their own credit problems. Instead because they made some bad decisions they are blaming and making everyone pay for their mistakes, Not a good way to do any business, even childish.

Advanta can't service their own debt if they reinstate the old rates. They're dead on their feet, it is only a matter of time before the FDIC steps in.

Remember, whoever buys the Advanta debt under the JDC program will only have a penny on the dollar invested. They're going to be wheeling and dealing (if they've got any sense). But an intransigent debtor without much in the way of nonexempt assets or nonexempt income might just flip 'em the bird with no consequence other than 7 years of a chargeoff showing on the 'ol CRA reports (of course the JDB or a subsequent JDB might try to illegally re-age the tradeline to keep it on the reports longer, but that exposes them to your lawsuit...).

Advanta is laying flat on their back. Vultures are perched and patiently waiting. They deserve a slow miserable death.

I have been following (as best I can) what is happening with the discounted disbursements to investors. From what I gather they made misleading promises to Mom and Pop's all over the U.S. Those investors bought into 11% returns, didn't get a penny and now are faced with a discounted settlement.

Can anyone chime in on how much of this is accurate and wouldn't make sense that as soon as they release those funds it's "FDIC Friday" for Advanta Bank???

BTW, there is a strange silence because Phillips and Cohen hasn't called me in over a week. It's too quite. Something is about to happen......

I had been contacted by Sage Collections a month back. They said they didn't own the debt,but were working as a 3rd party for Advanta. They offered a higher settlement then the Advanta did directly. I made them an offer to try to get it closed out and done, approx 30%. He said he would have to check with Advanta...5 days later called back and said it was rejected.

If they bought the debt for 1,2,3 cents on the dollar, why not settle it for 30?

What is the best way, or thing to do...once the debt has been charged off and is at a CA??

Advanta's holding company is in liquidation as of 1/12/2010.

As of yet, nobody has bought Advanta's debt ... you're dealing with a hired hand that takes a percentage, not a JDB who has already paid a (ridiculously low) percentage.

Avanta Bank will be taken over some Friday in the near, near future (maybe today). Until that has shaken out, no need to fret.

What happens when they are taken over? The debts are still there and need to be delt with correct?

Called a number here in the US (215) area code, spoke to an American "Debbie", I told here I wanted to speak with Mr. Kevin Walsh, Senoir Vice President, she said he was in a meeting, (which lasted all day no calls back from him) so I told her I wanted to settle. she took my information and said someone higher up would be calling me right away, three days now, so we will see. I also asked her why it was so hard to talk to someone here in the US instead of someone from a foreign country she said "sir there are only two of us here" that explains a lot more now. Even Advanta can't handle the calls on their own. I have closed down my business and have lquidated all assets and have divided all balances owed on a percentage of the principal balances (no fees or late charges) and simply told her Advanta would only get what was left, since a big part of closing my buisness was Advantas fault, for raising rates (7.99% to 29.99%) and more than trippling our monthly payments without notice or cause. As our other credit accounts have done but not as drastic. Advanta You lose just like thousands of small businesses have and are doing right now. Advanta has now joined the economic avalanche by their own hands and greed. Thank you Mr Alta, Mr. Moorse

I just came across this site and I am in it deep with Advanta also. After them smacking my personal credit report with a 60 day late I have a written agreement with them for a year at 3.99% on a 25K balance ( comes out to $540.00 am month) Theses guys sucked 35% interest on me for almost a year until I jsut couldn't pay anymore. My personal credit report is important to me and am doing everything I can not to trash it becasuse of advanta. My other credit cards took away my most of my credit lines already. Should I just stop paying them?? I would go for one of those 30% settlement offers just not to trash my credit.

Max, Welcome to the club. I joined in back on page 14. Same exact story for me. 19 years in business, begged and pleaded they bring my rate back down to 7.9% but couldn't get it through their thick heads. You (and I) wasted a lot of $ and mental energy trying to convince these crooks 30% interest was impossible.

Yes, Advanta will accept a 30% payoff. But guess what? You have to make them bleed first. I stopped paying back in June. And now they finally will accept a 30% settlement. Since my credit report is now trashed, I don't give a damn if I ever send them one penny. Dennis Alter is a criminal and he uses credit reports as his only leverage. Change your priorities, forget the damn credit score, leave your money in your bank account (not his) when you do this Advanta is left with nothing and they get one step closer to being shut down!

Has anybody else noticed P and C have stopped calling? These creeps would call 4x's a day every day except Sunday. On Saturday's as early as 8 a.m. I reported them to the FTC, Attorney General's Office and Department of Financial Services.

Is this why they finally stopped calling me or is it b/c Advanta isn't paying them?

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My debt was taken out with Advanta in my and partner's LLC name and EIN number, but I signed the application as a company officer. Nothing was in writing about my being personally responsible. Now that we can't pay, they are threatening to report on my personal credit. Can they do this? If so, how soon? (We're 30 days late.) If they do it, can I fight it with the Credit Bureaus since it is on an LLC?

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This is my second post about this. I am being continuously contacted by Advanta. I ignore the calls. I sent an email to Timothy Winters (a "manager") asking for terms for his 50 percent offer. I also told him I can't take calls during the day while I am at work and to use email to correspond. I never received a response from him. I'm not sure who is calling me. I've appealed to all three credit bureaus and two have responded that the bad status is accurate so don't waste your time on that. I've written the FTC twice and not heard anything from them except acknowledging the complaint. I'm going to write them again. I think that's our best bet for now unless someone knows how we can unite for a class action suit. I'm going to sit tight and not pay since my credit is already trashed. I am floored that one crooked company can do so much damage to an otherwise perfect credit history. Perhaps we need to address this with our legislators.

How do you get these jokers off your personal credit report!!!

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Feeling frisky? Try this: When you get an Advanta collection call dare 'em to sue you. You'll never hear so much backpedaling in your life...

I have no idea if this is true or not as we just decided this month to not pay Advanta. This will be our first missed payment. My husband has a business credit card that is only at $4,000 but they continue to jack up our interest rate for no reason. I am sick of it. So we are adding this one to the other 4 cards we are going to try to settle. I did a phone consult with Michael Mack the credit man guy. He made it very clear to me that he was not offering legal advice but he said Advanta is sooo bankrupt and to quit paying them immediately and I will probably not hear anything from them 1. because I have a low balance with them and 2. they have so many other problems they are dealing with. Again, do not know if it is true, but I guess we will find out. Mack also told me to settle Bank of America (ours is at 44,000) because they were the easiet to work with. Just a side note, I really like Michael Mack, but he did not want to take our case because he really felt like we could do it on our own and he was a little worried we weren't going to be able to come up with his fees and have settlement money. He really wanted us to look into BK and I do not want to do that. I figure why not try settlement first and then I guess as a last resort you can look into BK. There is my 2 cents. Keep posting on this Advanta thing..it is all very helpful!

Just got a call from these guys....does this mean Advanta turned over to collections and if so, has anyone here dealt with them ? any feedback/advise appreciated!

My previous post was about them threatening to hit my personal credit when this credit was taken out in a more than one owner LLC's EIN #. I printed off my 3 credit union reports for this month. They dont show Advanta on any of them. I'm hoping that will be partial proof if suddenly Advanta (a 3 year-old debt) starts claiming themselves on my personal credit and I need to fight it. Has anyone else tried this? They seem to be into trying anything--even if illegal methods--but it looks like they could be reported/even sued under the Fair Credit Reporting Act for reporting a business account on a personal credit report. Not that the feds would act quickly enough to help.