Posted on 07/01/2009 7:34:50 PM PDT by Virginia Ridgerunner
Advanta Corp. will pay up to $35 million in restitution to customers for alleged violations of federal consumer-protection and banking laws, the Spring House credit card company said today.
Advanta, which froze its small-business customers' credit cards at the end of May because of mounting defaults, also agreed to pay a $150,000 civil fine under the deal between Advanta's bank subsidiary and the Federal Deposit Insurance Corp.
The company admitted no wrongdoing.
(snip)
The FDIC said it received numerous complaints about substantial increases in annual percentage rates from borrowers who neither exceeded their credit limit nor were late on payments. In some cases, rates soared from 8 percent to 36 percent, Advanta customers said.
(Excerpt) Read more at philly.com ...
Advanta to cease new credit card lending(credit card crisis starting)
Bottom line---this is a fraudulent company that is getting what it deserves.
I got one of those a couple of years ago and literally every time I used it I got a call. I also got a late notice 2 days after I received the bill, I cancelled it after the first 2 months.
Finally some action on these scum sucking bastidges.Money back is nice but I am much more worried about my credit rating since my credit limit went from $25k to the level of money I owed which was $3k. What is going to happen to all of the negative reports submitted by this criminal organization?
I thought it was weird that I got a solicitation from Bank of America today utilizing the same misspelling that existed on my Advanta card.
PING!
Hear Ye! Hear Ye! Hear Ye!
FReeper Convention Ticket Drawing!!
All NEW monthlies of $10 or more submitted by July 31 that include the words “FReeper Convention Ticket Drawing” in the comment section will be included in a drawing for a Freeper Convention ticket!! The winner can use the ticket for himself or give it away to another FReeper!!
Hope to see you in DC!!
45 posted on Wednesday, July 01, 2009 12:41:31 PM by Jim Robinson (Follow me on Twitter: http://twitter.com/jimrobfr)
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