Advanta Bank Corp. Complaint - Raising Interest Rates for Fun & Pleasure?
37174, TENNESSEE -- I have had a Small Business (S Corp) for 9 years. I have had a Business Credit card with Advanta Bank Corp for many of those years. Always paid in advance of the due date more than the minimum amount due usually paid the day it arrived in the mail. All of the sudden they more than doubled the minimum amount due about a year ago for no reason whatsoever. Then they decided to raise my interest rate to 35.99%. I didn't notice that until early summer of 2007. When I called their office to inquire about that and asked the reason. The customer service person said he didn't know. I said can you see from my record that I have excellent credit with your company. He said yes. I said can you see from your computer record that I have excellent credit with all of my other creditors too. He said yes. I asked then why did your company raise my rate up to 35.99% for no apparent reason. He didn't know. I asked for his manager. Got pretty much the same answers from him. I did get a chance to say that I am from Chicago and where I grew up we called that Mafia loan rates and they were illegal.
So when did our government allow the banks to use the Mob interest rates. Would we small businesses be better off to go directly to the Mob for our financing. At least we would get straight answers from them and probably a better interest rate too!