Advanta Credit Company... Thought This Was Interesting

elh75

This came from the New York Times Business section today.

Shares of Advanta fell nearly 30 percent on Tuesday after the small-business credit card issuer said it faced growing losses from uncollectible loans and was closing its customers’ accounts to new charges after June 10.
The move, which will affect nearly one million accounts, was aimed at preserving Advanta’s capital in order to absorb those losses from small-business owners hit hard by the slumping economy, the company said.
“They are obviously in dire straits,” David Robertson, publisher of the Nilson Report, an industry newsletter, told The Philadelphia Inquirer. Mr. Robertson called Advanta’s plan, including a proposal to repay some of its own lenders at a steep discount, a “Hail Mary.”
Phil Browne, Advanta’s chief financial officer, told The Inquirer that the company’s goal was to “maximize capital and liquidity so we have the opportunity to pursue businesses, credit cards and others, in the future.”
The plan lets cardholders continue making the same minimum payments as before, but prohibits additional charges.
Advanta, which is based in the Philadelphia suburbs, plans to spend up to $1.4 billion to buy back debt issued by its main securitization trust at 65 cents to 75 cents on the dollar. The company will also make a cash offer for $100 million in trust preferred securities at 20 cents on the dollar.
Advanta, which specializes in the small-business market, does not offer personal credit cards.
Mr. Robertson said Advanta’s percentage of loans being written off as uncollectible, at 20 percent on March 31, exceeded subprime consumer accounts at other lenders. “This is a life-threatening charge-off level,” he said.

Ed the Roofer

If the Advanta Credit Card was not such a fraud and scam and have so many complaints about their tactics, they just very well might be sitting in a better position.

If you have not seen the thread I posted about them from about 8-9 months ago, you will see how they are the leader in corrupt credit card policies.

They took a fixed 7.99% for duration of the life of the card and changed it to 32.99%

I had them research my account and credit payment history and they admitted that I have not been late with any payment in the past 7 years and that I always paid more than the minimum balance due and that I owed less at that time of review of my account status that from the prior review period, yet they still felt justified in trying to defraud one more victim.

I would not allow that, so I finally got one of the upper reps to admit that I could OPT OUT of their new terms, still owing the balance I had, but back down at the 7.99% APR rate.

Even 8-9 months later, that thread topic still winds up on either page 1 or 2, when you search for Advanta Credit Card Scam or Fraud.

They were advised what I was going to post and that they had an unbelievable opportunity to make their company look like a good business, but they chose to be the corrupt scam and fraud company that they felt would be most profitable.

Now, it is time for them to pay the piper and probably fold up, which is in itself, bad news for decreasing competition.

It wasn't until this past 1 1/2 years that they started getting the volumes of complaints that they deserved, so something obviously changed in their business model and regard to servicing their customers.

Probably way too late for them to change, too.

Advanta Credit Card is now known all over the internet as the Scam and Fraud Credit Card Company that they became.

Ed

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J F

I hope those #$@%suckers fold like a bad hand of poker...#@%$in' vampire fvks....had fantastic credit forever, adsucka decided to raise my rate from 9.9 to 31%...fvks...no lates, no nothin' (par for the course these days though)...hope they rot....transferred the balance to a 3.99% card...adsucka sucks

RenaissanceR

[deleted].

J F

Same ole shiite, from adsucka...keeps on keepin' on...what really sucks is if you pay 'em off and cancel the account, it can lower your credit score....

...and yeah, I know how/why, just a reminder to some who may not...

greg24k

They got what they deserved. They jacked me up from 7.99% to 43% for no reason, when I called they said we jacked your rates for the following reason...i.e. you being in the construction business, you are a high risk candidate to be in default of your account. I told him, since all the banks are going under, you are a high risk of loosing your job. I payed my balance off and closed the account.

Now this greedy bastards got what they deserve

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Ed the Roofer

Greg, here is how to get out of that increase and get it back down to the original rate.

Look for when I describe how to "OPT OUT" of the new terms and conditions in this thread:

http://www.contractortalk.com/f11/ad...f-fraud-46176/

Ed

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J F

Ed,

Looks like greg already killed it...