Question and Answer Guide
Advanta Bank Corp., Draper, UT
FDIC Call Center
Toll free number 1-800-537-4048
Hours of Operation – Mountain Time
Friday, March 19, 2010: Until 9:00 p.m.
Saturday, March 20, 2010: 9:00 a.m. – 6:00 p.m.
Sunday, March 21, 2010: Noon – 6:00 p.m.
Thereafter: 8:00 a.m. – 8:00 p.m.
Is My Account Fully Insured? (https://closedbanks.fdic.gov/drrip/AFI/Search/)
Electronic Deposit Insurance Estimator (edie.fdic.gov/)
Advanta Bank Corp., Draper, UT, was closed Friday, March 19, 2010, by the Utah Department of Financial Institutions. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was appointed Receiver. According to regulatory policy, there is no advance notice given to the public. Share price does not trigger a bank closing and was not the reason for this failure.
An assuming bank could not be located; therefore, the FDIC will fulfill its obligation to depositors by mailing them checks for their insured deposit account(s). Deposit insurance checks will be mailed on Monday, March 22, 2010, to your address on record with Advanta Bank Corp. No one lost any insured deposits because of the closure of Advanta Bank Corp.
If the balance in your deposit account(s) (this includes any accounts in which you have an ownership) totals less than $250,000, no action is required on your part at this time.
WARNING
Please be advised that you will not receive any e-mail notification from
the FDIC, the Receiver to claim/unlock/unsuspend your account or to
provide any private information. Please be watchful for and resist any such
scams
to obtain information from you by individuals or entities purporting
to act on behalf of the FDIC.
DEPOSIT QUESTIONS
Over $250,000: What if I have more than $250,000 in my accounts at Advanta Bank Corp.?
If the total of your deposit accounts exceeds $250,000, your accounts may require review by an FDIC Claims Agent. You should call the FDIC to schedule a telephone appointment with an FDIC Claims Agent at 1-800-537-4048.
If you have a deposit account or a group of deposit accounts that exceeds $250,000, you may need to complete certain declarations or affidavits and provide documentation so that the FDIC can make an insurance determination on your account(s).
If you are an investor with a deposit broker, you may need to complete one of these forms only if your investment exceeds $250,000. However, you must mail your form to your deposit broker for submission to the FDIC.
If your deposits DO NOT exceed $250,000, you DO NOT need to complete these documents or contact the FDIC.
A hold may be placed on an account that needs additional documentation from a depositor. For example, a Declaration for Trust form may be required to attest to the parties involved in a trust. These forms can be mailed to you, or you can access them online at:
Deposit Claims (www.fdic.gov/regulations/laws/forms/#DepositClaims).
If you have a question regarding the completion of required affidavits or declarations, this website contains samples and instructions for completing the declarations. If your question is not resolved by going to the website, please call 1-800-537-4048 and indicate you have a form completion question.
Account Hold: I have been advised there is a hold on my account. What does that mean?
Any account pledged as collateral for a loan or credit card balance will continue to be held. A letter will be sent informing you of any holds placed by the FDIC, along with instructions on how to proceed. If you have any questions regarding these holds, please call your loan officer or the FDIC at the number provided in the letter.
Another reason an account hold may be placed is due to the need for additional documentation from a depositor. For example, a Declaration for Trust form may be required to attest to the parties involved in the trust. Please contact the FDIC at 1-800-537-4048 to schedule a telephone appointment.
Account Insurance Status: Is my account fully insured? Is there a method to verify whether my account(s) at Advanta Bank Corp. are fully insured?
A tool, Is My Account Fully Insured? (https://closedbanks.fdic.gov/drrip/AFI/Search/), is available that allows failed bank customers the ability to verify whether their account is fully insured or if they need to contact the FDIC. This service will be available for use no later than the first business day after the bank's failure. Once you enter your account number, your insurance status for that account will appear. If there is a hold on your account, it may be due to the need for the additional documentation referenced in question number one. If there is a hold, you will need to contact the FDIC at 1-800-537-4048 to schedule a telephone appointment.
ATM and Debit Card Use: Can I continue to use my ATM and Debit card?
No. All accounts have been closed. ATM and Debit cards have been deactivated and will not work. The FDIC will mail deposit insurance checks on Monday, March 22, 2010, to the address on record with Advanta Bank Corp.
Direct Deposits: What will happen to direct deposits including Social Security payments?
The FDIC has arranged with Zions National Bank to accept Government ACH deposits for Advanta Bank Corp. depositors. If you have a government direct deposit including a Social Security payment, please call David Cooley at 1-972-761-8638 for information on how to obtain your money for government deposits from Zions National Bank after March 19, 2010.
Brokered Deposits/Deposit Broker: I am a deposit broker or I have brokered deposits. What do I need to do?
Insured brokered deposits will be paid off when the insurance determination is complete. The FDIC offers an on-line reference guide to deposit brokers acting as agents for their investor clientele. This site outlines the FDIC's policies and procedures that must be followed by deposit brokers when filing for pass-through insurance coverage on custodial accounts in a failed FDIC-insured bank. Please read the following Deposit Broker Processing Guide completely before contacting the FDIC with questions:
Deposit Broker's Processing Guide (www.fdic.gov/deposit/deposits/brokers/index.html).
Should you have any questions regarding the completion of required affidavits or declarations on behalf of your client, please call 1-800-537-4048 and indicate you have a form completion question.
If you are a customer who has an Advanta Bank Corp. deposit through a broker, you must contact your broker with any questions. Once the FDIC receives a balanced investor file along with all the required documentation, from your broker, your insured funds will be wired to them on your behalf.
Claim Account(s): How do I claim my account(s)?
The FDIC will mail your deposit insurance check on Monday, March 22, 2010, to your address on record with Advanta Bank Corp. Please be advised that this money will be turned over to your state as unclaimed property if this check is not cashed within 18 months. Unclaimed property can be located by visiting www.missingmoney.com or contacting your state treasurer's office or office of unclaimed property.
Customer Impact: How does this failure affect me?
All accounts have been closed, and the FDIC will mail your deposit insurance check to your address on record with Advanta Bank Corp. If you have more than $250,000 in a deposit account (or more than $250,000 in your IRA), or if the total of your related deposit accounts exceeds $250,000, your accounts may require review by an FDIC Claims Agent. All accounts that appear to be related are reviewed to determine ownership and insurance coverage. Certain entitlements and different types of accounts are insured in excess of the $250,000. If you think you might have uninsured deposits, please see question number one for information regarding forms you may need to complete to expedite this process.
If you have a loan or credit card balance with the bank, continue to make your checks payable to Advanta Bank Corp. and mail to the same address you have used in the past until you are instructed otherwise.
Early withdrawal penalty: Will I incur an early withdrawal penalty if my CD was cashed before maturity?
Your CD will automatically be closed, and the FDIC will mail your deposit insurance check on Monday, March 22, 2010. You will NOT be assessed an early withdrawal penalty.
Final Statement: When and how will I get my final account statement(s) from Advanta Bank Corp.?
Within one week of the closing, the FDIC will mail your final statement to your address on record with Advanta Bank Corp.
Interest: Will I continue to earn interest at the same rate?
No. All interest on insured deposits accrued through Friday, March 19, 2010, will be paid at your same rate. This will be included in the deposit insurance check you will receive from the FDIC. No interest will be paid after March 19, 2010.
Interest Checks/Cashier's Checks: Can I cash my interest check or cashier's check?
No, these checks will not clear; Interest Checks, that have not been cashed, will be replaced with a new check issued by FDIC that will be mailed on March 22, 2010, to the address on record with Advanta Bank Corp.
Accrued interest through March 19, 2010, will be included in your deposit insurance check that will be mailed on Monday, to the address on record with Advanta Bank Corp. If you have more than $250,000 in your deposit account, or if the total of your deposit accounts exceeds $250,000, your accounts may require review by an FDIC Claims Agent before you are mailed a check. You should call the FDIC to schedule a telephone appointment with an FDIC Claims Agent at 1-800-537-4048.
Cashier's checks, certified checks, and money orders may be exchanged for a replacement check by contacting the FDIC at 1-800-537-4048.
Internet Connection: Will my Internet connection to Advanta Bank Corp. work?
No. All accounts are closed, and online banking services are not operational.
IRAs: What if I have an Individual Retirement Account (IRA)?
From the date a check is issued to you from your IRA, you have 60 days to roll this over into another retirement vehicle. You should consult IRS Publication 590 and/or your tax advisor concerning the possible tax consequences of such distribution. This publication specifically addresses this situation; therefore, you should review it carefully. IRS Publication 590 may be obtained by contacting your local IRS office or via the Internet at www.irs.gov.
IRA funds are insured separately from other types of accounts up to $250,000. IRA deposit insurance checks will be mailed separately on Monday, March 22, 2010, to your address on record with the failed bank.
Lose Any Money: Will I lose any money in my deposit account(s) at Advanta Bank Corp.?
No. Principal and interest on insured accounts, through Friday, March 19, 2010, are protected by the FDIC, to at least $250,000. Certain entitlements and different types of accounts can be insured in excess of the $250,000.
If you have more than $250,000 in your deposit account (or $250,000 in your IRA), or if the total of your related deposit accounts exceeds $250,000, your accounts may require review by an FDIC Claims Agent. All accounts that appear to be related are reviewed to determine ownership and insurance coverage. See question number one for information regarding forms you may need to complete to expedite this process.
Records/Account Histories: What if I need information regarding my account during the time Advanta Bank Corp. was in business?
Please contact the bank at 1-800-788-2632 to request a copy of your records or you may call the FDIC at 1-800-537-4048.
Tax Reporting - 1098/1099s: Who will send my 1098 and/or 1099 information?
The FDIC will be responsible for mailing your 1099 tax information. Your 1098 reporting will be completed by the FDIC or the servicer of your credit card account. You will be notified of any changes in ownership or servicing of your credit card account balance.
Uninsured: Will I collect my uninsured deposits?
If you have a credit card account balance in the same name as your uninsured deposit account, it may be possible to offset your uninsured amount against your credit card balance. You should discuss this with your Claims Agent during your appointment.
If it is determined that you have some uninsured funds, the FDIC
will mail you a Receivership Certificate. This certificate entitles
you to share proportionately in any funds recovered through the
sale of the assets of Advanta Bank Corp. You may eventually recover
some of your uninsured funds as assets are liquidated.
When a financial institution is closed, and the Federal Deposit
Insurance Corporation ("FDIC") is appointed as receiver,
one of FDIC's responsibilities is to sell the institution's assets
to pay the depositors and its creditors. The money generated by
the sale of these assets will flow through the Receivership, and
periodic dividend payments will be made to proven claimants when
excess cash is available. For an explanation of the dividend process,
go to FDIC Dividends
from Failed Banks (https://closedbanks.fdic.gov/dividends/).
Wire Transfer: Can funds be wired to me?
No, regretfully, we cannot wire your funds.
CREDIT CARD ACCOUNT BALANCES
Credit Card Account Balances: How has the Advanta Bank Corp. failure affected my credit card balance?
There is no change to your credit card account balance. You should continue making your payments as in the past. All prior contacts remain the same. The terms of your credit card agreement have not changed. Credit card account questions can be directed to 1-800-705-7255.
Payments: How and where should I make my payments?
You should continue to make your payments as you have in the past. Make checks payable to Advanta Bank Corp. and use current payment address information.
GENERAL QUESTIONS
All-Deposit Transfer versus Insured Deposit Transfer: Why do all deposits, insured or not, pass is some transactions but not in others?
When a buyer cannot be found for a failed bank, the FDIC honors its obligation to insured depositors by mailing them a deposit insurance check.
FDIC Insurance:How can I find out more about Federal Deposit Insurance rules?
You may access our website, which contains deposit insurance information and an Electronic Deposit Insurance Estimator (EDIE):
Deposit Insurance www.fdic.gov/deposit/index.html
Are my deposits insured? www.fdic.gov/deposit/deposits/index.html
EDIE edie.fdic.gov
You may also order any FDIC publication:
FDIC Public Information Center
3501 North Fairfax Drive
Room E-1002
Arlington, VA 22226
703-562-2200 Phone
703-562-2296 Fax
publicinfo@fdic.gov
Media: I represent a TV/Newspaper/Radio and would like some information.
Please contact the Office of Public Affairs:
What happened? Why did the bank fail?
The Utah Department of Financial Institutions closed Advanta Bank Corp. Friday, March 19, 2010. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was appointed Receiver. According to regulatory policy, there is no advance notice given to the public.
The good news is that no one lost any insured deposits because of the closure of Advanta Bank Corp. An assuming bank could not be located; therefore, the FDIC will fulfill its obligation to insured depositors by mailing them checks for their insured deposits. These checks should be received within one week of the closing.
Shareholders: I am a shareholder. What happens to my shares?
The Advanta Bank Corp. had no publicly owned stock. Equity shareholders were invested in the holding company, Advanta Corporation headquartered in Draper, UT, and not in the bank. Please do not file a claim with the Receiver, rather contact the holding company with any questions you may have:
Advanta Corporation
Welsh and McKean Roads
P.O. Box 844
Spring House, PA 19477-0844
1-215-657-4000
Unpaid Bills: I have not been paid for work or services provided to Advanta Bank Corp. What should I do?
Please send your invoice with a proof of claim to the following address:
Federal Deposit Insurance Corporation
Receiver: Advanta Bank Corp.
1601 N. Bryan Street
Dallas, TX 75201-3430
Attention: Claims Agent
SCAMS: Be watchful for and resistant to any scams to obtain information from you by individuals or entities stating that they are acting on behalf of either the failed bank, new bank, or the FDIC. Should you be contacted by anyone requesting personal information from you related to this event, please contact the call center above and you will be directed to the appropriate person.
For more information: www.fdic.gov/bank/individual/failed/advanta-ut.html