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

chuckley

the problem is the constant going over the limit...

riviera2

HSBC did the same thing to me. They made me take it out as a managed loan after we went through my income and expenditure and I didn't have any spare. At least I know when the loan is paid off I'm finished with them forever. If that day ever comes.

JackNco

peachyprice wrote: »

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.

Thats the thing. They didnt bother because I was now within my limits so they no longer saw it as a problem....

jeremykidd

this has happened with me. i origonally had an unauthorised overdrsft due to charges (claiming on these but on hold) ive been working p/t as a temp and claiming jsa to top up. my overdraft dissapeared overnight without any notice or phone calls sweet fa. i want to know will i be offered a managed loan or repayment plan? i am hopefully starting f/t wotk but have barely any cash and my last measly paycheck went into my account. i think id rather have the managed loan (although ive had 1 before and they take forever to pay off). is there any way to know what will happen

jeremykidd

well thats just great isnt it the banks love you and want to lend to you when you DONT need IT. but wehn you do they treat u like a pice of !!!!!

Extant

jeremykidd wrote: »

well thats just great isnt it the banks love you and want to lend to you when you DONT need IT. but wehn you do they treat u like a pice of !!!!!

HSBC isn't treating you like a piece of shit. They're a business, not a charity - they don't exist to be your friend.

By your own admission, you have lived perpetually in your overdraft and not brought the account to credit. That's not what overdrafts are for, and you're starting to pose a risk. So your debt was called in - in line with the terms and conditions of your account.

gazelle8760

I cannot believe you would be so niaeve as to not realize that overdrafts are not "your" money. Overdrafts are payable on demand, and banks are obliged to stop them as fast as they start them. They are never long term borrowings, and if used correctly can be quite cost effective.
I speak from experience only to well, having been with the halifax for a number of years, and having a big overdraft with them, over £1200, I had to borrow on it for emergency expenses, however, I went over the limit slightly, and the bank stopped not only the overdraft, but the whole current account as well, without warning!! A valuable lesson well learnt. You would be well advized to change banks, and come to some payment arrangement with HSBC to reduct this debt, whilst not realistic to repay it all at once, it is in your best interest, and theirs to come to a solution you can both agree at, else your debt will continue to spiral out of control, and any monies you do have going in, will be swallowed by your debt. I hope this doesn't spoil your credit rating, as remember, overdrafts are borrowing, and borrowing is reported to CRA's, good or bad.