Is a overdrawn charge of £150 a month right?

stressed_out_5

hi all.

I hope you can help or advise

Im currently with HSBC, and have to admit I have been going overdrawn each month.

But, without any warning at the end of nearly every month, they chragre me £150!

Surely, this cannot be right, nor fair

I mean how does this help me?

Sorry to be a pain, Im just so down at the moment about it

Lokolo

Each day you go overdrawn, the amount is calculated and then added. At the end of the month the charge is given to you.

Simple as, don't go overdrawn.

If this is a regular thing, maybe sort out a budget so you can plan your spending and stop this happening in the future?

wornoutmumoftwo

I had that amount of bank charges in a week once! (long long time ago)

My advice to you would be to contact the bank, discuss an overdraft that is suitable for your needs and definately do not go overdrawn, or consider a separate account for your bills and one for your daily spending.

I ended up in a spiral of overdraft charges and ended up moving to a bank without an overdraft which I managed perfectly well whilst repaying the old bank off.

If it's a regular occurance perhaps you could post your monthly spending over in the wannabe debt area as you get really great advice.

Wishing you all the best.

LongTermLurker

Do you have an authorised overdraft? If not, you are going to pay a very high interest rate for unauthorised borrowing.

If you moved to A&L (example) you could maybe get a free overdraft for the first year.

jd87

Maybe they are charging you £5 per day for being overdrawn.

SimonJ80

stressed_out wrote: »

hi all.

I hope you can help or advise

Im currently with HSBC, and have to admit I have been going overdrawn each month.

But, without any warning at the end of nearly every month, they chragre me £150!

Surely, this cannot be right, nor fair

I mean how does this help me?

Sorry to be a pain, Im just so down at the moment about it

Check the terms and conditions of the account, you are probably being charged 18.8% on the money you owe. They don't need to give you any warning, if you go overdrawn without an overdraft then you have to pay fees which soon mount up I'm afraid.

Carmex_Fan

HSBC started doing that to me. I refused to pay £150 and they said they would not charge me in this instance for the full amount, just £25.
I explained to them how does charging me keep me out of debt and why did they allow the money out of my account.

RayWolfe

Carmex_Fan wrote: »

and why did they allow the money out of my account.

Yes, aren't they terrible. Watch out though, next month they're going to MAKE people go overdrawn. Banks eh! What are they like?

[Deleted User]

It's highly unlikely that if you're racking up charges to that magnitude frequently that they will grant you an overdraft or an extension, so as was said above it might be worth opening another account to have your money paid into to pay things out and try and get organised, and if necessary come to an arrangement to clear any unauthorised overdraft away in installments.

Idiophreak

stressed_out wrote: »

I mean how does this help me?

I get what you're saying, but banks are there to make money.

If you want help, you're going to have to help yourself - they're certainly not going to do it.

YorkshireBoy

I suspect the £150 is made up of £25 charges, and not (a great deal of) debit interest.

Typically, these charges are incurred when DD's and SO's are presented for payment. Unless of course the OP is writing guaranteed cheques, which would be classed as card abuse?

Simple answer for the OP is to cancel all such DD's and SO's and pay by cash when YOU have it and/or move the DD's and SO's back to the day after payday.