Advanta To Stop Credit Card Lending; Ready to Shut down 1 Million Accounts

| 3 Comments | No TrackBacks
Advanta the Pennsylvania based bank has announced that it will shut its credit card lending business June 10th. Lately many consumers who have paid their accounts on time and been long time cardholders have reported receiving notices of extreme rate hikes as high as 30 -35%.

The company said in a release this week that it will shut down about 1 million credit card accounts on June 10th. 
Are you an Advanta cardholder worried about having your account closed?

Have you recently had your rates jacked, by them or any credit card issuer?
Email me or share your comments here.

Are you an Advanta, (or other credit card company) current or former employee willing to share your knowledge of risk management here or with 60 MINUTES?

Here is a quick update on the credit card legislation now pending in the Senate. 
As you know, the Senate version of the bill is even stronger than what the House passed on April 30th.  In order to speed along the passage of the credit card legislation (H.R. 627, the "Credit CARD Act") in the Senate, Senators Dodd (D-CT) and Shelby (R-AL) introduced a substitute on Monday.  As set forth by the substitute, the Credit CARD Act would:

  • allow increased interest rates on existing balances only after borrowers are 60 days late in making a payment;
  • prohibit over-the-limit fees unless consumers affirmatively take steps to allow over-the-limit transactions to be approved; and
  • require payments above the minimum payment to be allocated to the highest-interest rate balances first.
NACA, along with all other national consumer protection groups, support the substitute bill.  As of today, Senators are introducing amendments to the legislation.  Because there is a pent-up demand for consumer protections and a general outrage against the credit card companies, the amendments are pouring in.  Everyone now wants a piece of the pie.  The amendments are delaying the vote until Friday (at the earliest) or for sometime next week. 
To learn more about some the happenings in the Senate and the proposed amendments, click here.  For further details on the underlying substitute Credit CARD Act, go here.

We still need calls to the Senate - ask your Senator to support the substitute Credit CARD Act and tell them the proposed amendments (however well intentioned) should neither slow down nor stymie the passage of the bill.
To reach your Senator, call the Senate switchboard at (202) 224-3121 or look up here.

Your credit score may be seriously harmed by these costly and abusive practices!

No TrackBacks

TrackBack URL:


MAY 30TH NOT JUNE 10TH...We use an Advanta Business Credit Card and were just notified via email today, May 26th, that they will close all business accounts effective May 30th! This is the first time Advanta has notified us about the closing. We found out originally from a news article and had to call to confirm as we received a promotional mailer to get more employee cards on the same day as the article! It is no shocker that they are going out of business. They don't know if they are coming or going!

I was in love with Advanta when I first started my business because it helped me get credit with my business dba and gave me a fixed 7.99 rate for purchases and transactions. The raised the rate to 25% about 2 months ago and I have never been late on this or any other of my credit cards. when I called to ask about it they said I have too much credit and the account was too new (I had it for about a year at this time). They told me after 6 months of continus payments I could get a reduction. I wanted to just pay it off as it was not such a large amount (under $2000) but business was slowing down and I did not want to risk the hit on my cash reserves. The 6 months is about to end and now I find out they are closing the card. I wonder if I will get my rate reduction????? Thinking about maxing it out now and then claiming BK in a month or so just to get at them... maybe I should talk to one of those companies that keep calling me about "leagaly reducing my debt" :) just trying to keep it real....

I like the blog and hope to come back and see more stories... we must unite against the banks.. they have been sucking us dry for too long and my taxes are not for blood suckers!!

Please inform me of any updates in information concerning Advanta Bank Corp headquartered in Draper, Utah. I am an attorney licensed in Nevada and Utah and am interested in following developments concerning consumer law. Sincerely , Vic Perri

Leave a comment

A memoir exposing the steep price consumers pay when facing mortgage servicing errors, inaccurate credit reporting, illegal debt collection practices, identity theft and weak consumer protection laws. THE BOOK » DENISE'S STORY »