Let's get the 15/30 day issue out of the way. Three attorneys can't look up the Truth in Lending law? Amazing. Here's the money quote:
(c) Change in terms. (1) Written notice required. Whenever any term required to be disclosed under § 226.6 is changed or the required minimum periodic payment is increased, the creditor shall mail or deliver written notice of the change to each consumer who may
{{6-30-06 p.6652.06-A}}be affected. The notice shall be mailed or delivered at least 15 days prior to the effective date of the change. The 15-day timing requirement does not apply if the change has been agreed to by the consumer, or if a periodic rate or other finance charge is increased because of the consumer's delinquency or default; the notice shall be given, however, before the effective date of the change.
That's from:
http://www.fdic.gov/regulations/laws/ru ... #6500226.9I'm not an attorney and I don't claim to be one, but I seriously doubt that the fact that Advanta isn't a national bank plays any role whatever. The law refers to "creditors" and defines a creditor this way:
(f) The term "creditor" refers only to a person who both (1) regularly extends, whether in connection with loans, sales of property or services, or otherwise, consumer credit which is payable by agreement in more than four installments or for which the payment of a finance charge is or may be required, and (2) is the person to whom the debt arising from the consumer credit transaction is initially payable on the face of the evidence of indebtedness or, if there is no such evidence of indebtedness, by agreement. Notwithstanding the preceding sentence, in the case of an open-end credit plan involving a credit card, the card issuer and any person who honors the credit card and offers a discount which is a finance charge are creditors. For the purpose of the requirements imposed under chapter 4 and sections 127(a)(5), 127(a)(6), 127(a)(7), 127(b)(1), 127(b)(2), 127(b)(3), 127(b)(8), and 127(b)(10) of chapter 2 of this title, the term "creditor" shall also include card issuers whether or not the amount due is payable by agreement in more than four installments or the payment of a finance charge is or may be required, and the Board shall, by regulation, apply these requirements to such card issuers, to the extent appropriate, even though the requirements are by their terms applicable only to creditors offering open-end credit plans. Any person who originates 2 or more mortgages referred to in subsection (aa) in any 12-month period or any person who originates 1 or more such mortgages through a mortgage broker shall be considered to be a creditor for purposes of this title.
Source:
http://www.fdic.gov/regulations/laws/ru ... ml#6500104Anyhow, we're mixing up a lot of points in this discussion. We're talking about what's legal, what's fair, why it happened, and what's the best approach to handle it. Some of what I've said is personal opinion only. Let me summarize real briefly.
1) I think what Advanta is doing is legal, but I could be wrong.
2) I don't think it's fair to its cardholders. It doesn't come close to being fair. But the situation is desperate for creditors these days. People with great credit ratings and no defaults and no sign of ever going into default are suddenly drawing down their credit lines and not paying them back. It's an enormous problem and the credit issuers are broke. They can't handle the loans. They can't sell the loans. They don't know what to do about the unpaid debts. So they're trying, desperately, to reduce their exposure. That causes hardships if you don't have an alternative. BUT if you don't have an alternative, the creditor is right to be afraid you're going to default. The fact that YOU did not pay off the loan at once when you saw that 28.6% rate shows you don't have any quick resources to pay it off...and that is worrisome from the creditors' viewpoint.
3) Why it happened is above--creditors simply can't go by the usual rules. They're looking at sudden, massive increases in unpaid loans from formerly-good customers, with no warning whatever. The creditors are ALSO trying to survive.
4) How to handle it. Again, my personal viewpoint. You opt out. If you missed the deadline, you try to opt out anyway. If you can't, you pay it off if you can at once. You look for alternatives at lower rates if you can't pay it off. You spend your time doing what you do best to earn the most money you can, rather than dealing with things that cost you money, like attorneys.
Good grief, guy--it's $5 more per day. If you're that close to the brink, you're in big trouble. Sorry, but that's how I see it. One illness and you're gone. My wife had a minor hand operation last week--it was $10,000 and she was an outpatient. I've been unemployed since April 1 myself. You have a family. You have a kid. Whatever possessed you to start a business in this climate, with no resources to withstand losses? You say you have equity in your home. Why haven't you tried to tap in to it to pay off the $9K? You say you won't tap in to pay the interest. But you admit you owe the $9K--so pay it and STOP the interest completely to Advanta. You're tilting at windmills and wasting your time. Pay the $9K, trash the Advanta card, and be done with it. The more you delay paying, the more that 28.6% will cost you. What you're doing is based on emotion and not sense. If your business model is working so well, great. So what's the problem?
My other opinion is that when you're self-employed, you learn that you must handle your business or you go under. Lots of people have kids and spend more time away from them then they'd like. The business needs the attention. If you can't afford an employee to do a job, you do it yourself. You find the time. You sacrifice and struggle and do without. If you do not want to do that, I don't blame you. But then face reality and close the business down. Again, my opinion. No one says it's easy.
And I meant it when I wished you good luck. I still wish you good luck. These are tough times for many of us, and it's going to get worse.
Banks are all about profit the best choice is to never carry balances pay in full as much as possible remember banks are not our friends every bank rate jacks at some point its only a matter of time 
