Advanta, No Way, No How!
08-30-2008 11:55 AM
Hello Everyone, I think this is my first time to post but thought I'd pass along something that recently happened to me with Advanta. I did a balance transfer to them roughly a year ago for a bit lower interest rate. This is a business credit card but in my name. I'm the only card holder. I was not so much as a day late on any monthly payment. I often paid more than the minimum. Nothing changed on my credit report, either. So to say I was shocked when I received a notification saying they were going to increase my interest rate from 9.9 to 25.9, would be a huge understatement. I thought surely there was an error somewhere. I called and spoke to customer service who could not tell me why my rate was increased so I then asked to speak with his supervisor. "Glen" the supervisor came on and asked how he could help me. I explained the notification and my shock and asked him to explain to me what was going on. He said, at first, that it was based on several factors such as card usage, credit scores, etc. I told him that I knew there had been no changes in my scores and asked what exactly "card usage" meant since I had only put 3 items on the card for a total for all 3 of less than $100. Glen proceeded to tell me that was the biggest part of the problem. I wasn't using my card enough. When I asked if I understood him correctly to be saying I was being penalized because I wasn't running my credit card up, he said, "You aren't being penalized but since it appears you're mainly using your card to pay down the debt, you have to understand that we need to make a living, too." I think my head exploded and I told him he had just lost this account and he did. I did a balance transfer back to my old card for an even lower rate than I had with Advanta. No, I have not closed the account. Is this legal? Has anyone else had this experience with Advanta? I give them the biggest thumbs down there is!!! Linda