Advanta Bank Corporation Informative - Resolution To Interest Rate Increase
To keep this short and simple, officials at Advanta Bank Corporation increased my business credit interest rate from 7.99% to 27.18% (purchases) and 37.18% (cash advances). I have excellent credit and I have paid my monthly credit card obligations as required by Advanta Bank Corp. They (Advanta Bank Corp. officials) claimed that a written noticed was mailed to me informing me of the proposed interest rate increase and, at that time, I had the option of "opting out" and close the account thereby keeping the original interest rate (7.99%) until the balance is "paid in full."
I contacted several Advanta officials and they stated that due to several factors, they reserve the right to increase the interest rate. They (Advanta Bank Corp. officials) could not tell me which factor applied to my situation only that my interest rate was increased because I allegedly did not "opt out" in time.
I filed a written complaint with the FDIC. Within a month, I received a letter from an Advanta Bank Corp Account Specialist from the Office of the President/CEO restating that I was given a written notice to "opt out" of the credit card agreement (i. e., increased interest rate). However, as a good faith effort, the Advanta Bank Corp Account Specialist stated that has been made to have the difference in finance charges billed on my business credit card in December 2008, January 2009, and February 2009 billing statements as if "opt out" had been effective in December of 2008. This letter was forwarded to a FDIC official.
Apparently, FDIC inquired about my complaint, and action was taken by this Advanta Bank Corp official. I urge anyone else who has had this happen to them to file a complaint with the FDIC. Apparently, others have done the same and FDIC officials are aware.