Advanta Credit Card Fraud Paid bill in full and on time only to be charged late fees and increase in int rate to 29.96% Draper Utah

see http://www.understandingfinancials.com/advanta%20fraud.htm

I am in the process of filing a Federal complaint against Advanta Credit Card company for consumer fraud, failing to comply with Regulation Z and the Fair Credit and Billing Act.

Nov. 2007 I applied for a credit card from Advanta with a zero interest rate for 12 months.

Dec 2007 I paid my bill in full and on time for $276; $90 paid Dec 7th and $186 paid Dec 18th.

Jan 2008 I received a notice from Advanta that $90 was overdue. Apparently the $90 paid on Dec 7th was not applied to my Dec bill. However I had no bill due in November so to which bill was my Dec 7th $90 payment applied? I contacted customer representatives who refused to acknowledge that the payment had been made. They refused to tell me to what bill the payment was applied.

Violation of FDIC Law - 6500 - FDIC Consumer Protection CHAPTER 4CREDIT BILLING
164. Prompt crediting of payments.
Payments received from an obligor under an open end consumer credit plan by the creditor shall be posted promptly to the obligor's account as specified in regulations of the Board. Such regulations shall prevent a finance charge from being imposed on any obligor if the creditor has received the obligor's payment in readily identifiable form in the amount, manner, location, and time indicated by the creditor to avoid the imposition thereof.

Violation of FDIC Law - 6500 Regulation Z - PART 226TRUTH IN LENDING (REGULATION Z)
226.10 Prompt crediting of payments.
(a) General rule. A creditor shall credit a payment to the consumer's account as of the date of receipt, except when a delay in crediting does not result in a finance or other charge or except as provided in paragraph (b) of this section.
(b) Specific requirements for payments. If a creditor specifies, on or with the periodic statement, requirements for the consumer to follow in making payments, but accepts a payment that does not conform to the requirements, the creditor shall credit the payment within 5 days of receipt.
(c) Adjustment of account. If a creditor fails to credit a payment, as required by paragraphs (a) and (b) of this section, in time to avoid the imposition of finance or other charges, the creditor shall adjust the consumer's account so that the charges imposed are credited to the consumer's account during the next billing cycle.
The overdue charge triggered late fees and increased my interest rate which is currently 29.99%

In Feb 2008 I provided my bank records of payment made to Advanta. They answered my letter with nonsense and never acknowledged my bank records showing the payments were paid in full and on time. It was apparent they had no intention of addressing the issue of my bank records because then they would have had to acknowledge that the payments were in fact paid on time. It was very apparent to me that Advanta customer service representatives were not incompetent but were actively engaged in the illegal conduct of the company, that is manufacturing late fees to increase interest rates.

I contacted the FTC (Fair Credit Billing Act), FDIC (Regulation Z), BBB, and locally the Nevada Attorney General's office.

The FDIC added my complaint to the list of issues to be reviewed during their next audit of Advanta.

The Utah BBB added my complaint to their list of 228 complaints against this company.

I am in the process of writing a Federal Complaint against Advanta Bank Corp which will be posted online late May or early June 2008.

Gudrun
Lake Almanor, California
U.S.A.