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

Innocent_Guy

Hopefully the bank will be understanding and allow you to pay back in installments. However they may give you a managed loan or payment plan

JackNco

Managed loan is the last thing i want. From what I can gather seems like they will want to go through income and outgoing and see what i can afford. hopefully i can come to some agreement with them.

davethorp

Personally I'd be considering it retaliatory action following your charges claim and letting the bank know you will be reporting it as such. I believe the FSA took a dim view of banks doing similar things when the bank charge claiming started

Lokolo

The bank hasn't done anything wrong though?

never-in-doubt

Lokolo wrote: »

The bank hasn't done anything wrong though?

Agreed, it has been explained that o/d's are repayable on demand. Same as what the banks are doing with credit cards, reducing limits.

Its up to the lender unfortunately. But you have no real rights - thats just the way it is.

Obukit

davethorp wrote: »

Personally I'd be considering it retaliatory action following your charges claim and letting the bank know you will be reporting it as such. I believe the FSA took a dim view of banks doing similar things when the bank charge claiming started

The OP has already said that this happened right after they went over their overdraft limit, e.g. took out an unauthorised overdraft, albeit by £3. Hence, even though they don't need to give one, HSBC have a good reason for withdrawing the OP's overdraft.

On the plus side it may be a good thing - living in your overdraft is an expensive thing to do and having your arm twisted into paying it back may be good for the OP in the long run.

JackNco

Obukit wrote: »

The OP has already said that this happened right after they went over their overdraft limit, e.g. took out an unauthorised overdraft, albeit by £3. Hence, even though they don't need to give one, HSBC have a good reason for withdrawing the OP's overdraft.

On the plus side it may be a good thing - living in your overdraft is an expensive thing to do and having your arm twisted into paying it back may be good for the OP in the long run.

Agreed in the long run. but I got in to the overdraft as a student so it was interested free, atm it costs me about £3.00 in interest a month on the £1400. my credit card on the other hand has a much higher interest rate and I was working at paying that off first.

I went in to HSBC today and waited 40 minutes after I finished work to be asked if I can come in tomorrow. so Ill post back for the benefit of anyone else that finds them self in my position on what they offered me/forced me in to.

Wish me luck...

John (the OP)

JackNco

well after 2 hours in the bank. turns out .......... i dont know. but they said they are not askign forthe money back at the moment........

peachyprice

Do still get yourself another account with an unrelated bank though. They may say they don't want it back today, but could change their mind as soon as they see your salary go in next.

Sharon87

I'm worried they're going to do this to me at my next renewal date as I have been using my Halifax account, leaving my overdraft very near it's limit. I've started using it again, but I hope it's not too late! It's up for renewal in September.

I hope you get it sorted. If you do go on a payment plan it might not be good for your credit score, but atleast you pay no interest!