HSBC No Interest and now £25 Overdraft

lordgaz

I have been banking with HSBC for over 20 years now - and have kept my account in reasonable order.

I got a letter a few months ago saying that due to popular feedback, they would be removing interest on current account credit balances.

Now they have advised that my "Current Account Advance" (not sure when it changed to Advance) will have a £25 arrangement fee for my £500 overdraft (on top of the 19.9% interest for overdrawn account)

This really msut be the final straw for me - I am going up the bank today to protest this charge, and I will move to A&L if they do not agree..

My question is - is there any negative points about moving bank account - (often a question on money application forms is how long you have been with your current bank)

Should I just say good riddance to HSBC?


Cheers
Gaz

Lokolo

If you read the T&Cs properly you would know that the £25 fee is if you change your overdraft either formally or informally in the last 6 months from your aniversary date.

So if you leave it as it is, there is no charge.

Move banks to A&L all you like but you're going to be worse off. A&L are crap from what people on this forum have said.

rb10

Still, even if you don't have to pay the charge, you could get a lower overdraft EAR and/or credit interest at another bank. What do HSBC offer you that elsewhere doesn't?

Lokolo

Deposit machines for cash and cheques which work, decent internet banking and helpful staff in branch. Well for me anyway, obviously not for Inactive.

But yeh, OP, if you don't like them and are thinking of moving, the move.

lordgaz

Lokolo wrote: »

If you read the T&Cs properly you would know that the £25 fee is if you change your overdraft either formally or informally in the last 6 months from your aniversary date.

So if you leave it as it is, there is no charge.

Move banks to A&L all you like but you're going to be worse off. A&L are crap from what people on this forum have said.

The £25 fee has been charged already and I have not changed anything with my overdraft facilty (it was charged on 5th Jan, and I just got a letter about it yesterday which is also a poor show)
I already have an A&L account for out house bills, and they are crap and there are not many branches near me - What would be a better option (as I will not £100 for that change) - Also, does anyone have any comment about the question of if there are any negatives in changing?

lordgaz

Lokolo wrote: »

Deposit machines for cash and cheques which work, decent internet banking and helpful staff in branch. Well for me anyway, obviously not for Inactive.

But yeh, OP, if you don't like them and are thinking of moving, the move.

Yeah, I agree - it is just very convenient to bank with HSBC

lordgaz

Lokolo wrote: »

If you read the T&Cs properly you would know that the £25 fee is if you change your overdraft either formally or informally in the last 6 months from your aniversary date.

So if you leave it as it is, there is no charge.

Move banks to A&L all you like but you're going to be worse off. A&L are crap from what people on this forum have said.

Do you or anyone else have a copy or link for these T+C's?


Cheers
Gaz

Lokolo

lordgaz wrote: »

Do you or anyone else have a copy or link for these T+C's?


Cheers
Gaz

Wait for ShelfStacker as he might. Ive just got the booklet.

YorkshireBoy

lordgaz wrote: »

Do you or anyone else have a copy or link for these T+C's?

http://www.hsbc.co.uk/1/2/personal/current-accounts/overdraft-service;jsessionid=0000xq7RICKBFxn-Dz9Sr6zr0vV:12ntf0lqs (and links within).

Because 'time with bank' is a key credit scoring criterion, you might want to keep your old account open and ticking over with the odd transaction or two.

Lokolo

As Yorkshire said, thats always a good idea. I have been in my overdraft for 9 months now so I might end up having a bad rating as of late... nevermind. But having been a customer for a while they quite happily gave me a £1k overdraft 0%

From the site:

You won't have to pay an arrangement fee for any overdraft request (formal or informal) in a charging month if you have not made any requests in the last six charging months. Any further requests within a six month period may incur an arrangement fee. However, we won't charge you an arrangement fee if your daily requests total £10 or less.

Just go in, request the money back and there you go

lordgaz

Thank you for the feedback all, also thank you very much for the T+C's link

I have been up the bank and they said it looks like an error, and I laid it on thick about loyalty and leaving - so I hope to get it refunded -

It is in the hands of the manager now...

I will post back