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Advanta Bank Corp. / Scam and fraud!

1 PO Box 30715Salt Lake City, UT, United States Review updated:
Contact information:

I received a notice today from Advant Bank informing me that my interest rate was being raised from 7.99% to 26.46% effective May 1. Of course the usual opt-out choice was available to my small business, and isn't it nice of Advanta to give me one week to take action?!? When I called, a customer service rep said I had no choice but to either accept or reject their offer. I asked for a manager. Katie, the customer service rep, transferred me to Travis, the manager, who was very happy that I would be reporting Advanta to https://www.complaintsboard.com and the entity that oversees/regulates banking in Utah. I could actually hear the smile in his voice. I asked him who his boss was and he said he would be happy to transfer me to her. Melissa Breeze, the area manager, was sympathetic towards my concern for the increase. When I asked why my APR was being raised she could only tell me it was a proprietary decision and could not be shared. Boy was I mad! I told her Advanta had pulled a bait and switch on me in less than 8 months and she remained apologetic. I pressed on and asked her if the reason small business owners were being targeted was because Advanta was another idiotic bank who had lent money to people who couldn't afford to pay their sub-prime mortgages and she said that was part of the reason. Well, excuse me, but I refuse to pay for other idiots who don't recognize that they can't afford to buy a mansion on minimum wage!

Melissa shared with me Advanta uses 3 reasons to change a rate: 1) credit within Advanta (how you pay your bill), 2) credit report (FICO, Beacon scoring), 3) credit card industry rate (what other credit card banking people are doing with their cards). Well, my score is between 720 and 740 with the 3 credit reporting agencies, my debt ratio is only 23%, I have been paying $200-$300 each month on my balance (currently $4800), and I've haven't been late making a payment on any of my accounts in over 5 years... sooo, that leaves #3... Advanta is following what other banks are doing... bait and switch us small business owners to make up for their stupid clients who have defaulted on mortgages and loans.

I have no other choice but to opt out in order to keep my 7.99% APR. What a rip off this bank has become in the past few months. I asked Melissa if other people were upset and calling in and she was very honest in telling me they were calling in and upset. Many are opting out without Advanta so much as offering to lower the rate in order to keep the clients... this is a tell-tale sign that the economy will get worse before we can even think of it getting better any time soon.

I don't know about the rest of you, but I am definitely writing a letter to Advanta's President, Mr. John F. Moore. If any of you wish to follow suit, his physical address is: 11850 South Election Road, Draper, UT 84020. Of course, his phone number is not available. I want Mr. Moore to know what a crummy leader he is for getting his company into such a fix and expecting the small business owners of the USA to bail out his limpy ar*e company.

I can't believe the down-low, shady, ### bucket, low-life tactics some of these banks are stooping to in order to bail out of the mess they created for all of us.

When I get the info on the agency to write to in Utah, I will come back and share it with all of you.

Va
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Comments

  • Er
      12th of Jul, 2008
    0 Votes

    I went to pay my bill today and notice my interest rate hike as well. I will call on Monday to complain!

  • Va
      14th of Jul, 2008
    0 Votes
    Advanta Bank Corp. - Beware of them
    Advanta Bank Corp.
    United States
    www.advantabankcorp.com

    I noticed my interest rate went from 7.99 to 19.99%. When I called I spoke to Joann she put me on hold for several minutes when she returned she said she could not find a reason for this that my account was in good standing. She then said that back in May they had sent out a letter stating they were restructuring thousands of accounts (I never received any letter) I asked to speak to her supervisor. He also had no explanation except because of the economy they were raising rates and said he could not do anything about it. I told him I have excellent credit why would I keep this card and pay this high rate! He said take your resources and do what you have to do. Advanta Bank is ripping people off!!

  • Kt
      31st of Jul, 2008
    0 Votes

    They work so hard to get your business then they screw you to the wall. My interest went from 7.99 to 20.99 without notification. With no blemishes on my payment history for anything. Balance transfer here I come. Customer service right - We can lower your rate to 16.99. Small Business Friendly - what a joke. Put your card where the sun doesn't shine.

  • Gl
      11th of Aug, 2008
    0 Votes

    Same thing happened to me today. No notification, no chance to opt out. Rate went from 12.7% to 30.39%. No late pays, always more paid than minimum payments. Was told that the information was proprietary and could not be obtained. I requested the President's information. John Moore, Advanta Bank Corp, PO Box 30715, Salt Lake City, UT 84130-0715.

    Don't roll over and play a sap with this issue!!! If it has happened to you, do the right thing and pitch a ###!!! Somewhere, somehow, this kind of activity has to stop. We, as small business owners, need to protect ourselves and each other. America is based on the theory that we are the land of the free. As an intelligent nation, we do not have to roll over to this type of business practice. It is unacceptable to be raped by companies such as these.

    My letter goes in the mail tonight.

    Glori

  • El
      20th of Aug, 2008
    0 Votes

    Same thing happened to me. Raised my rate to 34.99% and 40% . Never late, etc.. Did anyone get any response from bank president Mr. John Moore or were comlaint letters ignored?

  • Ch
      9th of Sep, 2008
    0 Votes

    We are all apparently in the same fraudulent Advanta boat. Not only will I write Mr. John Moore I also filed a complaint with the Federal Trade Commission. The government has got to regulate these banks before they ruin all of the small hardworking business owners. After I opted out they still tried to charge me 25% interest and had to call to get it removed. Advanta is really screwing the American people who are trying to pay their bills!! The most obscene thing is that they are still offering 7.99% on their website. Can anyone say fraudulent business practices?

  • Lk
      16th of Sep, 2008
    0 Votes

    This just happened to me on my Sept statement. Everything that each of you mentioned happened to me as well. They said they sent me a letter, but I never received one. My rates went up form 7.99% to 25.99% and my cash adv went up to 35.99%. My previous balance was $4800 and before I got of the phone w/ the rep, I gave them a payment of $2200. I'm so disturbed about how this company can just do this to it's customers.

    Can someone provide me with a copy of the draft they sent to the Pres. John Moore. email to: lksubscribe [at] gmail [dot] com

  • Pa
      17th of Sep, 2008
    0 Votes

    Just like many of you, I am also a very small businessman tried to make living in the US on a day to day basis. I never missed to make a monthly payment. This month, they raised my interest rate to 35% on Advanta Credit Card. They will not reduce it no matter what now. What to do! Helpless in America!



    I have found a list of gang members who are acting criminal acts and they are free as OJ Simpson.



    Every chance you get, please distribute this list wherever you can. We need real bad publicity about Advanta crimes just to protect small business folks like us.





    Gang of White-Collar Crime Board at Advanta Corporation



    1) Dennis Alter - Chairman, Chief Executive Officer and Chairman of Corporate Governance Committee



    $992, 212 total amount ripped off from small businessman like us.



    2) William A. Rosoff - Vice Chairman, President and Member of Corporate Governance Committee



    $750, 000 total amount ripped off from small businessman like us.



    3) Philip M. Browne - Senior Vice President and Chief Financial Officer Advanta Corp

    $583, 646 total amount ripped off from small businessman like us.



    4) David B. Weinstock - Vice President and Chief Accounting Officer Advanta Crop.

    $304, 993 total amount ripped off from small businessman like us.



    5) John F. Moore - President of Advanta Bank Corp

    $303, 968 total amount ripped off from small businessman like us.





    6) Olaf Olafsson - Executive Vice President at Time Warner Inc

    $000, 000 hided total amount ripped off from small businessman like us.



    7) Max Botel - Independent Director, Chairman of Compensation Committee and Member of Audit Committee,



    $000, 000 hided total amount ripped off from small businessman like us.



    8) Thomas P. Costello - Independent Director and Chairman of Audit Committee

    $000, 000 hided total amount ripped off from small businessman like us.



    9) Ronnie Lubner - Chairman of Belron International Ltd.,

    $000, 000 hided total amount ripped off from small businessman like us.



    10) Michael Aaron Stolper - Partner at Veritable, LP

    $000, 000 hided total amount ripped off from small businessman like us.



    11) Dana Becker Dunn - Director of Advanta Corp



    $000, 000 hided total amount ripped off from small businessman like us.



    12) William A. Rosoff - President and Vice Chairman of Advanta Corp.



    $750, 000 total amount ripped off from small businessman like us.



    13) Mark A. Barnes - Group Chief Executive Officer of Capital Alliance Holdings.

    $1, 080, 000 total amount ripped off from small businessman like us.



    14) Craig Carter - Executive Director at Avasa Holdings Ltd.

    $1, 135, 000 total amount ripped off from small businessman like us.



    15) Shaun L. Rai - Chief Executive Officer of Cape Empowerment Trust

    $1, 990, 000 total amount ripped off from small businessman like us.



    16) Thembeka Gwagwa - Non-executive Director, Purple Capital Ltd.



    $000, 000 hided total amount ripped off from small businessman like us.



    17) Alex W. Hart - Advisor, Paymetric, Inc.



    $000, 000 hided total amount ripped off from small businessman like us.



    18) Richard A. Greenawalt - Chief Executive Officer and Director at Arcadia Financial Ltd



    $000, 000 hided total amount ripped off from small businessman like us.

  • Ja
      24th of Sep, 2008
    0 Votes

    This just happened to me. From 9.99% to 25.08%. Good credit, financial situation has not changed since I got the card (how generous of them), payments on time, never late, more then I was told to pay.

    14.5k on the card. This is not fair or should it be legal.

  • Aj
      24th of Sep, 2008
    0 Votes

    As a very small business owner I agree 100% with everything said by previous bloggers as I have the exact situation with these thieves better know as Advanta Bank Corporation. We are dealing with a very shady company. I kept my account meticulously for almost two years and counting. Like many of you, I have been always on time with my payments and never late. My interest rate went up from 7.99% to 25.08%. The Advanta customer service is clueless or at least they pretend to be. All I got from them was a generic & scripted response. For the past three days I have been waiting for a call back from a supervisor and I am still waiting. Thanks to those people who posted John Moore's address, I just mailed a stern letter to him by saying that if my 7.99% interest is not reinstated; I will simply payoff my $3, 900 balance within four weeks and close my account. I am sure they will survive without my account but I am hoping more people would follow suit and send a message to the banking industries in our country which by the way is in shambles to STOP DRINKING AMERICAN BLOOD.

  • Br
      26th of Sep, 2008
    0 Votes

    Just received the latest bill from Advanta this month. Interest rate went from 13% to 33%!! Call them and they said there was nothing they could do.

    I've been a customer for 8 years and NEVER missed a payment! In fact, I've never missed a payment on any of my loans or credit cards. This is nothing more than loan sharking and should be illegal. What a scam!! They should be held liable for consumer fraud.

    On Tuesday, Sept. 23rd, lawmakers approved a new credit card legislation in a 312 to 112 vote. This bill bans retroactive interest rate increases on existing balances. Credit card companies are only able to change interest rates on new balances now - and ONLY after giving advance notice of the interest rate hike to cardholders.

    Question - does this affect the down-low, shady, ### bucket, low-life tactics (to quote a previous post) of Advanta? Something needs to be done to STOP credit card companies from ripping off customers!

  • Pe
      30th of Sep, 2008
    0 Votes

    I've had the same basic problem with Advanta as everyone has noted. Started with a low basic rate, which was increased to about 25% last week. No late payments, good credit, etc. I have started to call and sent emails and I'm getting the same scripted answer as others. Has anybody had any luck and will complaints actually help? I'm not sure where else to turn to. Any suggestions would be helpful.

    Thanks!

  • Do
      2nd of Oct, 2008
    0 Votes

    I'm also a small business Advanta Platinum Business account holder. Advanta started me out at 9.99% and the most recent raise is to 35.08%! I've never missed a payment ever. My beacon score is over 800 on all credit reporting companies. The managers you speak to are all reading the same scrip, which explains nothing. The next thing that will happen is record profits like the oil company greed complex, and then the executives paying themselves salaries that are obscene, will send their money off-shore and ask the taxpayer to bail them out also. Please tell everyone you know to avoid Advanta and try Wells Fargo Business, where for the same amount of money my bill is over $700. less, so I can afford to pay some principal and not all interest.

  • Jo
      16th of Oct, 2008
    0 Votes

    John F. Moore
    Subsidiary President
    Advanta Corporation Class B
    Spring House, PA
    Sector: FINANCIAL / Credit Services
    Officer since January 1986

    56 Years Old
    Mr. Moore joined the Company in 1986 as Assistant Treasurer. In addition to serving as Assistant Treasurer, from January 2001 until January 2004, Mr. Moore also served as the Company's Managing Director, Retail Funding; and from January 1995 until June 2005, Mr. Moore also served as Vice President of Advanta National Bank, now Advanta Bank. In January 2004, Mr. Moore was elected President of Advanta Bank Corp.
    Compensation
    Salary $301, 204.00
    Bonus $2, 764.00
    Other Annual Compensation $0.00
    Long term incentive plan payouts $0.00
    Restricted stock awards $94, 409.00
    Security underlying options $0.00
    All other compensation $103, 775.00
    Option awards $ $76, 601.00
    Non-equity incentive plan compensation $0.00
    Change in pension value and nonqualified deferred compensation earnings $0.00
    Total Compensation $578, 753.00

  • Ma
      6th of Nov, 2008
    0 Votes

    advanta reporting my balance to experian credit card service as delinquent when it wasn't even due yet. I had already called them to complain as I was getting collection calls repeatedly from India. This is a terrible business practice.

  • Mi
      11th of Nov, 2008
    +1 Votes

    This too has also happened to me as well, with no information provided as to why my rate was increased. I have written to my State Attorney General and to the BBB. I have also filed a complaint to the following
    Sec. 227.2 Consumer complaint procedure.

    (a) Submission of complaints. (1) Any consumer having a complaint regarding a State member bank is invited to submit it to the Federal Reserve System. The complaint should be submitted in writing, if possible, and should include the following information:
    (i) A description of the act or practice that is thought to be unfair or deceptive, or in violation of existing law or regulation, including all relevant facts;
    (ii) The name and address of the bank that is the subject of the complaint; and
    (iii) The name and address of the complainant.
    (2) Consumer complaints should be made to:
    (i) The Director, Division of Consumer Affairs, Board of Governors of the Federal Reserve System, Washington, DC 20551; or
    (ii) The Federal Reserve Bank of the District in which the bank is located. The addresses of the Federal Reserve Banks are as follows:


    Federal Reserve Bank of Philadelphia, 100 North 6th Street, Philadelphia, PA 19105.

    Hopefully we can stop this.

  • Ri
      13th of Nov, 2008
    0 Votes

    Same thing happened to my company. Never late, credit in the 700's with a starting rate at 7.99% then to %25.9, then %29.9 then to %34.9. I called to ask why and they gave me the same response that everyone receives, however they word it, it is because they can. I requested two different times to receive a reasonable rate. This is criminal what this rotten company is doing. I won't let my company get loan sharked & refuse to continue making payments. Advanta can go to hell and likely will.

  • Je
      13th of Nov, 2008
    0 Votes

    Same thing happened to me. They jacked my rate up to 27.18%. They said they sent a notice, but if they did, I missed it. Apparently I would have had about a two-week window to opt out, but I missed it. When I called, I got the same response as everyone else--they reviewed by account and decided I had all of a sudden become a credit risk. My credit scores range from 760 to 800. I never paid late and paid the entire account balance the first six months (Jan - June 2008). Obviously, their business model is to bait and switch. I'll be paying off my balance and destroying my Advanta card immediately. Advanta will only have stolen about $225 from me. But I will send John the Chief Thief Moore a nasty letter. Also, I will file a formal complaint with the Wisconsin Department of Consumer Protection. But most importantly, we must all continue to spread the word via the Internet and by word of mouth. Hopefully, we can do some damage to Advanta's business.

  • Dt
      19th of Nov, 2008
    0 Votes

    Advanta keeps calling my cell phone for no apparent reason. I don't even have an account with them. When I tried to get them to remove me from the list, they stated that they are unable to do so, even though I don't have an account with them. HUH??? What kind of service is this?

  • Di
      4th of Dec, 2008
    0 Votes

    SSDD (same sh** diff day)... I was told I "missed" payments (have bill pay service... all payments made on time). Then... well.. you UNDERPAID 3 months (again... how... balance keeps going down, nothing charged on card)?
    I have written letter of compaint & dispute. I will pursue this legally and through the governing boards

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