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Advanta / Interest rate scam

1 United States Review updated:
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I opened my Advanta small business credit card account in January and after nine months of regular, on-time payments, my interest rate was just raised from 7.99% to 25.8%. When I called and asked why, they said there were no late payments, but the rate increase was based on "a complicated formula of a variety of risk factors including credit history, other credit card payments, mortgages, car loans, etc., and that I was a high risk". They refused to tell me specifically what caused me to be "high risk".

I immediately checked my credit score, which is 777 - rated as "great" and only a 2% risk. We have no car loans, and have paid the mortgage off in full.
I suspect that this is a standard ploy of Advanta's, offering a low "come on" rate and then raising it, and has nothing to do with credit ratings.

According to several consumer credit card websites, Advanta is very popular... which I suspect will change if they continue this business practice. Too bad, because I actually liked the company, and I tend to be a loyal consumer.

Sa
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Comments

  • Ad
      24th of Sep, 2008
    0 Votes

    who gives a ###k?

  • Ca
      16th of Oct, 2008
    0 Votes

    My letter to the Senator (Florida) !

    Senator Nelson,

    I wrote last week to you via email regarding your position on the CARD ACT, Credit card reform proposed by Senator Chris Dodd, not the bail out. I agree with your position on the bail out and support it.

    Chris Dodd proposed the CARD ACT 2008 which regulates credit card companies’ ability to charge excessive interest rates, high fees, Prevents issuers from changing the terms of a credit card contract for the length of the card agreement (ban on unilateral changes to card agreements); Apply Interest Rate Increases Only to Future Debt, Prohibit Interest on Fees, Prevents credit card issuers from increasing interest rates on cardholders in good standing for reasons unrelated to the cardholder’s behavior with respect to that card (universal default ban);Require Prompt and Fair Crediting of Cardholder Payments


    ADVANTA CORP credit card raised my interest rate from 7.99% FIXED to 26.31%. When I called to find out why my interest had gone up so drastically they blamed it on the ECONOMY. I closed this account immediately. What is worse is that there is no law to prevent the credit card companies from doing this to us (the consumer). ADVANTA and other credit cards do not consider consumers that have MODERATE interest rates and pay on time PROFITABLE. The mortgage crisis is carrying over to the credit cards, and credit card companies are increasing our interest rates substantially to "squeeze" as much money as possible from us to make a PROFIT. Credit Cards are taking advantage of the financial crisis we are facing and the deregulation that exists in the financial market to raise interest rates. ADVANTA is a business credit card and their increase in interest rates is contributing to individuals and small businesses filing for bankruptcy and leaving others drowning in debt. Credit Cards increase in interest rates is hurting the ECONOMY tremendously; people are unable to pay down their debts with these high interest rates placing ADVANTA and other credit card companies in a predicament where people are not going to be able to make their minimum payments. The middle and low class are going to be paying more FEES for defaulting on their payments. People will be paying more money to the credit card companies and will have more debt instead of less because all the money is going to pay the high interest rates and not the principal. People will be left with less spending money, slowing down the already hurting economy.

    This practice is unjust and unethical and their should be laws to protect consumers from this kind of abuse.

    Do you support the CARD ACT? Is there a better Credit Card Reform in your opinion? How can I effectively support a legislation that aims to reform credit card industry abuses?

    I understand the CARD Act is not the solution to all the problems with credit cards but I believe it to be a step in the right direction.

    http://dodd.senate.gov/index.php?q=node/4401

    Another Credit Card Reform Proposed by Congresswoman Carolyn Maloney

    http://maloney.house.gov/index.php?option=com_issues&task=view_issue&issue=298&Itemid=35

    Thank you.


    Additional information:
    I paid half of my ADVANTA debt and transferred the rest to Capital One at a 0% interest rate for 12 months at a cost of 3% one time fee.

    I hope this link helps. (Be cautious in playing the credit card game)

    http://www.fivecentnickel.com/2007/02/27/how-to-profit-from-0-balance-transfer-credit-card-offers/

    We are less than 30 days away from elections. And our VOTE is our most powerful tool right now. Take the time to visit each candidate’s website to learn the issues that affect us and let’s fight back with our vote! Only one candidate addressed Predatory Credit Card Practices.
    http://www.barackobama.com/issues/economy/#credit-cards


    Vote for the candidate that will PROTECT us from these predatory lenders!!! Also, contact your Senator.

    Best of luck to all of you, and I hope you all find a way out of your high interest rates.

  • Di
      27th of Oct, 2008
    0 Votes

    Advanta is the worst when it comes to bait and switch tactics! They lured me with a 9% APR and in less than a year bumped me to over 30% APR. I pay my bills reguarly, I even pay more than the minimum. This is plain FRAUD!

    People, please check the facts BEFORE signing up with ADVANTA and not AFTER, like I did.

  • Ro
      3rd of Feb, 2009
    0 Votes

    They SUCK, , Don't apply, Rates went up from 7.99 to 37.18.

  • Pa
      17th of Feb, 2009
    0 Votes

    I had an advanta card for almost two years. I got a first 0% interest on the first year which is great because I opened a bussiness and needed the money.
    After a year I looked at my statement a couple of months ago and they are charging me a 33% APR interest!! My minimum payment doubled from $300 for a $9000 dollars debt to almost $700 dollars.
    I called them several times and today was the last one, they said somebody will call me but nobody did. So I finally called again today and an "Indian" customer service man talked to me and said he couldn't do anything!!! I was so pissed so I said I wanted to talk to a Manager.
    After 10-15 minutes waiting on the phone a women with an american accent answered and said that because I paid a couple days late a couple of times they couldn't help me, , , , I can't belive it! these people should go bankrupt!
    I don't think they will anyway because they are charging everybody these absurd interest rates. So now, what's next? I have a business and economy is tight so I am not going to be able to pay my CC next month.

  • Cl
      3rd of Jun, 2016
    0 Votes
    Advanta - High interest
    Advanta Credit Card dDiv
    United States

    Advanta Business card # 8187. Business cards discontinued. Interest was raised to 32.99% some time ago. I requested a hardship reduction but was declined. Now my situation is desperate. I can't afford the high payments and will contempolete bankruptcy, but would like not to, if possible. My interest before was 9.99%. Please help.

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