Advanta Bank Corp. Small Business CardClass Action Lawsuit

1

I was ripped off just like the rest of you good business card holders. They claim they sent me a notice on 8/13, that I never received that they were jacking my rate from 10.3% to 35%. I have an excellent credit record and excellent FICO. They claim due to the current market conditions (same for everyone) that I and all the other complaints I've read, no longer meet their lending criteria, so this gives them the right to change the rates to the default rate with no notice, even if you have not defaulted!

I am looking for other Advanta bank card holders like me to pull together members for a class action lawsuit against Advanta. We desperately need to sue them and put a stop to these unfair and probably illegal practices. Please contact me at [protected]@msn.com or [protected]@yahoo.com ASAP so we can get this pulled together. I have an attorney in New York (whom Advanta also screwed over) who is working on putting together a class action lawsuit against them.

Thanks much to all and I hope to hear from you soon, so we can give Advanta some good ole American justice that they have so blatantly earned.

Responses

  • Ra
    Ralph Woollaston Oct 20, 2008

    Advanta claims I have suddenly become a "much greater credit risk" to them, raising my 9.99% APR. to 27.9% APR. I have never had a late payment, and credit report is above board. They have "NO" reason for this action, and will not give a specific explanation. I have spent a great deal of effort maintaining my credit worthiness and this has me quite upset. Ralph

    0 Votes
  • W
    W Oct 23, 2008

    They are criminals - last month at 8.08%, this month at 27%!!! Never a late payment, perfect credit. No answers just vague factors.

    0 Votes
  • He
    heather turner Nov 03, 2008

    they need to be stopped going to send a email to you for i feel that they need to be sued in order for them to stop this extortion . enough is enough my apr rate went from 7.99 to 27 for no reason they are criminals

    0 Votes
  • Cr
    Craig Stolpestad Nov 03, 2008

    same issue. Never late, always paid via online, good credit. My rate jumped to 36%. They are in violation of bait and switch for one thing. I have discussed a rate decrease and to no avail. We need to do something to bring this to the forefront; but just find someone who can do anything. I've spent hours attempting to get them to yield some sort of interest break. All I can say is buyer beware and let everyone you know about thier deceptive advertising practices.

    0 Votes
  • Mi
    Mike Nov 05, 2008

    I am contacting McKee Law Offices in Phildelphia and will persue legal action. Call them to support or join me- 215-242-5260. Let's put the screws to those mother*uckers. They screwed me too...same way...same story...same lame line of BS.

    LET'S GET GOING AND GET SATISFACTION NOW!!! STOP TALKING AND TAKE ACTION!!!

    We need to do to them what we did generations ago to robber barrons...string 'em up...burn their houses...let's go!

    0 Votes
  • Sk
    skansoft inc Nov 11, 2008

    Hi

    ALl the above applies to me. I am ripped off 200$ because Advanta suddenly ( 1 day late payment ) feld am a credit risk whereas on the same day i was able to get a 0% APR from Bank of America.

    God bless America

    0 Votes
  • Br
    brian Nov 14, 2008

    similar to above except I have lost 90% of my income I am able to work with my other credit card companies but advanata is absolutely impossible to work with. Their customer service staff are not too bad but their supervisors are absolutely impossible Non of us us wish to default on debt.. But Advanta will certainly be the last on my payment list.

    0 Votes
  • Lk
    LKamoku Nov 21, 2008

    advantad did the same to me...used cash advances with the 7.99 rate...3months later...i was at 35% for no reason! I am all for supporting any class action lawsuit against advanta. please feel free to contact me regarding this.

    0 Votes
  • Ra
    Ray Nov 22, 2008

    When I received my bill I almost fell over! When I called to ask why, I was told that it was the new revised policy and that there is nothing that can be done! I have always paid on time and paid twice the minimum due. My credit is execellent. This is more greedy banks stealing from the little guy so they can put my money in their pockets. I will be looking for a new credit card that will not rip me off. I also had 9.9% interest that has been raised to 27.9%. for not good reason.

    0 Votes
  • Wi
    William Murphy Nov 22, 2008

    Advanta has turned to pond ###; the tactics they are playing on me, is exactly what they are doing to others. No notice, just jack the APR from 7.99% to 29.9% with no reason than to protect their own 401Ks and selfish interests by gouging the people that actually pay their bills on time and have good credit. I have asked why and they would not give a reason. If we as a group can totally annihilate the ### the world would be a better place.

    0 Votes
  • Li
    ligia morris Nov 22, 2008

    I had a very successful business that fell in hard times -
    Paid my CC on time for over 10 years..
    Now that I'm having difficulties, they have CUT -OFF my CC, the fees, penalties are absurd
    and I received a threatening letter with the following:

    "Chances are, sitting here today, you have no idea what section 11 states, but trust us, you don't want them going there."

    Is this a threat or what??

    0 Votes
  • Ri
    Rick Eastwood Nov 26, 2008

    I had the same problem. I started off with a 2.9% for 12 months. As soon as the 12 months was up, boom my interest rate jumped to 34.99%. I received the same answer as many of you; economic times drove up the rate. I was never late, always paid more than the minimum and have a very good credit rating. I quickly moved my account balance to another card, but still got soaked for about $900.00 in interest.

    Apparently their good customers are not as valuable the them as mine are. I would hope this business practice will come back to haunt them in the very near future.

    0 Votes
  • Pa
    paul puskas Nov 30, 2008

    yea, they are ruining my credit, i told them i can get a better deal from the mafia, 33%calling me everyday, including sunday, i suspect they are a terrorist organization extorting money, they need to be investigated, i stopped paying them bcz the bill does not go down, even though i pay 1800$a month on a 25000$loan, its more than my house mortgage, how can they extort money like this when the government is lending at an alltime low rate?i just hope i can refinance with someone else and get rid of the @holes, but i would also like to be reimbursed for them ripping me off for 6 months now, and ruining my credit with other lenders

    0 Votes
  • Hu
    Hubert Hendon Dec 01, 2008

    I got the same letter, Ligia, - what exactly is section 11? That has to be one of the most threatening dunning letters I have ever heard of. I was never, late, never over limit, they just raised the rate to over 30%. They said they sent me a letter, but I sure never got one. Something should be done to prevent this type of practice.

    0 Votes
  • Li
    ligia morris Dec 03, 2008

    Well I found another site called /link removed/ they have 265 complaints about this company and instructions (contained in one of the complaints) to make a report to the FDIC. Which I've done. I urge every one of you to do the same. Also, I think it might be a good idea do do some kind of petition and get it to pres Elect Obama's site and to the press.

    0 Votes
  • De
    dec4562 Dec 04, 2008

    Advanta is continuing to jack people's rates it seems every day. We are continuing to try and put together a class action lawsuit against Advanta. If you haven't contacted me and would like to join, please e-mail me at [email protected] To particpate I need your name, address, phone, e-mail, and business name.

    I have seen several people have success lately in filing a complaint with the Utah BBB. I haven't seen much help come out of the FDIC. One person has an attorney sue Advanta in Philadelphia small claims court and got back his interest and attorney fees in about 2 weeks.

    0 Votes
  • Pa
    Patrick Hurley Dec 04, 2008

    I have had a Advanta Card for 5 years and I was a day late on my payments and they have now jacked the interest rate up to around 37%...I sent them a letter and called and spoke to a representative and the supervisor who told me there was nothing they could do. They suggested I contact a National Consumer Credit Agency for help. I said, so if you get a call from a Consumer Credit Agency you can lower my interest rate but if a 5 year customer calls trying to honestly work out a payment plan you can't do anything. They then admitted that if the Consumer Counseling Agency contacted them they still wouldn't lower their rate. They gave me the name of the President of the Company when I asked and I told them I was writing him a letter which I sent 12/3/08 but these people are hard to deal with. I have never contacted a Consumer Counseling Agency and dont plan on starting now. I told them that if I get in over my head theirs will be the first card on my list to stop paying and they can take me to court. I offered them a reasonable monthly payment of $600.00 and they could lower my interest rate to a human level and I mailed them my card as I will never be using it again. Good Luck to all of you. I am thinking of filing a complaint with the BBB

    0 Votes
  • Vi
    virginia vasquez Dec 04, 2008

    I am baffled that a big corporation like this one can get away with ripping off thousands or perhaps millions of customers around the united states. Is there any recourse for consumers or can a corporation get away with braking a contract, false advertisement, etc. I was approached by them with an offer of 7.99% and for no reason they raised it to 27.99%. Luckily I did not have a large balance so I was able to pay it off. But I had a reward and they decided to close the account so that they wouldn't pay it. Now I have a hard time trusting any other credit card.
    I would love to see a class action lawsuit brought in to this company for being so croocked.
    Virginia V.

    0 Votes
  • Vi
    virginia vasquez Dec 04, 2008

    Filing a letter with BBB won't do much for us consumers; I believe it would be better with the FTC and attorney general. Definetely something should be done to these gansters. Is there anyone outhere that can help?
    Virginia from California

    0 Votes
  • Di
    dickinsonc Dec 22, 2008

    Having delt with banks & "teaser" rates before... I made VERY certain I would not fall into this trap (but was trapped anyway). I know the "due" date varies AND paying a day EARLY is credited to the previous month (which makes one late in the current month).
    Upon asking WHEN the payment was due, (as I am frequently away from US mail and use a "bill-pay" service) I recived an OK for "30 day" billing.
    After about a year, it seems I was late by 3 days (how???). A late-charge was assesd and interest was raised by about 25%. Of course.. this made the next (and next) payment short (by $12) which also added late charges (Note: Amount "due" each mont was $120... I paid $200, and I was $12 short???)
    Card has been paid in full (to stop late charges & such). I have requested an explanation and refund of late charges and excess interes charges. Customer service rep says no... I to am ready for class action suit

    0 Votes
  • Ra
    Raidernationdave Dec 22, 2008

    Man, I'm in the same baot most of you folks are in. 12% to 36%. No warning, no nothing. Said I was an increased credit risk. I have recieved a few "offers" to go back to 16.99% interest as long as I catch up with what is delinquent! Hello folks, I wouldn't be delinquent if you didn't try ripping me off like you did! Any way I have filled a complain with the FDIC and I am in the process of writing a letter to the CEO, Dennis Alter.

    In this day and age with the way the economy is headed this is really the straw that breaks the camels back. Predatory lending and shady business practices can only be a reflection on the type of character that runs these types of company's.

    0 Votes
  • Jv
    JVC Dec 29, 2008

    How about that. Was told by an attorney to send the statement that shows the increase. I go to the Advanta website to retrive the past statements and low an behold "due to technical difficulties we cannot complete your request". Something verrrry screwyyy here.

    0 Votes
  • Re
    Rebecca Boyle Dec 31, 2008

    Advanta Bank uses strong arm tactics on consumers. They mislead the consumers and fail to disclose properly the credit card agreements and the interest rates. We are in California where the Consumer Protection Laws are very much like New York . The Laws are extremely protective of the consumer. One Advanta "Collection Manager" blantantly told me the consumer protection laws do not apply to business owners. He also illegally recorded our conversation . When I tried to tell him that the California Supreme Court had recently ruled on a case where a company recorded a customer without their conscent and that any company doing business in CA or calling any customer is CA could be found civilly liable he told me " We are in Utah and do not have to follow the law in California". Ah...EXCUSE ME!!! If you are licensed to do business in ANY state, you MUST follow the laws of that state. Advanta has violated almost every part of the California Fair Debt Collection Practices. I hope they get their ### handed to them.

    I found the name and address of the CEO on the [redacted] web site and sent him a letter. Suggest all of you do the same. Here is the address in case you missed any prior report on this site giving you the info. Apparently this is the CEO home address.

    Dennis Alter, CEO
    Advanta Bank
    7111 SHEAFF LN,
    FORT WASHINGTON, PA 19034

    DON'T GET MAD, GET EVEN. SUE THE ###!! LET'S UNITE AND FORCE THESE GREEDY BAIL OUT RECEIVING CREEPS OUT OF BUSINESS.

    -1 Votes
  • El
    ElleRich Jan 06, 2009

    Advanta raised my rate on my small business card from something like 7.99% to 32% literally overnight. Since then, my business has gone under, I have a neurological disorder and had to quit another full time job and I have absolutely no money. I can't even drive my car. I have exhausted all my checking accounts and even my personal credit cards to survive. How can they do that? I was told it was because of some change in the factors...very vague. Before that, I had never missed a payment or ever late. I had a 725 credit score. Isn't it against the Fair Reporting Act to go into one's credit report? I am naiive on this issue, but how else would they get the information they needed if they didn't go into my credit report without my consent? I have not paid them in 2 months. The $88/month has snowballed now to $210.00. They call me on a toll free number 6-7 times a day. Once they left a very harsh sounding voicemail saying they weren't a solicitor and to contact them immediately. That was after they listened to my voicemail stating that I do not return calls to anonymous and toll free callers. Last week I got a letter from Experian stating that my credit was 97% positive and 3 % negative. Why would they send me that?? Advanta has never written me one letter stating a problem. The last statement said I was over due and owed them $210.00. But those phone calls have really gotten on my nerves 6-7 times a day, even on Sunday and no messages. These people should be sued by we small business owners that have been deceived by them. Anyone wanting to discuss this with me, please [email protected]@gmail.com. The best to you everyone...we are all in a sinking ship.

    Sincerely,

    Elle

    0 Votes
  • Ve
    Veda Jan 16, 2009

    According to information found on www.bcsalliance.com. Advanta settled a class action lawsuit. I too am a victim of this company. Advanta is the correct name because they have set out to take Advantage of small businesses. Please contact me at [email protected] if you want to file another lawsuit or have information about how we can be reimbursed for the outrageous and unjustified fee increases to our credit card balances. See information below.

    Advanta -- Settled a class action lawsuit by agreeing to pay $7.2 million to reimburse customers who were guaranteed a low rate, but were charged a higher rate.

    0 Votes
  • Lw
    lwest Jan 29, 2009

    I'm in. After raising my rate from 8% to 16%, without cause, I opened this month's statement to find my interest rate is 38%. Again, after "reviewing" my circumstances they decided I may default on the loan. I have never been late, never missed a payment and have excellent credit. I plan to contact every small business organization, magazine, etc. that I can until they are held accountable. Leslie E West

    0 Votes
  • Ja
    jack Feb 05, 2009

    Advanta is calling me every day from a 1-818 number. Most of the collectors can not speak english too well. I joined a lawsuit and will join everyone I can. I'm at 33% and 37.99% for cash advances. Someone has got to have a lawyer who can bring this to the light. I called an investigative news team here in Boston to research the case.

    I WAS TOLD BY THEM TO GO FOR CREDIT COUNCELING!

    [email protected]

    0 Votes
  • Ro
    rosiewrose Feb 06, 2009

    Please let me know if you're filing a suit. I don't know what it takes or how to go about it, but these people need to be taken to court. I have the same story as many on this list. Payments set up to go out on time for minimum + extra every month, above average credit score, all of a sudden find I'm "behind" in payments.
    Investigate and find that my rate was hiked to 35%, never received a notice of that.
    Lowered it to 24%, acting like they were generous or something, never refunded excessive interest or any fees charged.
    They told me I was an increased credit risk at the same time that other cards lowered my rate further because of reliable credit history.
    These people have to be taken to the butcher, they're straight out fraudulent.

    0 Votes
  • Ma
    Margaret Craig Feb 06, 2009

    I too received my January statement from Avanta and my rate went from 7.99 to 32.18. I have never been late and always pay at least 3 times the minimum, one month I paid $4, 000. My credit is excellent and I do not understand. I just paid it off with another low interest credit card. I would love to be involved in the class action law suit. Margaret Craig [email protected]

    0 Votes
  • Ma
    Mary Hargrow Feb 09, 2009

    Advanta did the same thing to me. I was told this would never go on my personal credit report and when I refused to pay the 35% interest they put delinquent credit on my excellent personal credit report.

    0 Votes
  • Gb
    G Blog Feb 12, 2009

    Signed up for a small business card 8 mos. ago because offered 0% on balance transfers for 15 mos. and also 0%apr on purchases for 12 mos. 3 mos. after I signed up, sky rocketed to over 37%. This has to stop!!! I'm am in on the class action lawsuit!!! Please email to [email protected]

    0 Votes
  • Ka
    Kathy Feb 12, 2009

    I have had the same problem with Advanta as all of you have stated. I will be more than willing to enter a class action against this company. I tried back in October to get them lower the interest rate that they increased to 37.99%. I had never been late & paid more than the minimum due each month. Unfortunately for me is that my business is income is based 98% on third party payments from health insurances & as they increase the time span that we get paid & the time I have to pay my vendors etc.. I have signed with a Debt Consolidation Company & Advanta will not work with them. Today was the kicker when I received a nasty call from Advanta about my account being late & I referred them to my rep. as I was instructed. They wanted to take the payment from my checking & I refused. I called my consolidation rep.& we ended up on a conference call with Advanta & got no where. They arrogant & rude as can be. I (like all of you) did not ask to be put in this financial mess but it happened & now we need someone to help up fight this. Everyone keeps saying small business, main st is what keeps this country going but with companies like Advanta out there it wont happen. Any information anyone may provide about a class action, I will be willing to tell my story. I am also filing a complaint with the FDIC.
    Kathy

    0 Votes
  • Is
    Isaac Logan Feb 16, 2009

    I have diligently paid this Advanta Card on time and online so it would not be late and have paid more than the minimum amount each month and they still raised my interest rate to a ridiculus 37.18% for no reason at all. I called and asked why was this because I have never been late on my payments and never exceeded my credit limit on the card. The Rep. gave some bogus response that I could not understand because he did not speak English very well. I am filing a complaint with the FTC and the UTAH BBB. 02.16.09

    0 Votes
  • Pa
    Patrick Hurley Feb 18, 2009

    I could go on about this but it seems that all of you have had the same experience as I have so I won't bother... Patrick Hurley [email protected]

    0 Votes
  • Vi
    Vic Feb 22, 2009

    They did the same to me, never a late payment all the way to 37% . Is it even legal. Is there a class action against advanta brewing anywhere. I would LOVE to see them pay for their practice!!!

    0 Votes
  • Be
    Beledi Feb 24, 2009

    Same story... I signed up with a 7.99% interest rate; Advanta pulled the bait and switch routine and I wound up with a 31% rate overnight. In addition, they switched my due date around each month so that I would be sure to be late eventually (I paid on an automatic bank draft).

    I filed a complaint with the FDIC, and the FTC. I forwarded their threatening letters to these entities and the state atty general.

    AND I refused to pay them until their interest rates get reasonable - hasn't happened yet. Today my account goes to their legal department for action. You better believe on my day in court I'll countersue for their unsavory practices.

    Look, if everyone who has been harmed by Advanta quit freaking out about their credit rating (in today's economy it doesn't mean much anyway) and REFUSE TO PAY, then Advanta would go bankrupt. Period. We have the power to right this wrong by showing some courage and taking action.

    By the way, count me in on any class action suit. [email protected]

    0 Votes
  • Bo
    Bobby Nick Moran Mar 05, 2009

    Ive paid Advanta, on time and before time for 10 yrs, attempting several times with large chunks of money to pay them down and eventually out, with my credit score at 720 just 3 weeks ago, (now I don't want to even check it) .$1000 payments and less than $200went to the principal .Now they have somehow electronically taken $1197 out of my business account( Without my permission)and are saying they are going to take more, I had to get an attorney .How can our government, that I have believed in my whole life allow these people TO ROB US

    0 Votes
  • Iv
    ivillages Mar 21, 2009

    Hi all, looks like http://advantacal.wetpaint.com/ is doing a class action. I just joined them, you should too.

    Bob

    0 Votes
  • dec4566 Mar 28, 2009

    There is no such class action as mentioned by ivillages.

    0 Votes
  • Mi
    Michael Apr 13, 2009

    I got a 0% interest rate for 12 months for my business, and made payments well in excess of the minimum each month. When the 0% program ended, the first statement I received was at 27%. I called to complain and tell them that I refused to pay such an abusive rate. They offered to reduce it to 21.99%. I refused and they told me if I did not pay, they would report me to the credit bureau. I told them fine, do so. My next statement had an interest rate of 29.99%. I continued to refuse to pay, and each time they called, I told them why. I soon received a letter offering to reduce the rate to 18.99%, which I ignored. The next person who called offered to reduce it to 16.99%, but I still refused. I finally spoke with someone who told me I could get into a repayment program at 3.9% for one year if I signed a letter agreeing to it. When I got the letter, I found that my balance had been increased by the interest payments that I had refused to make. I told them that I would only agree to the repayment program if the balance was rolled back to the level it was when the 0% interest program ended. I have not gotten an answer from them. I would be happy to join in a class-action suit, and anyone initiating one is welcome to contact me.

    0 Votes

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