HSBC not following their own terms and conditions???

Miss_Mindy

Hi

It's been a rather lengthy and boring process but to keep it as short and sweet as possible...

HSBC's Fair Fees policy states that they charge £25 for "arrangement fees" if you go more than £10 over your overdraft limit. They also state that they will never charge more than the amount by which you exceeded your limit.

When I exceeded my overdraft by a total of £69 in 3 transactions, they charged me £69 in fees for the privilege. However, those transactions were for £11, £16 and £42. Can anyone tell me how they managed to charge me £69, if their arrangment fee is £25??? HSBC have since part-refunded me as a gesture of "good will" but they refuse to accept any wrong doing and of the four different people I had to deal with along the way, not one of them could explain how they reached their figure of £69 in fees.

I am not out to seek any compensation as I believe they treated me fairly.... eventually. However, I am concerned that they have a bit of a rogue attitude towards charging fees to their customers and I believe their staff have a poor understanding of HSBC's charging policies.

I am considering taking this to the Financial Ombudsmen but it's only out of principle and I'm not sure it's worth the effort.

What are your thoughts? Are they at fault?

Thanks

apcorbett

Miss_Mindy wrote: »

Hi

It's been a rather lengthy and boring process but to keep it as short and sweet as possible...

HSBC's Fair Fees policy states that they charge £25 for "arrangement fees" if you go more than £10 over your overdraft limit. They also state that they will never charge more than the amount by which you exceeded your limit.

When I exceeded my overdraft by a total of £69 in 3 transactions, they charged me £69 in fees for the privilege. However, those transactions were for £11, £16 and £42. Can anyone tell me how they managed to charge me £69, if their arrangment fee is £25??? HSBC have since part-refunded me as a gesture of "good will" but they refuse to accept any wrong doing and of the four different people I had to deal with along the way, not one of them could explain how they reached their figure of £69 in fees.

I am not out to seek any compensation as I believe they treated me fairly.... eventually. However, I am concerned that they have a bit of a rogue attitude towards charging fees to their customers and I believe their staff have a poor understanding of HSBC's charging policies.

I am considering taking this to the Financial Ombudsmen but it's only out of principle and I'm not sure it's worth the effort.

What are your thoughts? Are they at fault?

Thanks

Their arrangement fees are £25.00 per item. Three items = £75, but they have said that they will not charge you more than the items in question, which are £69, so they have charged you £69.

Sort of makes sense (although that doesn't mean that I agree!)

Miss_Mindy

apcorbett wrote: »

Their arrangement fees are £25.00 per item. Three items = £75, but they have said that they will not charge you more than the items in question, which are £69, so they have charged you £69.

Sort of makes sense (although that doesn't mean that I agree!)

Thanks. But if three items = £75, that would be charging me £25 for the time I took out £11 and £25 for the time I took out £16. Isn't that contradicting their policy?

I figured I should have been charged £11, £16 and £25 = £52 as the overdrafts were on 3 different dates. Perhaps they should word their policy better?? I'm no idiot and I was clearly misled.

Miss_Mindy

Actually, one thing I forgot to mention is that one of their advisors on the phone said that sometimes the charge is £10 if the withdrawal is less than £25! It seems they are just as confused as I am.

apcorbett

Miss_Mindy wrote: »

Thanks. But if three items = £75, that would be charging me £25 for the time I took out £11 and £25 for the time I took out £16. Isn't that contradicting their policy?

I figured I should have been charged £11, £16 and £25 = £52 as the overdrafts were on 3 different dates. Perhaps they should word their policy better?? I'm no idiot and I was clearly misled.

I don't disagree, although it may be hidden within their T&Cs that they will calculate charges on a periodic basis, and not necessarily at the time the 'offence' is committed. That way, they work out the total amount of all the items bounced, and then make sure that their charges do not exceed the total.

Miss_Mindy

apcorbett wrote: »

I don't disagree, although it may be hidden within their T&Cs that they will calculate charges on a periodic basis, and not necessarily at the time the 'offence' is committed. That way, they work out the total amount of all the items bounced, and then make sure that their charges do not exceed the total.

In which case, why quote an administration fee of £25? It's all a bit make-it-up-on-the-spot if you ask me. This is obviously why no-one could explain exactly how they reached their figure.

At least I see it now as more of a grey area so I don't have my knickers in quite such a large knot (although a £69 fee for something that apparently costs them £2.50 in administration... don't even get me started!).

Thanks for your advice.

borgbaiter

hi

have to wait for the courts to find out if its legal or not.


Borgbaiter