Is Advanta in Breach of Contract on Credit Cards?

As of July 30, 2009 – Advanta Bank Corp. stated that they were closing all business credit card accounts. They cited in the letters that went out that an independent trust which owned the balances cards and provides funding for new transactions was pulling out. As such, you need to keeping paying your balance but Advanta will be unable to provide further credit.

Now under basic contract law which is the thread between your agreement with credit card companies there is an offer, acceptance and consideration. Advanta offered me credit and I accepted and the consideration is the the act of providing credit with my obligation to pay it back with interest. Now, as a result of Advanta losing a trust that was funding these, they suddenly are in breach in my mind and as a result, they are asking me to modify my agreement without new consideration which is a requirement to modify the terms of any agreement.

A breach occurs when the bargained-for exchange is not honored by the other party, in this case Advanta Bank Corp. I believe I’m entitled to an order of performance which is the extension of credit otherwise what incentive do I have to pay back any balance on this card? They have not offered me additional consideration like to pay less or go without interest and I think this is not only a breach but unconscionable that Advanta could not act it good faith and fair dealing and assumes the public is stupid and unaware of their rights.

I implore all consumers, if your card is cut off please get a copy of your original agreement and all addendum and see if they have the ability to do this or take the credit card company to arbitration since they make that a part of the agreement. I intend to call and get my card settled for a lot less since they are in non-performance and breaching their agreement.

Wake up and take back your power and let them know you’re not going to be insulted and slapped around any longer. Chime in and let us know about your credit card stink by leaving a message below.

Sincerely,

James Burns, Esq.

Is the Sky Falling?

I could tell you from what we are seeing in mortgage modifications and short sales that things look a little bleak. Every week i meet with would-be investors who are now clinging on for dear life because they bought too much investment property without real income to support them. When I see people they are ready to walk-away, let it foreclose and tragically trash their credit for a decade.

There are choices and sometimes we have to face the music. The way your character is tested is by how well you deal with adversity, I’m finding many people are ready to abandon their leadership capability and run and hide under a rock. Sure there is a little embarrassment that goes with being a failed real estate investor but ultimately you have to face it and do what is right to keep your credit in tact.

First, a little history on credit scores. A company called the Fair Isaac Corporation created the first credit score. It was made available to lenders in the very late 80s and soon thereafter began to pick up momentum and popularity in the lending world. They called it the FICO score  and it became the gold standard in the mortgage and other consumer lending.

For years the FICO score was a mystery to consumers and was only known by the lending industry. Credit scores have only recently been made available to the public in the last few years. In 2001, California passed a law that required credit scores to be made available to California residents.

It also turned into a cash cow for the bureaus. However, for two of the three, instead of selling the actual FICO score, where they had to pay royalties to the Fair Isaac Corporation – they created their own scores to sell to consumers, that’s where the confusion started. Now all the bureaus  sell scores targeted at the consumer market, and unwitting consumers assume that these scores are the same scores a lender would see. Unfortunately, this is just not the case as Edward Jamision, Esq. would point out. His office has one of the best credit repair services that we look forward to bringing on.

Sometimes if you qualify for the loan modification which means you have a current loan that is 7.5% or more or is going to adjust or recast, and you want to stay in the home. Another thing you need to consider is getting your property tax bill reduced which we love to assist people with and you can examine the numbers for your self by going to this link. For a minimum fee you can get your annual tax bill reduced and save some money there.

If you’re looking to consider loan modification or if you owe more than the property is worth and are having financial difficulties you’ll want to download our questionnaire from here and you’ll also find our e-book “How to Avoid Foreclosure- 3 things you can do right now” which gives you great information on your options. Stop the worry and find solutions to your housing problem.

Untaxingly,

James Burns, Esq.