What You Should Know About
the Advanta
Business Credit Card
If your business is wanting a credit card and have ever
considered Advanta Bank Corp. for a small business credit card, you should
first be aware of their misleading and deceptive business practices.
Advanta Bank Corp. makes it very easy to apply for a credit card online or
by telephone. The website is simple to navigate and will let you apply for a
credit card right there. They have loads of information on their MasterCard
Executive BusinessCard: including APR rates and pictures of the credit card.
Their promotional material might offer 0% APR on balance transfers for
a period of time, when the APR changes to a fixed 7.99%, but don't believe it.
They also can change their terms at any time for any reason. When I
attempted to find out the reasons they might change their terms, they would not
disclose that information, rather hiding behind what they call "proprietary
lending guidelines." So much for full disclosure! When asked if they
discriminate against persons based on race, gender, or religion, their
representative would not comment.
Advanta Bank Corp. relies on the
complexity of their credit card disclosure statement to keep consumers in the
dark about their deceitful practices. "Anyone who has ever tried to read a
credit card agreement knows that the terms are simply incomprehensible and the
inserts sent along with monthly bills to amend the card agreements are filled
with language even a lawyer would have difficulty parsing," according to
Harvard Law professor and bankruptcy expert Elizabeth Warren.
According
to the Advanta Platinum BusinessCard Terms and Conditions, "All of your
account terms are subject to change. This means that your account rates,
including any introductory or promotional rates offered, are not guaranteed;
all account rates may be increased, fixed rates may change to
variable rates, and variable rates may change to fixed rates. We
may change your account terms (including rates) at any time for any
reason."
It's pretty well understood and accepted that one's
interest rates and/or other terms might change if they default on their account
somehow. In fact, Advanta Bank Corp. spells out that fact in the terms and
conditions: "We may also change your account terms (including rates) if any
Event of Default under your Card Agreement occurs. Events of Default include
(among other things) failing to make any minimum payment due so that it is
received by its due date, or exceeding your account credit limit, or making a
payment to us that is not honored by your bank, or failing to make a required
payment when due or otherwise being in default on any other account you have
with us or any other creditor, or failing to keep your credit rating in good
standing, or our concluding that you present a risk of future non-payment or
the basis on which we determined your creditworthiness and eligibility for your
account terms has changed."
All reasonable and expected situations.
It's not these default occurrences that cause me pause with Advanta. It's their
ability to change the account terms at any time for any reason - or for no
disclosed reason at all.
Buyer Beware:
While Advanta Bank Corp. may claim,
"All changes to your account terms (including rates) will be made in
accordance with your Card Agreement," that agreement isn't worth the paper
it's written on. That very Card Agreement gives Advanta carte blache to change
the agreement at any time, making it about as valuable as toilet paper.
It amazes me how Advanta Bank Corp. and other credit card companies
have kept their executives out of jail with these one-sided contracts of
adhesion. Apparently many attorneys and judges are in bed with them and are
unlikely to expose their deceptive practices. When the tobacco company
executives were accused of lying to the public, there was a public outcry that
led to massive fines being levied and their product being banned from public.
When executives at Enron were convicted of questionable practices in their
business, they went to jail and the public demanded greater accountability of
corporate entities.
While Advanta Bank Corp. is not the only alleged
criminal in these credit card scams; indeed all the major banks and credit card
companies have conspired in both the dishonesty and the coverup. "A growing
number of card issuers increase their profits by loading their credit cards
with tricks and traps so that they can catch consumers who stumble or mistake
those traps for treasure and find themselves caught in a snare from which they
cannot escape," Harvard Law professor and bankruptcy expert Elizabeth Warren
said in her testimony recently before Congress.
Where are the
indictments and public outcry about what amounts to one of the greatest frauds
perpetrated on the public in American history? Why are these bank and credit
card company CEO's not going to jail?
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