HSBC Overdraft charge

crompton

Hi - hope this is the right place to be posting this.

DD was due out of my bank account Wednesday (25th) of £35. Didn't realise I did not have enough money left in the account and have no overdraft for this account. Realised on the 25th around mid-day that this DD was due and immediately checked the account. Balance showed was £26.57D. I transferred £35 from another account into the HSBC account to cover the payment so the temporary OD was wiped out instantly. Received a letter today from HSBC saying they will be charging me £25 for that temporary overdraft.

Checked the account today and on the 25th the DD was taken for £35 leaving me £26.57D, on the same day my account is now showing Reversal of 25-08 £35 as well as the £35 I transferred.

What's going on!

Also do I have any case to dispute the charge as the money was paid into the account the same day so the overdraft lasted a few hours only, also it's the first time I have had any charge levied against me like this and also what's going on with the reversal?

Cheers - sorry this is a bit of an essay and is a bit difficult to read.

apt

Some banks insist that money to cover Direct Debits has to be in your account the previous banking day. However, HSBC is not one of them so you should not be charged as you paid the money in on the same day. Possibly the charge letter was prompted automatically, but they seem to have reversed the charge as well so you are back where you should be.

bengal-stripe

crompton wrote: »

Received a letter today from HSBC saying they will be charging me £25 for that temporary overdraft.

Checked the account today and on the 25th the DD was taken for £35 leaving me £26.57D, on the same day my account is now showing Reversal of 25-08 £35 as well as the £35 I transferred.

What's going on!

Did the bank tell you they will charge £ 25.00 for an overdraft, or did they just advise you they will charge that amount?

If I read it correctly, you never been overdrawn. The DD appeared in the early hours and was rejected instantly or soon after. That reversal might only have shown in the next day’s update. Once your payment arrived at midday, the DD would have been on it’s way back.

Timescale:
12:00...Balance............08.25+
01:00...DD..........-35 = 26.75-
03:00...Reversal +.35 = 08.25+
12:15...Transfer + 35 = 43.25+

crompton

bengal-stripe wrote: »

Did the bank tell you they will charge £ 25.00 for an overdraft, or did they just advise you they will charge that amount?

If I read it correctly, you never been overdrawn. The DD appeared in the early hours and was rejected instantly or soon after. That reversal might only have shown in the next day’s update. Once your payment arrived at midday, the DD would have been on it’s way back.

Timescale:
12:00...Balance............08.25+
01:00...DD..........-35 = 26.75-
03:00...Reversal +.35 = 08.25+
12:15...Transfer + 35 = 43.25+

That is correct yeah, the bank have said that for allowing the payment to go through they will be charging me £25.00

I take it that it means the DD has bounced and it will try and take it again soon?

gt94sss2

crompton wrote: »

That is correct yeah, the bank have said that for allowing the payment to go through they will be charging me £25.00

If the direct debit went through, then HSBC should not charge you anything if your account was back in credit by the end of that day.

Alternatively, from their price list:

Return Fees
We may not be able to grant every request you make for an overdraft. Where we decline an informal overdraft request we will not charge an Arrangement Fee but a Return Fee will be payable for considering and returning payment requests, eg, cheque, standing order, direct debit etc.

Up to £10 no charge
Up to £25 £10 per item
Above £25 £25 per item

This sounds as what might have happened. I guess you could ask HSBC to waive the charge if it was the first time it has happened (and perhaps mention that the direct debit hadn't been showing as returned when you transferred the money to the account).

If you had had an overdraft in place, then I think no charges or interest would have been applied - and the payment would have gone through.

Regards
Sunil