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Orchard Bank Credit Card - Problems
Posted by Shuwangyan on 02/13/2008
I think this call made on today (February 13th 2008) is my 5th time to call Orchard Bank to mail out the cancellation confirmation letter as well as the deposit check since I cancelled my credit card on January 2008. After over one month, I still have not received my deposit check since they claimed I would receive it in one month.

But this time, this 5th representative told me I will receive the deposit check in 2 months. Did they change their policy on sending out customers deposit checks in just two weeks? I am very curious.

I applied this credit card over 27 months ago because my credit score was low. I also had to deposit $1500 as secured fund to get their secured credit card. They initially claimed I can get my deposit back after 18 months. After that 18 months, I ever called them about my deposit. They told me I can not get my deposit back, but they will consider my request once they think my credit is good enough,something like that. Did that mean that they will hold my deposit for 5 year or even forever because it is their decision on if I can get my deposit back. Although my credit score has increased dramatically since then (not because of Orchard Bank credit card), but my deposit was still FIRMLY HELD by them.

After I applied Orchard Bank credit card for low credit customers,I ever applied Citi credit card and Bank of America credit card. Both banks are very good. Citi Bank hold my deposit for 18 months and they sent me my deposit after 18 months. They also increased my credit limit to $2500 without my request. Bank of America returned my $1500 deposit on time after 6 months. Personally, I suggest you can try those two banks if you are considering to have a bad credit or low credit card.

My typing speed is very slow, but today I must spend some time and write some something about my real story. If my story can help others avoid further problems, I will feel a little better.

     
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Payments
Posted by Tobias9cat on 07/12/2011
SALINAS, CALIFORNIA -- Please don't pay your Orchard Bank credit card by using their online bank payment. They hold your payment for 14 days eventhough they've deducted your payment from your checking account. Not one service agent has given me an acceptable answer to why Orchard holds the payment "hostage" for so long. The payment amount is gone from my bank, but "on hold" with Orchard Bank. It's in the small print so beware! They cop-out by telling their customers to refer to the "agreement". I'm sure it's written into the small print, but that still doesn't answer the question as to WHY. Pay your account by phone using your debit card instead.
     
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Posted by saj80 on 2011-07-12:
Contact their federal regulator; new regulations require payments be credited on the day they are received, and can not be held. They are breaking the law, regardless of what their agreement states, and it needs to be reported.
Posted by michael falletti on 2013-07-10:
phone center in india.
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Fraud
Posted by Zulumm on 06/20/2011
They incorrectly charged me for interest, even after I paid my balance in full and on time. I have talked to 4 different people, in Spanish, English and 1 "supervisor" and nothing....like talking to "Peggy" (the commercial)
I also wrote an email to customer service without any response. Frustrating!

PLEASE, be kind to yourself and save yourself unnecessary pain, DO NOT GET THIS CREDIT CARD.
     
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Posted by Sophia Marie on 2011-06-20:
Just curious - - was the interest you were charged the amount that accrued between the time you made your final payment and when it was received? This is a very common situation when dealing with any type of loan - - there is usually that small interest charge that consumers aren't expecting.
Posted by bcd on 2011-06-20:
Was there a cash advance involved? That could account for the interest charge.
Posted by olie on 2011-06-20:
Or--You carry a balance for a few months, and then finally pay it off. Let's say I pay off a January balance in May.

There's some 2-cycle "thingy" that allows the bank to charge you for the interest that accrued over the last two months. So even though I paid the "balance" in May, I'll get a statement in June saying I owe some pretty minimal amount.

It's legal. It's likely in all that paperwork you signed or they sent to you within the past months.
Posted by bcd on 2011-06-20:
olie,

Double-cycle billing is no longer permitted so that consumers are not hit with finance charges from previous billing cycles after the bill is paid in full. (That really didn’t seem fair and should always have been unlawful).
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Don't make your payment to early!
Posted by Madcop on 12/20/2010
CITY OF INDUSTRY, CALIFORNIA -- This bank raised my APR to 29.46%, stating that I was late on a payment. A review of my payment history, with the company representative, showed that all of my payments have been early, in fact some of them have been over 30 days early. There is the problem, if you make two separate payments within a payment cycle they consider both as payment for that cycle, even though you intended that the second payment was for the next cycle, (over 30 days early). The bank will not budge on this saying that even though they have received a payment every month, two of them were received in the same cycle, that the next payment was late. This company had a customer who made every effort to make his payments early how do they treat the ones who do make late payments? The moral of the story is do not make a payment until you receive your statement because even if your intent was to pay over 30 days early, in there eyes, you are late and refuse to make it right for a good customer.

     
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Posted by trmn8r on 2010-12-20:
Here is the root cause of the problem:
"if you make two separate payments within a payment cycle they consider both as payment for that cycle"

Though it does not affect me, I am aware of this policy and I believe it is common with banks. It sounds like you are making partial payments each month. Food for thought - if you pay the balance each month, your interest rate would be zero.
Posted by tnchuck100 on 2010-12-20:
Today's financial world is a jungle. Processing is all done by computers which follow exact algorithms. They are oblivious to your intent. Everything revolves around billing cycles.

Sounds like you have a handle on the process now. Hopefully your post with help others avoid the same pitfall.
Posted by momsey on 2010-12-20:
They can't read your mind. I and a lot of other people make multiple payments in one month to be applied to the current billing cycle. I am cognizant of the billing cycles and I know when bills are due and I make sure that my payment is applied properly.

The bank probably thought you were just making an additional payment in that month. It would be nice if they waived the penalties for the first time it happened, but they're probably not in the business of being nice.
Posted by Venice09 on 2010-12-20:
Call me old-fashioned, but this is why I like paper statements. I get the bill, tear off the coupon thing and send in my payment on time, once a month. I've been doing it that way my entire life with no mishaps. It's well worth the price of a stamp.
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Ridiculous late fee charges
Posted by Tanker07 on 06/29/2010
CITY OF INDUSTRY, CALIFORNIA -- I was offered a credit card in 2008 with a $300 limit thru Orchard Bank(HSBC Services).Big mistake! I really needed this money as my mother had kidney cancer and had to have surgery to remove one kidney and I wanted to be there and take care of her afterwards, so I opted to accept the card thinking it would help me out for the time I was with her. I paid on this card faithfully every month and only charged about $250 on the card. Then in May 2008,my husband had a heart attack and he was off work for some time and I was the sole bread winner. I called Orchard Bank and explained the circumstances and said I could not make the monthly payments as schedule but would send what I could at a different date each month but when the bills started piling up and groceries needed to be bought, I could not pay anything and called them again. They told me they would waive the late fee if I sent in $75.I did and they did waive the fee but then they added fees to the next few months I could not pay, which I thought they were waiving fees until I could get back on track and my husband got back to work. Now I owe over $900 and it is in collection. They will settle for around $750.I only charged $250 and told them I cannot pay that. I feel I was deceived and scammed into getting this card. Many people have been in this situation and it is very unfortunate that we have to be treated like this and used. Do not ever take Orchard Bank(HSBC Services) up on any credit card offers, as the late fees and interest are extreelmy high and you will never get it paid off. I was stupid and fell for this.
     
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Posted by fast327 on 2010-06-30:
How was this a scam?
Posted by goduke on 2010-06-30:
All credit cards have high late fees. It's a penalty for paying late. I can guarantee you that it was disclosed when you signed up for the card. What did you honestly think was going to happen when you stopped paying the bill?
Posted by Buddy01 on 2010-06-30:
It seems that the waiving of the fees was for that month only and not until you caught up.
Posted by skelly39 on 2010-06-30:
I'm sorry for your troubles, and I know how hard it can be to take care of credit card bills when you have more pressing issues, but this isn't a scam. If you weren't sure what they meant, you should have had them put it in writing.
Posted by momsey on 2010-06-30:
It's not a scam, it's a credit card. You entered into an agreement with Orchard Bank that they would extend you $300 of credit and you would pay it back to them under the terms of the agreement. I am sorry for your troubles, but troubles don't erase debts. If that were true, probably most of us would be debt-free.
Posted by Anonymous on 2010-06-30:
Surely you understand that none of the CC companies would waive late fees "for a few months" right?
Posted by Anonymous on 2010-06-30:
So let me get this straight. You borrowed $250 but now two years later you owe $900? What shocks me the most about this is those who don't see this as a scam because quite frankly what else would you call it.
Posted by Anonymous on 2010-06-30:
Stew, figure up $250 x 29.9% interest for 24 months. I'm too tired this morning but I bet you'll find your answer there.
Posted by Anonymous on 2010-06-30:
JC, That comes to a finance charge of $201.30. Add that to the original $250 and you get $451.30. So yeah I stand by my SCAM declaration. I don't know about other courts but in Oklahoma or Texas if you sued somebody for a two year old original CC debt of $250 aside from default judgment you'd be darn lucky to get a judgment of $400. There ain't no way in the world a judge would award $900 or $750 and I don't care what the CC terms and conditions say. Because bottom line $900 for an original debt of $250 is not reasonable. Judges, well at least in Oklahoma and Texas, are all into reasonable.
Posted by Anonymous on 2010-06-30:
No, that's incorrect. It would be $250 x 29.9% which is approx $75. The following month would then be $325 x 29.9% and so on. Of course there were also however many late fees added in, and then whatever payments were made deducted, but yea I can totally see how the balance got to $900.

Of course I think all CC companies screw customers over....but it's not a scam, you know what you're getting into when you sign up, and if payments aren't made, this is what happens.

A scam is illegal, and you and I both know this isn't illegal.
Posted by Slimjim on 2010-06-30:
I am sorry also for the troubles you incurred and I'm not going to specifically question why this was let go so long, but readers should take something important from this experience here. If you have a small balance credit card, don't default it if at all possible. The minimum payment was at the time, somewhere in the neighborhood of $10-$20. Not keeping a card like this current will still slap the same aprox $35 late fees and $35 over-limit fees as a $10,000 balance card. By the second month of delinquency, you already had (I'm guessing) $70 in fees plus around a $30 past due minimum payment. I'm not a math wiz, but pounding $70 extra in fees a month, plus the interest on them, it's not a stretch for me to see why the balance is $900 after two years.
Frankly poster, you are already in collections and they aren't going to sue you for that balance. I wouldn't pay them anything until they at least agree to take the $250 and call it settled. Maybe even look for a settlement for less.
Posted by Anonymous on 2010-06-30:
JC, I don't know if I agree with your math. 29.9% is an annual percentage rate and not a monthly rate. In fact for credit cards they use a daily rate which for 29.9% would be 0.082% per day.

In order to compute the future value of $250 in 24 months with a 29.9% interest rate you'd use one of the following formulas.

FV = 250 * (1+.299/12)^24 (compounded monthly)
FV = 250 * (1+.299/365.25)^730.5 (compounded daily)

I compounded monthly in my previous example. But even compounding daily the future value only comes to $454.69.
Posted by Anonymous on 2010-06-30:
slim, that is about the best advice offered up on my3cents in a long time. What would that be +975?
Posted by Slimjim on 2010-06-30:
Just use my data stew. Simply put, if poster was late and over the limit for 24 months, than the industry common of $35 each ($70) total a month would be $1680 alone. Obviously after a while the line gets charged off and fees stop being imposed, hence the "discount"
Posted by Slimjim on 2010-06-30:
See that, we are so in tune I'm answering you before you ask. Can anyone say StewJim Nation?
Posted by Anonymous on 2010-06-30:
I think you're right, Stew...I told you I was tired this morning! Slim's comment pretty much sums up where I was trying to go.
Posted by skelly39 on 2010-06-30:
Slimjim is right. You aren't counting the late fees and over the limit fees. Interest adds up on those, too. Paying the minimum payment of $10 or $15 would have eliminated the fees, but it probably would have taken the OP 25 years to pay it off, especially at that rate. Credit card companies and banks are immoral and unethical, but if you blindly say "okay" and agree to their usurious terms and conditions, it's not a scam.
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Orchard Bank Has Been Nothing But Good To Me
Posted by D98lakefan on 02/12/2010
I have two credit cards with Orchard Bank one has a 5000 and one 6050 I have there premium platinum cards and 2 percent cash back on each . They have been nothing but good to me I keep getting an increase bout every six months and I have no annual fee. I can't ever complain about them they have been nothing but good to me . I would recommend this bank to anyone I started these limits both and worked my way up over the last year or so .

I just basically paid the balances off pretty much every month I would give the thumbs up to this bank they are great.

dave
     
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Orchard Bank Holding Payments a Week (7 Days)
Posted by Georgiafire1 on 01/17/2009
NORCROSS, GEORGIA -- I made a copy of the online transaction when the payment was made. It was 6 days ago now and what they do is apply your payment but hold it as a charge. I thought with electronic banking they know in two days. I worry of the late charges but haven't seen any yet. Will watch this closely. I do make a habit of paying mine in full. To me is bad business but I guess they don't appreciate us as customers just know we need them to build credit.

Also, their customer service is mostly overseas.
     
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Credit Help Or Credit Destruction
Posted by 4 real on 12/30/2008
CATSKILL, NEW YORK -- I became a customer of Orchard Bank in Feb of 2008. I kept my activity on my card to a medium to high level. I was a secured account of $300 so I was operating on my own money. September 3rd I called orchard bank and asked how to add money to my secured account. They gave me the information and the address and company name where to mail my additional deposit to. I followed the instructions and mailed additional funds to Intermountain bank with my account information. One month went by and no increase to my account. I contacted Orchard and they told me the funds had been applied to my bill. They took over 2 months to fix the error I was told that I did not mail it to the correct address and company upon receiving my cancelled check it showed the check was made out to Intermountain bank but Orchard Bank decided to cash my check that was not theirs. I spent many many hours on the phone with them and never made any headway. I also joined their account protection plan to protect my account in case of emergency. Last month my account was overdrawn by $4.00 because if the account protection plan. the month before that I received a pre-approved card packet. I gave the information over the phone to a representative and she told me I would receive my card with a minimum credit limit of $300 and a max of $2.500 the following week I received a credit alert from my credit counseling company telling me that Orchard bank flagged me for going over my credit limit and added another credit inquire on my report.

They informed me that I was denied the card that they had already approved because of a recent report on my credit. the report was from them.... So instead of helping me to build my credit they used my money (secured card) to even lower my credit score..Thank you Orchard Bank for all the trouble and time wasted on you company.

     
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Very Pleased With Orchard Bank
Posted by Lolasmommy on 11/30/2008
LAWRENCEVILLE, GEORGIA -- We have been active account holders with Orchard Bank, for 3 months and are very happy thus far.

Our brother-in-law referred us to Orchard Bank, as we were looking to rebuild our credit. He too is also very pleased with Orchard Bank and how it has helped rebuild his credit.

We pay our cards off in full before the due date, each month and don't have any problems making the payment. We have never had any issues with payments made or payments never posting.

With paying our balance in full each month, we have yet to be charged interest on our cards. We have already received a CL increase.

This card is only for those who are honestly looking to rebuild or establish credit. You do pay an annual fee, depending on your credit will determine how much, but most cards you find these days, you will pay a fee. The more you pay on time, the more you will be rewarded from Orchard Bank and you will also find a positive account on your credit reports.
     
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Posted by madconsumer on 2008-11-30:
great review.

very helpful.
Posted by lolasmommy on 2009-06-30:
This is a follow up to the review which I wrote above, in regards to Orchard Bank. It's been almost a year, since we received our Orchard Bank cards and we are still very pleased with Orchard Bank. Our credit scores have both increased from the low 600's, to the low 700's.
We keep our balances within the 30% total limit and never go over. If we cannot afford to pay the full amount off when the bill comes due, we always pay more than double the minimum payment Orchard Bank bills us for.
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Holding Payments
Posted by Route36 on 05/09/2008
NEVADA -- These people will steal your mother if your not careful. I have never seen such blatant disregard for a consumer in my life. I make a payment and they pull the money out of my account and hold the payment for 2 weeks. If a merchant charges the card incorrectly or the charge is considered a cash withdrawal there is an automatic $5.00 fee just for the transaction not to mention an escalated interest rate.

If they really want to help consumers then they should consider outlining the pitfalls of this card.
     
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Posted by tnchuck100 on 2008-05-10:
They did. No matter what they do to you, you agreed to it. They will use the clause in the agreement that says "... we may change any terms of this agreement for any reason at any time."

This same crap will be found in most credit card agreements as well as when opening bank accounts.
Posted by Anonymous on 2008-05-10:
"If they really want to help consumers then they should consider outlining the pitfalls of this card."

They did. It's all in the lending agreement you received (and likely pitched into the trash without reading) when you received the card. For all you know, the document could have stated "The cardholder agrees to hold the issuer harmless when we steal his mother." Cardholders also get regular mailings regarding changes in general terms. Few people read them either. Most folks rip a new card out of the envelope and trot out to buy something with it. No regrets until they learn, too late, using the card gave the CC company legal possession of their mothers.
Posted by Dont Play Me on 2008-12-19:
The 1st comment must have been made by an Orchard rep. Orchard does not provide credit increases. Regardless of how good your standing is with them. Orchard does hard pulls on your credit reports, which affects your score negatively. So if you have an Orchard card and your rebuilding your credit Orchard is not going to help with an increase because they base their decision on your credit report and not your timely payments to them and it takes years to re-build credit. If it was any other way you would not need Orchard, Meta, Rewards 660, Premier, etc. These are mini locked in spending cards, 200-500 avg max now.

Just had my chuckle for the day. Look what Rewards 660 and Meta bank just pulled this month Dec 2008.

Bottom line sub-prime is just that sub. Paying your credit on time is important but please don't expect honesty or an increase via sub-prime credit card companies and never trust the reps trained phone sell. Their inserts with the cards are important have an attorney handy LOL.
Posted by IRIS CANNON on 2012-01-12:
I TRY TO ACCESS MY ORCHARD BANK ACCOUNT AND THEY KEEP TELLING ME THAT MY ACCOUNT IS NOT AVAILABLE ONLINE.HOW CAN I PAY MY BII? I HAVE GON GREEN SO EVERYTHING IS ONLINE. WHAT DO I DO?
Posted by DebtorBasher on 2012-01-12:
Iris, call them up and pay over the phone. Tell them you have having trouble accessing your account online and they should be able to walk you though it and get you online.
Posted by Andy on 2012-03-20:
I just got an orchard credit card and my first payment is due March 28th. The minimum to pay was 15.03, but I went a head and paid the whole balance 143.55 this was yesterday, and I alreday check my bank and they have taken it out. Why has ot not been posted, when I called them yessterday they said it could take a few hours,I wanted to ask for advice before I called back. When I made a payment of 29.00 for the annual fee, I also paid it on the phone and it posted a couple hours later. It's not even showing pending like it did last time. If they don't post it I have to cancel because i can't let them rip me off, I am afraid they are trying to wait until after the 28th so I will have to pay late charges, but there is now way in hell I am paying them a cent extra that I don't owe! If I cancel will any thing happen to my credit, since I have paid them in full? Has this happened to anhyone else? Do you think it will be posted soon? Thanks
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