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Advanta / credit card rate increase

1 Salt Lake City Utah, United States Review updated:

Advanta Bank has jumped firmly on the greed and scam wagon! It is good to see that I am not the only one in this situation. Perhaps we can take them down. Anyone up for a class action lawsuit?

About a years and a half ago, they were going to raise my rate significantly. The option was that they were going to close the account and with that agreement, they PLEDGED to keep my rate at 7.9% fixed for the life of the balance. That was a promise.

During the interim, I paid on time, and generally slightly more than required. I was “late” twice because they didn't credit my account on the due date, even though it was paid on the internet site. It seems that they also use the trick of not-posting you weekend payments immediately. IT IS GOOD FOR THEM, HOWEVER: zing! $39.00.

Another trick they use is to vary the Due Date monthly. That way you are more likely to screw-up and pay late, having the bill sneak-up on you unsuspectingly. ZING! $39.00.

However, the real mistake they made with me last month was changing my pledged rate of 7.9% for the balance of the loan, to an unprecedented 30+% rate. Here is how I discovered it had happened:

When I was without the money to pay on the random Due Date they had imposed, I called them, and we discussed the matter, and they mentioned that they would work with me and not charge a late fee. Three weeks later, when the money finally was available (self-employed), I was getting calls daily from them, and their India-based agent informed me that my $114.00 minimum payments was now over $$300.00 to bring the account current. I asked “How much?” I then pointed out to them that twice $114.00 is less than the $300-something they mentioned. Their reply: “$132.00 is interest for the month.”

I guess you can imagine what I said next. After biting my tongue, I calmly informed them that I had been pledged 7.9% for the balance, they said that they could not lower the rate.

I then informed them that I will NOT pay mafia rates for interest, and allow them to literally STEAL all of my monthly payment in interest charges. Therefore, I resolve to pay ZERO toward the balance until I get an official letter from their executives promising to reduce the rate to that pledged, and that I am fully willing to walk on the entire balance if they refuse to comply.

Being the fair and reasonable person I am, I also added, I also want all of the late fees removed, and demanded that they repair the reporting to the credit agency regarding this matter. I was late through NO FAULT of my own. I was late because of the economy, not careless disregard for what I owe.

However, I feel that it is an important matter of principle that we hold those we do business to the same standard that we give. If they do not keep their word to me, I will no longer allow them to steal my scarce funds, by making me a permanent debtor with their theft. Before, I was reducing the debt every month. With their new theft, I am (paying the minimum) getting more accrued debt monthly!

It is the economy, stupid! Advanta has no right to place further burdens on the backs of us who are struggling to keep our financial heads afloat monthly! Since they have chosen this unethical path, I say it is time for a class action lawsuit!

Anyone else?

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Comments

  • Jo
      23rd of Aug, 2008
    0 Votes
    Advanta - Interest
    Advanta
    Salt Lake City
    Utah
    United States

    Here is the next scam thought of by Advanta Bank Corp. First they fatfinger something on your name or address. Next the Post Office sends it back due to no such person/address. Then you make your payment late due to Advanta's mistake. And here's the kicker. Your interest rate goes from whatever rate you have to your default rate due to your being late on a payment that was their fault. And who says you can't print money?

  • Lo
      2nd of Oct, 2008
    0 Votes
    Advanta - refusal to work with consumers
    Rochester
    New York
    United States

    This place needs to be reported to the Banking Commission...they raised their rates seven-fold, they contract call centers with illiterates to contact customers, and they are crooks.

  • 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
      14th of Nov, 2008
    0 Votes
    Advanta - interest rate hike
    Color Your World LLC
    540 N Telshor
    Las Cruces
    New Mexico
    United States
    Phone: 505-521-0496

    I have just opened my statement today and almost fainted. My interest rate went up from 20% to 37%!!! I have always paid on time, and have never gone over my limit. I called and the person on the phone could not give me any particular reason for the hike. I suggest anyone in the same circumstance call and complain to Advanta. I cancelled my card with them even though it may turn against me on my credit score.

  • Ca
      15th of Nov, 2008
    0 Votes
    Advanta - Rip Off
    United States

    Add me to the list of ANGRY customers. Advanta is definitely a rip off. I also have excellent credit... never been late on a payment... but regardless, Advanta changed my interest rate from 7.99% to 31%. I am liquidating assets, paying them off, and then closing my account. I hope they get JUST WHAT THEY DESERVE. Take my advice, DO NOT USE ADVANTA credit card.

  • Gr
      24th of Nov, 2008
    0 Votes

    Same thing happen to me! I have always paying my card on time or before the due day. I just find out the interest rate went up to 37.18%. Is there anyone who knows whether this is legal for them to do? Do we have any remedy?

  • Ji
      24th of Feb, 2009
    0 Votes

    I just got my advanta statement and when I opened it I noticed the interest rate went from 8.99 to 27.99. I have never been late, always paid more then the amount due. So after 10 years of being a loyal customer they told me sorry too bad. So I canceled the card. Picked up my line of credit check book that is currently at 2.99 % and will overnight this check to these ### tomorrow. Before I got off the phone with customer service I said hope you have a job in a week because karma is a ###.

  • Mi
      31st of Mar, 2009
    0 Votes
    Advanta - Excessive Interest Rate
    United States

    It appears this complaint has become common with Advanta. I have a small painting business. Advanta just raised my rate from 6.9% to 34.99% and told me they informed me it was going to change, but I only found out by my most recent statement when my payment jumped $160. These business practices, if nothing else, are unethical.

  • Cr
      29th of May, 2009
    0 Votes
    Advanta - Shutting off the Credit Cards
    Advanta
    Utah
    United States

    I had the same problem as 1000's of others but called this company called Comdata. They issue cards in a very timely manner and at 0% interest. It was easy.

  • Cr
      29th of May, 2009
    0 Votes

    Comdata helped me too!

  • St
      1st of Oct, 2009
    0 Votes
    Advanta - Credit Card Act
    SJL Corp
    Kansas
    United States

    I am just amazed at Congress. They try to keep the consumer in a dark hole. They pass a law and then Slimballs like Advanta over 8 months to raise interest rates to over 35% and take away credit lines. Unbelievable!!!

  • Mo
      14th of Nov, 2009
    0 Votes
    Advanta - Harrassing phone calls
    Advanta Credit Cards
    Tennessee
    United States

    I have paid 100 dollars every month, they changed my rate without notification. Now they call me and threaten me that if you think 100, is going to save you from legal action your are wrong. They call my work, home, cell phone, all hours midnight, 6:00am on Sunday.
    I will join your class action law suit. [protected]@bellsouth.net

  • Ho
      1st of Nov, 2010
    0 Votes

    By the way, Advanta NO LONGER exists! So, does anyone know who the attorney in FL works for that is actually attempting to sue me in the name of "Advanta" ? It seems to me that this is a third party debt collector without a contract.

    Does the FDIC attempt such collections through contract attorneys?

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