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Advanta bank / Interest rate raised because of the state of the economy

P.O. Box 844Spring House, PA, United States Review updated:
1
Contact information:
Phone: 215-657-4000

Everyone needs to be very wary of doing business with Advanta. This month my interest rate was increased from 11.99% to 25.39%. When I questioned why this was since I was an excellent customer and have excellent credit, I received the following reply. It seems now it doesn't matter how good you are at paying your bills, you are punished for what the rest of the country does. I am paying off this credit card immediately and canceling my account. Buyer beware!!!

Thank you for contacting us about the terms of your Advanta account.

Your Advanta rates are based on a variety of factors including information about your Advanta account, such as credit line utilization and payment history and information we obtain from credit bureaus about your personal and business credit. The information we obtain from the credit bureaus can include your activity on any other accounts you may have including mortgages and other credit cards.

In addition to factors such your account history with us and your credit scores, our evaluation also considers the economy. Given the current difficult economic environment, we expect accounts with similar behavior and credit profiles to your account to now have a greater likelihood of defaulting than before and your new pricing reflects that higher risk.

We appreciate the opportunity to serve you and your business needs. If you have any other questions or concerns, please feel free to contact our Customer Service Center. You can visit us online 24 hours a day at www.advanta.com or call us toll free at [protected], Monday - Friday 8:00 am to 8:00 pm and Saturday 8:00 am to 5:00 pm Eastern Time.

Charles Regazzi
Account Manager
Advanta
Sj
0

Comments

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Ch
  3rd of Sep, 2008
Agree Disagree 0 Votes
What can I say.. Same as the previous griever. From a 7.99% to 25.99%! OVERNIGHT! Ridiculous, what is it with these banks/credit card companies? The government needs to step in and place CAPS!!! No wonder so many people are in debt and just getting worse.

I called customer service to receive the same explanation, rates are based on a variety of factors including information about your Advanta account, such as credit line utilization and payment history and information we obtain from credit bureaus about your personal and business credit, blah blah, blah, blah, blah! An increase of 18% in 30-days? Are you on drugs? Are you serious? What a BLIPPIN' rip-off. THE GREED! YOU just lost my business. I am going to write to Washington and see how I can pass some of this agony, injustice, prejudice, personal time-wasting. When I have to get on the phone and call your lame customer support to hear this kind of crap (That's just what THIS IS and what THEY ARE DOING and GETTING AWAY WITH)! C_R_A_P, crap is what this means to me (we should make a satirical song about you guys). EVERYONE NEEDS TO CONTACT THEIR CONGRESSMAN/WOMAN AND WASHINGTON. This ABUSE has to STOP!
Bo
  3rd of Sep, 2008
Agree Disagree 0 Votes
This is just happened to me and for the same exact reasons. I have never been late nor have I ever exceeded my credit limit. My 7.9 fixed rate increased to 35% overnight. I called Advanta Bank Corp today and was able to close the account at the 7.9% and will be able to pay off the balance at that rate

I am a public relations consultant and would be interested in hearing from others experiencing this rip off. I want to hear from people that have never been late for any reason nor have they exceeded their balance. I think this is an important consumer scam story that needs to be told. Thanks.
He
  12th of Sep, 2008
Agree Disagree 0 Votes
same thing here...been a customer for years, 8 years, and overnight, for no reason they raised my rate to almost 36%!! I've never seen anything like that. My other cards are 11% and I have a great track record for paying on time. This has to be against the law. I closed my account and will cash in stock to pay it off. Stay away from this company, at all cost!
Ir
  15th of Sep, 2008
Agree Disagree 0 Votes
Another screwed Advanta customer here. My rate went from 7.99% to 25.08%. When I called customer service I was told by the nice lady from India that due to 'economic reasons', my rate was increased. I have never been so betrayed by a CC in my life. You bet this card is getting transferred and closed NOW. I just hope all my other cards don't start following suit.
On
  18th of Sep, 2008
Agree Disagree 0 Votes
another Advanta loyal customer with perfect credit screwed by the bank raising interest to over 30% for no reason or explanation. Could they be in financial trouble? I hope that someone finds out if this is legal.Can anything be done as a class action against Avanta?
Mi
  26th of Sep, 2008
Agree Disagree 0 Votes
their CEO is Dennis Alter, phone # is 215-657-4000-call and ask for him, I actually got his email and left him a choice message, of course the jerk did not return my call, but I did get some satisfaction-they raised my rate from 8$ to 25 without any notification, I closed it but will forever bad mouth these jerks-their stock is around $5 now, was up around $27 less than a year ago, CEO Alter paid himself 3 million in 2008, and he is a big contributor to Obama, McCain and Biden-what comes around goes around, I say. Love to see a class action against them, also I wrote to BBB, Congressman, Senators, FDIC (was told on the phone that their tactics were under investigation)-call Alter, the more that call and leave messages, the more he can be annoyed too.
Ca
  6th of Oct, 2008
Agree Disagree 0 Votes
WHY IS THIS HAPPENING TO US? 2 WORDS -

THE ECONOMY !!! We have not defaulted on any payments. We are paying the consequences of the financial crunch we are in PERIOD!

ADVANTA is taking advantage of us. Don't tolerate it. Close your accounts immediately and transfer you money to another institution that has business ethics.

I will keep sending emails to all my contacts informing them of this SCAM and contact the FDIC, congress and Senators as the previous post suggests. Please take action get the word and close your accounts.

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