Money taken for credit card from HSBC Flex Saver account

Braintree

Wondering if anyone can help me with an issue. I was in debit with my HSBC student credit card. On the 6th October I transferred £100 out of my student loan to my saver account so I wouldn't spend it (was waiting on news of a job-which I got and various other incomes) on the 16th October £75 had been taken from my Flex Saver and used to pay off my credit card. Can they do this without warning me in advance. I wouldn't have minded if they took >£50 but to take 3/4 without a warning seems dodgy, at best.

Do I have grounds for complaint, as I said I have a job now but if I hadn't that money would have needed to have lasted me until late January! I've kept the constantly updated with my financial situation since end of the summer and will be speaking to CaB on Monday regarding all my debts.

I should stress I'm not left with nothing, should survive until I get paid but it is more the principle.

Thanks in advance.

xmaslolly76

Yes they can do it unfortunately its called off setting and they dont warn you so that you cant empty the account before they do it. I would advise you open another account with a different bank if your having problems with your credit card they cant take money then without your permission.

Braintree

xmaslolly76 wrote: »

Yes they can do it unfortunately its called off setting and they dont warn you so that you cant empty the account before they do it. I would advise you open another account with a different bank if your having problems with your credit card they cant take money then without your permission.

Thanks ever so much. Planning on opening a new account with a new bank for various other reasons.

rb10

Even if you can't make the full payment for your credit card, make sure you always make the minimum repayment. Missing payments altogether will damage your credit rating, so it will be much harder for you to get bank accounts, a mortgage, etc. in the future.

The best way to do it is to set up a Direct Debit from your current account - phone the HSBC credit card number to do this.

By doing this, you will prevent HSBC from having to take money from your other accounts to cover your CC debts.

jonesMUFCforever

If there is no money in the current account the bank will not pay the direct debit and would look at any other HSBC account to deduct the money from.
I think overspending is the root cause here.

YorkshireBoy

Braintree wrote: »

Do I have grounds for complaint...

No. From your savings account T&Cs...

16.3 If any accounts you hold with us are in credit, we may use any of them to reduce or repay any amounts you owe on other accounts you hold with us anywhere in the same name (including any card accounts and any joint accounts) whether or not those accounts are in the same currency. If we decide to do so:

• we will tell you why and when it has been done; and

• in doing so, we may (and you irrevocably authorise us to):

• bring to an end any fixed deposit period applying to any of the accounts you hold with us and adjust any interest payable by the Bank;

• convert to sterling at the prevailing market rate of exchange any balance that is in a currency other than sterling; and in doing so we will have no liability to you.

Nothing in this clause will prevent us from exercising at any time any other right of set-off or of combination of accounts to reduce or repay any amounts you owe us.

http://www.hsbc.co.uk/1/PA_1_5_S5/content/uk/pdfs/en/personalbankingterms_conditions.pdf

However, I didn't think they (banks in general) normally did this unless you're well in arrears, and haven't responded to correspondence requesting you bring the other account to order. Is that the case with you?