New HSBC Overdraft Charges

Hubbers

I got a letter from the HSBC a few weeks back stating that they were reviewing my overdraft that I have had with them for 10 years and that the charge for this review was £25. The review came through and overdraft was exactly right and didn't need to be changed. Surely this is just theft? Writing to a customer for some unneeded and obviously bogus service and then charge them £25 for it!!!

I wrote to the bank and this is the reply I got:

I apologise for the delay in responding to your e-message dated 5 February 2010.

Please be advised that the GBP25.00 charge which is due to be debited from your bank account (number: XXXXXX XXXXXXXX) on 26 February 2010 refers to a formal arrangement fee.

Please note that the bank has now introduced an annual review of all our customer’s formal Overdraft facilities. This provides us and you with the opportunity to consider whether your Overdraft facility is still appropriate to your borrowing requirements. Please note that formal Overdraft facilities will now last for a maximum period of 12 months.

In accordance with the bank’s Personal Banking Terms and Conditions and our Fair Fees policy, we will not charge an arrangement fee provided within the last six months we have not agreed to a request from you for a formal or informal Overdraft facility.

Whilst the bank is pleased to continue to provide you with a new 12 month Overdraft facility of GBP3000.00, a fee of GBP25.00 is payable for this.

Should you wish to discuss this matter further, may I suggest that you contact Direct Financial Services at 0800 130 130 (UK) or +44 1226 261010 (overseas).

I trust this clarifies matters.

Yours sincerely


Christopher Dunn
Senior Service Improvement Manager
HSBC Bank Plc

natweststaffmember

Have you increased your overdraft in the last 6 months?
Have you exceeded your overdraft in the last 6 months?

Premier_2

The initial lettter that HSBC sends regarding the annual review of overdrafts can be quite alarming as, on first sight, it does suggest they will charge for the review.

However, if you read the letter in full, it does as the response you have also received, indictate that no charge is made unless you have actively asked for a review within the last 6 months( or possibly exceeded your existing one )

itscheapandiwantit

What if you send them a letter advising that you are renogotiating the contract and will charge them £25 to peruse their review of your overdraft facility. Mutuality and reciprocity.

natweststaffmember

itscheapandiwantit wrote: »

What if you send them a letter advising that you are renogotiating the contract and will charge them £25 to peruse their review of your overdraft facility. Mutuality and reciprocity.

Which is not in a bank account contract and therefore is not permitted..

itscheapandiwantit

natweststaffmember wrote: »

Which is not in a bank account contract and therefore is not permitted..

But should be and therefore should be.

UTCCR;)

natweststaffmember

itscheapandiwantit wrote: »

But should be and therefore should be.

UTCCR;)

Why? And quote me the UTCCR where it says that it should be?