HSBC Changing all Bank accounts

Inactive

ldavies wrote: »

I take it your enjoying the BANK holiday too!?

Of course, the banks do have some uses.. :D

Enjoy the holiday.:cool:

ahai1

No but customers get a fair rate for an agreed overdraft. The customers with agreed overdraft are not the problem it is the people without agreed overdrafts and the ones who cannot pay the amount the bank has agreed to lend them.

ldavies wrote: »

thats not true.. your payments wont bounce if you dont have an overdraft! have cleared funds available and they will be paid and if customers dont have authorised funds available ie an agreed overfraft then the payments may bounce.. its not the customers money is it?

ShelfStacker_3

ahai1 wrote: »

No but customers get a fair rate for an agreed overdraft. The customers with agreed overdraft are not the problem it is the people without agreed overdrafts and the ones who cannot pay the amount the bank has agreed to lend them.

Overdrafts tend to be at a higher rate anyway. They're meant for very short term credit, where the interest cost is likely to be a few pence is that, not for long term use like a loan or credit card where an extra percent on the APR can be another month or so on the repayments. And as always, if you don't like it, you're welcome to shop around. First Direct are offering an interest free overdraft on the first £250. HSBC also tend to waive debit interest if it's less than 10p, which if you're using it as an occasional safety net will probably apply to you.

It's also a fair bit less swingeing than the likes of A&L, who charge 50p a day for an agreed overdraft regardless of how small (or large) the balance is.

Inactive

ShelfStacker wrote: »

. HSBC also tend to waive debit interest if it's less than 10p, which if you're using it as an occasional safety net will probably apply to you.

.

They have such big hearts..

Mat_ilda

I'm a massive fan of HSBC.
I know that people hate call centres and all of that, and generally hate big corporations but my experience with HSBC has been amazing.

They have waived fees and penalties for me a few times. Once my business acount went £1 overdrawn which I didn't know about for a few months (I'd actually closed the business and planned on closing the account which I thought had a balance - basically the account fee took me overdrawn which lead to a penalty of £4/day or something....

I ended up owing them over £200 but when I called them, they were really kind and ended up taking the charges off, when technically I was liable for them.

ahai1

How are customers supposed to know all this stuff? They should make the rates clearer. I agree that they are one of the best in terms of customer service from the banks, building societies, credit unions and others I have dealt with but they should make a point of explaining their fees and charges.

Lokolo

Indeed I think the problem is, when people see these charges fully explained to them, they then won't want to touch the bank with a barge pole.

Theres a saying, can't remember how it goes, but its like, if you don't know something then it won't go wrong. I think this is how the customers work, if they don't know the charges etc. then they won't worry and will continue to bank there.

Inactive

ldavies wrote: »

its the same with personal customer charging.. nobody would bat an eyelid if the fees were simply a pound or something.

I would...:D:p

Lyncroft

Been banking with HSBC for years and found them okay. Recently I went over my agreed overdraft by £500 for a day. Got charged £25, but when I said it was an oversight on my part they refunded it without question. Did say they wouldn't don't that again mind.

dougz_2

ldavies wrote: »

There has to be a level of penalty for going overdrawn that will make customers not do it again.

If the intention of the charges is as a deterrent then how come the banks do not make them more obvious in the first place? Instead they hide them away in some pdf on their website, or buried in some lengthy T&C leaflet. And when you eventually manage to find it, they refer to the customers behavior with welcoming terms such as "an informal request for an overdraft".

Furthermore, does this HSBC official line not seem to contradict you that the charges are supposed to be thought of as a penalty?
"HSBC's stance on the test case process
1. We are pleased that the judge has so far agreed that our current and historic Terms and Conditions relating to unauthorised overdraft charges are not capable of being penalties"