Why is Orchard/HSBC charging me a cash advance fee??

[iltph]

I have a $300 secured CC with Orchard Bank. They just charged me a $5.00 finance charge for a cash advance. I have only used my card as a credit card for online and instore purchases. I've never used a check or the card at an ATM. I've written them several times asking which transaction it's for and why I was charged the fee. They simply will not answer me. Here is the latest email I received from them:

[quote]We are writing to you in response to your inquiry regarding your Account
issued by HSBC Bank Nevada N.A.

Unfortunately, we are unable to comply with your request to remove the finance
charges from your account.  Cash advances include those transactions made
over-the-counter, through an ATM, by check, or other "cash-like" transactions
as defined by us.  Cash transactions accrue interest daily from the
transaction date until the date that the transaction is paid in full.  Billed
finance charges on statements where the balance has been satisfied are for the
timeframe between the first day of the billing period and the date the payment
in full was received.[/quote]

If I could ever get a normal unsecured CC I would cancel it in a heartbeat. Does anyone have any advice? This is ridiculous!

[grneydangl]

Oh I really love the "cash-like" transactions; that's hilarious!  Have you tried calling and talking to someone? Maybe you'll get further speaking with someone rather than writing them.  Anytime I try and e-mail I always get something like "we can't tell you in writing, please call this number" blah

[Equinox]

Sometimes an email just won't do the trick. Try flipping the card over and calling the number on the back of it and query them as to why you got charged that fee. If that doesn't work I would look for a backdoor number.

[waterfallwishes]

I have seen this once before on another card .. When shopping at the store , did you choose to get cash back ? I once paid with my card and choose the option to get 20.00 cash back ... now it is an in store cash advance

[iltph]

No, I've never even asked for cash back with my check card, which I've mostly used to pay for all purchases for the past 10 years or so.

[jmbfl]

What did you find out when you called CS?

[iltph]

Here's what I found out:

1. The $5 finance fee was charged the same day as the $25 transaction fee to open my account with PenFed. Still not really sure how this was a "cash transaction". I'm also confused how I was charged a finance charge the day it went through. I'd hate to see what the finance charge would be next month for it when that was only 1 day.

2. Their CS sucks and is outsourced -- the rep I spoke to was extremely difficult to understand.

3. When asked how to tell if I'm going to be charged a "cash advance finance charge" for transactions in the future, she could not give me an answer.

I'm going to stop using this card and as soon as I get approved for an unsecured CC I'm cancelling it. I've only had it for about 9 months.

Message Edited by Scamp on 12-24-2008 08:40 AM

[stefanc]

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@iltph wrote:

Here's what I found out:

1. The $5 finance fee was charged the same day as the $25 transaction fee to open my account with PenFed. Still not really sure how this was a "cash transaction". I'm also confused how I was charged a finance charge the day it went through. I'd hate to see what the finance charge would be next month for it when that was only 1 day.

2. Their CS sucks and is outsourced -- the rep I spoke to was extremely difficult to understand.

3. When asked how to tell if I'm going to be charged a "cash advance finance charge" for transactions in the future, she could not give me an answer.

I'm going to stop using this card and as soon as I get approved for an unsecured CC I'm cancelling it. I've only had it for about 9 months.

Message Edited by Scamp on 12-24-2008 08:40 AM

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Sorry to bring bad news but - You did indeed have a cash advance on your account. A cash deposit to a banking institution (to open an account) pulled from a credit card would normally be a cash advance - it is certainly not a retail transaction and would not be coded as such. In opening (especially) remote or online accounts you should use a debit card or send in money the old fashion way if possible. I think it is safe to assume that most if not all credit cards would view a transaction posting from a banking institution, instead of a retailer, to be a cash advance.

Most BT and cash advances that I have seen have a fee associated with them that is assesed the day that the transaction hits the credit card. The fee always shows up as a "finance charge". Additionally it is usual for the daily interest to start immediately on the transaction posting, there are normally no grace periods for BT or advances. You are probably paying quite a large (cahs advance) interest rate on that $25 transaction and as I said before the clock starts ticking immediately - that interest charge will show up on your next statement in addition to what I am assuming is the $5 "fee" for the transaction. Your average interest rate in your statement will be a wildly huge number as the "fee" will be calculated into the months interest charged - it will drop off the next month and your "normal" interest will show again. So don't be alarmed if your next statement show an interest rate for the month of 35% or even more. That would be normal.