Consumer Payment Card News

Account Closing Fees

After First Unions aborted attempt to charge a $10 account closing fee Advanta is attempting to assess one. In notifications mailed this week some Advanta cardholders are being offered a choice between agreeing to an interest rate increase or closing the account for a $25 fee. Under Delaware law cardholders have the right to avoid a change in interest rate terms by closing the account and paying off the balance under the existing terms. Advanta is currently in a major re-pricing phase after posting a $20 million first quarter loss.

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