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

In my case, they were never on my personal credit when it was good. Then after I stopped paying I received a letter stateing they reported the business (which has been closed for over 2years). I never received a letter from them saying they reported me ( they said they would send one) but they did, and they updated it right along, all the way to charge off. It was my understanding also that it was illeagal under the FCRA and could be sued. However I have read that its not really a Business Card, its a personal Card under the guise of a Business Card. But have never been able to find any real advice on what to do or how to get it removed.

If you are still getting phone calls all day and nights and on weekends, do this, when they call ask them if they are calling from a different country, then ask them what their first and last name is, and don't settle for the the first name they give you it will be their (business Name and not their real names) ask for their real name, then say "I do not discuss any of my or my companies finaces with any person or persons from a foreign country period, Then say have someone that speaks clear english call me from inside the USA and only from the USA. The calls will stop. They did for me.

This is great...

FDIC 09-724c&b On a November 10, 2009 telephone conference among Mr. Rosoff, Mr. Dubow, and the FDIC, Mr. Rosoff stated that he would “turn over the keys” of ABC to the FDIC and that the FDIC “can have it all this minute.”


from http://www.fdic.gov/bank/individual/enforcement/2009-12-57.pdf

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I really look forward to the results of that hearing. Sounds like we will have some good readings in the next week or so....

A couple hundreds years ago there would have been a linch-mob outside waiting with tar and feathers for those "Inner Directors"

I am paying Advanta at 24.99%. I want to STOP paying them as many of you have already done, but I fear my personal credit report will be hit.. Does Advanta have the right to report on personal credit. I am out of work and looking for a job and can't have a negative on my report if I am going to have any chance at a new job.
Any information would be very much appreciated.

Advanta sucks but ive heard of clients settling with them directly for very low, which means ??? maybe around 20-30% of the debt directly. if youre working with a collection agency maybe it could get worse.

Keep in mind with that percent (23%) youre going to pay maybe 3 times the amount you owe in the end after paying them off at their rate.

I always tell my clients: "sometimes its better to be sued on the actual full balance then paying minimums and paying 3 times the amount" given this is NOT the outcome we want but still if they get the lawsuit its STILL BETTER then paying the mins forever.

bad outcome but it happens to HONEST

aka RIOT

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i checked my original advanta agreement and it does say the cardholder is personally responsible, not the business.

I too was worried that they would report on my personal credit because that's what they threatened. They did report at just over 30 days late. I found out because I was trying to refinance a loan. I told the company that Advanta shouldn't have been able to report an LLC loan on a personal credit but it hurt me anyway and the closing costs went way up--so I refused to close. I'm going to write an explanatory letter to all 3 credit unions but doubt it will help. When a Junk Debt Buyer takes over, I'm willing to settle, but I don't trust Advanta to do anything they say.

I'm not worried about lawsuits because I researched and Advanta hasn't sued anyone in my state since 2003. I think I could defend a lawsuit because nothing they sent me and nothing I signed said I would be personally responsible for a company debt. They can't produce anything I signed that does. And they advertised it as a "BusinessAccount" card. But they insist that I'm liable.

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Checked my husband's credit report. Advanta is not even on there...what is that all about? All his other business debt is, but Advanta MIA...it will be interesting to see what happens as we just barely missed our payment for the first time. Bring it on... can't believe we have put up with their jacking up the rates and not working with us for so long.

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We too recievd a letter from "ACT" as a first notice to collect the debt we owe Advanta ($32,966) and rising, they jacked us up from 7.99% to 35.99% with no notice at all. This letter states to pay in full to Advanta and not them the CA. My question is I haven't sent a validation or verification letter, I'm confused as to which one to send within the 30 day time frame. I have been reading everyones journey. We are going to try debt settlement with the cc's instead of bankruptcy. We have a small resort/bait/tackle shop that is closing. One due to the economy and two who the heck can continue to pay these CC's with high interest rates.

The latest threat is to be turned over to "legal". Can anyone tell me if this a toothless threat? Has anyone out there been sued in the last few months or gotten a summons or a call from a reputable lawyer? My understanding was that they don't even have legal representation--other than what is probably handling lawsuits against them.

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:DAdvanta has filed for bankrupcy they are insolvent. Advanta bankcorp says that they are not part of the bankrupcy but they are not being backed by Advanta very soon federal regulators will take over and shut it down.

Any legal resources left are being used to fend off Plaintiff's. Trust me, I spoke to one. They will counter as a Defendant b/c they can't sit back and loose by default but they will not sue anyone.

I've been threatened by them since August and haven't received a single summons.

As mentioned earlier it would be an uphill battle in the cold, without shoes in a snow storm for them to try to sue anyone. They don't have the money to pay employees right now. So how are they going to pay an Attny $300/hr? Presently they are going to short change investors at less than 30% on the dollar.

I predict June 2010 they will be gone. When that happens, a JDB will step in then you and I can settle at 10-15 cents on the dollar and be done with these crooks.

Why pay the JDB? Fight them in court. Do you really think they will be able to get a witness from the OC, Advanta, to authenticate the documents on the account?

i got a letter from allen & associates from lubbock texas...should i ignore these attorneys or go ahead and send out the debt validation letter?

i got a letter from allen and associated for advanta....should i send a debt validation now or what?? thanks!

How much is your debt with them and how long have you not been paying? I am not far enough along in the process so I am really not sure what to advise you to do, but from everything I have read I think that you should. I am sure someone with more knowledge will come along and give their opinion very soon. Keep us posted though.

Always send a DV letter. There are examples on this site and elsewhere. If they are attorneys licensed to practice in your state, getting their letter is a signal that you are likely to be sued.

Sending the DV letter makes them get proof from the OC before they can continue with further collection efforts, so it slows them down. It's also helpful in that it lets you see what kind of evidence they have.

Also, in your DV letter, elect arbitration. Advanta has an arbitration clause in its cardholder agreement. Once either party has elected arbitration, they can't sue, under the terms of the contract. Arbitration has become a powerful weapon for the consumer since the demise of NAF. Check out the legal forums at creditinfocenter -dot -com.

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Keep it simple:
To Whom It May Concern:
This letter is being sent to you in response to a notice sent to me on (enter date) regarding a debt that you are attempting to collect for Advanta Bank. Be advised that this claim is disputed and verification is requested.
Please limit your communications with me to written correspondence as it is inconvenient for me to receive calls at any time or at any number.
There's no need to get more complicated.

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I am in the same boat as the rest of you. Business is gone and have Advanta calling to settle at 55% or they will sue. Any ideas.

The advice I have seen is not to sign a DV letter, meaning, no handwriting, no "John Hancock." Just have your name and address printed at the bottom. The reason being that collection agencies could scan in your signature and use it to forge things.

also getting lawsuit threats on advanta card through sage recovery. has anybody here actually been sued by them?

When Sage called you did the claim to own the debt or be just working as a 3rd party for Advanta?

hi guys, i owe about $900.. should i just pay it off or settle? i paid almost $1,500 off and now feel like i should have just settled.. is there any way i can contact them and tell them i lost my job and would like to pay half of it and clear the debt?

You would have to be late on your payments..before they would even consider any kind of settlement..and being late I mean by several months.

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I am in the same boat as you guys. about 100 days late. They are telling me they are sending paper work to sue me in court. What do you guys think

Ok. Well, after 60 months past due on my account, Advanta finally came to their senses and offered me a repayment program at 9.9%. I spoke with Jared Lazaroff. Try giving him a call at 1-800-451-2313 ext. 7724. It's just too bad that you have to stop paying Advanta for them to negociate a better rate. I haven't had the guts to check my FICO yet....

Ooops, I meant 60 days past due...sorry!

Were you not interested in wanting a settlement? Just curious why you didn't hold out longer and try to get one.

They settled with me as I owed $17,300 paid $14,500.00 done deal I told them I'm not paying 29.99% they closed the book on this one, which I am happy to do, they do report any charge offs over $600 to the IRS as income. So in my mind I am ahead, $2800.00 plus less all the intrest and new fees for the next 5 years, They also will offer a 5 year repayment plan which when I did the math would have cost me over $5500.00 extra. I now only have 3 other bank cards to get rid of working deals on them all, Next thing to do once that is done is dump all the banks for credit unions, and use debit and or cash, No more Credit cards. As of the new rulings that took effect today 2/22/2010 I have learned a great lesson, if I don't have the cash I don't buy it, or need it. The people are waking up and the Banks days are numbered. How are they to survive when everyone stops using thier services.

It is so unbelievable to me as far as ADVANTA goes that these idiots are in BK themselves and do not try and negotiate better. It seems to me that it is far more costly to them to take people to court, deal with 3 rd parties etc. I just don't get it. They did the same thing to us, jacking our rate up and frankly we are just sick of it. Of all our cards, it is our lowest balance but I am just not going to sit here and take it anymore. They closed our account b/c they were bankrupt and then they jacked our rate up...go figure..we had perfect payment history with them and always paid over the min. IDIOTS!!! I don't want to get sued but boy I am going to wait this one out as long as I can...can't wait for my morning call..

Jaybone, why do you say it was stupid to offer 30% as settlement?

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Advanta also waived all late fees and charges wich came up to a $300 credit on the account.

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Today we received another letter from the CA, ACT for Advanta. This time it was addressed to our business, exactly 30 days from the first letter they sent in my husbands name. So do we send a "DV" letter responding to both of their letters? We are $32k in debt with them and counting. As like many others here, stopped paying them in Oct and of course they continue to charge their 35.99%, late fee's,etc. On top of these 2 letters, we also received a "Charge-off" letter. Should we call the CA to see what the offer is. I'm not to crazy about it being charged off.

What does it mean charged off. I am getting a settelment offer for about 43% of balance. But in the letter they are saying "this will fully satisfy the obligation of parties under the above referenced buisness card account". They are also talking about forgiving 20K of balance due as long as I pay the 15K in full by a certain date

GuapitoMark,

I would really like to know how you presented or went about negotiating your 9.9% APR decrease and thank you for posting a Stateside phone number for Advanta's account managment division, no more trying to call India. You mentioned you initially offered them a settlement and they rejected it. How did you get from there to the APR decrease? I followed your info in this thread and suspect we have a similar situation. I have a small business that is still profitable, and I'm able to pay something, just unable to pay after they jacked the APR from 7.9% to 24.99%. My business owes about 11K. If I had something reasonable to work with, I could continue to pay off the debt and they could continue to still make a profit.

The greed with this company is confusing, it's as if they would rather not get paid than be reasonable with their customers. And for a financial instiution, they ruined so many small-medium sized businesses with their bottomless greed only to bottom out themselves.

I would like to hear how you did it, or how anyone else negotiated to an APR of 9.9% or lower. That's really all I need. I'm about 60 days past right now. Advice??

Thanks all.

I don't think getting a reduced apr would be hard. They offered me that quite a few times. THey would rather offer you a reduced APR (which should be just a normal rate to begin with) and have you still paying them. Then to not pay or get a settlement.

there was a period before mine charged off where they offered me an assistance plan, and i think it was at a lower rate, but the payments were still out of reach for me, and they wouldn't budge.