hsbc overdrawn charges advice

DaNNo_3

hi i am with hsbc and i have a £200 overdraft but in next few days i am going to be about £250 over my overdraft limit for few weeks because of bills coming out. The annual rate for unauthorised overdrafts is 19.9% EAR i think and i would please like to know if anyone has a idea how much hsbc will charge me for being over my limit each week.

thanks

Lokolo

They charge you £25 arrangement fee for going over your overdraft.

According to the MSE calculator (which I think is wrong....), they charge you £25 a day, which I do not believe is the case.

You will pay a £25 fee for arranging an overdraft if you want to change it to say £300.

It's upto your which route you take. However I would like to know if you do end up being charged £25 per day.

Please keep this thread updated about which you choose to do.

DaNNo_3

i have tried to increase my overdraft but it wont let me no more probably because of my credit score. i sent an email to hsbc asking them how much they will charge me etc but they couldnt even give me a proper answer they just sent me what it says on there site which is confusing and its all about percentages which i cant work out lol

Lokolo

DaNNo wrote: »

i have tried to increase my overdraft but it wont let me no more probably because of my credit score. i sent an email to hsbc asking them how much they will charge me etc but they couldnt even give me a proper answer they just sent me what it says on there site which is confusing and its all about percentages which i cant work out lol

Can you copy and paste the message they replied with?

Obviously remove all the personal information... although when they replied to me they couldn't even spell my name right *sigh*

(I am going to sleep now but shall look tomorrow)

DaNNo_3

I apologise for the delay in this response.

I confirm that a formal limit of GBP200.00 is held on your Bank Account.

In this instance, please be advised that a GBP25.00 informal arrangement fee will be applied if your account goes above your formal limit of GBP200.00 on one occasion during the mentioned period, as the Bank considers it as an informal overdraft request.

However, we promise that we will not charge arrangement fees for:

- Any formal or informal overdraft requests that we agree to, if this is the first time this has happened in the last six months.

- Small overdraft requests we agree to that are not more than GBP10.00

A maximum of GBP150.00 can be charged in any one charging period.

Furthermore, we will also operate your account free of debit interest as long as a cleared credit balance is maintained.

Debit interest will accrue at our standard rate of 19.9% EAR on all overdrawn balances, even if this remains within the formal limit. Debit interest is calculated daily and applied monthly.

Should you have any queries, please do not hesitate to contact Customer Telephone Services at 08457 404 404 (UK) or +44 1226 261010 (Overseas). Lines are open 8am to 10pm every day (except Christmas Day, Boxing Day and New Years Day).

I trust this clarifies matters.

Yours sincerely

DaNNo_3

i explained ill be over my overdraft more than £200 and for few weeks and they just said that above to me. how am i meant to work out the 19.9% rate, i aint that good at maths lol

Lokolo

If you are £250 over your overdraft limit then 20% of £250 is £50.

£50 / 365 is 14p a day rounded up.

Could be 13p not sure exactly how they work it out.

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Have you arranged an overdraft in the lsat 6 months? This includes; going over overdraft limit and changing your overdraft limit.

DaNNo_3

hi thanx for your reply.

Yes i have arranged an overdraft in the last 6 months. twice i have increased it. Ive only had it bout 4 months.

So does that mean they will charge me bout £50 for this month for being over my overdraft by that much?

Lokolo

Ok. They will charge you £50 on your Overdraft Date, which you can see on online banking somewhere.

I can't tell you where because I don't have one.

I think its on the left you can go to Overdraft, and it then shows 2 things on the screen, the date, and the amount you have arranged. On this date you will have the charges. Bare in mind that if the date is 4 months in advance it may not be £50 as it only goes back 6 months.

YorkshireBoy

DaNNo wrote: »

So does that mean they will charge me bout £50 for this month for being over my overdraft by that much?

Although I have an HSBC current account, it's little used and certainly doesn't operate in an overdrawn state so this may not be 100% accurate but...

Doesn't it also depend on the number of informal requests made? ie if you make several small to medium size requests via DDs presented you could incur many payment return fees of £10-25 per item according to http://www.hsbc.co.uk/1/PA_1_1_S5/content/uk/pdfs/en/90030_9_bankacctcards_trav_q1_web.pdf;jsessionid=0000JLXF4a4Jl8mLlQVJQWMpacE:12c58t9vd (page 2 'Return Fees').

Could cost you a lot more than £50?

DaNNo_3

ive had a look and dont think i see that. At the moment today a bill has come out which has put me £20 over my overdraft limit but in bout 4 days time i have bout 3 bills coming out which will put me over £200 over my limit.

I have bout £200 coming in to my account on 14th November and £290 on the 19th so im only gonna be over my limit from now till 19th November so im hoping ill only be charged maybe the £50