Advanta Bank, the small business credit card issuer, was closed by state and federal regulators on Friday, according to the FDIC. The bank had been a shell of its former self for quite some time, having initially announced in May 2009 that it planned to shut down credit card accounts and in July, agreeing to settle charges that it had engaged in “unfair and deceptive practices.” Its parent company, Advanta Corp, filed for bankruptcy protection in November, and since then has essentially reduced its operations to collecting outstanding balances on its accounts and making payments to its investors.
With the bank’s seizure, the main question for the 360,000 outstanding accounts owing $2.7 billion is whether they will have an easier time renegotiating their payments with the FDIC as their creditor. Customers with questions about the closure can call the FDIC toll-free at 1-800-537-4048.
Eligible Advanta cardholders can receive a $5 cash back bonus for each new automatic payment that they set up using their Advanta BusinessCard, up to a maximum of 10 set ups for $50.
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Advanta has introduced a new business credit card that offers 90 days interest free on all purchases all the time. The Advanta Platinum 90-Day Interest Free BusinessCard charges no interest for 90 days on purchases and offers a business rewards program, all without an annual fee. Since the 90 day interest free period is not a promotional offer, and it can provide up to $50,000 in working capital, the card can be helpful for small businesses looking to better manage their cash flow on an ongoing basis.
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The Advanta Life-of-Balance Platinum Card now offers balance transfers at 2.99% for the life of the balance with no balance transfer fees.
With a fixed rate at 2.99% and interest rates being where they are, it doesn’t make sense to park this money in a savings account, but this card could be a good option for transferring higher rate balances.
Update 9/9/08: Advanta no longer offers the 2.99% for life card. Advanta has replaced the 2.99% for life card with the no interest for 90 days credit card.
The Advanta Platinum Business Card with Rewards is now offering 0% APR on balance transfers for 16 months, up from the 15 months it previously offered. After the introductory period, the balance transfer fee reverts to 7.99% fixed. The card also offers a 7.99% variable APR on purchases. See the link for further details.