Irate cardholders have filed suit for up to $5 million from Advanta Corp., the small-business issuer that stopped lending last month due to funding problems.

The suit, which seeks class-action status, focuses on how Advanta handled some accounts in the months before it shut down lending. It accuses Advanta of "unilaterally, unfairly and illegally" changing the terms of the plaintiffs' credit card agreements, "increasing their effective interest rates … in an attempt to unfairly accelerate repayment of outstanding balances and to increase immediate revenues."

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