HSBC Charging me for reviewing overdraft!!

Beckety

I had a letter recently from HSBC saying they were carrying out an annual review of my overdraft facility. Apparently they checked to make sure my overdraft limit still meets my needs etc. They've decided to leave it exactly as it is, but have charged me £25, for, well, as far as I can tell, sending me a letter out!! :mad: I'm fuming and phoned them today to ask how they can justify this when I've had exactly the same overdraft for years and have banked with them for over 20 years. I was told that all customers are being charged this and there's nothing I can do about it! Is that true and are they legally allowed to take money out of my account for something I neither authorised nor asked for? I was also told this will be an annual thing now. Well if that's the case I'll be taking my business elsewhere!!

chambta

If you don't need the overdraft ask for it to be removed and the charge refunded. If you do need it it's effectively an annual charge for having an overdraft in the same way some banks make monthly charges. Plenty of banks do not make these charges though.

RayWolfe

They told customers about this change around October last year; you will have received this notification.

Beckety

RayWolfe wrote: »

They told customers about this change around October last year; you will have received this notification.

I have received nothing until this recent letter which is why it came as such a shock. Regardless of how many letters they send out though it still seems wrong to me. I recently switched to bank account plus as they told me it would save me money on my overdraft so I pay an extra £12.95 a month for that and now they're charging me another £25! :rolleyes:
Chambta I do need my overdraft which they well know otherwise I'd tell them where to shove it!

dunstonh

Regardless of how many letters they send out though it still seems wrong to me.

Actually its quite fair and fits in with what the Govt believe is fairer charging.

I remember back in my banking days having to sift through lists and decide whether to renew overdrafts for another 12 months. It was boring and time consuming.

jonesMUFCforever

dunstonh wrote: »

Actually its quite fair and fits in with what the Govt believe is fairer charging.

I remember back in my banking days having to sift through lists and decide whether to renew overdrafts for another 12 months. It was boring and time consuming.

I think its all automated these days though.

Only dodgy cases would be reviewed manually.

hm2be

I so didn't know about these charges. Do these apply even if you don't ever use your overdraft facility?

JohalaReewi

Sounds like it's the old HSBC overdraft review fee letter doing the rounds again...

http://forums.moneysavingexpert.com/showthread.html?p=7948921

jonesMUFCforever

hm2be wrote: »

I so didn't know about these charges. Do these apply even if you don't ever use your overdraft facility?

If you are a HSBC customer who has an overdraft facility on their account then yes in all probability you will be charged at some stage.
To avoid this you could cancel the arrangement now if you really don't need it.

Sol00

If they're making this charge annually, then the best option would be to move elsewhere. You may even find a better deal!

russjp

I`ve just been stung with this and am off to the Alliance & Leicester account recommended by Martin Lewis