HSBC Introducing Overdraft arrangement fees

skintlass

Just got a letter from HSBC to say that my overdraft which I've had for years is to be arranged (for exactly the same amount) and that arrangement is to cost me £25. This is on top of the approx 18% interest they charge me when I'm overdrawn. I rang them and they said this was to be the new policy. I'm voting with my feet and am off to A & L.

YorkshireBoy

Depending on your overdraft usage profile, A&L could prove to be more expensive from the second year onwards.

Also, expect more banks to introduce HSBC's model should they lose the charges test case.

Frying pan and fire?

ShelfStacker_3

OP, have you been over your OD limit in the last six months, regardless of how much?

skintlass

ShelfStacker wrote: »

OP, have you been over your OD limit in the last six months, regardless of how much?

I did go over once yes - I hadn't realised that the electric company was taking a lot more money than they should have done as they hadn't reduced my direct debit even though i had updated meter readings.

skintlass

YorkshireBoy wrote: »

Depending on your overdraft usage profile, A&L could prove to be more expensive from the second year onwards.

Also, expect more banks to introduce HSBC's model should they lose the charges test case.

Frying pan and fire?

I don't intend to be overdrawn by this time next year - so it shouldn't be an issue by then.

redrabbit29

I've just noticed I've incurred £4.50 of debit card interest charges this month after going to minus £24.

It's rediculous. I've gone from £1750 interest free credit down to £0 it seems. Unless I've misunderstood this charge, although I don't have any credit cards with HSBC, only one debit card.

skintlass

It will be for the OD - I first started seeing charges a few months ago - I had no charges up to that point if I'd been overdrawn.

redrabbit29

Well, I've been thinking for a while about changing banks. They seem to constantly change the account and it's conditions - over the last 6 months anyway.

ShelfStacker_3

skintlass wrote: »

I did go over once yes - I hadn't realised that the electric company was taking a lot more money than they should have done as they hadn't reduced my direct debit even though i had updated meter readings.

That'll be why. If you went over in the 6 months before the review (i.e. you informally requested an overdraft), you get charged the arrangement fee. The only way to avoid the fee is to not go over or increase your OD limit in the 6 months prior to the review (annual, on the anniversary of your OD limit first being instated.)

Mike1989

skintlass wrote: »

Just got a letter from HSBC to say that my overdraft which I've had for years is to be arranged (for exactly the same amount) and that arrangement is to cost me £25. This is on top of the approx 18% interest they charge me when I'm overdrawn. I rang them and they said this was to be the new policy. I'm voting with my feet and am off to A & L.

A&L are now owned by Abbey. For the last two or three years they have been voted worst for customer satisfaction. They are known for having rubbish call centres were staff don't answer your questions and do put the phone down on you before your problem is solved. So by all means switch to avoid the charge, but my advise would be to pick a bank which would offer good customer service and satisfaction.

KTF

ffacoffipawb wrote: »

Massive images

Perhaps you can use bigger images that add nothing to the thread? I almost didnt see those ones.