Hsbc Cancelled My Overdraft

2ndtimelucky

Can anyone help or let me know where i stand here ive recently changed bank accounts from hsbc to tsb as the charges i was getting from them meant that no matter what i did my direct debits alone would put over my overdraft limit so i moved accounts i left my hsbc account at -690 with a 700 limit but then had another 150 worth of charges paid out the following month they contacted me about it and i agreed to pay a small amount in as that was all i could afford they agreed and i said that i would pay what i could afford into the account on the following month then i get a letter the following month about my account limit so i call them again they agree to for me to pay in some of the money owed and i would pay off the rest (to within my limit) in janauary they then said my overdraft is cancelled as of the 17th dec ive not been contacted by mail or phone about this and they want the money in full or ill be charged overdraft fees again can they do this?

opinions4u

Did you type all that without taking a breath?

For the benefit of other readers:

Can anyone help or let me know where i stand here?

I've recently changed bank accounts from hsbc to tsb as the charges i was getting from them meant that no matter what i did my direct debits alone would put over my overdraft limit.

So i moved accounts. I left my hsbc account at -690 with a 700 limit but then had another 150 worth of charges paid out.

The following month they contacted me about it and i agreed to pay a small amount in as that was all i could afford. They agreed and i said that i would pay what i could afford into the account on the following month.

Then i get a letter the following month about my account limit so i call them again. They agree to for me to pay in some of the money owed and i would pay off the rest (to within my limit) in janauary.

They then said my overdraft is cancelled as of the 17th dec. I've not been contacted by mail or phone about this and they want the money in full or ill be charged overdraft fees again. Can they do this?

Overdrafts are repayable on demand, so yes, they can do this.

I am, however, not convinced that this sits comfortably with the FSA's "Treating Customer's Fairly" initiative (TCF).

You need to talk to them again and see if they will reinstate the previous arrangement. If they don't, ask them how this fits with TCF.

If, in your opinion, they are not fair or reasonable with you then you should ask to speak to a manager and if that makes no progress then raise the matter as a complaint with them.

One other point, what is it about LTSB charges that makes them so much better for you than HSBC? The main problem here isn't just who you bank with it's the way you run your finances. You could do a lot worse than getting over to the Debt-free Wannabe forum and get some ideas about raising income, reducing outgoings and managing your money a lot better.

Try the occasional comma and full stop though. It helps people to understand what your concerns are and respond more helpfully.

woody01

So, after strugglong through that, let me get this straight.

1. You have an overdraft with HSBC where you were practically maxxed out.
2. Changed banks for TSB so you wouldn't lose all your money to your overdrafts every month.
3. HSBC, seeing nothing going intoo your overdrawn account each month except token payments think this is unreasonable and close the overdraft facility.
4. You think this this is a perfectly good way to run your finances.

OP.....of course they can do this. An overdraft is repayable on demand.

Sorry but you need a reality check.
You can't just have an overdraft, then when you get sick of paying it DECIDE FOR YOURSELF how much you will pay them.
The charges are totally justified by your bank as you are effectively trying to dodge paying money that you have already borrowed.(money belonging to other customers that know how to manage their finances).

I am, however, not convinced that this sits comfortably with the FSA's "Treating Customer's Fairly" initiative (TCF).

In this case, no governing body or watchdog would fall on the OP's side.
The O/D is not being paid back as agreed, the OP has changed banks to deliberately avoid it, and there is now no wage going into the account.


4.

opinions4u

In this case, no governing body or watchdog would fall on the OP's side.
The O/D is not being paid back as agreed, the OP has changed banks to deliberately avoid it, and there is now no wage going into the account.

You may well be right, but I don't think we know enough about the situation.

They way the OP has worded the post (if I am punctuating correctly) suggests that HSBC have agreed to payments and then pulled the plug on such arrangements. If that is the genuine situation, it isn't a fair way to act.

That said, phrases like "They agreed and i said that i would pay what i could afford into the account on the following month" don't sound like the specific sort of agreements that bank collection departments make!

The OPs previous posts don't seem to throw any more light on the subject, other than an over-reliance on overdraft flexibility and a surprising ability to form a paragraph.

2ndtimelucky

i moved to tsb (any account wouldve done) as my dd,bills + charges alone came to more than my salary since moving accounts my salary has increased and i havent been overdrawn with tsb as im trying to sort out my finances and as said have been paying what i can afford into my hsbc account aswell as another credit card i was prioritising the credit card payments as i thought the overdraft would always be active and it was a smaller amount.

ive already had the reality check thanks just wanted to know if they could do this thanks for your replies

Charterhouse

HSBC have had a big review of all overdrafts. I've been with them for 18 years but last year after receiving such an appalling service I moved to Barclays. HSBC have now reduced my overdraft from 3,000 to 250. I'm not really surprised, but it does basically mean there is zero chance of me coming back.

AfterDark

Phone them up and ask them to lower your overdraft by £50-£100 what ever you can afford. Then they will most prob renew it for another year. Worked for me doing this with the halifax

adambro

Charterhouse wrote: »

HSBC have had a big review of all overdrafts. I've been with them for 18 years but last year after receiving such an appalling service I moved to Barclays. HSBC have now reduced my overdraft from 3,000 to 250. I'm not really surprised, but it does basically mean there is zero chance of me coming back.

Why on earth would you want a £3k authorised overdraft?!

Thrugelmir

Offer to convert the outstanding overdraft with HSBC to a loan with them.

Otherwise you may find credit rating affected if you continue to play games.

Sharon87

AfterDark wrote: »

Phone them up and ask them to lower your overdraft by £50-£100 what ever you can afford. Then they will most prob renew it for another year. Worked for me doing this with the halifax

Don't do this with HSBC though, as if you make 2 overdraft requests within 6 months (either by requesting a change or going over your limit, then they charge you a £25 overdraft arrangement fee.)

With Halifax you can do it as many times as you want without them caring really.

2ndtimelucky

Spoke to them yesterday and agreed a payment plan they basically reinstated my overdraft but it will decrease each month by £100 so i need to pay in £100 each month until cleared