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

I talked today with a lady regarding my 57 day late Advanta bank corp account. First of all she mentioned to me debt management, I then mentioned to her that dmp would not help my monthly payments be lowered and I mentioned debt settlement. She then told me that they do not deal with DS companies as they require them to "sell" my account and they don't do that. I had never heard that before. And she also said that as of the 30th my account would leave her department and so somewhere else, collections I assumed. I explained my situation to her and she wasn't rude but she still was wanting me to make a whole payment when I had just explained that I could not. We then got cut off when I went down into a bad cell phone place. If they don't deal with DS companies, will they deal with DS lawyers?

927 Answers

Yeah this just makes me SICK!!! These people need to burn..I wish there was a way to expose them...but not sure it is worth my time. Just want them out of my life. I got my fax finally today on my settlement. For fun, I asked the lady when I called to confirm a few things.."BTW, just wondering who do you really work for...Advanta or FDIC...?"...she honestly said to me.."that is a good question..I really don't know, I am just glad I have a job.". Then she went onto say I think it is Advanta Bank b/c Advanta Corp is no longer..and she said she knows the FDIC fits in somewhere but really isn't sure how it all works. I wanted to say your are all morons, but the human side of me knows she is just a human being with a job trying to pay her bills. So I just let it go...

Originally Posted by luckin10
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"Should I talk"....Yes, that is an Advanta number..they are the real deal. They are not going to settle for less than 50%..I have talked to them several times. I will probably have to wait another month for my account to get to these Phillips & Coen folks that everyone is talking about. Good luck..keep us posted as I will do the same.

So I am not going to talk to the 267-525-4218. Not going to do 50% settlement.
Can someone comment how many days in default you where when your account went to Phillips & Coen and was it written off when it got there??

I have done alot of searching and have not seen an Advanta Settlement offer of better than 40% after the FDIC took them over. Someone please correct me if I am wrong on this one.

The thing is that Advanta is the only negative item on my report. I was just not going to pay 36% and I am not going to settle for anything less than 10%

I received a settlement offer 7/30/2010 owed $7,280.20 of about $1,180 was interest @ 34.99% + late fees. I am 4 months behind. I was a couple days late in making March payment. Paid and called to wave late fee & 34.99% interst no deal. I have refussed to pay anything unless put back to 7.99% drop late fees & 35.99% interest no deal. They have offered me to settle for 2,200 if paid by 8/2/2010.

[QUOTE=Anonymous;653065]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.[/QUOTE]

I would say from everything I have read and seen so far its definitly a toothless threat. They are sinking fast or are sunk. I think we will just have to deal with the FDIC down the line.

mehuljoshi: the best leverage you have to reduce your apr is to have our account open. If it is open, they can run it through the retention wizard after you've kept it current for a while and then there is a very small change you can get something lower because they want to retain you as a customer. Once you close the account, the APR is not getting lowered unless you go to a non profit CCCS company or get far enough past due and you happen to be one of the accounts that fits into the matrix criteria and gets the 16.99, 21.99 or 9.9 offers on their accounts. Not every account qualifies or ever gets that offer.

I also did collections for many years for Discover Card. My personal opinion is that they have always been one of the best to work with. They were one of the first card companies to start offering hardship programs themselves. My advice is to tell the rep you speak to that you want to request a hardship or a settlement and see what they say. It was many years ago that I was there but they used to try to get everyone that would commit to payments on a reduced amount with 9.9% APR. It could have changed by now though - back when I was there, Discover also moved your account into a special queue if you were on a plan so you didn't get called all the time - only the specialty group called you and those people knew exactly what was up with your account - that makes it much better when you don't have to explain your program to the rep calling you.

Again, NFCC - IF you pick a FULLY NON-PROFIT agency and ASK them if they have 501(c)3 status - if they don't, don't go with that agency. If you pick one that is a 501(c)3 you are good. You WANT to work with Advanta as far as settlements go, as far as just reducing the interest, you want a 501(c)3 company.

Called and spoke with a professional representative that was likely in the PA center. There were three options.
1. Balance discounted by 25% to make a LUMP SUM sum payoff. Paying 0.75 x the Balance.

2. FIXED period loan for 60 months at 9.99%. They discounted my balance due by $295 and then calculated the loan payments to amortize after 60 months. The total paid back at the end would be 1.33 times my slightly discounted balance. Basically paying the principal plus an additional 33% of the original loan amount over the 5 years.

3. Lower payment, but REVOLVING credit option at 3.99%, then 16.99% after the first year.
Knowing that revolving debt compound daily, this would not be a good option. Calculating this in a table, the loan would be paid off after 82 months. The total paid back would end up being 1.51 times the original balance, no small discount.

This would be a good option if you were paying it off in 12 monthly installments negating the effect of the lower payment. The interest at the lower rate over the first year would be a factor of 1.036.

It would obviously be best to pay off with a lump sum and save 0.25 + 0.036, about 28%.

Hopefully these numbers assist you in determining what they may do for your situation.

The representative said that these rates would not change, even with missed payments.

If options II and III, credit file would read "Pays as Agreed"

Option I would read "Settled In Full"

Please let me know if anyone was able to negotiate anything better.

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


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.


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