I received a notice today from Advant Bank informing me that my interest rate was being raised from 7.99% to 26.46% effective May 1. Of course the usual opt-out choice was available to my small business, and isn't it nice of Advanta to give me one week to take action?!? When I called, a customer service rep said I had no choice but to either accept or reject their offer. I asked for a manager. Katie, the customer service rep, transferred me to Travis, the manager, who was very happy that I would be reporting Advanta to http://usashameboard.com and the entity that oversees/regulates banking in Utah. I could actually hear the smile in his voice. I asked him who his boss was and he said he would be happy to transfer me to her. Melissa Breeze, the area manager, was sympathetic towards my concern for the increase. When I asked why my APR was being raised she could only tell me it was a proprietary decision and could not be shared. Boy was I mad! I told her Advanta had pulled a bait and switch on me in less than 8 months and she remained apologetic. I pressed on and asked her if the reason small business owners were being targeted was because Advanta was another idiotic bank who had lent money to people who couldn't afford to pay their sub-prime mortgages and she said that was part of the reason. Well, excuse me, but I refuse to pay for other idiots who don't recognize that they can't afford to buy a mansion on minimum wage!
Melissa shared with me Advanta uses 3 reasons to change a rate: 1) credit within Advanta (how you pay your bill), 2) credit report (FICO, Beacon scoring), 3) credit card industry rate (what other credit card banking people are doing with their cards). Well, my score is between 720 and 740 with the 3 credit reporting agencies, my debt ratio is only 23%, I have been paying $200-$300 each month on my balance (currently $4800), and I've haven't been late making a payment on any of my accounts in over 5 years... Sooo, that leaves #3... Advanta is following what other banks are doing... Bait and switch us small business owners to make up for their stupid clients who have defaulted on mortgages and loans.
I have no other choice but to opt out in order to keep my 7.99% APR. What a rip off this bank has become in the past few months. I asked Melissa if other people were upset and calling in and she was very honest in telling me they were calling in and upset. Many are opting out without Advanta so much as offering to lower the rate in order to keep the clients... This is a tell-tale sign that the economy will get worse before we can even think of it getting better any time soon.
I don't know about the rest of you, but I am definitely writing a letter to Advanta's President, Mr. John F. Moore. If any of you wish to follow suit, his physical address is: 11850 South Election Road, Draper, UT 84020. Of course, his phone number is not available. I want Mr. Moore to know what a crummy leader he is for getting his company into such a fix and expecting the small business owners of the USA to bail out his limpy ar*e company.
I can't believe the down-low, shady, scum bucket, low-life tactics some of these banks are stooping to in order to bail out of the mess they created for all of us.
When I get the info on the agency to write to in Utah, I will come back and share it with all of you.
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