In case everyone has not been notified. I was recently was notified by Advanta that they are closing ALL Advanta Business Card accounts as of May 31st. They say a 'trust' that had been funding their business is no longer going to provide funding. Check out their website for more information.
Oh and of course, you still gotta pay them what you owe them.
Gee you would think that with them charging interest rates in the 35+% range, they could make a profit...
Sounds a bit strange...
I have (as of today - that is "had") an Advanta Bank credit card for my very small business. I had it for a number of years, long enough that I can't remember when I opened it. At least 5 years...could be 10 years. At first I used it a bit.
Then they pulled the ole' predatory "change the due date" combined with the "don't mail the statement to the customer in time so that they can have a hope of paying on time" trick. Which of course as expected ... worked perfectly. So I started making a series of late payments. They of course then changed my interest rate to the low 30%s and hit me with outrageous late fee payments. OK... I missed the payments so ... that's what I got. Luckily I never had a balance over a few hundred bucks on it, so it was pretty easy to pay it off in short order.
The main damage was the FEES!
So I paid the balance off and stopped really using the card for my business, since I have an AMEX Business Coprorate Gold card that is the main card I use for that. (Did I mention that my credit rating is around 850?)
I had one recurring automatic payment of $9.95 a month for my business email account that I left on the Advanta card simply for MY convenience of not having to change the autopayment situation. Advanta kept sending the statement so late that I kept missing getting that minor little bill paid, and I STILL had a few repetitve $30 late payment fees on only a $10 bill.
So I paid the account into the plus column (positive balance) by sending about $50-75 ahead of the coming $10 bill. And I kept it that way with a positive balance for a LONG time. I expected that after a while my interest rate would come down. IT NEVER DID. Well over a year like that, I believe. They have been holding about $50-75 of MY money in a positive balance for all that time. No interest. Nice hunh?
Today I went to go online and check my business email. Onl to find that it was declined the automatic Advanta payment on 4/27. My card says "good thru 05/11". I called Advanta's customer service # to see what was up. I KNOW that I am currently $60 ahead of the coming bills. In fact, their automated system confirmed that balance and a payment THAT day before I even talked to a live person.
I got some young lady with a thick Indian accent that said her name was "Trisha" (yeah right...Trisha is a traditional Indian name). I asked her what happened that caused my card to be declined, and remionded her that I had a credit on file about $50 more than the current charge. She told me that they HAD SENT me a new credit card in the mail and that the current card was suspended because of that. She said the new card had not been activated yet. THAT caught me off guard. I had not received that new card, and I told her so.
She said that was why the charge was declined, that my current card was no longer valid. I then asked her what day it was today. She said April 28th. I said I had a card in my hands that said "good thru 05/o9"...which is the END of NEXT month. She just repeated that the current card was inactivated. I got totally ticked off and told her to just to pay the GD existing bill on the currently valid card. She sputtered and said she couldn't. I then asked to speak to a manager. At frst she was reluctant to do so. I had to ask a couple of times. I ended up DEMANDING to speak to a manager to get anywhere.
I then got Shelly who said she was in Salt Lake City. She was easy to understand... no Indian accent. Basically I got the same "song and dance" from her. One this that was different from her was that she used a different tense for the "new credit card" spiel. She did not say that had SENT me a new card. She said that they were SENDING me a new card. To me an important disticntion. That told me that she KNEW AMD EXPECTED that I had not yet received the new card in the mail. But she still insisted that the curent card was no longer valid no matter what it said on the card itself. She made NO explanation for why the descrepancy, and no apology for any inconvenience or confusion either.
The important point here is that I NEVER got the words "I'm sorry" or ANY kind of indication that this was unfortunate out of either of them. THAT was the breaking point for me. Shelly finally told me that to pay the bill she'd have to re-activate my old card (that never should have been inactivated to START with...it was still valid). She then asked me what I wanted her to do.
I told her that what I wanted was an address that I could send a complaint to about all this and the terrible customer service. To her credit she immediately then gave me Advanta Bank, P.O. Box 30715, Salt lake City, UT 84130. I then said, "What you can do for me is cancel my account, and inform the credit bureaus that it was closed due to the owner's request."
Only THEN did she say she was sorry that this ...blah, blah, blah. It was too late for me. I then hung up.
PLEASE do not EVER do any business with Advanta bank!!! Caveat Emptor!
After reading many complaints against this company that sound even worse than mine I will throw my two worth. About a year ago last Christmas my wife was going in for some surgery so I made a payment for November then a week or so later gave them another 1000 dollars so my Dec. bill would be covered and I could be with her. I'm in the hospital with her they call and say I'm late with my Dec. payment and demand payment over the phone. I told them that I had already made this payment and they argued that I made it to soon and they applied it to Nov. so I agreed to pay the min. to get rid of them. Then they charged me a late fee and raised my rate from 7% to 14%.I did finally get them to drop the late fee after a very heated discussion.
I have since used the card and carried a zero balance monthly so as not to be charged 14%.
Today they have informed me that they have canceled my account. I asked them why and they couldn't tell me all they could do is tell me there is a letter in the mail. I'm not crying over losing this card because they have been terrible to work with and until recently their website was a nightmare to figure out, but I would like to let people know this is not a good company to do business with and I hope with the economy being so bad that other credit card companies don't follow this path as well.
In conclusion: I can only assume they are in big money trouble and are dumping people like me who pay off their bill every month and keeping the 25% interest people. Right now they owe me 31.10 in rewards.
Other funny note today I got a statement in the mail telling me what a wonderful customer I am and wants me to start banking with them 24/7 LOL
I had a credit card with advanta and some how due to financial hardship was not able to make payments and...
I paid Advanta $3, 600+ in July 2008 after an 18% APR hike which sent APR 36%+ after numerous requests for APR of 10% or less to expedite repayment of balance; instead Advanta closed my account after I stated that charging a business 36% is not good business sense.
After paying $3, 600 lump sum balance, Advanta chose NOT to report my account to Experian (or other credit bureaus) which would enhance my credit score even after I requested my account be reported. I have consumer rights and Advanta is infringing on my rights by keeping my credit report incomplete. Was informed Advanta reserves the right to report (business) accounts; Advanta will report any business account defaults (which mine was not). I also paid beyond the minimums every month and was in good standing (paid as agreed) but Advanta is not allowing this account to reflect on my credit history.
Another good customer...paid on time..paid $2800 more than required in 2008 and now my interest rate is at 37.18% from 7.99%. I am a small business owner and this is just beyond belief. Guess this is what I get for trying to pay the card off. A 'major class action lawsuit' should be formed to put this company out of business and return the overcharges to the good customers...
I also was scammed by Advanta's Loan Shark tatics for credit cards. Wish I would have found this site before I ever got involved with this bunch of crooks!!! I also got a low 2.99% credit card transfer to pay off another card for a nominal fee. I also have excellent credit ratings and am never late on a payment. As everyone else here my Dec bill showed I was now a high risk and my new "life of the loan rate is now 32.08%%%%%%%%%%. I contacted the Pa atty general and filed a complaint. My response was this
Please be advised that your complaint involving a National Bank should be directed to the Comptroller of the Currency. You can reach them at 1.800.613.6743 or at their website www.occ.treas.gov.
I went to the web site today and filled out the proper forms. I faxed it in today and hope to hear from them soon.
EVERYONE THAT HAS BEEN RIPPED OFF BY ADVANTA NEEDS TO DO THE SAME. sEND YOUR COMPLAINT The Comptroller of the Currency. You can reach them at 1.800.613.6743 or at their website www.occ.treas.gov. LET US MAKE SURE THE OFFICE IS FLOODED WITH OUR COMPLAINTS SO NOBODY ELSE FALLS FOR THIS SCAM!!!
I have a business credit card with Advanta Bank and have been a good customer for 8 years. I have never...
In all my years of doing business with banks I have never seen more dishonest and absolutely predatory lending practices performed as I have by this institution Advanta Bank . If the old "bait and switch" ever applied to a lending institution I am positive it applies here. To draw you in with a low rate and jack it up for no good reason is deceptive at the very least. I wonder if anyone has contacted any news agency including the major networks ? There seem to be enough complaints and I am sure that during tough economic times they would love a juicy story such as this! So I say lets get them...
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.
DO not do any business with Advanta! I have been a loyal credit card member for years and always paid my monthly balances in full each month. I never carried a balance! NO INTEREST OR FEES – Ever! In July 2007 I went to pay my bill on-line... THEIR WEB SITE WAS DOWN!!! The credit card was for my business and with a tight schedule I always paid via their web for the ease and convenience. The bill was due that day, I could not make the payment, and did not have the time to call them or try later that day or maybe the next day. I wanted to make the payment now and could not because someone at Advanta botched a web update.
The Advanta Story from their site: “At Advanta, our focus is on small businesses, and no one knows the needs of small business like we do. Started in 1951 with $30 in seed money in founder Jack Alter's spare bedroom, Advanta has grown into one of the nation's largest providers (through Advanta Bank Corp.) of business credit cards to small businesses, without forgetting what it is like to be a small or start-up business.” OK, Yeah right! Don’t bend over anytime soon because it’s 2007 and you will pay for that seed and growing out of your ###!
When I called (now after the due date) the customer service representative told me he was aware of the problem and told me I could make a payment today over the phone and I did in full as always. I asked him (more than once) if I would be charged for the phone payment and a late fee and he assured me that our conversation would be documented and that I should not have a problem. OK.
Well, I received my next statement and I had a charge for $12.00 for a phone payment service fee and a $39.00 late fee. I figured no problem, I would call Advanta and they would see the notes from my last call and credit me for their error. WEB SITE DOWN! I was told that they have credited me for a late fee in the past and they can not and will not waive the late fee but will remove the phone payment fee. Yippee, I wanted to jump for joy but thought the seed I mentioned earlier might fall out and it would smell like the BULL ### that Advanta has grown to be! Bogus Fees and Charges for their web outage and forget me the small business customer “as their founder focused on?”. Advanta would rather focus on charging you fees for their loss in interest and/or loose you as a customer. The Advanta Story – SCAM YOU OUT OF YOUR MONEY! Advanta Customer service? NO, IT DOES NOT EXIST! No such department.
Instead of the 0.69 rate offer, they charged 34% annual interest! This happened on two balance transfer...