topic Re: Anyone else received a rate increase From Orchard Bank in Credit Cards

Anyone else received a rate increase From Orchard Bank

lanah — Wed, 23 Sep 2009 14:09:38 GMT

I received a Change in terms letter stating that my credit card account APR will be raised to 19.99 percent. I called to ask why and they said it's a "company" decision and that 19.99 percent is the lowest they will be offering to anyone. I hate to say this but I got so angry that I said "That's BULLSh!T". orchard bank wouldn't get anyone to get there cards if they only offered 20.00 percent.

She said that I could OPT out and close the account, which all credit cards are saying ALL the time now because they know it hurts your credit score if you close all of these accounts. The best i can do is pay it off.

This is the second time this has happened to me. I believe cards are trying to raise their rates before the reform hits in feburary.

Re: Anyone else received a rate increase From Orchard Bank

Anonymous — Wed, 23 Sep 2009 14:24:09 GMT

Yep. DW still has her Orchard cause its her oldest open TL. She got the letter yesterday.

I would hope you aren't carrying a balance on Orchard.

Re: Anyone else received a rate increase From Orchard Bank

Anonymous — Wed, 23 Sep 2009 14:36:14 GMT

Mine went to 20.9% this month ($800 Limit) Fortunately it has a $0 balance and is enjoying its rightful spot at the bottom of my sock drawer

Re: Anyone else received a rate increase From Orchard Bank

Anonymous — Wed, 23 Sep 2009 15:18:42 GMT

Up to 26.99% now along with a $200 CLI to $900. PIF each month so as obnoxious as it is, it's not a huge deal for me.

Re: Anyone else received a rate increase From Orchard Bank

happy0510 — Wed, 23 Sep 2009 16:02:48 GMT

Same here....BOO!!

Luckily all Americans are all filthy rich and can easily afford our PIF's ea. month right?!!

Re: Anyone else received a rate increase From Orchard Bank

rom828 — Wed, 23 Sep 2009 16:54:58 GMT

I have 2 Orchards....MC I've had since '99, has 18.9% now going to 19.99% (not a huge jump) and Plat Visa since '95 with 14.9% increasing also to 19.99.

I've never been late on an Orchard card and now have a good portfolio of primes, so I guess this is sort of any 'across the board" rate increase for Orchard.

Re: Anyone else received a rate increase From Orchard Bank

Anonymous — Wed, 23 Sep 2009 18:43:40 GMT

@rom828 wrote:
I have 2 Orchards....MC I've had since '99, has 18.9% now going to 19.99% (not a huge jump) and Plat Visa since '95 with 14.9% increasing also to 19.99.

I've never been late on an Orchard card and now have a good portfolio of primes, so I guess this is sort of any 'across the board" rate increase for Orchard.

Yes, these are just across the board, "getting ready for new regulation restrictions" maneuvers.

Both DW and myself have high 700's, many primes, average CL's $15k+ and no derogs. Still got the letter going to 26.99% (I believe it was 23.99 plus prime or somthing like that).

For those who only got hit to 18 ro 19%, that's pretty interesting....I'd suggest you make sure it's not prime plus those numbers.

Re: Anyone else received a rate increase From Orchard Bank

haulingthescoreup — Thu, 24 Sep 2009 00:00:43 GMT

txjohn wrote:

For those who only got hit to 18 ro 19%, that's pretty interesting....I'd suggest you make sure it's not prime plus those numbers.

Excellent point! Go check your letters/ e-mails.

Current WSJ prime rate is 3.25%. If your new rate is prime + 19.99%, you need to add them. So for instance, this would actually be 23.24%.

The prime has been at this level for a good while and will probably stay there a while longer, but it's got to go back up again eventually. Unload any Orchard CC debt you have, but keep the card open and use it to buy a Slurpee once a month, if the CL is still important for your overall credit profile.

Message Edited by haulingthescoreup on 09-23-2009 05:00 PM

Re: Anyone else received a rate increase From Orchard Bank

Anonymous — Thu, 24 Sep 2009 12:00:25 GMT

I read that ORCHARD was raising interest rates on all their cards with some starting at 14.99% going up to a high 0f 19.99% (AT TODAYS RATES) on purchases and also 28.99% on all their cards for cash advances.

If also stated that rates on other HSBC Serviced cards, particulary DIRECT MERCHANT BANK CARDS were being raised to 24.99% (Purchases) as it was the card they were having the biggest problems with.

Re: Anyone else received a rate increase From Orchard Bank

hawkeye33 — Thu, 24 Sep 2009 14:38:39 GMT

I have Orchard Gold MC ($520 CL), and I haven't yet received the letter. Currently at 14.9% and assuming I'll go to at least 19.9%. But like others, I PIF, so I'm not worried about the percentage. This is my second-oldest open TL (May 2008), so I'll probably keep it open. I was approved by my Credit Union (University of Iowa Community Credit Union) for $3500 CL on a rewards Visa, so as soon as that arrives in the mail, I think I'm going to close the oldest of my open TLs (Credit One $400 CL opened April 2008). I'm willing to take a small hit on score to get rid of that albatross (and the AF that comes with it)!

Re: Anyone else received a rate increase From Orchard Bank

Anonymous — Thu, 24 Sep 2009 17:41:10 GMT

Not Orchard, but my HSBC Plat APR went to 20.24%. Stated they made the decision for the entire product type, not based on my credit.

Re: Anyone else received a rate increase From Orchard Bank

Anonymous — Thu, 24 Sep 2009 18:31:27 GMT

I just got the letter this week. My APR will be 26.99% for purchases and 28.99% for cash advances. I use the card just for my scorewatch and PIF so I don't really care.

Re: Anyone else received a rate increase From Orchard Bank

Anonymous — Fri, 25 Sep 2009 02:40:12 GMT

I got the letter today. My effective rate will go to 19.99%, but I was planning to close it next month anyway. Now I have another excuse! $300 limit and opened the same month as my Cap1, so closing it won't affect my age and losing $300 isn't exactly going to wipe out my utilization.

Re: Anyone else received a rate increase From Orchard Bank

Uncle_Money — Fri, 25 Sep 2009 03:32:59 GMT

Mine has been high all along. Are ya'll ready? How does 29.49% strike you!

They are CROOKS. Plain and simple. Legalized loansharks. The ONLY reason I hold this card is due to the history I have with it since 1/2005. I zeroed out the balance and in the sock drawer it stays. Household is good if they're all you can get. Other than that, avoid it.

- UM

Re: Anyone else received a rate increase From Orchard Bank

Anonymous — Fri, 25 Sep 2009 03:45:37 GMT

@Anonymous wrote:
I read that ORCHARD was raising interest rates on all their cards with some starting at 14.99% going up to a high 0f 19.99% (AT TODAYS RATES) on purchases and also 28.99% on all their cards for cash advances.

If also stated that rates on other HSBC Serviced cards, particulary DIRECT MERCHANT BANK CARDS were being raised to 24.99% (Purchases) as it was the card they were having the biggest problems with.

I just got the notice on my Direct Merchants Bank "legacy" card and it is going from 27.99% with a cap to 27.99% without a cap. Big deal. I also have been granted a promo APR rate for purchases, which will be up for renegotiation 01OCT. For the last six months it has been 6.99%F. They do not and have not (ever) had any problem with my DMB card.

Re: Anyone else received a rate increase From Orchard Bank

Anonymous — Fri, 25 Sep 2009 09:37:17 GMT

I haven't received notification yet but still expect to.

I did get notified my Macy's card was going to 32%. I won't be using it at all.

Re: Anyone else received a rate increase From Orchard Bank

hawkeye33 — Sat, 26 Sep 2009 21:15:45 GMT

My letter finally arrived today. As mentioned in previous post, I was at 14.9%. Letter indicates my rate is going up to Prime plus 16.74% spread (for purchases). Cash is Prime plus 25.74%. That equates to the roughly 19.99% that people have been mentioning here (obviously will get higher as Prime increases).

Not sure what their formula is doing to determine who gets what rate. Must not be scores as txjohn indicates he has 700s, and I'm mid 600s. CL is low on Orchard card ($520).

Interesting...

Re: Anyone else received a rate increase From Orchard Bank

Anonymous — Sun, 27 Sep 2009 01:26:27 GMT

I am pretty sure this is an across the board increase.

Re: Anyone else received a rate increase From Orchard Bank

Anonymous — Sun, 27 Sep 2009 20:43:39 GMT

@Anonymous wrote:
Not Orchard, but my HSBC Plat APR went to 20.24%. Stated they made the decision for the entire product type, not based on my credit.

The other foot came down yesterday for my only other HSBC product. Letter came yesterday asvising my Direct Merchants Bank DIscover (an HSBC product) APR will be increased to 24.99% effective 12/5/09.

Re: Anyone else received a rate increase From Orchard Bank

Anonymous — Sun, 27 Sep 2009 20:59:28 GMT

HSBC are pretty much haters. Jacking a whole product base "just because" isn't quite right. Not like they offer you a path out of the product either. Try asking for a PC and see what happens!