hsbc new admin fees ~warning~

oldwiring

johnmoney05 wrote:

Well, I closed their account 3 months ago....to be honest, if bank charges me by saving money, I would keep my money in cash.

Well if the bank gets robbed, your money is still safe. Now with the money in your pocket or under the bed, and you get mugged or burgled...? From your reply Do I gather you do not have any contracts such as mortgage payemts. Many of them use DDs, so I wonder if payment in cash would be acceptable.

oldfella

You will not have to pay for your first agreed overdraft request (formal or informal) in any 6 month period. Each further request in that period may incur an arrangement fee of £25.

---

thats interesting wording - it sounds like they are trying to argue that exceeding your overdraft is an informal request for an overdraft which attracts an arrangement fee - my guess is that will still be regarded as a penalty charge ?

Mike

Paul_Herring

oldfella wrote:

my guess is that will still be regarded as a penalty charge ?

Well until it comes to court where a bank doesn't actually fold before a precident is set, some sections of society will view any fee for going over an agreed (overdraft) limit, greater than or equal to a penny, as a penalty charge.

Money_Saver

I'm with HSBC and have an o/d from day one. Does these new terms mean that If I don't use the o/d It will remain free of charge? And if I do use it, and keep in my limit there wont be a charge only other than interest? However, if I exceed my o/d they may charge the £25.00 admin fee (just to alter a few figures!!!)?

Thanks

debster369

An "arrangement fee" is just that. In other words if you request an overdraft or a limit increase just once within a six month period, there's no fee. If, however, you ask for an increase a second time within 6 months there is an arrangement fee of £25.
The informal overdraft is different. That is basically going over your agreed limit, i.e spending money you dont have so will incur a maimum of £25 charge (per day I think, max of either 5 or 6 times per month)

Tootsie_Roll

johnmoney05 wrote:

Well, I closed their account 3 months ago....to be honest, if bank charges me by saving money, I would keep my money in cash.

Try going overdrawn on yourself