Breaking: Advanta files for bankruptcy — more bad news for small-business borrowers
By Daniel at 10 November, 2009, 12:40 am
http://money.cnn.com/2009/11/09/smallbusiness/advanta_bankruptcy/index.htm
“Advanta’s bankruptcy comes just one week after another top small business lender, CIT Group, filed its own bankruptcy petition. Both companies were hit with a sharp rise in defaults as the recession deepened. Advanta’s default rate reached 24% in September, up from 11% one year ago, according to the company’s financial filings.
“The economic debacle over the last two years devastated Advanta’s small business customers and Advanta itself,” Advanta CEO Dennis Alter said in a prepared statement.
Like CIT Group’s collapse, Advanta’s came after a year of steady deterioration.
The company sparked an outcry from customers in September 2008 when it abruptly hiked interest rates for its cards to 25% and higher. In May, it announced it would shut down all of its credit card accounts for future charges.”
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