Credit Card Companies: As Bad as it Gets!

Advanta knew what they were doing when they were created in 1952. They established themselves in a state such as Utah that does not carry strict rules on the amount of interest that you are allowed to charge to your cardholders. This means that the small business owners that made up the majority of Advanta’s business were being drowned with interest fees on the outstanding loans totaling around $5 billion when they filed for Chapter 11. In November of 2009 Advanta filed for protection and reorganization under Chapter 11 of the U.S. Bankruptcy Code.

Advanta is well known for taking as much advantage of their customer as they were able to legally get away with. Not only did the average card holder have interest rates of around 30%, but they would apply huge fees whenever they received a late payment or you went over your limit. This made it next to impossible for their card holders to be able to get out of debt.

Advanta is not only well known for taking advantage of their customers, but they are also extremely well known for not offering any type of assistance with helping their clients to get out of debt. Between the extremely high interest rates and the ridiculous fees it makes it next to impossible for their clients to ever pay off their debt. The truth is that is exactly what Advanta wanted. They did not want you to get out of debt for if you did they would not be making anywhere near as much money out of you. This is why they would hold payments to apply late fees, and would give their clients much lower balances than they deserved so that they could apply over the limit fees. Clients would eventually get sick of paying all of the fees and the high interest, and would try and work a deal with Advanta in order to get some sort of relief. This rarely happened for whenever the customer would trying to contact some sort of decision maker at Advanta they were never available and would be promised a return call which they never would receive.

Eventually clients were no longer able to keep up with the hefty payments that Advanta demanded, and this led to a great deal of their clients to default on their loans right and left. While Advanta would like to blame the poor economy, which could be partly to blame, a great deal of blame still remains in the hands of Advanta.

For more information call Associated Attorneys at (866) 411-4693 or contact Associatedattorneys.com.