Overdraft fee?

natc

We have had an overdraft facility since opening our joint acc about 5 years ago, a letter normally comes through every 6 months or so to say the bank have reviewed our overdraft and are pleased to offer same overdraft again etc etc....got a letter the other day, overdraft review, they have reduced it for the first time, which were not bothered about, dont really use the facility, but they are now saying that they will be charging a £25 to arrange the overdraft???? This has never happened before. Is this right? Is this a new thing that banks are doing now?

getmore4less

which bank?

natc

Its HSBC, i have rung them since i posted this, and they said that the charge would only be made if i had been overdrawn in the 6 months before the renewal of the overdraft facility....it doesnt say that in the letter, says that an arrangement fee will be taken on the renewal date......

7sefton

Yet again, I hate HSBC

Lokolo

Its a new process. Everyone has been getting these £25 charges although you're only meant to get them if you have changed your overdrafts (formally or not). I imagine its a teething problem!

Have you changed your overdraft in the last year? (i.e. ask for more or less)
Have you been over your agreed overdraft?

If the answer to those are both no you can go into branch and ask for the £25 charge to be removed.