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Advanta Lawsuit Pending; Average Settlement: $131

Posted by: John Tozzi on September 30, 2009

Thanks to everyone for all your comments and stories about the settlement checks from Advanta.

I confirmed that there is a lawsuit pending in California against Advanta over rate hikes, and the plaintiffs are seeking designation as a class action. The suit was filed in June in Santa Clara County Superior Court. The case has not been certified as a class action yet. The court documents aren’t easily available online, but I got a copy of the complaint from one of the attorneys involved, and with permission I posted a PDF here. (I’ve emailed Advanta for comment on the suit and a few other questions — will update with what I hear.) [Update, Oct. 1: Advanta declined to comment on the lawsuit.]

Some more details on the settlement from the FDIC: So far, Advanta has offered restitution to 138,194 customers whose interest rates were raised, for a total of $18.1 million. That makes the average payout so far $130.98. To business owners who are still paying over 30% APRs on balances of thousands of dollars, that’s a pittance. (Further payments for rate hikes and relating to the cash-back rewards program are pending.)

A few other points. Several readers noted that Advanta negotiated with them only after they stopped making payments. (Can’t link to individual comments here unfortunately, but these are all from the last post.) Alena writes:

I opened my small business account with Advanta at 0% interest for 12 month, and then paid 7.99%. It was the lowest interest rate card and because of that I used Advanta card frequently. In the middle of doing business with Advanta I received inserted pamphlet, which I didn’t read closely, however next month my interest rate jumped to 24.99%. … I thought it was a human error, so I called Advanta for an adjustment, but they said they couldn’t help me, because their company is hurting and they have to pass the charges on their clients. At that point I was hurting too and I stopped making payment. They harassed me for about 30 days 2-3x a day. I explained, that I can’t pay their interest rate and we negotiated the rate down to 16.99%

This is something like the catch-22 we often hear about with mortgage modifications: Lenders won’t negotiate with people who are on top of their payments, so there’s an incentive to default to get a better rate. But business owners should realize that, even if they have a corporation or an LLC, credit card debts are almost always personally guaranteed. So delinquency on an Advanta card will likely affect your personal credit rating. Here’s what happened to reader Lynne:

I stopped paying 2 months ago. I figured what can they do since it was under our corporation. Well they did something. Advanta has never showed up on my personal credit, until yesterday. They somehow got it to show up on my personal credit report and marked me 30 days late which dropped my score from 780 to 715.

Meanwhile, reader Earl Blankenship takes an entertaining jab at Advanta:

I have an account with Advanta that they raised to 34.9%. I tried to talk to these people, but I have never talked to such a rude arrogant bunch of thugs in my life. And I am A Used Car Dealer!!!!!!!!!!!

The more I think about this and hear stories from Advanta borrowers, the whole situation seems like such a waste. Businesses that borrowed in good faith at attractive rates are now creaking under the weight of the debt at jacked up APRs. The company’s million small business cardholders have been cut off from all new lending.

Advanta itself, a 58-year-old enterprise, is teetering. In the four most recent quarters, it has lost close to a half billion dollars, including $330 million in the quarter ending June 30, 2009. The company was done in by steeply rising delinquencies — should they have been surprised customers who borrowed at 8% couldn’t make payments at 30%?

Hundreds of Advanta employees, many likely uninvolved with the bank’s failed strategy, have lost their jobs: the company employed as many as 900 people in recent years, but has laid off all but 200. They and their families are out of luck.

The regulators supposed to protect borrowers failed too. The restitution agreement the FDIC reached is clearly too little too late to help most borrowers.

I’m sure a few people gained — investors who sold before the stock tumbled, a few executives who drew big salaries. But mostly you look around this situation and see everyone losing. When business transactions work correctly, value is created and everybody gains, customer and company alike. This is the opposite: Everybody loses. What a waste. Entrepreneurs who want a reminder of the difference between creating something of long-term value and looking for a quick, easy, short-term profit, take note.

Reader Comments

Mark Hankins

October 1, 2009 9:50 PM

Where Advanta has already gone, the major issuers like Chase, Bank of America, Capital One and American Express will follow. The ratejacking won't be enough to compensate for the burgeoning default rate and of course the ratejack-triggered defaults will inevitably accelerate beyond the reserves set aside to offset them. Bank of America already has a default rate in excess of 14%. At that rate it won't be long before there are no cardholders left in good standing.

Reggie Middleton's Boom Bust Blog chronicles the deteriorating position of the major banks as they concentrate risk amongst themselves that they can no longer pay to pass along to others.

As the economy continues to shed jobs, even the worst-case assumptions of the loosely-graded "stress tests" have already been crashed through ... only the same sort of conspiracy of silence that caused Japan to have a "lost decade" forestalls the necessity of taking down the zombie banks.

This country can do much better than Barack Obama doing the bidding of Jamie Dimon.

laurette lammers

October 5, 2009 10:37 PM

So we rec'd a check today for $182.53 as a reimbursement. Can someone tell me if we should cash the check or wait to see what happens with the lawsuit. Our interest rate was also increased and when I called to inquire why I was told that they could lower to 16.99% and that I would have to wait 90 days before I could inquire for another decrease and that they could not promise that one would be given. All our payments were on time and always more than what was due.
I have also lost my reward points of 30,000 does anyone know if we can get them back or at least the value.


October 6, 2009 10:16 AM

I received a letter from Advanta this week with a check. I was surprised but pleased to get some money in the mail. The amount is for about 100 dollars.

I can sure use that right now, BUT when I read the last paragraph as reproduced here I started thinking.

"Upon accepting and cashing the enclosed check, you agree to release Advanta Bank Corp. and its parent and subsideries 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."

I resisted the impulse to cash it and began to wonder what else is going down. It sounds like they are trying to buy me and others out from what might be a bigger settlement. I began googling today, and found this article. I want to know more...

SmallBiz Man

October 6, 2009 10:43 AM

My story is the same as everyone else here in regards to Advanta. I got my $41 check yesterday after they've robbed me of thousands. No, I'm not going to cash it and "release them from all obligations." I'm going to join all class action lawsuits against Advanta.

Also, I was paying 2 different interest rates: one on cash advance (35%) and one on line of credit (34%). I've since paid off the card and cut it up.


October 6, 2009 2:53 PM

Advanta tried to strong-arm me with the India Call Center (what a joke they are) and then a "draft" of a complaint they were going to file against me. I wrote the attorney who drafted the draft and simply explained that all they needed to do was to go back in the files, calculate all interest payments and any late fees and bring the balance owed to the principle amount. That got someones attention. One week they offered 90% of the balance, the next week 70%, the following week 65% and finally the number that made any sense 50% of the amount they showed due. Anyone paying over 9.0% interest on any credit card is nuts. It takes time, a little chutzpah and some salesmanship but you can do it. Get your calculators out and get to work on a settlement. Also, keep in mind when other banks look at your score and see Advanta they take look and say "Oh, we know all about Advanta"....

Good luck to all.


October 8, 2009 12:12 PM

Same story as everyone else. So what do I do???? Do I wait to cash my check? How do I find out if there is more action taking place?


October 8, 2009 4:18 PM

I also received a check. That I have not cashed. Would liked to be kept updated on any further action.


October 8, 2009 6:00 PM

I too have the same story and made way over min. pymts on time and also received a small check and have not cashed it, and would like to be updated on any further actions...maybe united we can stand against this kind of fraudulent lending practices.


October 8, 2009 10:31 PM

i also had same run around. never late, paid well over min payment. used card alot because of interest rate. they upped it to 29%. after many calls the only reason given to me was that I was close to my credit limit. they would not lower my interest rate. I was lucky I was able to raise the $10,000 to pay off the card and close the account. now they send me a check for $142.00 to make it all better. I dont want to cash it and would like to know how to be kept informed on any outher lawsuits. e-mail me at thanks


October 9, 2009 11:40 AM

Same story...Never late, always paid more than the minimum payment. Well before the accounts were closed, I also could not be helped when asking them to lower the rate. Instead of helping, they hiked the rate up to 34%! I've never seen such an insane credit card rate. My check was for almost $500! I have not cashed it.

Please keep me posted -


October 11, 2009 10:04 PM

Same story here, BUT!
Advanta could go bust at any time (and it couldn't happen to a nicer bunch of crooks)read "Teetering".
I don't want to cash my checks either but I don't want to keep them around for wall decorations either if there not worth the paper there written on! $150 now or to sue a Bank who is probably going under anyway. How easy would that be?


October 12, 2009 10:01 AM

Same story for me too. I got the Advanta card because of it's low 7.99 interest and 0% 12 month introductory interest rate. I always paid on time and often more than the minimum due. Rate was suddenly jumped to 20% then 29% and soon to 37%!!!
They claimed to be "the credit card for small business"
The should be called the "Loan Sharks" When I called to complain and try to adjust the rate they said there was nothing they could do. In early October I received a small check for @approx. 25% of what they really owe me in overcharged interest. I haven't cashed the check yet. They seem to be trying to pay me off to avoid future claims. Not sure as to cash it and take the sure thing or take a chance that I could recover more. They may not be around much longer and will probably only pay back some of their major creditors and not all the small businesses like me.


October 12, 2009 10:52 AM

I also recevied a check for $308.19, that does not even come close to the interest rate these thiefs have charged.
The FDIC should be held accountable for allowing this to happen.Lets see a class action suit.

lyndse rae

October 13, 2009 7:15 AM

i got my cheque a few days ago and still trying to decide what to do with it. it is for $102.98. my account is closed but is still accruing interest at 34.99%. i think they should have to lower the interest as well.


October 13, 2009 11:20 AM

I share the same story as all of the above only I tried to opt out in the summer months of 2008, for some reason they never received my opt out letter!!
They took me up to 29.99%
They recently offered me to lock in at 16.99% no way! Received a check for $91.75 last week, can anyone tell me what to do. In the mean time my credit has been destroyed!


October 13, 2009 4:14 PM

Guess I am lucky. I also recvd a check for $240.00 just out of the blue. It was sent to me due to some error in calculating my cash back rewards. My business card was closed in July for some goofy reason. I usually paid it in full every month, but decided that if they were going to let me keep a 7.99%
rate I would milk it. So far they have not raised my rate. I thought I would investigate just to see what prompted this check. I'll cash it because I have no real beef with them, but wish you all good luck if you persue a lawsuit.

John Smith

October 13, 2009 5:37 PM

Advanta also tried to rip me off. To make a long story short just stop paying them. Let them threaten you with phone calls, letters, whatever. Eventually what happens is they will sell off your debt to a low brow collection agency called Phillip, Collins and associates ( google their name to see how useless they are). Then just ignore their calls and threatening messages they leave. If you happen to answer don't confirm your the person they want to speak to just hang up.There is no law that says you have to co- operate with a collection agency or even speak to them. Eventually they will give up to.

Don't feel bad about any of this.These are the same people that are trying to keep you in debt with them for life. Like most people I always pay my bills but when a credit card company tries to rip me off I don't put up with it. Yes there may be a bad mark on your credit report , but don't worry about it. With the way the economy is no one takes much stock in those anymore. Plus like someone already commented most people will be saying " Yeah we know all about Advanta."


October 15, 2009 1:41 PM

Advanta should be held accountable for its loan sharking activities. I, too, started with a low APR of 6.99%; however, my rate jumped over 30%. Please keep me posted about class action lawsuits against this bank. I am interested in being part of the class.

Jeff Deason

October 16, 2009 12:04 PM

Same story. I received a check for $654.93 today and was alarmed by the release of claims/actions statement. Advanta has put a big hurt on me and my business, but I am still making it. Ironically I just secured some 6% money to pay this account off and will do so immediately. I will cash this check right away and hope they are open long enough to let it clear. My credit should stay OK with the only blemish showing a "closed" account. May karma reign supreme with all tied to Advanta.

JanEllen Gitz

October 19, 2009 7:36 PM

WOW I felt so alone until I found these comments while browsing following receipt of my Advanta check totaling $13.93. What a slap that was! I am a self-employed consultant who started using the Advanta card at 0%, then it bounced to 7.99%, then 24% then 32.99%. After Advanta closed the account for no reason I was able to assertain, I stopped making payments which were always well in excess of any minimum. Harrasing calls started at 8AM and continued until 9:30PM and on all 3 phones from some India unit(what a rude group they are). Everytime I talked about trying to settle (my business is at approximately 32% of last year at this point)I got a different rate, payoff, waiver, similar to what I am reading here. How can this company have so many options and little consistancy in payoff solutions? Am I seeing that the squeekly wheel gets the best deal? Would love to be involved in the class action suit. I initially agreed to payoff in 36 months at 9.99% and waiving $259.93 in late fees. Sounds like I need to renegotiate! Companies like this ruin one of this nation's greatest assets, small business owners! Keep me posted!

Larry G.

October 20, 2009 2:19 PM

Keep me informed, I also was screwed by Advanta.


October 21, 2009 11:47 AM

I recieved check w/ the same letter... does that mean i can participate n a lawsuit even tho my account is closed w/ no balance?


October 21, 2009 3:48 PM

Same story...I opened my business account with interest rate of 7.99% and used it quite often because of the low rate. However, I noticed the interest rate was increased to 24.99%. I called and rep could not give me an answer because all my payments were paid on time and often more than the minimum. They agreed to drop it to 16.99% but that was the lowest they could give me. Then received a letter stating the everyoene's business account would be closed and I could no longer use the card. Now get this...then received another letter that the card was closed due to my credit rating. I think they were just trying to find a legitimate reason to close the card but did not have one. Today, I received a check for $150.14 for interest and then read the last paragraph of check and red flags went up. If there is a class action lawsuit, I need to find out how to get in on it. I came across this website and it looks as though Advanta stuck it to quite a few people. Keep me posted.


October 21, 2009 10:17 PM

I too had the same experience as everyone else. I noticed the rate skyrocketed a couple billing cycles after they did it. I immediately called and inquired about it and was informed that no, it was not due to a problem or late payment on the account. They just randomly decided to do it and notified all customers by mail. I argued that point to no avail and just ended the conversation by saying "don't be surprised if you get sued for this because unless you have a return receipt from your letter with my signature on it then you can't say you notified me". I never got any such letter. I have since been struggling to try and pay my balance but after just giving birth to my second child and losing my job while I was 6 mos. pregnant, I am in a very difficult position to be able to pay the balance with the outrageous interest charges. I want my money back and the fact that they have strapped me and backed me into a corner on paying my bills, I think they should take further responsibility for the suffering of customers like me as well.


October 22, 2009 5:59 PM

Called Advanta about the rate and was told that because the accounts are closed, there's nothing they can do, and that I must go through a 3rd party. I was given this number 1-800-388-2227 for the NFCC, which tured out to be Money Management International. They are in debt management(NOT SETTLEMENT!). They have already negotiated rates with creditors, so they just look up the creditor and tell you what your rate would be if you go through them. Advanta rate would be 0%
Of course, you cannot use the card if you put it on a DMP, but that doesn't matter in this case since the accounts are already closed. The only kicker was that you had to be putting more than one account on the DMP. It doesn't affect credit score, because you're still paying what you owed. And Advanta isn't even on my credit report anyway. 34.99% or 0%. Hmmm, let me think.

Michele Condrey

October 22, 2009 6:40 PM

Advanta revoked my 0% interest rate for PAYING MY BILL TOO EARLY!!! That's what they told me when I called. They said I should have waited until it was closer to the due date to pay it. So, what they did was apply the payment to my balance, but showed my minimum due as never paid. They used this ploy to then revoke my 0% interest rate. I immediately closed my account with them. I knew it would adversely affect my credit score..but was so angry I did it anyway.


October 23, 2009 11:24 AM

I was an advanta customer and my rate changed to the 34% talked about in this article. I called them and asked them to reduce it and they refused. I told them I would pay my bill off before the next payment was due and they said there was still nothing they could do. I kept my promise and moved my balance over to a 0% card immediately and was fortunate enough to have paid very little of their 34%. They are thieves, much like the rest of the other credit card companies. I am happy we finally have a President and a Congress who are making changes to reel these thieves in.


October 24, 2009 6:58 PM

I really did feel all alone at one time. My story is word for word of all of these stories. I'm getting goosebumps just reading them they are so, so similar. Got the card, got the rate increase, got the rude incompetent people from India, got the check and started googling. I want whats coming to me, not $218.32! Please email me with information on the soon to put a major hurting on these people so gross I wont even mention their name class action lawsuit.


October 26, 2009 10:57 AM

I have been reading these comments for over a year now and my story is not any different than the others. The simple solution is not to pay them anything until a settlement offer is made suitable to your business. They are crooks and will eventually go out of business and I am sure the credit bureaus are aware of their scam. I did go the 0% route for awhile to buy time but I absolutely refuse to pay them for all of the overcharges and high interest rates for the last 8 years I have been with them. If I calculate this amount, I am sure they would owe me money. I want to be involved in any and every class action suit against them so please advise me of any and all suits. We all need to bond together as one to overcome such a large and crooked company.

Juan R.M.

October 27, 2009 3:15 AM

Have and Advanta & still being robbed by these crokes. They haven't send me a check yet. But if their is going to be a suit I sure like to get some money back they have raised my rates 34%. Please keep me informed.


October 29, 2009 7:15 AM

I am holding a check from Advanta for about $24. I am still making my monthly payments and adding as much as I can but the total balance drops very slowly at 30% interest. A class action suit or any settlement with Advanta needs to involve returning the interest overages and restoring my promised interest rate. Speaking to Advanta is pointless. Does anyone know of a Class Action suit that is currently being filed for card holders? I've seen several for investors and am sickened by the wording of them. There is no mention of Advanta's ridiculous, unwarranted interest rate hikes, only Advanta's practice of lending to unworthly card holders who don't pay.


October 31, 2009 12:16 AM

Okay so we are all equally getting ripped off, this no doubt is the problem. Anyone have a solution?

JanEllen Gitz

November 2, 2009 12:20 PM

WARNING! Just wanted to post a follow up to my 10/19 post. I signed an agreement to pay off Advanta at 9.99% interest over 3 years. (I don't disagree that I owe them and want to repay but I just think we need to both play fair!) I sent the application on 10/14 to the company with the first installment. Not 5 days passed and I began getting phone calls from a New York number, but when I answered, they hung up. I was about to report a crank call to the phone company when this morning I picked up to a foreign voice claiming to be from Advanta wanting me to know that my payment was due today. I told the young lady that I had made arraignments with Advanta to pay off the balance and was awaiting followup paperwork. She knew all about that and said that the first 3 payments were very close together. I asked her how I'd know that if I never received a statement. She informed me that I was responsible to call Advanta or go on line to see when my bill was due on the new program, that I would not be receiving a statement anymore (what?) and that all this was explained in the letter. I told her I have to date received nothing since I returned my agreement. Then she told me the payment was due on the "on or about" 14th. I asked "Which is it? Today or the 14th?" She got a really short and gave me a line akin to "I'll repeat it so you can better understand" then she said basically the same thing which I STILL am not sure I understand (I don't consider myself an idiot, I have 2 degrees). She did tell me that there would be "reminder" phone calls, and I told her that if they weren't going to remain on the line long enough to talk not to bother as I felt calling and hanging up was a form of harrassment. She said it must have been a "technical difficulty". I feel that I am attempting to work out a situation not of my doing and Advanta (perhaps better named, we'll take Advantage?) What kind of people are these? I feel like I'd have had a better arrangement with a mobster! Just beware if you try to settle up with these crooks......... Check out the article about what credit card companies can do to you on Yahoo today... we are truly at their mercy....


November 3, 2009 12:13 PM

Same story different day. I have started by writing to President Obama since he signed the Credit Card Accountability, Responsinility and Disclosure Act. So I complained to him. Then I wrote to my Senator, Chuck Grassley. Now I have a list of other people to write to. Americans for Fairness in Lending, Consumer Action, National Association of Consumer Advocates, Center for Responsible Lending, National Consumer Law Center, Consumers Union, Consumer Federation of America. I am going to find their e-mail addresses and write to them about Advanta. Maybe starting an investigation of some sort by big people will make a change, I don't know, but its better than sitting back, whining and doing nothing. If we bombard them with mail, maybe someone with big bucks will start something we can all jump onto.

Advanta didn't show up at all on the credit report recently pulled on us. I'm starting to think that they've left the country and can't enforce collections. Anyone else feel this? I'm ready to go for the throat. Anybody with me. Look me up on Facebook...Deb Kruse, add to friends with a note that says Advanta. I'm going to see about starting a group so we can all keep in touch.

That's it.


November 3, 2009 12:39 PM

I printed off the PDF mentioned in the main body of this page. The lawfirm mentioned is Sturdevant Law Firm in California. I just e-mailed them to see if I can jump on board or if I should file my own lawsuit here in Iowa. Hopefully I hear back from them. I'll save this page and let you know.


November 5, 2009 12:24 PM

My contract with advanta calls for binding arbritration in case of a dispute. I assume every other contract says the same thing. I asked for binding arbritration and they would not respond so I stoped making payments. If everyone does the same thing, they will have to come to the negotiating table. If they don,t, it will make them look very bad when a class action lawsuit comes to trial.


November 5, 2009 7:08 PM

advanta told me they would report after 60 days onto my credit report


November 10, 2009 11:27 AM

I am in same situation like others (except I have not received yet check from Advanta). My rate was increased from 6.9% to 34.99%, because they fail to post it and hold payment for three business days. But now I just wonder why there are so many sites with complains against Advanta, if it is better (for class action) to have all complains in one place.


November 10, 2009 1:15 PM

(My Advanta account was closed back on Oct 27, 2009 by Advanta) Now it seems Advanta is at it again, I am paying down my balance every month, but Advanta is charging me a Cash advance fee currently 19.99% on the interest part of the balance due of my past purchases. Purchase interest rate currently at 7.99% which is not bad but to classify the interest as a Cash advance I don't think so, Yet on my statment it states 0 purchases and 0 cash advances. So my purchase balance goes down yet my Cash advance balance goes up. Advanta will not let me pay off the cash advance balance first. Talked with an Advanta account specialist, He told me there is nothing Advanta can do at this time, I even asked if I could pay off my "Cash Advance" portion in full, was told if I send a payment they will distribute the payment as always and that I would still carry a Cash Advance Balance unless I pay the entire account in full. Advanta is Screwing Americans, Lets see what happens in Febuary 2010 when Obamas bill goes into effect to make sure that payments are applied to highest interest rate balances first. "LAWSUIT" anyone?


November 11, 2009 12:15 PM

Same story as everyone else.Glad I googled this.I got a second check for $114.83. Should I cash this? Not sure what to do at this point.Thanks for any help.


November 11, 2009 3:06 PM

I only few days overdue (never been late before) and already non stop call from India
I am so mad I do not want to pay them any more
I understand I can mail a letter demanding Cease of comunication notice
However What happen later If I try to
settle with them
How will I do it ?


November 21, 2009 10:04 PM

Same as so many here.

Never late on payments, 7.99% initial interest rate, no letter to opt-out, I've got $12k at 33% with them, and with the overwhelmingly bad greater economic conditions, I'm powerless to do anything about it.

Received a check for $77. Laughable, given the $350 of interest every month.

Glad I found this, I'm debating between the no-pay and 9% settlement options.


November 23, 2009 2:06 PM

I have the same story. I also stopped paying and taking phone calls. I said I was willing to negotiate in writing. Which they did not accept. I also disputed on credit reports with note that Advanta had a multitude of fines by the FDIC. I also wrote the credit bureaus with a request to see how many customers are disputing Advanta credit reporting. Do the credit companies what to work with a bank that is using their companies for shake down and illegal actions. Waiting for reply.


November 24, 2009 2:14 PM

O Boy!! These a holes never cease to amaze me. We got a bunch of purchase checks in the mail. I called and asked what the rate was and they said 10.9%. Not too bad for cash. Lo and behold, when the next statement came, it said cash advance $5,000.00, interest rate 32.9%. I should sue the bastages for raising my blood pressure through the roof!
Long story short, we quit paying them and told them we would not pay until the situation was resolved down to the last cent of interest. We finally settled with them for 10.9% across the board with set payments for 60 months.

I pay on line and never really looked at the paper statement until yesterday. I about crapped my pants. I had a $39.00 late charge. I went and reviewed all the statements since the agreement and there's a late charge on every one of them. The late charges aren't mentioned on the website, they're just lumped together as " Interest and fees.

I called the 800 # and reached "Moses" who I would guess is in India and he said the late fee was because we were late but that was BS because they were made by auto pay that THEY set up. Moses, the clever fellow that he is then deduced that the late fees were charged because the payment is supposed to be $354.09 and we've only been paying $354.00 which is what it says the payment is on the auto pay web site.

I'm so glad I found this site as they will never see another dime from us. I hope everyone here joins us!


November 25, 2009 11:01 AM

I keep getting phone calls from the collection agency that Advanta employed. Has anyone attempted to settle with these crooks? I never received a settlement check, thus never signed a release... Does anyone have an update to share? What happens when they declare bankruptcy?


November 28, 2009 4:54 PM

I also had an advanta card interest went from 3.99% to 34.99% I was never late. Tried to get the rate reduced was told by some bozo in dubai that they could not do that.Stopped paying on the card and they reported it to credit bureaus.The class action suit for card holders is in califonia.Please send any emails about advanta to


December 30, 2009 12:41 PM

Beware, Advanta representatives will make offers to you over the phone to settle your accounts and then refuse to waive the fees as agreed. I had disputed a charge to an Car repair shop that damaged my car. Paid for the repairs and then advanta refused to follow thru with the dispute. When I spoke to a representative about the issue they said they would look into what they could do and call me back. I got a call back 4 days later from collections and they told me if I resolved the matter within the next 5 days they would waive the $80 in fees. I paid the amount due and was called 2 days later to tell me my account was past due and I needed to resolve it. I told them about the payment I made within the 5 days and they said that I would have to call in the next day and speak to a customer service to resolve it. I called as directed only to find out the previous rep either lied or made a deal that the customer service would not honor. I have paid the remaining amount to maintain my perfect credit record. I am more than willing to join a class action lawsuit against these a holes. Please post any information you have to pursue this. I will be happy to contribute.

Angie McKinnon

January 16, 2010 4:23 PM

I have experienced the same problem with Advanta, Bank of America, FIA Financial Services & Chase. Never late on any payments. Got so made at Bank of America & FIA that I closed the accounts. Been making the pmts but my FICO score dropped to 700-750 just because I closed the account. Please, someone tell me where we can go to join a classaction lawsuit.

Wilfred Moore

January 19, 2010 9:53 PM

Advanta raised my rate from 7.o to 38.19 for no reason......

Isaac Braun

February 11, 2010 12:00 PM

Thanks for all who commented. Advanta raised my rate to 33%. They will never see a dollar above the pricipal amount plus the original interest rate. There's no reason to give in. I actually answer the phone when they call and tell them that and they dont want the money I am offering. Strange people.


February 11, 2010 12:58 PM

I have been royally screwed by them and it still stresses me out when I think about it. I have refinanced and paid them off and they still sent a balance due to me!! They are insane. All the fake names they give when I call, it really should be illegal of what they are doing. We have to find out their new name of doing business and really spread the word of all the hurt they do to people and small business owners. I'm never going to forget how they almost ruined my life!! I will find out their new name and spread the word like fire!


February 14, 2010 4:31 PM

I would like a telephone number to try and settle on my account in the United States or an attorney that I could contact in the United Ststes. If anyone knows email me at

Jill Johnson

February 15, 2010 3:19 PM

I say dido to everything that everyone have said regarding Advanta Bank. To date, we have a collection agency named Sage Capital Recovery saying that they are collecting for Advanta Bank Corp. We got the threats of lawsuit and rough treatment from this collection agency already. Can anyone tell me if they have ever had a judgement against them by a bonified judge?


February 18, 2010 1:51 PM

Advanta just chargedoff my debit; now I am getting calls from an outfit that wants to settle for half of what I owe, $3500.00; I don't have that and am going to offer $500 the best I can do. The economy has hit me hard and now I have falled behind on all my credit cards; I am going to let them all charge off, and start negotiating. That's what I can do right now and I am 50k in debt. BK is not an option. Any suggestions?

Ed Pastore

March 1, 2010 5:17 PM

I received a Letter from Advanta today 3/1/2010. The letter, "your enrollment in the Advanta Hardship Program." The letter states in part; "We are pleased to reduce your monthly payment to 1.85% of your current balance for a period of 12 months at a reduced APR of 3.99% Did anyone else get this letter? I would like your feedback.


March 2, 2010 6:03 PM


how long were you late?


March 5, 2010 11:25 AM

Advanta raised rates to over 30%, they refused to lower. This was a catch 22 situation, because I coudn't pay at 34% interest, but stopping paying would affect credit rating. I opted to stop paying, and deal with credit rating down the road. After two months Advanta negotiated payment through their "hardship program".

Regarding the "Hardship Program" They will call you two weeks before the payment is due, every hour on the hour at both work and home #, asking for payment. They want "post dated" amount and then promise to stop the harassing calls. I have not, nor will I, post date anything, nor have I been late with the payment schedule.

This is a horrible bank to deal with. Never never again. I am in the process of seeing if they can be sued for harassment.


March 5, 2010 11:29 AM

Ed, I got the letter. Beware, they will continue calling you at work and home regardless if you are paying on time or not. The calls start two weeks before payment is due and they will try to get you to "post date" payment. I have refused to do so, and after reminding them that payment is not due for another two weeks, asking them not to call me again, I hang up and continue to hang up when they call back. This is very annoying, harrassing just to get the lowered interest rate. However, I took the hardship program, am on time with the payments and hang up on them when the calls get out of hand.


March 19, 2010 6:54 PM


March 21, 2010 8:22 PM

I had the misfortune of dealing with ADVANTA by responding to an application for the Excutive Business Card in March 2000 under my Corp. name. The same thing as many have stated, interest soon was jacked up to 34.99% with no explanation. After three years of lies from these thugs, I finally refused to pay. After 3 months of non payment, they were ready to negotiate (I thought). I agreed to 10% interest and back payments. After Advanta received my payment and one month later the interest rate was again 30+ and back interest tacked on. Late fees, overlimit fees, etc added. I closed the account July 2002 and stopped paying for good in Oct 2003. A $2,400 balance is now shown as +$12,500 and still haunts me today. Advanta was able to reflect the alleged debt in my personal credit report and continues to update the balance even though charged off nearly 7 years ago! The collection agency that bought the alleged debt (doing business as at least two names Federated Financial Corp and Federated Capital Corp) indicates that the Fair Credit Reporting Act and the Fair Debt Collection Practices Act do not apply to a "Business Debt", and even though disputed, continues to update as a current debt, reflected on my personal credit report with all three reporting agencies. Can anyone help?

Truman C. Trekell

April 11, 2010 8:24 PM

I never received notice of the class action against Advanta Bank. I've had an account with them for several years
as a small business owner. Several times
over the past couple of years they've honored me with tremendous rate increases even when only a day or two late on a payment and I had to pay a late charge in addition to the rate increase. I understand the bank was closed about 2 weeks ago, but they are again trying to give me a rate increase
because I was a couple of days late. How do I get in touch with either the class action attorneys or the government agency administering this law?

Truman C. Trekell

April 16, 2010 3:57 PM

I contacted the law firm who was conducting this class action and they
responded that the judge presiding over
the suit DISMISSED the case because he
claimed the suit had to be brough in Utah. All of that effort for nothing from our great justice system. I had an equally disappointing experience with a great law firm in CA. agains Chrysler/ Daimler and Chrysler capitulated. That was not against Chrysler in California.


April 27, 2010 9:44 PM

For years promises made to return rate to original written percent. Promises tied to several names. 2-3 mo later, no credit or lowered rates, more calls with excuses so another person would promise. Fed law says that a 15 day notice must be provided for changes. None was ever received. The May 2009 closing was received four days with the excuse "sorry for inconvenience." Paid all actual charges and nothing more. Harassing phone calls to a "do not call' listed number of which they knew was DNC. File a complaint with FDIC and with DE banking group. Literally hundreds out there who 'somehow got missed' when class action suit was filed in Utah.

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