I have had my Orchard Bank account since November of 2006.
In May of 2007 I went over my credit limit by a few dollars (less than $50)
My intrest rate went up from 14.9% to 27.990% which was the default apr.
I accept that this was an error on my part, and there is no one to blame but me.
My complaint with Orchard bank is that their terms and conditions state:
"All your APRs may automatically increase to the Default APR if you default because you A) fail to make a payment when due or B) exceed your credit limit.
In setting your Default APR, we may consider the following factors: how long your Account has been open, the existence, seriousness or timing of the defaults on your Account or any other account you have with us; other indications of your Account usage and performance; information about your relationship(s) with us or any of our related companies; and information we obtain from consumer credit reports obtained from credit bureaus.
Your Default APR takes effect as of the first day of the billing cycle in which the default occurs. Your Default APR will remain in effect until you make each Current Payment Due by the Payment Due Date and do not exceed your credit limit for 6 consecutive billing cycles. At that time, your APR(s) will return to the non-default APR(s) (excluding Introductory or Promotional APRs), applicable to your Account."
My APR did come down in November 2007 by 1%, not as stated above.
Their excuse was that they checked my credit, and that was the APR according to my credit report.
I can only think that this is a load of horse hooy as I have applied for, and recieved not 1 but 2 other cards with much better APR's.
I have also been on time every time with my payment, and payed more than the minimum amount due every month.
This is an obvious breach of contract on Orchard Bank's part, yet I have continued to be a model customer with them since my error.
When I called in to talk to them, the rep and a supervisor were no help what so ever. It also took me over an hour to find a number that would actually get me to a human being. The number on the card kept hanging up on me, and I had to call HSBC.
This is now my worst APR credit card, and I am posting this to help others avoid being ripped off by this company.