I set up an Advanta Bank Business card after reading an article that said they were helpful to small business and offered competitive rates. All of this appeared true on first review with their representative on the phone.

What they did was hide information in the credit card agreement that basically says they can jack the card's rates through the roof any time they want to. In my case everything was fine for several years until my PERSONAL credit rating got crushed due to an investment in my home in Florida that I could not recoup in this horrible market.

Despite the fact that my account was paid on time and within its credit limit, they jacked my interest rate to 30% from 10% with no explanation. When I called they said that was their policy. They said only consumer credit counseling ("CCC") could negotiate the rate.

I promptly told them where they could stick their precious card, but I also called CCC who on review recommended me for bankruptcy counseling and bankruptcy. I told that to Advanta and they immediately threatened to sue me (apparently they need to get a judgment before a bankruptcy can go through.)

The real trick here is that they are attempting to go both my personal credit and my company's credit. This means that if I go bankrupt, I may have to do so both personally and corporately. They have further jacked my interest rates to 35.18% on the original balance and are registering any unpaid balance as a cash advance with an interest rate of 37.18%. On top of that they are charging 2 fees, one for over limit and one for lateness totaling and additional $78 per month- or about the equivalent of another 13% annually on the principal balance- for a total of approximately 50% interest and fees annually!

Talk about kicking a man when he's down.

What's particularly interesting is that that the State of Florida's usury limit is 24%. These guys clearly are trying to get away with blatant theft and are in violation of state law. Thank God Florida stands up for its citizens with the Homestead Act etc. More to come.



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