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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....

Advanta to cease new credit card lending Advanta plans to cease new credit card lending as it battles losses; shares fall On Tuesday May 12, 2009, 10:20 am EDT SPRING HOUSE, Pa. (AP) -- Advanta Corp. said late Monday it will shut down its credit card lending operations next month as it battles surging loan losses. Shares tumbled more than 6 percent, losing 7 cents to $1.06 in early trading Tuesday. Shares have dropped 88 percent over the past 12 months.