Advanta, formerly one of the country’s biggest credit card issuers, will be closing all of its customers’ credit cards on May 30. Yep, that’s this Saturday. Consumerist has one customer’s story:
(Advanta) told me that notices had been sent out to all cardholders, but due to “postal problems” we will not get them until the end of the month. That gives cardholders just 10 days to get new credit cards for their employees and make changes to any automatic payments which may be attached their Advanta cards. I suggested they post a notice on the website, but was told they don’t plan on doing that because they are not required by law to do so. My business isn’t carrying a balance, and this is only a small inconvenience for me, but it’s just bad business to leave their customers in the dark until the very last minute.
Unfortunately, that kind of bad business seems to be a new standard among fearful credit card companies. Wikipedia has a copy of the full notice:
Dear Customer,
Your Advanta Business Card account is funded by an independent trust which owns the balances you owe on your account and provides funding for new transactions. We expect the trust to stop funding activity on our accounts. The trust also restricts our flexibility to fund activity on your account. Unfortunately, as a result, effective May 30th all Advanta Business Credit Card accounts, including your account, will be closed.
This means that you will not be able to use your card or account for new transactions, including purchases, checks and balance transfers beginning on May 30th. We understand that you may have written checks on your account before May 30th and we will make every effort to honor those checks that are presented to us for payment by June 3rd. If you use your Advanta card to make automatic recurring bill payments, you will need to make alternative arrangements for those payments promptly.
It is important to understand that you are not required to pay your entire balance at this time. You may continue to pay down your account balance over time, as allowed under your Advanta Business Card Agreement.
You will not lose the rewards that you have earned. If you participate in a Cash Back program, you will receive a check for the amount of any accrued rewards more than $1.00 as long as you make the required minimum payments and your account remains in good standing. If you participate in a Business Rewards program, you will have at least 60 days to redeem your points as long as you make the required minimum payments and your account remains in good standing.
We deeply regret the impact this action will have on your business and very much wish it was not necessary.
We are committed to assist you through this process. Additional information will be available at www.advanta.com/notice. If you have any other questions or concerns, or if we can assist you in any other way, please feel free to contact our Customer Service Center. You can email us your questions 24 hours a day at www.advanta.com/secure or call us toll free at (800) 705-7255, Monday – Friday 8:00 am to 8:00 pm and Saturday 8:00 am to 5:00 pm Eastern Time.
Sincerely,
This is unfair to people who pay the balnces off each and evry month. What a great way to do business.
does this have anything to do with our new president telling the credit card companies to be more fair with people that dont pay their bills. does the fair lendining act and the housing crisis ring a bell? lets see if we can kill all the small businesses then we can all have one employer the same check and care no matter what we do or how hard we work or not
Thanks alot assholes. Yall dont have the funds to cover my account,well then i dont have the funds to pay yall any more.
I HAVE BEEN DOING BUSINESS WITH ADVANTA SINCE 2004 WHEN THEY HELPED ME ESTABLISH A SMALL CREDIT LINE FOR MY COMPANY.SINCE THEN THEY INCREASED MY BUSINESS LINE OF CREDIT TO $25,000 AS I HAVE PAID THEM VERY WELL.I CANCELLED ALL MY OTHER BUSINESS CREDIT LINES SO I COULD DO BUSINESS WITH THIS COMPANY ONLY AS THEY TREATED ME VERY FAIRLY OVER THE YEARS.NOW I FIND MYSELF STUCK BETWEEN A ROCK AND A HARD PLACE WHEN IT COMES TO FINDING ANOTHER COMPANY TO GIVE ME A CREDIT LINE OF THIS SIZE WITHOUT A BUNCH OF RED TAPE.HOPEFULLY,THEY WILL FIND ANOTHER SOURCE OF FUNDING TO KEEP SMALL BUSINESS RUNNING ESPICIALLY IF YOU ARE A GOOD CREDIT RISK CUSTOMER.THE ONLY TIME I HAVE EVER SEEN A CREDIT COMPANY DO THIS WAS WHEN THEY WENT BANKRUPT OR WHEN THEY WENT COMPLETELY OUT OF BUSINESS.I DON”T THINK THIS IS THE CASE WITH THEM,BUT WHO KNOWS?THEY WANT US TO PAY ON THEIR TERMS,BUT ARE NOT HOLDING UP THEIR TERMS FOR CREDIT.
Has anyone noticed that Advanta’s actions come on the heels of the recent credit card reform bill? It is not by accident. Fucking a-holes!! I run a good company and they can’t seem to do that even.
Advanta is not to blame for the fear and tightening in the credit markets. If you needed the money and you didn’t draw down your credit line then you missed an opportunity. If you have other lines of credit and you need the money you might want to draw them down now while you have a chance. Corporate America started doing this eight or nine months ago anticipating further credit tightening. Many companies are still not focusing on profit–they’re too busy focusing on survival. You had better as well. Eventually things will turn around, but you’ve got to survive in the meantime. Good luck to you.
MY CREDIT CARD # 9019 HOW DO I REDEM MY POINTS?
How many customers received a notice back in 2004 claiming that Advanta was closing all accounts ??? Jesus, I don’t remember getting one before they jacked the interest rate to an astronomical 33.4% Having contacted Advanta Business Cards on numerous occasions about this rate, I find that they are the most arrogant fucking people I have ever dealt with !
Being raped repeatedly by these people, I have chosen to have WPVI / ABC Philadelphia do a little investigating for me. Good Lord, even they are having their problems getting through these thick headed assholes !!
What fuckin’ arrogance !!!!!!!!
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