HSBC overdraft charge

lucypeach · 21 April 2008 at 10:27AM

Just thought I'd let you all know this:

My bank sent me a letter last month informing me they were pleased to letme know my overdraft had been approved for one more year. The letter was 5 pages long. When I got to the last page (most people wouldnt read it) it told me I was being charged £25 for the pleasure. I have ner been charged for having a small overdraft facility and have been with the bank for 15 years. I telephoned HSBC and let them know I was unhappy with the charges and that I would like to close my account as other banks do not charge fee for overdrafts - only interest on how overdrawn you are. They very quickly refunded my £25 charge. So moral is - if you dont ask you dont get.

saintscouple · 21 April 2008 at 1:05PM

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere (please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].

will1281 · 21 April 2008 at 2:16PM

I have a question related to HSBC overdraft charges.

What I want to do is to set up all the direct debits for my credit cards to be taken from my HSBC account the same day my salary is paid in.

Depending on how HSBC times the payments, the debits may come out of the accounts before my salary comes in. If this is the case, will I be charged interest? Is interest calculated as soon as my balance goes below zero, or do i have some window ie. till 5pm or 11:59pm to put my balance back to zero.

I tried to ask HSBC telephone banking the above, but they didnt know the answer.

many thanks.

YorkshireBoy · 21 April 2008 at 2:21PM

will1281 wrote: »

What I want to do is to set up all the direct debits for my credit cards to be taken from my HSBC account the same day my salary is paid in.

Very bad idea IMHO.

Better to set them for a few days after your 'normal' pay day. This will give you time to transfer funds into the account should your salary be late for whatever reason.

Depending on how HSBC times the payments...

Don't HSBC, as part of their 'fairer fees' policy, let you pay in money later that day without penalty?

Check your account T&C's.

lucypeach · 21 April 2008 at 6:56PM

I think they allow you to go overdrawn until 5pm that day, so if you account shows it is overdrawn in the morning but funds are showed as cleared by 5pm then they will not charge you. But I definitely agree that you should set your direct debits to go out a few days after payday. Its like walking a tightrope to place all your transactions on one day. Some companies have different policies for bank holidays. My bank may not pay out on certain DDs on bank holidays, so where it will pay out on the 3rd of the month each month if it hits Christmas or similar it may take it later and may pay may be one day later. Talk to your bank and arrange those DDs with 3 days breathing space - phew!

bien.wal · 21 April 2008 at 11:22PM

This Bank charging for almost everything.I m with this Bank about 5 years and now considerating moving to another.I m tired to call them everytime I charged by mistake by their computer system.They always giving me refund ,but I m tired.

lucypeach · 22 April 2008 at 11:32AM

I know the feeling. But when I look round at other banks they all seem to have similar problems. I ask friends and they all hate the banks they are with. I really dont think there are any out there who actually do what they say (kinda like politicians!). We should set up our own bank, with no charges, instant cheque cashing and no fee's to send you a letter. I dont mind paying a small interest rate if I go into my overdraft, or rates on any loans, but I do mind paying for them to tell me they are going to charge me. Gggrr

Scousebird_2 · 22 April 2008 at 11:42AM

will1281 wrote: »

I have a question related to HSBC overdraft charges.

What I want to do is to set up all the direct debits for my credit cards to be taken from my HSBC account the same day my salary is paid in.

Depending on how HSBC times the payments, the debits may come out of the accounts before my salary comes in. If this is the case, will I be charged interest? Is interest calculated as soon as my balance goes below zero, or do i have some window ie. till 5pm or 11:59pm to put my balance back to zero.

I tried to ask HSBC telephone banking the above, but they didnt know the answer.

many thanks.

I can answer this one-if you are asking for payments to leave your account the same day your salary is credited then they can be taken anything from 12.01am and your salary can credit any time after or at the same time. It does state in all banking terms and conditions-not just with HSBC but with most major banks, that any debits due to leave your account, you must ensure that the funds are in your account, the WORKING DAY before.

Anything that happenes as a result of this condition not being followed is not the banks fault, as you signed an agreement to follow this when you opened your account.

Most of the time the system will realise and not charge but you can't blame the bank if they ask you to do the above and you don't. It's common sense really as you are not sure that your wages will be crediting at 12.01am on the day in question, by changing your DD's and SO's to the following day, you are completely safe.

Hope this answers your question.

Dill · 22 April 2008 at 1:32PM

lucypeach wrote: »

My bank sent me a letter last month informing me they were pleased to letme know my overdraft had been approved for one more year. The letter was 5 pages long. When I got to the last page (most people wouldnt read it) it told me I was being charged £25 for the pleasure. I have ner been charged for having a small overdraft facility and have been with the bank for 15 years. I telephoned HSBC and let them know I was unhappy with the charges and that I would like to close my account as other banks do not charge fee for overdrafts - only interest on how overdrawn you are. They very quickly refunded my £25 charge. So moral is - if you dont ask you dont get.

They did exactly the same with me last autumn. Wrote to me saying that they were pleased to tell me that they'd approved my o/d for another year, and the £25 arrangement fee (which I too had never come across before..)would be taken from my account on such-and-such a date.:mad:

I've a feeling they're going to charge me again once the year's up, so maybe I'll do what you did and tell them I'm closing the account!

travellingaussie · 22 April 2008 at 6:04PM

Hi, I'm new to all this and also to the banking system over here by the looks of things. I've had an account with HSBC for 2 years now since I have been over in the UK. I have a small overdraft of £300 on my account and never go over as far as I am aware, just ties me over with rent till my paycheck comes in. I've also never had a charge on the account. All of a sudden I have an "Agreement Fee" showing up to come out of my account? Could someone explain what this is and what it is for...if its for a review of my overdraft I've never received a letter about this or been contacted to ask if I would like it and previously I contacted the bank to increase my overdraft but when they said it would cost I said not to bother as I didn't really need it so it never got increased...shouldn't they at least ask you before assuming as if they told me this I would have said don't bother and just got rid of the overdraft?

Dill · 22 April 2008 at 7:31PM

travelling aussie

I'm not sure if all the UK banks are doing this, or if it's just HSBC, but I'd guess the Agreement Fee is relating to your overdraft. They seem to want to charge £25 now in order to authorise another 12 months of the overdraft facility. (It's a relatively recent thing, I think.)

But they should have written to you first to let you know, so I'd query it with them.

HSBC overdraft charge

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