"Advanta Credit Card - UNETHICAL"

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Written by: paige on 2008-11-29

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paige's review: I have had an account with Advanta (Small Business Card) for slightly over two years. I signed up under the intro rate of 2.99% (life of balance transfer) - I never charged anything on the card other than what we transferred to it initially. We have excellent credit and have NEVER been late on this card (or ANY card). In May of this year I made an electronic payment which was 'kicked back' three days later due to insufficient bank routing #. I called and the lady told me they had a 'system glitch' over the weekend (I made the payment on Friday) and not to worry she would fix this to where I wasn't late and wouldn't owe a late fee. "Great!", I thought to myself, and went on about my life. In October of this year my husband just happened to notice my statement and that the rate was a whopping 20.31% !!

I have never, ever had a finance charge remotely like that in my entire life! I called Advanta and expressed my *concerns* and flounced around a bit. I told them that what they were doing was unethical and to reduce my rate. They declined. I was carrying a $7,100.00 balance at the time - Out of sheer disgust I found a way to pay the entire balance off by the next due date (last month) to avoid such unreasonable finance charges. I told them to CLOSE out my account and to kiss off essentially. Here is where it gets GOOD.

Listen to this CAREFULLY... SO I paid the ENTIRE BALANCE OFF, IN FULL, LAST MONTH at the outrageous rate of 20.31%...

I received a bill TODAY in the amount of $171.14 AT THE INTEREST RATE OF 37.18% !!! I called "Lana", a supervisor, who advised me that yes, they did increase the rate LAST MONTH and sent me a notice THAT I NEVER RECEIVED and told me I missed the "opt out" grace period if I wanted to refute the (SECOND) rate hike. The reasons they gave for the increase were totally bogus. I have a 800 beacon score and we have never charged anything on the card since I transferred the balance TWO YEARS AGO. This company is absolutely the WORST I have ever delt with. BEWARE! I don't know where to go from here, or even if all the reporting in the world (to various agencies) will make a difference but SOMETHING MUST BE DONE. I didn't even know a 38% interest rate EVEN EXISTED!! WOW. The most I have ever paid on a credit card at any point in my life was 9% during college! They jacked my rate up after sabotaging a late payment and jacked it up again AFTER I closed the account AND paid the balance in full! If I didn't have to pay off the $7,000 balance I could afford to hire an attorney just out of principle!

Companies like this deserve to fold like a cheap suit. Unfair lending practices, unethical (and I have to believe illegal) dealings and simply OBSCENE rate hikes. Where's the justice ? Those rats should be forced to go down with the sinking ship...

6 Comments

Comment 1 by colonative
Advanta on 2008-11-29

They keep sending me pre-approved offers-I don't even own a business.

Are these people in Utah?
Comment 2 by cireone
APR on 2008-11-29

They probably combined the APRs together to get that percentage. Many CC companies do that. For example you had that 2.99%, then that payment glitch happened which made the APR rise. They couldve combined both and then added on that new APR. This especially happens when you carry a balance.
Comment 3 by arod
Sorry To Hear That. on 2008-11-29

Thank you for letting us know about this bank and also all this info great review but with the FICO you have you can get anything go to Citibank or Bank of America or Capital One business credit cards they offer a lot and you'll be happy like I said look around.

Thanks for the Info. Good Luck,

Alex
Comment 4 by thomas1
ADVANTA on 2008-11-30

This is unfortunately, a disheartening situation you found yourself in. It is my interpretation that no card issuer can issue interest rates over 30%?

I understand your disgust with them, they are not in my opinion, a good issuer. All of this over a routing number! They don't see the customer's point of view on any matter, stuck in their robotic procedural world of business.

I would file a complaint with the president of Advanta Card Services and see where that goes, then you may have to file with your local BBB. It depends on how you want to pursue this. If it was me, boy I would fight!

If for nothing else, the PRINCIPAL of the matter, and my resolution.

Also, be prepared to write a letter to the bureaus explaining the details of this, as I'm not sure if they will report a 30 day delinquency on all of your reports. That way it's in your credit file.

With that beacon score, I would also IMMEDIATELY run to the best issuer who will take care of you provided you want another card, BEFORE a reporting on your next cycle could occur.

As Arod said, Citi, BOA, Cap One all offer business accounts, for which they offer very good rates on.

Sorry to hear this, but I would be firing off letters all over the place just for my own personal satisfation!

Keep us updated regarding this. Thanks for bringing this to the members forum, and I know I won't ever apply for an Advanta product. I almost did for my businesses in the past, but went with Citi and have been there ever since.

Good luck!
Comment 5 by homeotr
Disadvanta on 2008-12-15

I had the same experience with Advanta. They offered like 10 months @ 0% and then the interest rate would be 7.99 % 2 months before the promotional 0% expired, my interest rate jumped to 25.08 %, the next month it went to 26.31 % and when I finally noticed in the last month, which was the month that the 0% expired, it went to 27.18 %. My credit score as of May 2008, which is when I checked it, was 796. I have never missed a payment or bill, never been late and always use my credit cards as I have a business and don't use net 30 or net 60. Easier to pay on bill each month than a whole lot of checks going out and with low interest rates, it is acceptable to me. Well I just balance transferred the balance on my Advanta card to Bank of America, which I have 2 cards with them. They are about the best credit card company I have found. Yes, Advanta should fold like a cheap shirt. They are dishones, deceitful, liers and cheats. They are the type of companies that are destroying our economy and need to be shamed. I just ripped the senior vice-president of Advanta who just e-mailed me to take a survey. At the end, I asked her, " do you still want me to take your survey"? These people are horrible
Comment 6 by jbmanager
Advanta on 2009-05-01

Advanta hit me good too. So good I dedicated a website just for them. Read my story at www.Advantareview.com. Spread the word it should be illegal for companies to take advantage of anyone like advanta does. Here they are living high on the Hog all Uptown like while us small business owners get hung out to dry! Anyway check out my page and worn anyone that is thinking of starting a small business or using credit cards for there Small business!!

Thanks
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