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HSBC informal overdraft fees
getridofmydebt
Posts: 33 Forumite
We have a HSBC current account with an agreed £2000 o/d limit. Which to be honest is always hovering around this amount.We do not really have any spare income and sometimes we have to write a small cheque and hope its not cashed before our next money is deposited.
Last month two cheques were cashed for small amounts by HSBC one for £20 and one for £45 which took our overdraft to £2053 for a couple of days. Rather than HSBC returning the cheques unpaid they set up an informal overdraft and charged us £100 for the privelage. We did not request an increase and it would have been cheaper for us to have these as returned items.
Now this month the same thing has happened again yet this time they are going to charge us £150 informal overdraft fee on the 6th November,on top of this we have debit interest of around £28 which we accept.
So last month we paid £126 in charges and this month we are going to have to pay £178. For a family that is already finding things difficult and do not have any spare income on a month to month basis then these charges are just going to make things even more difficult for us. I did manage to find the £128 charges which were debited on the 6th October, but have no chance of finding the extra £178 by the 6th November.
Are they right in what they are doing or is there anything we can do to reduce or cancel these charges.
Last month two cheques were cashed for small amounts by HSBC one for £20 and one for £45 which took our overdraft to £2053 for a couple of days. Rather than HSBC returning the cheques unpaid they set up an informal overdraft and charged us £100 for the privelage. We did not request an increase and it would have been cheaper for us to have these as returned items.
Now this month the same thing has happened again yet this time they are going to charge us £150 informal overdraft fee on the 6th November,on top of this we have debit interest of around £28 which we accept.
So last month we paid £126 in charges and this month we are going to have to pay £178. For a family that is already finding things difficult and do not have any spare income on a month to month basis then these charges are just going to make things even more difficult for us. I did manage to find the £128 charges which were debited on the 6th October, but have no chance of finding the extra £178 by the 6th November.
Are they right in what they are doing or is there anything we can do to reduce or cancel these charges.
0
Comments
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getridofmydebt wrote: »...We did not request an increase ...
You did, by authorising a transaction that you didn't have cleared funds to settle.
However, to have been charged £100 for two transactions that only took you a total of £65 over the limit is certainly not in line with HSBC's terms and conditions.
Discuss the matter with your bank. As there appears to have been some kind of error with their charges, I am sure they will soon rectify the issue (or otherwise explain the real cause for them)
Edit: Btw, whilst discussing the matter with the bank, ask about other types of lending available. Long term continuous use of an overdraft is not the mostr efficient form of borrowing as the product is not designed for such use
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