- Report: #371564
Complaint Review: Advanta Bank Corp - Salt Lake City, Utah Nationwide
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Advanta Bank Corp
P.O. Box 30715, Salt Lake City, Utah, Nationwide, U.S.A.
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Advanta Platinum Business Card Advanta Bank Corp Over the top interest rate hike from 7.99% to 20.39% Salt Lake City Utah
I have had an identical experience with my Advanta small business Platinum card as have the others posting on this site. I too was under the impression the 7.99% rate was for the life of the balance until paid in full. I too had the cash advance rate jump to 19.99%. I too called to complain and got the same script read to me that stated I was mailed a letter (which, I too did not recieve) and that nothing could be done to lower the rate. My August bill had a rate of 20.39% across the board.
Like the other posters to this site I and my company have great credit. We all accepted Advanta's constant offers of low rate credit. Their decision to jack up the rates on small businesses is shameful. Especially in this economy. Small businesses are the backbone if this country. One can only assume they are in a severe financial crunch and this is their only solution to infuse some cash.
As a real estate broker of 20 years I know how to read contracts and I open my mail. Advanta never sent out a letter outlining my choices or explaining any rate increase and the reason for any said increases. Like the rest of you I will simply pay my account in full in the next few days and cut up the card.
One wonders if the decision makers at Advanta thought of the long term effects this will have on their company.
P. in Atlanta
Atlanta, Georgia
U.S.A.
Like the other posters to this site I and my company have great credit. We all accepted Advanta's constant offers of low rate credit. Their decision to jack up the rates on small businesses is shameful. Especially in this economy. Small businesses are the backbone if this country. One can only assume they are in a severe financial crunch and this is their only solution to infuse some cash.
As a real estate broker of 20 years I know how to read contracts and I open my mail. Advanta never sent out a letter outlining my choices or explaining any rate increase and the reason for any said increases. Like the rest of you I will simply pay my account in full in the next few days and cut up the card.
One wonders if the decision makers at Advanta thought of the long term effects this will have on their company.
P. in Atlanta
Atlanta, Georgia
U.S.A.
1 Updates & Rebuttals
Peggy in atlanta
Atlanta,Georgia,
U.S.A.
Advanta Bank Corp
#2Author of original report
Thu, September 11, 2008
I searched more about Advanta and my guess was correct. Due to the economy and borrowers not paying on their credit cards they decded to charge the paying customers exorbitant rates to make up for their losses. Not a good business practice in my way of thinking. I did make note that their stock has been very strong over the last 10 years. In 2004 - 2006 it started to raise. By the 3rd quarter of '07 it peaked around $34.00 a share. Then it took a nose dive like crazy. It is now trading at $8.00. They are in a severe financial pinch. I still plan to help them out by paying off my balance, as painful as that will be, I will never pay 20.99%. By the way I found my "letters" explainng the rate increase. It was in the form of convenience checks and a letter attached. The back had the increase notice in print so small I needed a magnifying glass. As I guess most of us assumed the letter was explaining the terms of those particular checks. Since I had no intention to use them, I didn't read the letter. In fact those checks usually get shredded. A point that I'm sure Advanta counts on.
