Advanta Customers Beware: Credit Line is About to be Cut Off

Advanta to shut down credit without notice

Earlier this month, Advanta Bank Corp. announced that it will be shutting down customer’s credit lines on June 10. However, on Friday Advanta changed the cutoff date to May 30, which is Saturday.

To make matters worse, The Consumerist reports that an Advanta representative says that because of “postal problems,” customers will not receive notice that their credit lines are being shut down until the end of the month.

Left in the dark

News media have reported on the impending credit cutoff, but Advanta Bank Corp. has not contacted customers through any means other than the “snail mail” that will reportedly not reach card holders until their credit is already shut down.

Advanta mainly supplies credit cards to small businesses. As I am sure small business owners know, there are no easy loans out there right now. Advanta customers who were planning to rely on credit from Advanta Bank Corp. to keep their businesses going will find themselves in a tough situation.

How many will be affected?

Advanta says that it will freeze nearly 1 million accounts May 30. Advanta Bank Corp says it has lost $76 million because of customers defaulting on payments.

Advanta says shutting off credit lines will be a step toward cutting its losses and preserving its capital. Despite the fact that Advanta customers will have their credit lines terminated without prior warning, they are still expected to pay their debts. ... click here to read the rest of the article titled "Advanta Customers Beware: Credit Line is About to be Cut Off"