As a small business owner, I have been an Advanta Businesscard holder for several years. My interest rate has always been 7.99%. I also received a packaged of checks for balance transfers that indicated the same interest rate.
In June I embarked upon rennovations of my business property and decided to transfer some business debts into one banking institution by using the balance transfer checks from Advanta. Prior to doing this I called Advanta to verify the 7.99% rate, which a customer representative did. I was also told that I had the lowest rate that Advanta offered. I inquired as to the amount of the monthly payments that I could expect for comparison purposes. All seemed fine and I proceeded with the consolodation.
I proceeded to make my June and July payments on time. My August statement arrived and to my amazement, my interest rate jumped to 30.39%.in short, the amount of interest alone was substantially more than my June or July payment of principle PLUS interest.
I called Advanta customer support on 8/16 and was told that my rate was raised because the "economy was bad", and that based on "credit reports" and "other factors" they considered me to be a higher risk. I asked for a review and was told that it "was not possible" but I could request a review in 90 days.
I then obtained my consumer credit report from all three credit reporting agencies. I had discovered that on 7/23/08 Advanta Corp had done an inquiry as to my credit status.
On Monday, 8/19 I called Advanta Corp. Again. The customer service representative recited the same excuses as if reading a script. I informed the representative that I was fully aware that Advanta had done a credit inquiry on 7/23 and that I was looking at my credit report at that very moment.
I informed the representative that I saw no justification for the rate increase as my credit is clear, with a long history of timely payments, well-established credit, a score in excess of 900 and not a single complaint ever filed. I was told that "that didn't matter because the economy is bad" and that I was notified in writing of the rate increase a month ago. I informed the representative that I was NEVER informed and I would be sure to have noticed a rate increase of such magnitude. I also informed them that I believe they are inviolation of federal law for making a decision which adversely effects my credit worthiness without notifying me of such. I then requested to speak to a supervisor.
I was placed on hold for about 15 seconds and then informed that there would be at least a FIVE hour wait time to speak to a supervisor and that they would call me back. I gave them my home and work number. Needless to say, no representative ever called.
I will be writing a letter to the Attorney General of New Jersey, as well as filing a complaint with the NJDOBI. All consumers should be aware of the dispicable practices that this bank is using. A class action law suit should be filed against Advanta Bank Corp for deceptive banking practices. I believe that I should be refunded the 3% charge for balance transfers and also refunded the difference in interest rates as I was not notified, as required by law, of any change in my supposed 7.99% fixed rate.
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