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

While I am compelled to visit this thread every single morning, what absolutley amazes me is how we (you and I) give Advanta more thought and effort than they give us.

Do you really believe someone is at the Advanta office scratching their head, pondering how they can help us out? Nah! Instead they hire the Indian mafia, or known crooks like Phillips/Cohen, LVNV or ACT. The obvious delay of justice to small business (the back-bone to the U.S. economy) is regretful.

My credit is now trashed thanks to being lured into 6% interest and the inability to afford 35% interest in miserable economic times. I had to let my employees go because I cannot get credit due to a negative credit rating from Advanta-the only negative reference which took my scores down from 800 to 590 with a collections rating.

Our Country is screwed until white-collar criminals are made to pay as heavily a thugs with guns and knifes.

My two cents.

My score went from a 790 to a 630 in only a six months thanks to Advanta. That's one thing I still remain confused on, even though I have 4 personal credit cards, utility bills, phone, etc, and 3 business cards that are all in good standing with less than 50% of the limit used, will I still see my credit in total ruin over this one Advanta account???

How can that be? They declared BK and keep lowering the roof (credit limit) over our heads on a closed account and jacked up the interest to a point where we will be repaying them for 20 years. If I try and settle this card does anyone know how exactly this will affect my credit score (I realize it won't be great)? What I'm wondering is if one thing will ruin your score why do any of us try? Why not just declare BK and give up.

I've always been financially responsible and it seems like this is literally going to destoy everything I've worked for. I wish I would have never got involved with these loan sharks. As it stands now I'm going to try for a forgiveness repayment plan and see if they are willing to work with us. I don't really have a plan B.

NinjaBux,

While you're correct that your credit is trashed (and will probably get worse for a while and some cards will get closed, limits lowered, etc.) it is not true that you will have to declare BK, and your credit doesn't have to stay bad forever. There are things you can do. A good starting point for what to do and how to do it is free right here: http://www.scribd.com/doc/25443175/Debt-Hope-Down-and-Dirty-Survival-Strategies-Evaluation-Version-Complete

My credit score was 775 before advanta screwed me; now it's 640 All the other credit lines and credit cards I had lowed my limits and BOA even closed a 50K credit card I had for over 5 years that I always kept in good standing. I must of lost at least a 100K of credit. I wish there was something I can do to get these guys back. Yes, I used credit that advanta gave me, but 7.99% to 35%- give me a F#@ken brake!!!
I have always paid my debts, but these guys need to bleed. If anyone out there has a way to fairly get rid of these guy. Please do tell.

Fairness needs to be a two way street ... I like the name of that guy's eBook "Down and Dirty Survival Strategies"...

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Has anyone recently settled with Phillips and Cohen on their Advanta account? I just got turned over to them and am looking for some advise?
Thanks to all!

So Advanta files for Ch 11. This means they aren't dissolving. Doesn't this mean they are re-organizing?

How likely will my (our) debt go to a JDB?

Advanta seems to have a small ($10 million in assets) bank as a dinghy from which they could rebuild a business. It was under some onerous FDIC orders and it took the FDIC to court and got the orders stayed--a rare victory by a bank against a regulator. Hard to understand what's really going on but my best guess is that it could be a base for rebuilding the holding company when it re-emerges from Chapter 11 after the failed credit card lender is taken over by the FDIC.

These machinations occurring next to and above the credit card lender should have no effect on debtors--the debts will go to one or more JDBs after FDIC's takeover occurs.

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I am now about 120 overdue on my Advanta business card, and have spoken to a few people including a Tom Kush and Josh Burland, managers they say, who give me deadlines for making at least a minimum payment of 432 on 21000 debt to avoid going "legal" and out of their hands. Anyone have any information about legal threats and whether it actually occurs? I told them I would not make any payment without a written promise on terms, they had a couple of plans with different lower interest rates but all with the 432 minimum payment, and once said I could settle for 50 cents on the dollar over a 6 month payoff if I replied by march 8th, but when I called march 8th on that, they said Kush on march 3rd changed their minds and now wanted 60 cents on the dollar, but nothing was possible unless I made an immediate minimum payment of 432 on that day to avoid leaving them and going to legal action. Any similar experiences or advice?

Just an update ....

They raised my APR in 34.5% WTF!!!! After calling to get an account rep on the phone, the person they directed me to worked for Premier Radio Networks in the subscription department and had absolutely to power ovver Advanta accounts. So now they just play games like that apparently.

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Internecine warfare at Advanta with implications for debtors. If Advanta Bank wins a round against its bankrupt parent, they'll have a bit more money to stick it out a little longer. If they lose, then the parent company will be able to pay its widow & orphan note holders a few more cents on the dollar, but the bank will go under sooner and cost the FDIC more money to liquidate.

http://www.philly.com/philly/business/20100316_Bankrupt_Advanta_in_tax_fight_with_its_main_subsidiary.html

Doesn't look good for ABC to get their tax "refund"

http://www.advantareorg.com/maincase.php3

Doesn't it seem that even if Advanta Corp "wins" and recieves the estimated $54m, wouldn't that money in it's operating account only delay the inevitable?

My guess is it wouldn't buy them more than a month of operating expenses. Most would probably go to pay investors and Attny's anyway.

looks like they lost

Advanta was taken over by Utah State regulators today

What does "taken over by" mean for the debtor? What can we expect to happen from this point on?

With all these going on with advanta..What does it really mean to people who still have a balance and are still paying them every month? In other words, should I keep paying or wait. I am so happy these guys are in the mess they are in. 7% to 35% interest for no reason.

With the takeover, there IS something folks could do ... I'm not saying this will work in all cases, but it would sure muddy the waters if any JDBs come knocking months or years from now. If you have, say, 7% of the outstanding balance you can scrape up and you know how to put an "accord and satisfaction" notation on a check, it's probably worth doing it as a parting shot ... add in there that the interest rate was unconscionable usury ... then just sit tight and be prepared to plead it as an affirmative defense if you're ever sued. It won't fly in ALL states, but in the states where it won't, you can argue that Utah law applies and the judge will have pretty much no idea what the state of the law is in Utah and he might just toss it for you.

My interest went from 9.99 to 34.99 for no reason. I have never been late or over limit. I still have a balance at promotional rates of 6.99 and 2.99, and since I have never been late, they are still at that rate. The rest of my balance was raised to 34.99% for no reason. I am also wondering what to do now that they have been taken over by the FDIC. Advanta raised our rates in ways that are now illegal under the new credit card fairness laws. Mine was raised with no notice and for no reason.

so, can i expect the calls from their outsourced collectors (sage recovery) to stop now? my 15k acct charged off a few months back and best settlement they would offer was 45%. how long now before the fire sale to a jdb, and what should i expect thereafter?

Need a little Help? Should I stop paying Advanta? Call and try to settle my 25K balance I have with them. What would be the best course of action to take? Don't feel like screwing up my credit if I don't have to? Any comments would be appreciated. Thanks for reading

I received a letter from Advanta sayign that may file a judgement. They also sent a sample judgement. Do they follow through on this. I paid this credit card consistently until my business failed. My interest rate went from 7.99 to 21% after one missed payment. I cant pay the full amount but will settle if its doable. Is this an option from them? Any advice will help.

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How will the advanta debt appear in the future on the CR on accounts that haven't charged off? Does that mean it can never charge off??

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Just read after doing a google search that Advanta has been taken over by FDIC. Now what does it mean to people who still have a balance with them?????????????

Only time will tell....

Advanta is still calling me even after the takeover. What do I do?

yep they keep calling me too. Just treat them like you would other creditors. I just stick to my same story, no do not want hardship, and as soon as our situation improves will let them know. But right now we have no money to pay them. I have no idea what is going to happen but I really hope given some tiime we are going to be getting settlements. Keep us posted.

I would not pay any Advanta collector one penny. How do you know they have the authority and will resolve the debt? (you don't)

Presently I am following Advanta small claims lawsuits in nearby counties in Florida. There is no way Advanta can mount a defense in their present state. If those cases are successful, I will file a small claim suit as well.

This is pay-back for what they did to my credit. AND...no collection agency deserves to profit one penny for having any involvement in me getting screwed by a company I trusted.

Advanta Scam,

I'm in Florida too. With Advanta I used the procedure outlined in "Debt Hope: Down and Dirty Survival Strategies" and sent Advanta an accord and satisfaction check for 7% of the balance with the wording recommended in the book on it. Time will tell.

will the Accord and Satisfaction work in New York? I would love to give it a shot and send them 7% of my balance

Guest 11,

The author of the book says that versions of UCC 3-311 are on the books in every state, and that there are ways to look into what the exact requirements might be to get it to be bulletproof. But even if it isn't bulletproof it would muddy the waters if there was ever a lawsuit and deny the creditor a summary judgment--which raises a major stumbling block for them. The author calls it a "hail mary" you should always throw if negotiations aren't possible for an amount that you can pay.

I got a letter with the Advanta letter head dated March 23 that states that if I don't send in a payment that they will report me to the 3 credit reporting A. In other words - if I don't pay they will screw my credit. I know this may sound foolish, but I just can't bring myself to pay advanta when I think how they screwed my for 14 month at 37%. I got a great credit report, but I guess there always a first time. I am going to wait it and keep reading the boards to see how to handle this one.

Charles H. Green's article on Huffington Post is called "And You Thought The purpose of a bank was to make loans" ... 775 FICO got him very little. Who cares anymore about scores!?

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Screw Them is right.....Advanta got what they had coming...Now let's see who buys the debt???????and we will deal with them...

Not making a payment online- Looks fishy to me. Has anyone gotten a written statement from Advanta after the FDIC take over on March 19???

Let's not confuse names here.

Advanta "Corp" owned numerous entities. They are up to their eye-balls in Alligators right now. Advanta Corp went BK. It's subsidiary, Advanta "Bank" owns our debt.

However the bank was taken over by the FDIC. This means the FDIC owns the debt now-NOT ADVANTA BANK (b/c they are gone) and definitely not some sweat-shop with renta-drunk, want to be lawyers who talk tough and deliver nothing.

We have no idea if they even have the authority to resolve the debt and correct our credit rating bringing the balance to $0.

The next step according to my reading is that the FDIC tries to sell the debt to a junk debt buyer at an auction (since they couldn't find a reputable financial company to take it over). Does anyone know how long it takes before they auction off the debt to a JDB and begin to offer any kind of reasonable/low settlements?

Yes - That's a Great Question??
How long does it takes before they auction off the debt to a JDB and begin to offer any kind of reasonable/low settlements?

ANYBODY ANSWER IF YOU HAVE AN ANSWER

The collection phone calls from India have seem to of stopped. Am I the only one?

Seems like someone is pushing DS Financial. I believe to just to deal with any bank myself? Why pay a fee to someone else.

I received a letter from Advanta saying they would file a judgement against me if i don't pay. They sent me a sample copy of what the letter may look like. Has anyone else received this?

And what money does Advanta have to take anyone to court? They keep calling me too, but have not received any letter. I do not hear from India anymore so that is good. I do talk to them about once a week...best offer so far is .50 on the dollar. No deal as far as I am concerned.

Talked to Advanta today. They said they are a new 3 rd party that has been hired within Advanta to try and collect debts. They offered 50%. I said no way. He said present an offer and he will take it to the manager. They are wanting to liquidate the debts. But all he could approve w/out a manager was 50%. I said I would get back to him. So I am going to offer 10%. I will keep you all posted.

Mid-March got the "draft" legal notice. Then 3/31 calls offering the best payment plan. I refused telling him that much of the balance is inflated from the 32.99%. By end of the same call he offered to settle for 50%. I offered 10%. He said that would never be accepted. I asked to speak to his supervisor. He hung up. I left 2 messages for the senior account manager to return my call. No call back, and now I'm told he's no longer with them. Then Monday received a call from a very rude "Rose" who told me pay balance NOW or it's leaving Advanta today. I told her I've been returning the call to the senior account manager I was told to contact directly. She said as of today you deal with me. It was nuts. No calls since Monday when she hung up saying she had another call to answer. Time for collectors is money. I guess with all my question, she figures she wasn't getting a penny from me. ADVANTA doesn't have a leg to stand on. They seem to be sending out mass mail threats. They'r hoping at least a few of the million small business owners that they screwed, takes the bait. We all need to stick together--keep offering 10%.

Man, you did the same thing I did just 6 months later. Every single threat is completely empty. Nothing ever comes of them. I filed a complaint with the State Attny's Office against Phillips and Cohen and haven't received a call since. I haven't received even a statement from anyone in 6 months.

For those of you following along-please note prior to this catastrophe I have never been late on a payment in my life. Advanta thought they could use the "fear of a bad credit reference" as leverage to force me into paying 35% interest when I had never been late to anyone.

You need to temporarily refigure your priorities and move credit down just below moral business character and decency to other human beings and fellow Americans.

Punish Advanta for doing this to us. Do not send them or their blood sucking collection companies one penny.