how long do Graduate accounts last?

rose28454

My son graduated in 2006 and has two graduate accounts, one with Lloyds andone with Hsbc. The Lloyds account is his main account and his salry is paid in monthly. He has an overdraft limit of £1500 and usually gete near it before pay day. He also has a loan with them which he took to pay off his credit card. He then has a second account with HSBC with a £1750 limit which is £1100 overdrawn. He paid some of it off last year when the limit was £1500 and they then increased the limit again. He only uses this account occasionally and does not pay in regulary to it. I asked in the branch recently what happens when you get to year 3 after graduating and they said they dont usually decrease the limit they just decrease the bit that is interest free.
He has just called me in a panic as HSBC wrote to say his interest free overdraft would end next week and he would have to pay 18.8%. They said this was as per the terms and conditons of the account and then this evening somebody rang to say they wanted the full £1100.00 repaid forthwith. He said he would set up a standing order for £20.00 per month as that is all he can afford. Now when he got this account I remember it being 3 years and not 2. Can they change the terms and conditions like this. He then went on to say that Lloyds have said his limit with them will also reduce to £1000 from the 4 August.
He is really upset as he does not know how he will manage. Now I know people will call him irresponsible for having 2 overdrafts but he thought he had one more year to sort it. He only earns £1178 per month net and lives in Central London. He has just applied for a new job with twice the salary so fingers crossed there.
Anyway my question is can HSBC change the t & c's like that and would he be able to ask for a better interest rate. He has banked with Lloyds since he was 11 and with HSBC for 5 years and on the whole has run his accounts well. I am just getting divorced and cant afford to help him.
Any ideas anyone??

melancholly

HSBC have been total [EMAIL="b@stards"]b@stards[/EMAIL] in the last 2 years with changing their minds over graduate accounts and overdrafts.... not much help but a lot of students are in the same boat. i think every potential student should know how awful they are and i'd advise everyone against their student account, regardless of the sign up bonus offers.

the only thing i can suggest is that he comes on, maybe goes to the DFW board and does an SOA. then people can help him find more money to throw at the overdrafts. even with his wage and being in london, he should be able to find more than £20 a month to pay.