[X]
Write ReviewJump to 
Advanta Complaint - "Late" Payment
Complaint
I have had this card for 2 years and only used it once for a balance transfer, which I have been paying off (on time) every month since. I have AutoPay set up through my bank (because Advanta does not offer this service) to ensure that payments are made on time every month. Payments are sent from my bank account on the 14th of every month, and my credit card payment is due on or about the 20th. Advanta is now claiming that my last payment was late, even though it cleared my checking account before the due date. The due date was not on a business day, and apparently they did not process my payment until the next business day. The funds were issued from my bank account prior to the due date, yet Advanta will not reverse the $39 late fee or reinstate the 2.99% interest they promised to honor until the balance transfer was paid off. They are currently charging me the "default" rate of 34.99%.
I received the statement showing the late fee on 5/1. I called on the next business day and spoke to someone I could not understand, so I asked to speak with someone else. After putting me on hold for about 20 minutes, she informed me that there was no one available, but a manager would call me back "within 24 business hours". I confirmed that they are open 12 hours a day on weekdays, and calculated the day and time I could expect a call by. I did not get a call back until over 3 days had passed, and the only information left was a name and the 800 number. I called back that day. Everyone I spoke to just told me the payment was received after the due date, and there was nothing they could do. None of the 4 people I spoke to was able to explain to me how the billing cycle and payment due date are determined, so that I could set up my AutoPay correctly to make sure they always receive their payment in plenty of time. All I learned was that the billing cycle is 29-32 days long, and that it does not correlate with the number of calendar days or business days into the month.
Damage Resulting
Hundreds of dollars in additional finance charges in just the first month, the $39 late fee, and a minimum payment which has nearly doubled. I will probably have to file bankruptcy over this, even though I have excellent credit with no other negative marks.
I received the statement showing the late fee on 5/1. I called on the next business day and spoke to someone I could not understand, so I asked to speak with someone else. After putting me on hold for about 20 minutes, she informed me that there was no one available, but a manager would call me back "within 24 business hours". I confirmed that they are open 12 hours a day on weekdays, and calculated the day and time I could expect a call by. I did not get a call back until over 3 days had passed, and the only information left was a name and the 800 number. I called back that day. Everyone I spoke to just told me the payment was received after the due date, and there was nothing they could do. None of the 4 people I spoke to was able to explain to me how the billing cycle and payment due date are determined, so that I could set up my AutoPay correctly to make sure they always receive their payment in plenty of time. All I learned was that the billing cycle is 29-32 days long, and that it does not correlate with the number of calendar days or business days into the month.
Damage Resulting
Hundreds of dollars in additional finance charges in just the first month, the $39 late fee, and a minimum payment which has nearly doubled. I will probably have to file bankruptcy over this, even though I have excellent credit with no other negative marks.
Comments:
Posted by Soaring Consumer on 2009-05-08:
According to your review, your payment was withdrawn from your account on a Tuesday, and the due date was the weekend. That should have been plenty of time for Advanta to credit the payment to your account.
If you have proof that the money was withdrawn well before the due-date (your bank statement would show this) then Advanta has no right to penalize you.
Contact your state's Office of the Attorney General's Consumer Protection Division and the Federal Trade Commission.
If you have proof that the money was withdrawn well before the due-date (your bank statement would show this) then Advanta has no right to penalize you.
Contact your state's Office of the Attorney General's Consumer Protection Division and the Federal Trade Commission.
Posted by KenPopcorn on 2009-05-08:
First of all, let me start by saying that you are doing the right thing by using your own bank's bill pay service. There are some considerations thoug. Bill pay services set up electronic relationships with some payees, usually the very large ones. For payees that are not electronic relationships, they will cut and mail a paper check. Generally speaking, you can tell from your bill pay site whether or not a payee is electronic, or paper.
In your case, if Advanta is electronic, you have a very strong case. If, however, they get a paper check, there may not have been adequate time to cut, mail, receive and process a paper payment. Your bank could probably tell you which method was used, if it is not readily apparent by looking.
Also, bear in mind that there is a third party involved, that being the company that processes the payment for your bank. When you schedule the payment, your bank transfers the funds to them, so you cannot rely on the date the funds were withdrawn as proof of payment. If it is an electronic payment, which hopefully it was, they can furnish proof of both when it was made, *and* when it was received by Advanta. Your bank will probably be your ally in this matter, hopefully you have a good relationship with your branch manager, they can be a great advocate in a problem like this. Good luck.
In your case, if Advanta is electronic, you have a very strong case. If, however, they get a paper check, there may not have been adequate time to cut, mail, receive and process a paper payment. Your bank could probably tell you which method was used, if it is not readily apparent by looking.
Also, bear in mind that there is a third party involved, that being the company that processes the payment for your bank. When you schedule the payment, your bank transfers the funds to them, so you cannot rely on the date the funds were withdrawn as proof of payment. If it is an electronic payment, which hopefully it was, they can furnish proof of both when it was made, *and* when it was received by Advanta. Your bank will probably be your ally in this matter, hopefully you have a good relationship with your branch manager, they can be a great advocate in a problem like this. Good luck.
Posted by JohnInSoCal on 2009-05-08:
Great advice Ken. To the OP, I would NOT contact any government agencies such as Soaring suggested until you have exhausted all other avenues. Doing so will only create frustration on your part because they will suggest you go back to your bank... exactly as Ken suggested in his post. If that fails then it would be appropriate to move up to a government entity for assistance.
Posted by KenPopcorn on 2009-05-08:
Why thank you John. :{)
Posted by Soaring Consumer on 2009-05-08:
Good points I didn't know of. Follow Ken and John's advice before contacting the aforementioned agencies.
Posted by madconsumer on 2009-05-08:
sue em.
"Follow Ken and John's advice before contacting the aforementioned agencies."
then stop telling everyone to sue em, and contact all the state egncies.
"Follow Ken and John's advice before contacting the aforementioned agencies."
then stop telling everyone to sue em, and contact all the state egncies.
Note: All comments are reviewed by a moderator before being published. Please be sure to read our guidelines before commenting.
Company Reps: Post your company response!
Recently Discussed:
- Is there a New York based class action suit against this company's predatory practices? - Predatory lending practices
- Class Action Suit Filed Against Advanta for California Residents - Small Business Credit Card
- Predatory Lender Practices - Small Business Credit Card
- Getting Taken "Advanta-ge" Of
- STOP STEALING