Advanta Bank Liquidated By FDIC

[iceman]

I got this pretty cheap looking fedex type envelop with a red strip around it in the mail yesterday. It's a letter stating that if I don't pay they will sue me. They even included a sample of the summons and complaint (the paper are use to sue). What a joke - just trying to scare me in order to try and get in touch with me. I am not talking to anyone until they sell off my account. I am approaching the 60Day late mark. Anyone got any info on how long the FDIC is going to take before they sell off the bad accounts?????

[iceman]

after a little online searching - I see that poeple are settleing for 25% when there Advanta account goes to a Phillips & Coen.

[lward8564]

re: Advanta

Same old tired story.

Advanta customer, they jacked my low rate to 39% without justification. I offered to pay the principal, minus all the fees and interest before the hike. They declined. After several more discussions, I dug in and stopped paying the bill.

At 90 days late, they called and offered 70% payoff which I declined. Although he couldn't see me, I admit I gave the guy the finger as I hung up.

Then Phillips and Cohen starts calling. What scum. These guys have a rep for chasing relatives for money they don't legally owe. Like others, I did some research and found people settling for 25%. They offered 40% or charge-off. I called the bluff, offered 25% ... and it went to charge-off. Don't believe everything you read on the net!

Waiting to see who buys the debt.

This really blows. I have good credit out the whazoo and this is the only negative on my 30 year credit report. I admit part of this debacle was caused by my obstinacy but I felt screwed and it became personal.

Jagoffs.

[Mensa1]

I admit part of this debacle was caused by my obstinacy but I felt screwed and it became personal.

As the saying goes, you can negotiate money but cannot negotiate principle.

I'll bet you could have taken that 60% savings and the acquired peace of mind and ..... Oh well, too late for that one. GL on resolving this at some point. I wonder what the increased cost of dented credit will be going forward, over the next 5 yrs or so? Maybe more than what you might ultimately save here, if anything. You get the point.

It is actually often times a much better idea to have a 3rd party do the negotiating for you since one is so emotionally involved in the details. Just a thought.

[lward8564]

I posted largely to warn iceman about the 25% settlement info he had read regarding Phillips and Cohen. If he chooses to deal with them, he should know they may not be prepared to go that far.

I disagree, principles are often negotiable. Advanta just happened to catch me at a time in my life when I couldn't stand still for such bs. Every once in a while, damn the torpedoes, a guy needs to dig a trench and stick it to 'da man!

Phiilips and Cohen are slugs and, in retrospect, I'm glad they turned down my offer as I would've had to hold my nose to write the check.

I've realized no "cost" of dented credit as of yet. As mentioned, my good credit is deep and my score was only slightly affected. Thanks for the well wishes though, it shall be resolved.

Unfair business practices indeed. Jagoffs.

[iceman]

Thanks Iward...I am going to hold out until my account gets turned over to P&C. Then they are not get any more that 25% out of me. This account which I did nothing wrong..Never late and have been with them for years until they went 37% on me. I can't belive that the FDIC does not see how these poeple tool advantage of hard working busines people..

Does anyone think the FDIC will sell off the accounts to a Junk Collector??????????????????

[DeadManCrawling]

I am nearly certain FDIC will sell the accounts, at least one last time. They are not there to protect you, at least in this case. FDIC has a duty, supposedly, to squeeze the best deal out of this for taxpayers. We could debate whether FDIC picks favorites (I think they do), and just how much cronyism goes on (I think lots), but the collections accounts are regarded as an asset.

I expect they will be sold, and some new agency will then try to collect.

Whether they have even miniscule records, though, is something I doubt. It may be very easy to fight and win those cases.

[iceman]

Hey DeadManCrawling, what do you mean by FDIC will sell the accounts, at least one last time. Would you have any idea what the time frames are when it comes to selling off the accounts. I am approaching 90 days late.

[DeadManCrawling]

FDIC has a legal duty to get as much money as possible for the taxpayers, who fund these takeovers, and usually pay a portion of losses.

FDIC essentially owns the assets of the bank. Collections accounts are an asset. They will likely sell those to someone for a few cents on the dollar, and the buyer will be entitled to attempt to collect those debts for as long as statute allows.

So, pretty much like any other creditor, the debts won't go away just because Advanta no longer exists. However, the buyer may have a very difficult time in court, because there may be little or no paperwork to back up their legal cases. They will likely be relying on default judgments and hoping that consumers, as usual, don't challenge these debts.

For you, approaching 90 days late, nothing much changes, except that the charge-off may have already occurred, when FDIC took over. I don't know their process on those things, but expect "someone" to be looking to collect on your account, eventually.

If it never happens, that would be great, but I would be surprised.

[iceman]

I heard after PnC can't collect on the advanta accounts - They go to CBNA

Not sure how true that is

[BrokeCouple]

Does anyone know how much the already charged off credit cards accounts were sold for? I have received 30% settlement offers on my 2 accounts from Sage Account Recovery. I am just trying to find out what kind of a deal I might be able to get.

[DeadManCrawling]

BrokeCouple,

Chargeoffs sell for pennies on the dollar this late in the game. Early-stage charge-offs from top banks with "good" customers go for up to 15-20 cents on the dollar. Advanta and its history and customers are none of those good things.

I don't know what the Advanta accounts sold for, and probably no one but the buyer would.

You can learn more about how that ugly shell game works by searching google for terms like "charge-off auction" or "accounts receivable broker" and so on. Prepare for an eye-opener. It is a dirty world full of thieves, murderers, convicts and con-artists. And there is also a bad side.

[flacorps]

Advanta, FDIC, Cardworks, Deutsche Bank Trust

From what I can tell there was no buyer for Advanta because although there were over a billion dollars in deposits, the assets Advanta actually had were quite minimal. The bulk of the card accounts were turned over to the Deutschebank trust(s) they were pledged to (in return for Deutsche Bank having fronted the money for the cardholders' charges at various merchants, etc.). So instead of having to put the cardholder accounts into the FDIC's JDC program (inherited from the old RTC), it's Deutsche Bank's hot potato to do with as it wishes. Apparently it wishes to have Cardworks manage the whole shooting match (although for public consumption it was said that Cardworks would only manage the performing and slightly delinquent accounts).

Meanwhile, Sentry, Phillips & Cohen and Sage have all worked some of the Advanta accounts, and apparently some lawsuits have been filed here and there in the name of Advanta, with the FDIC as trustee (I'm not sure how much longer the FDIC will be in the picture--clearly they and Deutsche Bank have some negotiating to do vis-a-vis making the depositors whole). My guess is that Deutsche Bank will be "encouraged" to go with the JDC model, absorbing the costs of collection and splitting whatever is recovered halfsies with the FDIC. Whether Deutsche Bank should or will get a better deal because they were the ones who funded the accounts in the first place is anyone's guess.

[catleg]

I guess, against all odds, there must be a few Advanta card holders actually paying down their debt. God bless 'em.

As for me, they are listed in my BK13 case and the debt was sold to Portfolio Recovery Associates, one of the biggest of the bottom feeder JDB's.

[tobee43]

cat...and that's why i soooooooo feel for those that had to be drawn into 13's....advanta i had for years at 4%...and of course they did the same thing to me as they did to everyone...up to 39%...told them they lose....i'm not paying even tho at the time i had NEVER EVER missed a payment...because of their greed i told them so what you have to... sue me, take my house, car, lawn,.....i enjoyed their collection calls....and thankfully now...with my discharge they are out of our lives forever!