HSBC £25 'Arrangement' Fee

ihaveclones

Hi guys,

I've just graduated and have received a letter through the post saying that a £25 arrangement fee will be charged on my account for the privelidge of continuing my overdraft for another year.

I called them up asking why I have to pay £25 pounds to continue with the exact same overdraft as I am currently on and they said that because I use my overdraft I must pay the fee in order for them to continue to run it. This seems highly unnecessary - has anyone else had the same and got rid of it?

Thanks!

dunstonh

This seems highly unnecessary

Not really.

Overdraft limits are reviewed annually. Someone has to decide if you can keep your facility and then load it on for another year.

Its a relatively new charge for personal accounts but its not a surprise to see it given the move to a more implicit charging structure (which is what the OFT and FSA want).

Lokolo

HSBC have stated in their terms and conditions that if you arrange an overdraft, formally or informally, in 6 months either side of your overdraft review date you will be charged a £25 arrangement fee.

If you have neither requested an overdraft (including changes, up or down), nor gone over the limit and therefore authorised an informal overdraft request, you can get a refund on the charge as per terms and conditions.

TG82

ihaveclones wrote: »

Hi guys,

I've just graduated and have received a letter through the post saying that a £25 arrangement fee will be charged on my account for the privelidge of continuing my overdraft for another year.

I called them up asking why I have to pay £25 pounds to continue with the exact same overdraft as I am currently on and they said that because I use my overdraft I must pay the fee in order for them to continue to run it. This seems highly unnecessary - has anyone else had the same and got rid of it?

Thanks!

I'm with HSBC and I was in a similar situation, although they did not charge me £25 for an existing agreement. If I were you, I'd write off a strongly intonated later and demand that they refund it.

In my case, they charged me loads when I went over my overdraft limit, which they had not charged me for in over three years while I'd been a student.

Because they charged me so much, and as I'd just started a job but needed time for pay day, I was forced to temporarily extend my overdraft (paying a £25 'arrangement fee') in order to have enough money to live, and to avoid going over my overdraft limit and incurring more charges!! £25 was the cheaper option.

However, as the overdraft extension was only temporary (4 weeks I think?) I had to pay the entire overdraft extension AND my rent in one month, which left me ridiculously broke for a whole 2 months. I couldn't even afford toiletries or bus fare, and lived on beans on toast.

Be warned!

I've added the charge to my reclaim, because I've argued that the 'arrangement fee' was only necessary because of their other unfair charges.

ihaveclones

Thanks for the response guys - I have not requested an extended overdraft nor have I gone over my overdraft in the six months prior to this arrangement. I do however need the overdraft as I cannot afford to pay it off in full at this moment in time.

There seem to be some conflicting messages here - is it within the realm of possibility for me to get this charge removed?

TG82

ihaveclones wrote: »

There seem to be some conflicting messages here - is it within the realm of possibility for me to get this charge removed?

It'll always be at their discretion, but personally I think you've got a very good case.


It depends which assistant you get, and how charming you are - don't overdo it, but come across well. Get the balance of self-responsibility and genuine grievance right

I wouldn't bother phoning the Indian call centres. Just go into your branch and say you think paying £25 is unjust because <insert your argument>.

Say you'll know next time, and never do it again. But only AFTER you've said how upset you are.

But remember, banks are !!!!!!!s, and when they know you can't afford to pay your overdraft off and leave them, they've got you by the short and curlies. That's what's happened in your case, so don't be surprised by anything.