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Report: #365401

Complaint Review: Advanta Bank Corp. - Salt Lake City Utah

  • Submitted:
  • Updated:
  • Reported By: Hackettstown New Jersey
  • Advanta Bank Corp. www.advanta.com Salt Lake City, Utah U.S.A.
  • Phone: 800-705-7255
  • Web:
  • Category: Banks

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As a small business owner, I have been an Advanta Businesscard holder for several years. My interest rate has always been 7.99%. I also received a packaged of checks for balance transfers that indicated the same interest rate.

In June of 2008 I embarked upon rennovations of my business property and decided to transfer some business debts into one banking institution by using the balance transfer checks from Advanta. Prior to doing this I called Advanta to verify the 7.99% rate, which a customer representative did. I was also told that I had the lowest rate that Advanta offered. I inquired as to the amount of the monthly payments that I could expect for comparison purposes. All seemed fine and I proceeded with the consolodation.

I proceeded to make my June and July payments on time. My August statement arrived and to my amazement, my interest rate jumped to 30.39%. In short, the amount of interest alone was substantially more than my June or July payment of principle PLUS interest.

I called Advanta customer support on 8/16/2008 and was told that my rate was raised because the "economy was bad", and that based on "credit reports" and "other factors" they considered me to be a higher risk. I asked for a review and was told that it "was not possible" but I could request a review in 90 days.

I then obtained my consumer credit report from all three credit reporting agencies. I had discovered that on 7/23/08 Advanta Corp had done an inquiry as to my credit status.

On Monday, 8/19/2008 I called Advanta Corp. again. The customer service representative recited the same excuses as if reading a script. I informed the representative that I was fully aware that Advanta had done a credit inquiry on 7/23/2008 and that I was looking at my credit report at that very moment.

I informed the representative that I saw no justification for the rate increase as my credit is clear, with a long history of timely payments, well-established credit, a score in excess of 900 and not a single complaint ever filed.I was told that "that didn't matter because the economy is bad" and that I was notified in writing of the rate increase a month ago. I informed the representative that I was NEVER informed and I would be sure to have noticed a rate increase of such magnitude. I also informed them that I believe they are inviolation of federal law for making a decision which adversely effects my credit worthiness without notifying me of such. I then requested to speak to a supervisor.

I was placed on hold for about 15 seconds and then informed that there would be at least a FIVE hour wait time to speak to a supervisor and that they would call me back. I gave them my home and work number. Needless to say, no representative ever called.

I will be writing a letter to the Attorney General of New Jersey, as well as filing a complaint with the NJDOBI. All consumers should be aware of the dispicable practices that this bank is using. A class action law suit should be filed against Advanta Bank Corp for deceptive banking practices. I believe that I should be refunded the 3% charge for balance transfers and also refunded the difference in interest rates as I was not notified, as required by law, of any change in my supposed 7.99% fixed rate.

Robert
Hackettstown, New Jersey
U.S.A.

This report was posted on Ripoff Report on 08/21/2008 12:28 PM and is a permanent record located here: https://www.ripoffreport.com/reports/advanta-bank-corp/salt-lake-city-utah-84130-0715/advanta-bank-corp-bait-and-switch-from-799-fixed-apr-to-3039-apr-with-no-cause-salt-l-365401. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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REBUTTALS & REPLIES:
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#2 Consumer Suggestion

This has nothing to do with your credit rating and everything to do with Advanta GREED!

AUTHOR: Robert - (U.S.A.)

POSTED: Tuesday, August 26, 2008
I am in the same boat as you. However, I read the mailer and sent them the opt out letter which closes the account but allows me to retain the 7.99% rate for the life of the balance.

Advanta never issued credit cards to people with bad credit in the first place. Advanta Corp. issues business purpose credit cards to small businesses and business professionals in the United States. You had to have decent credit to get the card offer in the first place and stellar credit to receive the lowest 7.99% rate. If you had had iffy credit your rate would have been 19.99% from the onset.

This is the new Advanta business plan: GREED UNLIMITED!

This is how it went for me. About three months ago I got a letter RAISING my credit limit several thousand dollars (now, who does that for "bad" customers?) Advanta invited me to get deep into debt with it because it knew what it was going to do when my card expired next month.

Late last week I got the mailer with the proposed changes in APR. I immediately sent the opt out letter, Priority Mail, Delivery Confirmation so I could prove Advanta got the letter before the "trigger" date of Sept. 2, 2008. Since I no longer trust Advanta, I felt it best to cover myself in as many ways as possible. I had about ten days (not ten business days, ten actual days) to write the letter and have the opt out letter back in their office in Salt Lake City. Not much time, huh? This closed the account but allowed me to retain the 7.99% interest rate.

Yesterday I got my new card. I shredded it immediately and will never have another Advanta Business card.

The customer reps do read from a script and do all in their power to make you feel like it is YOUR fault. It's not. They certainly are not going to just tell you that Advanta made bad business decisions (probably something to do with mortgage backed securities) and now wants you to pay for their bad judgment. This has nothing to do with anyone's credit rating; it is an across-the-board rate hike for everyone that seems to come around when cards expire without regard to credit reports. My credit is better than it was when I got the card because I have paid off my mortgage since then and all other credit balances have decreased as well. I am not buying this line of crapola from them; it is pure greed on their part.

If you are like me you are getting double handfuls of "0% for one year" offers weekly. (Yeah, B of A, Citi, U.S. Bank, Chase and all the rest like to send really good offers to people with bad credit, too, huh?) Transfer your Advanta balance to one of these, make sure that you pay it off before the year is up and then NO ONE makes interest on your sweat. Thumb your nose at the whole bunch of them.

And make sure that you read EVERYTHING from any credit card company thoroughly when you receive it no matter how insignificant it may seem. (The mailer I got was a mass-printed flyer and not anything directed specifically to me needing immediate attention. It did not have "IMPORTANT" or any other defining words on it.). This is going on industry wide (because they were all stupid enough to invest in MBS) and they are all looking for someone else to bail them out. APRs will be being raised and if you are not vigilant this may happen again with another card.

I keep every single thing I have for credit cards, down to copies of my original applications. I date everything I get from them when I receive it as there never seem to be any dates printed on the mailings themselves or the envelopes. Each card has its own file with all this junk in it and I can produce it all if necssary in less than two minutes. I have never trusted credit card companies and I keep files accordingly.

Be alert. Be proactive. Don't wind up paying for other's mistakes. Good luck; I hope Advanta gets sued by several AGs from several states before it is all over!
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#1 Consumer Suggestion

This has nothing to do with your credit rating and everything to do with Advanta GREED!

AUTHOR: Robert - (U.S.A.)

POSTED: Tuesday, August 26, 2008
I am in the same boat as you. However, I read the mailer and sent them the opt out letter which closes the account but allows me to retain the 7.99% rate for the life of the balance.

Advanta never issued credit cards to people with bad credit in the first place. Advanta Corp. issues business purpose credit cards to small businesses and business professionals in the United States. You had to have decent credit to get the card offer in the first place and stellar credit to receive the lowest 7.99% rate. If you had had iffy credit your rate would have been 19.99% from the onset.

This is the new Advanta business plan: GREED UNLIMITED!

This is how it went for me. About three months ago I got a letter RAISING my credit limit several thousand dollars (now, who does that for "bad" customers?) Advanta invited me to get deep into debt with it because it knew what it was going to do when my card expired next month.

Late last week I got the mailer with the proposed changes in APR. I immediately sent the opt out letter, Priority Mail, Delivery Confirmation so I could prove Advanta got the letter before the "trigger" date of Sept. 2, 2008. Since I no longer trust Advanta, I felt it best to cover myself in as many ways as possible. I had about ten days (not ten business days, ten actual days) to write the letter and have the opt out letter back in their office in Salt Lake City. Not much time, huh? This closed the account but allowed me to retain the 7.99% interest rate.

Yesterday I got my new card. I shredded it immediately and will never have another Advanta Business card.

The customer reps do read from a script and do all in their power to make you feel like it is YOUR fault. It's not. They certainly are not going to just tell you that Advanta made bad business decisions (probably something to do with mortgage backed securities) and now wants you to pay for their bad judgment. This has nothing to do with anyone's credit rating; it is an across-the-board rate hike for everyone that seems to come around when cards expire without regard to credit reports. My credit is better than it was when I got the card because I have paid off my mortgage since then and all other credit balances have decreased as well. I am not buying this line of crapola from them; it is pure greed on their part.

If you are like me you are getting double handfuls of "0% for one year" offers weekly. (Yeah, B of A, Citi, U.S. Bank, Chase and all the rest like to send really good offers to people with bad credit, too, huh?) Transfer your Advanta balance to one of these, make sure that you pay it off before the year is up and then NO ONE makes interest on your sweat. Thumb your nose at the whole bunch of them.

And make sure that you read EVERYTHING from any credit card company thoroughly when you receive it no matter how insignificant it may seem. (The mailer I got was a mass-printed flyer and not anything directed specifically to me needing immediate attention. It did not have "IMPORTANT" or any other defining words on it.). This is going on industry wide (because they were all stupid enough to invest in MBS) and they are all looking for someone else to bail them out. APRs will be being raised and if you are not vigilant this may happen again with another card.

I keep every single thing I have for credit cards, down to copies of my original applications. I date everything I get from them when I receive it as there never seem to be any dates printed on the mailings themselves or the envelopes. Each card has its own file with all this junk in it and I can produce it all if necssary in less than two minutes. I have never trusted credit card companies and I keep files accordingly.

Be alert. Be proactive. Don't wind up paying for other's mistakes. Good luck; I hope Advanta gets sued by several AGs from several states before it is all over!
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