I’m gonna go out on a limb here with a bold prediction: Advanta credit card complaints will be rising substantially in the coming days. Why? First of all, Advanta is closing all of its credit card accounts. I’d say there’s a pretty good chance that this may irritate a few people. Like the truck driver in the middle of the Arizona dessert trying to get some diesel at 12:01 am on May 31st. Yes, not June 10th. May 31st!
That truck driver will certainly be saying [expletive deleted] Advanta since, even if he got the first notice that Advanta credit cards were closing on June 10th, he probably was on the road when the postman delivered the notice that his Advanta card would stop working on May 30th. And that letter probably arrived on May 29th.
While I’m sure many were shocked to find out that Advanta would be ceasing credit card lending on June 10th, I’m also sure there are plenty of Advanta cardholders who are just now finding out that doomsday is arriving 10 days earlier. If you’re an Advanta cardholder, I hope you’re not reading this after your credit card was rejected on May 31st. Unfortunately, I fear many of Advanta’s one million cardholders will learn of the new account closure date the hard way.
In a normal credit environment, the failure of Advanta wouldn’t be such a big deal. In fact, a stronger company probably would have purchased their customers and given them credit. Today, most major credit card companies have tightened the reigns on business credit cards significantly more than they have on consumers. Thus, even business owners with solid credit histories are having trouble securing business credit cards. Recently started businesses with little or no credit history will have more luck with Vinnie the Chin than American Express these days (although Vinnie might offer better interest rates!)
The fallout from the Advanta ordeal of 2009 will be severe and I truly sympathize with everyone who is reliant on an Advanta credit card as a sole source of credit. If anything good can be wrung from this situation, it is a lesson many of us small business owners are learning the hard way: never depend on a credit card company. They don’t care about us and they don’t care about our businesses.
Lastly, if you want to vent your Advanta credit card complaints here, feel free. And if you have some tips for others that might help them deal with losing their credit line, please share those.
June 3rd, 2009 at 6:39 pm
After learning by email on May 26th of the Advanta business Card account closing May 30th I called to seek if the APR was to stay the same as I have had at 9.99% for over a year. The account I have had for 5 yrs. I was assured the APR was not to change during this process. I received my May 21st statement to find out my APR went up to 27.99% from 9.99%! We have had prompt monthly payments for 5 yrs! This year has been especially tough due to an economic slow down of our business however have been able to make the 300.00 or so monthly payments except April’s payment was 4 days late. When I inquired on phone with a supervisor he told me the rate went up because of this late payment. I assured him that this rate increase will be very difficult for us to do and I do not want to fall behind in my payments. He stated he could not help me. I asked him to consider how unreasonable this rate increase was and to please reconsider. He would not. I am at a loss as to how we will manage our new monthly payments at this rate. Our balance is 14,000 dollars. I know this is outrageous and I have filed a complaint with the FDIC. Transfering my balance is a thought at this time. Considering it seriously and very upset with Advanta. Any recommendations?
June 4th, 2009 at 10:43 am
Mary,
Unfortunately, there is little that can be done to reverse a rate increase triggered by a late payment and I am very sorry you have found yourself in this position. Ultimately, paying back your Advanta card at 29% will be quite difficult, as the interest expense will be close to $5000 a year. Thus, I would look into getting a bank loan or a balance transfer from another issuer as soon as possible. You may not be able to get a large enough credit line with one credit card to cover the entire outstanding debt, but you may be able to cover it with multiple cards so long as you have good to very good credit and an established business credit history.
I wish you the best of luck. We can all use a turnaround in business these days and credit card companies surely aren’t helping out by raising the cost on both small business owners and consumers.
October 27th, 2009 at 6:32 pm
I am in the same boat with Mary, however they incresed my interest rate without being late ever!
Now I have 35% interest rate, I wrote them a certified letter, I faxed it to them, never heard back anything! This month I decided I am not paying them any longer, unless they are going to adjust that rate! Any ideas how and where I can get some relief with this card?
All the people are out of country!
October 28th, 2009 at 9:12 am
Liana,
The problem here is that Advanta basically shuttered its operations. If you have been unable to reach them using the number of your monthly bill, they may in fact be out of the country.
December 10th, 2009 at 8:23 pm
I had advanta. They lied to me from the beginning and I closed my account. My debt with them is being charged a rate of 34% interest, I would love to get together with otherowners and have a class action suit. I received from them 2 small checks. If I accepted these checks I agree notto sue them. GTodate I have not signed these checks,Are there others out there in the same boat, please contact me.
December 11th, 2009 at 9:49 am
Karen,
How much are the checks for? This is the first time I’ve heard of this issue.