Complaint Review: Orchard Bank/HSBC Card Services - Salinas California

After researching this a little further here are some of the findings. Hong Kong Shanghi Banking Corp aka HSBC, aka Orchard Bank, NV is registered as a Foreign Bank. The US Corporate address is HSBC USA, Inc, 452 Fifth Ave, NY,NY 10018., Legal Processing is at 12th Floor, One HSBC Center, Buffalo, NY 14203. The Comptroller of the Currency (OCC) is the controlling agency that any of the complaints against HSBC should be directed. Their address is: Office of the Comptroller of the Currency, Customer Assistance Group, 1301 McKinney Street, Suite 3450, Houston, Texas, 77010-9050 Fax 1-713-336-4301. Be advised that frivelous complaints will not be acted upon. I have also found out to pursue the "outrageous increase of rate" is a dead end. The State of Florida has informed me that credit card rates are basically exempted from usury laws. The accepted rule of thumb is they can charge whatever they do in other states. The only complaint I find that may work is a false advertising or failure to disclose rates when applying for this card. I have researched all the advertisements and have found that no where is it disclosed that 16% interest is solely an introductory rate. The only mention of credit reports being used to, partially or completly, determine a rise in interest is in the Orchard Card member and Disclosure Statement. It however is written to lead you to believe that this will be used to determine increases in line of credit combined with your history with them. There is no clear cut mention or inference that your rate of interest will be reviewed 6 months after your acceptance and that a standard increase to 28% is the normal. Therefore I am pursuing this avenue of recourse.

I have filed a complaint with the the Office Of the Attorney General, State of Florida. My intention is not to destroy Orchard Bank as there is a need for these type of credit lenders. I also believe that they must be regulated to ensure their stated advertised mission. There does however appear to be some unethical business practices a foot with this company. The convenient rise of interest rates from 16% to 29% when your payment history is impeccable combined with no violations of contractual obligations. This increase just happens to go into effect a month before the annual fee is charged to your card. The intent of this issuer appears more predatory than ambitious. They appear to deliberately mislead one to believe the Annual Fee is charged to cover the risk of extending credit. This fee is variable as stated in the advertisement because it depends on one's credit rating. I have been in contact with Orchard both on the phone and through their on line customer service. Both resulted in being told it was a BUSINESS decision on the part of the company. I was also informed, during the phone conversation, that my payment history reflected no adverse justification for the increase. It is not however to be run over by this or any lender trying to enhance their target market. My intention is to limit this and any "bad credit lender" to a standard that is ethical and fair. One that would require truth in advertising allowing one to make a valid decision based on fact rather than fiction. Hold this and any lender or issuer to the same standards as ethical lending institutions. My financial mishandling in the past has made it necessary for me to associate with Orchard Bank. It does not give them the right to mislead and run herd over me. My choices are very limited, but credit is a necessary evil to survive in today's economy. My intention is to rebuild my credit as I am sure is the intent of many.