I have been a member with Orchard Bank since 2001 and have never gone over the limit provided by Orchard Bank on my account due to my own spending. However, they have recently been charging my account finance charges, which put the account over the limit, and then they charge an over-limit fee of $29.00.
When I spoke to one of their account managers named Mike Weber, ID # 51Q, I was told they are aware they are being sued over the practice, but they are going to continue to do so until the courts decide otherwise. When you call for account information, it tells you that you have "X" dollars available in your account and how much of that is available for cash withdrawal. This amount equals the balance subtracted from the credit limit.
Under current credit laws, you are entitled to spend up to your limit without penalties and if a company charges interest on top of that amount and it kicks your balance over the limit, they cannot charge an over-limit fee unless the amount is still their on the next billing cycle.
More recently, it appears they are also now holding purchases for several days before posting after interest has been applied, even though they are aware of the purchase immediately.
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