HSBC lowered my Overdraft Limit without Telling Me!! HELP!!!

daniel1985_2

Hi There,
I have just returned from holiday yesterday and checked my balance online, i was shocked to find that HSBC have decreased my credit limit from £1750 to £1500 without giving me any warning, this means with my £200 wage which i received today i am still -£1550 (£50 over overdrawn) this means iv got no money at all for the next 2 weeks until next payday, i have been into the branch this morning and they said that the student overdraft gets reviewed each year and there is nothing they can do about it, they offered to give me the £200 wage and not charge me but that would mean i would be in the same position next payday. when i returned from the bank i had recived a letter this morning (2/8/08) the letter was dated 21/07/08 and said that "HSBC are pleased to confirm that as from 19/07/08 (3 days before the letter is dated) my credit limit will be £1500". I have just finished my degree course at uni but am staying on to do teacher training so i am still entitled to a student account. Please could anyone give me any advice about what i should do, surely the bank isnt allowed to lower an agreed overdraft limit to put someone in debt and leave them so that they cant access their wages. Any advice would be much appreciated as i fell like i am speaking to a brick wall with them.

RayWolfe

Welcome to the real world.
You are overdrawn by £1,750, you earn £100 a week and yet you feel you can go on holiday!
Sorry to hear about your plight but take is as a lesson on life and learn from it.
Overdrafts are repayable on demand ... always have been.

wornoutmumoftwo

I don't know anything about terms of student overdrafts

I would suggest speaking to the bank and making an arrangement to repay the overdrawn overdraft part?

Or you will need another account to ensure you're wages aren't swallowed up - whilst repaying the overdraft at an agreed amount with bank.

Night-owl_6

RayWolfe wrote: »

Welcome to the real world.
You are overdrawn by £1,750, you earn £100 a week and yet you feel you can go on holiday!
Sorry to hear about your plight but take is as a lesson on life and learn from it.
Overdrafts are repayable on demand ... always have been.

Think that was a bit harsh on the OP don't you?!
This has nothing to do with the OP holiday.
Unless you can post useful advice don't post at all, and don't reply to my post with a rant

welf_man

Is there any chance of getting more hours / an additional job for 6 weeks? Or could a parent / sibling / other relative help you out with the £250 you've lost from the O/D?

You'll get a bit more in Student Loan at the start of term, as you get the full-year rate for the PGCE, so hopefully you'd be able to pay back anyone who helps you out pretty quickly.

You need to do a budget now to make sure you can cope next academic year, bearing in mind that you are unlikely to be able to do paid work while you're on teaching practice if you want to do well.

Good luck with it!

Mel.

RayWolfe

Night-owl wrote: »

Unless you can post useful advice don't post at all, and don't reply to my post with a rant

Thank you for giving me the benefit of your opinion, it's strange that you think that I'm not able to give mine! Hey ho.

daniel1985_2

Raywolfe, Dont be patronising, the holiday was paid for by my boyfriend (whos user account this is) so that has nothing to do with it, i understand that overdrafts are recoverable at anytime but if they did this to all students who were living close to their limits there wouldnt be many who would escape!

Inactive

Perhaps HSBC have decided that you are using the overdraft as a long term interest free loan, not as a short term relief valve, which is it's basic function.

They have the right to call in any overdraft at any time, so I don't honestly think there is much you can do about it, other than change banks.

I have used HSBC for many years, never had a problem with them.

RayWolfe

daniel1985 wrote: »

Raywolfe, Dont be patronising, the holiday was paid for by my boyfriend (whos user account this is) so that has nothing to do with it, i understand that overdrafts are recoverable at anytime but if they did this to all students who were living close to their limits there wouldnt be many who would escape!

Fair enough, don't learn from it. Your choice.

Thought you came here for help. Never mind.

Lokolo

If say I have a student overdraft. And HSBC withdraw it without telling me, at what point do I start getting charges put on?

emmagrey

that seems grossly unfair to me, there are thousands of students in their overdraft living on the breadline. to decrease it without prior warning, for no reason, is obviously going to mean people will accidently without even knowing it, go into unathorised overdraft, thinking they are in authorised overdraft. and who wins? the bank cause they apply charges, to people who just cant afford it. its always the people who cant afford it, who get hit, the bank just wants to make money imo.

anyway, my advice would be, can you borrow some money off someone to cover been overdrawn? you dont want to stay in unauthorised overdraft, cause they'll start charging you, and you cant afford additional charges. then stay in within you're overdraft (stating the obvious here). also if you do get charges, put in a claim for them, for when the hold is lifted. sorry i cant be more help, its a difficult situation.