HSBC just decided to cancel my overdraft... HELP!

JackNco

OK so this was a shock to me. I had a call from someone at HSBC telling me my overdraft gone over its limit.

my £1400.00 overdraft limit on my graduae account was at £1403.40

and that because of repeated violations of my overdraft I have a month to pay it back. HSBC know ive been unemployed after full time education and that im studying while working now.

They know this because i stated it all in my Financial hardship claime under the FSA thing when they declined my bank charges recall. and now a couple of months later they are telling me I have a month to find £1403.40

Can they really demand £1400.00 from someone thats only in the second month back in to emplyement rigth after I put in a claime for financial hardship? I wasnt given a warning about this in any way. No letters or calls were made saying that if I went over my limit again my overdraft would be rejected.

Please help with any advice you can give me.

All the best

John

BruceyBonus

An overdraft is repayable on demand. They can make you pay it back whenever they like, without reason. Overdrafts are really only designed for short term borrowing.

JackNco

but it was on a student account with a limit thats upped every year. I think ill have to put an apeal in writing and go in to the bank on friday....

BruceyBonus

JackNco wrote: »

but it was on a student account with a limit thats upped every year.

That is irrelevant as the same conditions apply.

JackNco

I guess ill be going in and seeing if i can get them to agree to me reducing the limit by an ammount every month.

BruceyBonus

Their terms and conditions explain it:

5.10 Unless we have agreed other terms with you in writing, we may at any time end or reduce your overdraft and demand in writing that you pay any money you owe us immediately.

5.8 Whenever your account is overdrawn you should make regular payments into your account. You must tell us if you are unable to do this.

Extant

Yes, they can.

Don't expect them to reverse their decision - you're most likely to get a payment plan.

JackNco

so what would you sugest? offering to reduce my overdraft/pay and ammount? what sort of numbers should i be talking?

simongregson

If I were you I would open another current account at an unconnected bank (basic account might be best if your credit score is poor), and arrange for your wages to be paid into this account ASAP. You can then pay off the overdraft from your new account with any spare money you have each month, after your rent/food etc.

If you don't do this, expect HSBC to just grab your wages for the next month to pay off the overdraft, leaving you with nothing to live off!

JackNco

yeah I had considered this. least i know this months pay is safe.

oxenryd

JackNco wrote: »

so what would you sugest? offering to reduce my overdraft/pay and ammount? what sort of numbers should i be talking?

I think it will be them telling you the amounts to pay, and if you don't very often they just pass on to Debt Agencies