Misty’s had an Advanta small business credit card for her graphic design business when she first opened it. She’s been happy with it, though of late Advanta has taken to doing things like raising interest rates on balances from 8% to, oh, say, 30%.
I guess that should have warned us not only that Advanta is in trouble, but also that customer service isn’t its first priority. And indeed, it turns out Advanta’s shutting down its 1 million small business credit card accounts.
They quietly announced back around May 11 they’d shut down the accounts on June 10th. Not that they told us! We didn’t find out until they sent an email yesterday telling us they were closing accounts on May 30th.
Look, I understand you’re in trouble. Your customers defaulted at a rate of over 20 percent last month. But you only now officially told cardholders! You didn’t put up an announcement on your website until today! That is, as they say at Harvard Business School, a dick move. You’ve left a lot of small businesses scrambling to replace your credit cards in fewer than five days. What if Misty had employees who were using the card and were traveling, as happened to one of the Consumerist commenters?
This is a minor inconvenience for us, but it underscores just why a lot of people would be happy to see banks like Advanta dissolve like a Toon in Dip.