Advanta Credit Card Scam
I sit at my desk completely frustrated with Advanta. I opened up a business credit card with them 3 years ago and made a purchase of $6500 to help build my business credit for Rapid Recovery, my Collection Agency. I have paid more then the minimum every month, on time. Today I noticed that my interest rate seemed a little high. No where on my statement did it say the actual interest rate so I called the company. After 10 min or so I get a live rep on the line and they tell me it is 36.1%. Are they kidding, this must be a mistake. I have over a 750 score and never missed a payment. They said they sent me a notice in Aug that they are doing this due to a change in there lending methods. It turns out this is the second time this year they did this. I went from 8.99% in Jan 08 to 18.99 in Feb 08 to 36.1% in Aug 08.
Now, being in the industry for over 10 years I know that I need to watch my credit. I look for charges I didn't make and it is tough to scam me. I have seen it all but this takes the cake. They told me I am now at a high risk for default so that is why they raised my interest rate? That doesn't make any sense. They should lower my rate if they think I will default on my credit card. How will an increase in what you are charging me keep me from defaulting. Luckily, I have the ability to pay off this card today but I want everyone to realize that these companies have you by the short-n-curly's. Watch your statements and lookout for this scam.
FYI, In NY, the maximum interest rate is 30%. They are charging me more then the maximum allowed in my state. I will send a letter to the BBB, the NY Attorney General, the UT Attorney General and the Department of Consumer Affairs.
As a nation we are in deep trouble. If a credit card company can just raise my rate because they feel like it I am positive that 99% of their customers are also paying 36.1%. How many other credit card companies are doing this to innocent people? We need to fight back. I am going to tell as many people as I can.
I feel better now. I was very upset prior to writing this blog. I hope everybody reading this realizes that if it can happen to me it can happen to anybody.
John Monderine
Now, being in the industry for over 10 years I know that I need to watch my credit. I look for charges I didn't make and it is tough to scam me. I have seen it all but this takes the cake. They told me I am now at a high risk for default so that is why they raised my interest rate? That doesn't make any sense. They should lower my rate if they think I will default on my credit card. How will an increase in what you are charging me keep me from defaulting. Luckily, I have the ability to pay off this card today but I want everyone to realize that these companies have you by the short-n-curly's. Watch your statements and lookout for this scam.
FYI, In NY, the maximum interest rate is 30%. They are charging me more then the maximum allowed in my state. I will send a letter to the BBB, the NY Attorney General, the UT Attorney General and the Department of Consumer Affairs.
As a nation we are in deep trouble. If a credit card company can just raise my rate because they feel like it I am positive that 99% of their customers are also paying 36.1%. How many other credit card companies are doing this to innocent people? We need to fight back. I am going to tell as many people as I can.
I feel better now. I was very upset prior to writing this blog. I hope everybody reading this realizes that if it can happen to me it can happen to anybody.
John Monderine
The very same thing happened to me. I never signed any authorization to raise my interest. They mentioned that I agreed to used Utah laws. I never did. This is sneaky, underhanded & Evil. Can anything be done to help us?
Barry Litzrich
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I have run into the same problem. I too own a collection agency. I have used a company credit card to help build my business. My experience was that as I paid down my balance they reduced my credit line at the same time. It is enough to make me wanna scream. It is difficult being involved in the credit and collection industry and being taken advantage of by those we service.
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John, I am also in NY and they jacked my interest rate in the same manner. After 8 months I did get my 7.99 fixed rate back and $878 in interest back from the dirtySOB's.
Good luck and stay on top of this as they will find any and every way to screw customers.
andrew
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I am in Atlanta GA. I have been paying on time and payingover the minimum due for 5 years. Interest is at 30+%. I just sent a letter telling them I am not paying anymore. Yes, my credit will be affected, but what choice do I have I have phoned many times and get no where.
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Good for you. I am with you, I am giving them no more money. With the interest they have charged and not willing to work with people, I figure we are even.
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Can anything happened here. They raised me form 7.9 to 37% Advanta is unethical and unprofessional. I actually had one " manager" yell at me on the phone. Talk about low class.
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Unfortunately, there is nothing we can do except payoff the card. I was told I am a high credit risk. I paid the bill in full after I realized the rate was so high and the next month I received another bill for more finance charges for about $255. I paid that bill in full. I just received another bill in the mail for $5.65 and my rate was changed to 37.99%. Another point higher.
Just for shits and giggles I called again to see why the rate went up again and they said "Sir, you have been classified as a very high credit risk and as a company we can't risk you not paying your bill with us." I said "I just paid my bill in full with your company, I have never had a late payment with your company in three years, I have one mortgage on my house for $290K, 25 years left at a fixed rate of 5.375% and it is worth over $500k and almost zero credit card debt personally. I am in the fastest growing industry right now, CNBC expects the debt collection industry to grow at 25% a year for the next decade. What else would I have to do to receive a better rate?" The extremely rude lady said "Sir, you would need to send a letter to Santa Clause and maybe he can help you out."
The Government should put a maximum rate in place for the next year or so on all credit card debt. If the credit card companies are truly worried about consumers defaulting on their obligations, wouldn't it make more sense to lower the rate so we can continue to make the payments? By raising the rate, it only makes it harder to pay and more likely that a consumer will default. The credit card companies are preying on the weak right now hoping you don't pay so they can pound you with the highest interest rate. When you do default, they now have a higher balance to sell to a collection agency. In my eyes, this is a crime.
The Government doesn't care either. Instead of giving the banks 350 billion dollars, They could have sent $1151.98 to each US citizen to pay towards credit card debt. The banks still get the money but we the people get a little break on our bill. The average family of four would receive $4607.92 to pay off a credit card. They reason that the banks need the money so they can lend money again to us? Are they crazy? All the banks did was raise the interest rates on our cards and pocket the money without ever having to say what the money went towards. No accountability!
Now the geniuses in Washington are considering giving billions to the auto industry so they can produce more shit cars that we can't afford. How about giving the money to everybody with a current auto loan so we can pay for the car we already have. The money would still flow to the banks and auto makers via we the people.
Good luck America, your gonna need a miracle.
John Monderine
Rapid Recovery Solution, Inc.
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THIS SAME THING JUST HAPPENED TO ME WITH ADVANTA! I've used this card for 8 years with no problem! This has got to be robbery. Just goes to show you CREDIT CARDS ARE NOT OUR FRIEND!
Have a great day.
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Deactivate the card quick!!! I was paying over 37%. Even with the deactivation I'm stuck with 35%. Instead of rates going down as all the other credit cards, they continue to go up despite the fact the prime rate decreases.
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Just to let you know even if you find a way to move or pay off you balance once they jack the rate. Keep paying it off every month! They will close your account because they are not making any money off you! This will make your credit look bad! Time for class action lawsuit. LOAN SHARKS! CRIMINALS
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Same thing happen to me, it seems that Advanta screwed us all, but are we continue doing this web complaint, blog and telling people we'd been screwed up? By just google search, i can see tons of Advanta complaint. But my question is, "Is there a goverment or non government agencies that can help us with regard to this issue?", Right now, Advanta people threat to sue me because i'm not paying the bill anymore, upon reading these bounce of complaints who do you think have the nerve to pay his/her bill, specially with this never ending raising interest, after you pay the bill or pay-off the bill they'll screw you again anyway.
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The very same thing happened to me I did a balance transfer 6 months ago at 7.99% then in 1/09 it was rasied to 33% ! Nothing on credit report changed
That's not a typo thats a real 33%, this is called "Bait & Switch" lending practice !! Please let everyone know that Advanta is a very shady underhanded company with no values !
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Advanta Credit Cards are a disgrace to the industry. Stay clear of these guys. They tease you with low starting rates then increase rates (to over 36%!) without notification regardless of balance or neverlate or over limit. Shame on Advanta.
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Large credit card charge. The item in question was not what it appeared to be, but if I had looked closer at the website I might have been able to figure it out. I realized only hours after internet purchase I had been duped.
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I have the same thing happen to me. My interest rate went from 7.99 fixed to 27%. I have never paid late and always pay more than the minimum. They want you to charge up your card and then they change the rate. I talked to the manager, but they do not care. They rather have you default than to lower your interest rate. I was paying over $200 a month in interest for charges that were suppose to be 7.99%. I will remember the bank and will always have bad things to say about them. This is robbery. They can find a better way of making a profit without cheating people.
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This administration is hoping for the change they wanted. Well good that there are lots of resolutions that was done to improve the economical status. But it seems that there is no good effect to the country. Bailing out car industry seems failure and this is another burden to the finances the government is handling. The idea is to come out the other side with good credit, and stop using that pesky credit card, maybe even build up a savings cushion. Shoring up your financial habits is a good idea as well. Impulse buyers are well served with learning restraint.
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Wow, that is frustrating!! I have a credit card similar to that. I almost have it paid down, but it's frustrating to know that I've paid them back WAY MORE than I ever even borrowed.
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I ran into the same thing. Advanta is a rip off. I noticed that over the last two months my balance hadn't went down. I checked and noticed my interest rate had jumped from 8.99 to now over 20 %. I called Customer Service. They wouldn't tell me their corporate number. I actually looked it up on the internet and told the representative their own phone number. He was very unimpressed. He did want the corporate fax number. Be weary of this company!
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WOW.... Not sure how to feel!! Mad because I see that all my gut feelings about them are true. And sad that I see now there is nothing to do. They did the same to me 7.99 went up to 17.99 after the balance got where they wanted. Sad thing is, I left a reputable card company and a rate of 11.99 to be with these freaking criminals. I would love to get input from John M. on what happened today.
10-5-09. I just got a letter and a check for 97.00 that says please cash right away... this check is only good for 180 days. It has to do with the FDIC making a determination that ADVANTA was unlawfully "Repricing" and under the "section 5 of the federal trade commission act" commited a crime of sorts. Here is the portion I would like advice on, at the end of this letter it says "Upon accepting and cashing the enclosed check, you agree to release Advanta Bank Corp. and its parent and subsidiaries from any and all claims or actions that might exist, or might have existed, on the date of this letter that involve any reprice event" John.......should I cash this check or might there be something in store in the future? Thanks for your taking the time to start this blog and all of your input to the rest of us who have been screwed!!! Sincerely, Dave in Oregon.
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I don't know anything about this. I did not get a check. I would say cash it because even if a class action lawsuit comes you won't get more then $97 in a per share settlement. I was part of the PayPal lawsuit and received like $5. If I get a check or hear anything I will post my findings on this scam company Advanta.
John Monderine
Rapid Recovery Solution, Inc
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I have recently been contacted by Advanta's in house collections group and offered the following deal: Dropping my interested rate to from 31% to 7.99% for the next 5 years or until my balance is 0. They are forwarding a document to me for signature. Should I sign it, or is this another one of their scams? Any advice would be helpful.
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Get it in writing and I'm sure they will honor it.
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They just offered to take 12k off of 17k bill. I can't tell you what to do, but they're still making deals.
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I am not sure what to do. I did write them a letter and tell them I am not paying anymore. Yes, it will put my credit in the pits, but +30% interest rates, I feel I have no recourse.
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I have also been cheated by ADvanta. I could not believe the over 30% interest rate and I called them to contest the rate and they told me there was nothing I could do. I did not pay the next payment and got a call telling me If I paid next payment in full I would get 16.99 rate . I made the payment and on the next statement the rate was still over thirty percent. I called Advanta and the person that took my last payment said she would personally fix the problem, I told her I would not make another payment until my rate was reduced she told me it would take a few more days to fix the problem , she gave me a number to call on Saturday that was a made up number. When I called on the regular number they told me they could not reduce my interest rate and the person that helped me would be repremanded for telling me she could. He told me there was nothing he could do for me
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I borrowed 10K at 3.99%. Had fixed payments of approximately 238/mo. I found the first thing the played with was the due date, trying to move it up so I'd default. Then they changed there address so my payment would arrive late, and again try to default me. Lastely, the got me by raising my payment $2/mo. That one I didn't catch until it was to late. As a result of not paying the full minimum payment, $240, they defaulted me and my new rate is 34.99% with a new minimum payment of $376/mo. Like everyone else, I've been laughed at by there service people, been told to borrow from another credit card to pay them if I don't like the rate. I've never paid late on anything, EVER! If I ever meet an Adavanta employee on the street, they better duck and run. And what happened to all this credit card reform, too little too late if you ask me. Don't forget, the tax payers loaned out Billions at 0%. I guess that was for jet fuel and vacations for the Executives...I hate Advanta.
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yes this is frustrating!I almost have it paid down, but it's frustrating to know that I've paid them back way more than I ever even borrowed.
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credit card holders should be diligent in this kind of credit card problem. As much as possible they have to monitor their accounts to see the interest rates they pay each month.
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Well, it’s amazing. The miracle has been done. Well done.
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http://www.allcreditcards.info
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If you are aware enough to read everything your card company sends you, I believe you can elect not to accept new terms. You can't charge any more on the cards but you keep the old rates.
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Save money on your online credit card using the right electronic merchant systems. Its safe and secure and you have to pay less charges on each transaction you make.
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WOW.... Not reliable how to undergo!! Mad because I see that all my gut feelings about them are even. And sad that I see now there is nothing to do. They did the corresponding to me 7.99 went up to 17.99 after the balance got where they hot. Sad target is, I paw a esteemed card friendship and a evaluate of 11.99 to be with these freaking criminals. I would to get sign from Apostle M. on what happened today.
10-5-09. I right got a honor and a see for 97.00 that says satisfy exchange honourable off... this control is exclusive healthful for 180 life. It has to do with the FDIC making a pick that ADVANTA was unlawfully "Repricing" and under the "section 5 of the fed merchandise certification act" commited a crime of sorts. Here is the component I would suchlike advice on, at the end of this honour it says "Upon accepting and cashing the basined appraisal exist, or power know existed, on the companion of this grapheme that affect any reprice event" Gospel.......should I payment this retard or might there be something in fund in the proximo? Thanks for your winning the example to signaling this journal and all of your input to the intermit of us who eff been screwed!!! Truly, Dave in Oregon.
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rowanat01
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Mon francais n'est pas tres bon, je suis de l'Allemagne.
Mon blog:
rachat des credits puis Rachat De Credit rapide
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I know that this is an old thread, but I also heard that the credit card companies were under a new law that wouldn't allow them to do something like this. I am a customer of Advanta and noticed that my rate has jumped about 5%. Is this allowable? I know that there are companies that help negotiate this for customers, much like www.taxmatterssolutions.com negotiates with the IRS on customers behalf. Any suggestions would be great, I've called my CC company and they have yet to change the rate.
-Luke
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