1. Written by Anon, on 06-10-2008 23:13
What you are referring to is called a "reprice." The accounts get ran through matrix's and have their rate adjusted for whatever reasons. I was actually told that they increase the rate on purpose to try to encourage the holder to pay off the account or transfer it. You are right that they will not adjust it or change it - even if you threaten to close your card. They've been doing this for years. I'm amazed there aren't more furious posts out there on the internet. I worked there for many years and I can tell you that even the employees are disgusted with the practices. They let customers charge up giant balances, over $40,000, and then raise the interest rate to nearly 40%. The fees and all of the interest, you can never get your balance paid off. I once spoke to a customer who had a $1200 balance and credit limit that had turned into an $8000 balance due to fees and interest.
You should all also be aware that an Advanta account is NOT just a business account. It is a personally guaranteed business account. If your business fails and goes bankrupt you will still be personally on the hook. Whoever's name and SSN are connected to the card is who will be pursued for payment.
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