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ADVANTA/CREDIT CARD / ILLEGALLY RAISING INTEREST RATE

UT, United States Review updated:
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I FOUND OUT TODAY THAT ADVANTA BANK JUST JACKED MY INTEREST RATE ON MY BUSINESS ACCOUNT FROM 10.5% TO 29.9%. I AM READING DOZENS AND DOZENS OF CONSUMER COMPLAINTS OF THE SAME THING HAPPENING TO THEM. THE BANKS ARE STARTING TO SCREW US WITH NO GOOD REASON. ADVANTA SAYS THEIR REASON FOR JACKING THE RATE IS PROPIETARY AND IS PROBABLY ILLEGAL. MY INTEREST ON MY BALANCE WENT UP 3 TIMES AND PAYMENT JUST DOUBLED.
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Ad
  29th of Oct, 2008
Agree Disagree 0 Votes
They just raised my company credit card interest from 18% to 34% for a reason. We always pay on time (they admitted that) and always pay much more than the minimum (they admitted that, too). When pressed for a reason for the ultra high interest rate, they said it was "based on various factors which are priorietary". They even admitted my company had an "A" credit rating but because of those other "factors" they feel we can not pay our credit card so the interest is raised to 34%.
I couldn't get any real reason from them until I asked if it was because their bank was failing, they had lots of bad debt so I, as a good customer has to make up for it and they says "yes, that's the reason". So I said "Gee, I'm glad this conversation is being recorded. The news would be glad to learn that" to which the person replied "i retract my last statement. Since it is being recorded, I can retract anything I say".
So we paid off the balance today and destroyed all cards from Advanta.
Ha
  24th of Dec, 2008
Agree Disagree 0 Votes
Today is Christmas Eve and I just received a letter from Advanta telling me that my new interest rate ON PURCHASES will be 37.18% as of January 2nd.
I called them and spoke with a guy in India (really) to and I was told that it's based on various factors. I asked if my promotional rates (from balance transfers) will be affected and was told no.

When I asked why I had never received a response to my inquiries about the balance in my purchases category (I never use this card for making purchases for obvious reasons) I was transferred to a rep in SLC, UT, who told me that I made 2 late payments (in 2005 and 2006) and while he conceeded that both late payment charges were credited back to me, the credit WAS POSTED TO MY LOWER INTEREST BALANCES!

Are you wondering why I had any late payments? Only an Advanta cardholder who makes their payments online will remember this...Advanta's website allows you to choose what date Advanta will deduct a payment from a checking account. What they didn't make clear is that if your payment was set for a Friday, Saturday or Sunday, the payment would actually take place on the following Monday, thus incurring a late charge. Why would they allow you to make this choice? Pure greed! When I called to complain, they credited my account, but they credited the lower interest balance. Those two $39 late charges have more than doubled!

When I asked the CSR in SLC, UT, if he could do anything about this, he said "no". He was not able to comment when I asked him if the reason they changed the posting situation was because of all the complaints they received.

I am either going to borrow from my 401k (which is only worth about 6k now) and pay off this card and never, ever, do business with Advanta again. My other option is filing for bankruptcy even though my situation isn't that desperate but it is my only way to say FU to Advanta and their ally Bank of America.

I should also mention that I asked Discover to lower my interest rate and they ran a complete credit report and lowered my rate to 10.99%. So there are nice companies out there.

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