This is disburbing news: Advanta Shuts Down Credit-Card Lending Amid Surging Charge-Offs
From Bloomberg.com:
Advanta Corp., the issuer of credit cards for small businesses, will halt new lending for its 1 million customers next month as the recession causes a surge in loan defaults.
“This is a Hail Mary pass: They’re hoping they can stay alive barely until the environment changes,” said David Robertson, president of the Nilson Report, the Carpinteria, California-based industry newsletter.
Advanta was the 11th-biggest U.S. credit-card issuer at the end of 2008 with about $5 billion in outstanding balances, and the only major lender focused on small business borrowers, Robertson said.
The company’s announcement yesterday is “a big sign that the credit-card industry has problems that are going to be around for several years,” said the Nilson Report’s Robertson.
Advanta Corp., the issuer of credit cards for small businesses, will halt new lending for its 1 million customers next month as the recession causes a surge in loan defaults.
“This is a Hail Mary pass: They’re hoping they can stay alive barely until the environment changes,” said David Robertson, president of the Nilson Report, the Carpinteria, California-based industry newsletter.
Advanta was the 11th-biggest U.S. credit-card issuer at the end of 2008 with about $5 billion in outstanding balances, and the only major lender focused on small business borrowers, Robertson said.
The company’s announcement yesterday is “a big sign that the credit-card industry has problems that are going to be around for several years,” said the Nilson Report’s Robertson.
posted by Sid Cottingham | 6:11 AM
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