Bank has given my sister an overdraft she NEVER asked for

BenS1

So, I have just found out from my sister that our youngest sister has been given an overdraft by HSBC. My concern is that she is too young to understand money, and that she never asked for an overdraft. She has got a letter through the post saying that they have given her an overdraft facility.

I don't even understand how this is possible, as she is 17 and therefore not considered an adult. Isn't this illegal for the bank to do?

She would like to get the overdraft removed, but it's the whole principle that this should never have happened.

Can we complain to FOS about this?

zppp

BenS1 wrote: »

So, I have just found out from my sister that our youngest sister has been given an overdraft by HSBC. My concern is that she is too young to understand money, and that she never asked for an overdraft. She has got a letter through the post saying that they have given her an overdraft facility.

I don't even understand how this is possible, as she is 17 and therefore not considered an adult. Isn't this illegal for the bank to do?

She would like to get the overdraft removed, but it's the whole principle that this should never have happened.

Can we complain to FOS about this?

If she ran up the debt, they would have to write it off because he is under 18. You cannot go to the FOS until you have exhausted the complaints procedure. Even then she would get no compensation as there is no loss. If they claim to have applied the overdraft in error, then there is nothing that can be done. It may be that a letter was sent in error - I would get it checked out.

IMO they have a wrong date of birth on their system, but it may be worth checking out.

Lokolo

And HSBC don't just give an overdraft, you have to apply for one.

themull1

i never asked for an overdraft from HSBC and i got one.

Lokolo

themull1 wrote: »

i never asked for an overdraft from HSBC and i got one.

Really? First person I know who has! Thanks!

Olipro

an under 18 is not able to take on a debt commitment, if she dips into the overdraft she will not be liable for it or any fees arising from it. HOWEVER, the bank are entitled to charge fees for things such as refused card payments etc, so might be more in your interests to keep shutum.

NotAFraudster

Is it not an "informal" overdraft created by her spending too much/a Direct Debit coming out? If so, it's basically a fancy way of saying she's gone overdrawn without a limit. Best to pay it back ASAP.

She most likely hasn't been given an overdraft facility as such, just allowed to go overdrawn for one transaction.

stclair

NotAFraudster wrote: »

Is it not an "informal" overdraft created by her spending too much/a Direct Debit coming out? If so, it's basically a fancy way of saying she's gone overdrawn without a limit. Best to pay it back ASAP.

She most likely hasn't been given an overdraft facility as such, just allowed to go overdrawn for one transaction.

I agree I doubt the bank have actually given them an overdraft.

They have possibly become overdrawn in some capacity maybe a DD or a POS.

d61mts

Don't know if different banks have different policies, but Halifax suddenly gave me an overdraft on my account about a year ago without asking me - its only for a small amount and I've never used it so far so haven't mentioned it to them if it was an error. I assumed it was deliberate to give me the overdraft even though I hadn't requested one. Certainly I'd be a bit shocked if it had happened to someone under 18.

adindas

Some people need to pay about £25 in order to get an overdraft facility to increase. This is by far a cheap way to get loan

If you do not need it, or you are afraid that She can not manage it responsibly just ask her to call them to remove that facility. They will definitely will remove it, there are thousand of people outhere are asking for this. So where is the problem here ....

I have several bank accounts with overdraft facilities that I never use, no problem at all because there is no charge for it. But it is useful in the rainy days, when you are sort of money to get a cheap short term loan without begging to the bank to give you that facility. In my experience when I open a new bank a/c they always ask me whether you want an overdraft facility some even tell me that for those facility I need to pay for it. But you could always opt out if you want.

ADINDAS

BenS1

zppp wrote: »

If she ran up the debt, they would have to write it off because he is under 18. You cannot go to the FOS until you have exhausted the complaints procedure. Even then she would get no compensation as there is no loss. If they claim to have applied the overdraft in error, then there is nothing that can be done. It may be that a letter was sent in error - I would get it checked out.

IMO they have a wrong date of birth on their system, but it may be worth checking out.

As far as I know, she has no debt. It was simply a letter through the post informing her that she has the overdraft. My dad wants to have a go at them, as she's at boarding school but he can't as she's over 16.

It's just something that she did not ask for the overdraft. She has no direct debits or standing orders, all she does is take money out for shopping and food.

She said she checked her balance on the day that the letter was dated, and she had a positive balance. She's also gone to the bank and asked an advisor about it, and she got told to "ignore it".