Advanta Bank Credit Card

Whats This About?

You may or may not have heard of Advanta before, but if not you may wantto read about my experiences with them first. Advanta bank began in1951, founded by a school teacher from Philadelphia, Pennsylvania.Originally Advanta operated as a company that offered private loans toTeachers. Today Advanta is a major corporation that produces, services,and sells small business credit cardand home equity loans. They also provide credit life, disability, and unemployment insurance. At one timeAdvanta Bank was ranked by Fortune Magazine as one of the best companiesto work for in the United States. That is not the case today!

WHAT LED ME TO ADVANTA

A few years ago I was running a daycare in my home (yes me). I did nothave alot of finances to support the home business in the beginning topurchase all the necessary supplies that are needed in the daycaresetting. Shortly after the business began, I received a notice fromAdvanta Bank offering me a low interest "Small Business Credit Card".Apparently they were known for their business credit cards. With a verygenerous credit line offering as well as that low interest rate, I quickly jumped at the offer. A fewweeks later and I had the financial support I needed in my hands to buythe necessary items I needed for my daycare. My daycare by this time wasmaking enough money to allow me to make my monthly bills including thisnew business credit card. Life seemed swell at the moment.

THE TURNING POINT

I had the card a couple of years and had a fair amount of debt accruedon the limit. My initial low interest rate that lured me in had nowjumped up to 12.9%, but I expected it with the struggling economy. Mydaycare however was thriving keeping me busy 6 days a week, 12-14 hours aday. As a result, I could handle the new higher interest rate on thecard.

Then, I received a notice from Advanta Bank that they would be closingmy business credit card accounteffective the end of that month...May 2009! It had nothing to do with methey said, because they were actually closing every single businesscard account for every customer they had. I was a bit stunned by theshort notice and abrupt closure, but by this time I was financially ableto effectively get by in my business without that credit card anyway. Icould just keep paying it down every month and eventually pay it off infull when I could.

Unfortunately for me, the following month I receive my bill, and theaccount is closed as expected, but my interest rate had went up.... WAYup!
This company had raised my interest rate up to 34.99%. That means I pay35 cents in interest for every dollar I pay on my balance. This was justinsane and I was not going to have this for sure. So I had to dosomething about it!

AN ANGRY MAN

I have been paying on that closed account ever since then faithfullyincluding the obscene interest rate. I just cant let my credit go downjust because of these crooked credit card companies. But finally, Idecided enough is enough. I don't deserve this kind of treatment afteralways paying on time, and usually more than the amount due. Advanta hadfiled for bankruptcy and even settled a lawsuit which resulted in themsending out measly little checks to customers like me that was supposedto make up for all the headache that they had put us through. That $120check they sent didnt ease my headache much and the 34.99% interest ratewas still there. I had been researching the company for several monthsreading the numerous complaints by other people who were in the exactsame predicament I was in. I tried calling the customer service phonenumber on my statement. That only resulted in me getting a foreignaccented man on the other end of the phone telling me there was nothingthat could be done because the account was closed. A few days later Itried again and got another foreign accent telling me the same thing. Itried arguing my way to success both times and still no luck. Then itstruck me....I went to the BBB website BBB.ORG and I looked upAdvanta. From the website, I was able to get the name and address of theVP of the company. I filed a complaint online with BBB while I was onthe website, and then I sat down and I wrote a letter to the VP ofAdvanta Bank. I explained my situation to her and asked that my interestrate be reduced to the rate before the account was closed and that theyreimburse me for the extra interest money I had paid since that time ( Iwas pushing it, but I was angry).
Today, just over a month since I sent that letter, I received aresponse. Effective on my next statement of March 2010, my interest ratewill be reduced to the current prime rate...which puts it at almost17%. I know its not very low still, but I did manage to get the rate cutin half by writing that letter, and for that I am happy!