Advanta Notifies Customers About Impending Credit Shutdown

T-Minus four days to the closing of Advanta accounts to new charges this Saturday, the small business credit card issuer sent an e-mail out to customers explaining the situation and how it will affect them.

Dear Customer,

Your Advanta Business Card account is funded by an independent trust which owns the balances you owe on your account and provides funding for new transactions. We expect the trust to stop funding activity on our accounts. The trust also restricts our flexibility to fund activity on your account. Unfortunately, as a result, effective May 30th all Advanta Business Credit Card accounts, including your account, will be closed.

This means that you will not be able to use your card or account for new transactions, including purchases, checks and balance transfers beginning on May 30th. We understand that you may have written checks on your account before May 30th and we will make every effort to honor those checks that are presented to us for payment by June 3rd. If you use your Advanta card to make automatic recurring bill payments, you will need to make alternative arrangements for those payments promptly.

It is important to understand that you are not required to pay your entire balance at this time. You may continue to pay down your account balance over time, as allowed under your Advanta Business Card Agreement.

You will not lose the rewards that you have earned. If you participate in a Cash Back program, you will receive a check for the amount of any accrued rewards more than $1.00 as long as you make the required minimum payments and your account remains in good standing. If you participate in a Business Rewards program, you will have at least 60 days to redeem your points as long as you make the required minimum payments and your account remains in good standing.

We deeply regret the impact this action will have on your business and very much wish it was not necessary.

We are committed to assist you through this process. Additional information will be available at www.advanta.com/notice. If you have any other questions or concerns, or if we can assist you in any other way, please feel free to contact our Customer Service Center. You can email us your questions 24 hours a day at www.advanta.com/secure or call us toll free at (800) 705-7255, Monday – Friday 8:00 am to 8:00 pm and Saturday 8:00 am to 5:00 pm Eastern Time.

Sincerely,
John F. Moore President, Adavta Bank Corp.

Yes, the business name typo was in the original.

PREVIOUSLY:
Advanta Moves Up Credit Freeze Deadline, Still Doesn’t Notify Customers
Advanta Shuts Down Small Business Credit Card Accounts

Comments

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  1. Riff Raff says:

    Yes, the business name typo was in the original.

    Typo? Or clever attempt to disguise their true identity?

    AT&T: “SBC? What’s that? I have never heard of that company!”

  2. unsunder says:

    They’re lowering the credit limit to $500 above the available balance immediately. Which means for most accounts they are shut down already.

  3. Delia Wilson Lunsford says:

    Advanta sealed their doom today – after a year of “ugly” credit card practices put into play to save the company. Every one of their moves only moved them closer to failure. Today I stopped paying on that bill – hoping to accelerate their failure. Read all about it here, especially the comments:[dealbook.blogs.nytimes.com]

  4. swedub says:

    We got one of these letters today. I like how they only give 4 days notice.

  5. Joe Lachiana says:

    Where’d all the comments go?

  6. admiral_stabbin says:

    Thank god for this. From what I understand, they charge interest from minute one of a charge being made. Good riddance, Advanta!

    • Anonymous says:

      I have found Advanta wonderful to deal with and been quite happy with them. Until this bonehead move. I have always paid my bill on time, and usually in full, and this is how I get thanked. So here I am, a small business, without a ready credit card for purchases in the midst of this economic mess. You’d think they’d want to keep customers like me instead of throwing us out with the dirty bath water.

      @admiral_stabbin: No, they don’t charge interest from the time of purchase if you pay your bill in full each month. If you are carrying a balance, they do. Just like every other credit card company.

  7. Anonymous says:

    Will your closing of my account be reflected on my business?
    You should let those companies know who rate our credit that the account was closed because the independent trust deemed it so, not because of lack of payment.