HSBC Graduate account only lasts for 2 years?

****NEWSFLASH******************

Dear all

Re: HSBC Interest free overdraft entitlement for Graduates

All final year student customers and existing graduate customers of HSBC’s student banking service have been sent a Direct Mail letter dated 17/6 to inform them their interest free overdraft entitlement would be changing as they enter their next year of Graduation.

A number of students have contacted NUS with concerns about the communications and NUS has been in discussion with HSBC on the issuies involved.

This letter is a standard one that lets customers know their account is changing. In addition to this mailing, students are also receiving system generated overdraft renewal prenotification letters which detail their overdraft limit and interest free entitlement as at the date of the letter- not what they will be changing to in a month.

Although the limit information in the overdraft renewal letter is correct, the interest free entitlement wording is confusing as it states the existing entitlement rather than the amount customers will go to when they are migrated on 19 July. Therefore, some customers are getting the impression that they will get the interest free overdraft mentioned in this letter until the next review date in approx 12 months. This contradicts the message given in the other letters.

Following discussions we can confirm there has been no policy change for customers, since 2006 HSBC customers have been on a 2 year Graduate proposition. HSBC have now assured NUS that they will look in detail at the confusion caused for customers affected and will take steps to clarify the situation for their student/graduate customers.

In the meantime HSBC have advised any student or graduate customers that are confused to contact them with questions. We would also encourage any students with remaining issues to contact NUS directly.

Best Wishes

Ama Uzowuru
NUS VP Welfare

Cardelia wrote: »

This is interesting because I recently looked into graduate accounts (2 months ago) and HSBC's graduate service was a £1750 interest-free OD facility in year 1, with the interest-free OD falling by £500 each year - in effect, it lasts 4 years. I was planning on taking this up next month so I guess I'll have to check it again before I decide.

When you graduate, you’ll get all the support you’re used to as a student. We’ll automatically transfer you to our Graduate Service in the year you graduate.
In addition to all the essentials you’d expect from your bank, you’ll get a range of options including:

-Interest-free overdraft typical 0% EAR* variable for the first two years (only available until 1st June 2007).
-Graduate Loans at preferential rates typical 8.9% APR variable*. Our graduate loans are available for up to five years after graduation – longer than most other banks.
Graduate Mortgage terms available on loans up to £250,000. We can lend up to 95% of the property purchase price or value, whichever is the lower*, and you can apply up to five years after graduation.
-Your home may be repossessed if you do not keep up repayments on your mortgage.
-Interest free overdraft – typical 0% EAR variable for the first two years (only available until 15th July 2007)
- Credit Card there for you whenever and wherever you need it, worldwide friendly advice from specially trained staff banking 24/7* via internet or telephone banking internet fraud guarantee commission-free travel money. See pages 9 and 10 for more details.
- As your life changes and priorities shift, you’ll have decisions to make about where you want to go next. You might be kick-starting your career, setting up your own business, taking time out to travel, or continuing to study. Whatever you choose why not discuss it with us.