Loan defaults mount at Advanta
Advanta Corp., the Spring House small-business credit-card lender that filed for bankruptcy this month, said today that defaults rose to 34.99 percent of outstanding loans in October from 24.42 percent in the previous month.
Advanta Corp., the Spring House small-business credit-card lender that filed for bankruptcy this month, said today that defaults rose to 34.99 percent of outstanding loans in October from 24.42 percent in the previous month.
Loans at least 30 days overdue, a signal of future losses, fell to 11.67 percent on an annualized basis, from 12.62 percent in September, Bloomberg News reported, based on a regulatory filing by the company.
Advanta in May closed its nearly one million small-business customers' credit cards to new charges as defaults soared.
In this month's bankruptcy filing, it said its banking unit, based in Utah, may be put into a receivership run by the Federal Deposit Insurance Corp. - Paul Schweizer