HSBC Debt Interest

T4i

Hi all,

Got my sep/oct statement from HSBC yesterday, on page 3 it tells me about a charge of £17.50 for debt interest.

I have a 2k overdraft which is agreed with HSBC, in the period Sep/Oct I did not go over my overdraft limit. I've never been charged a debt interest before....

I rang HSBC and he confirmed I did not exceed my overdraft limit but the charge of £17.50 is correct for using my overdraft.

He told me its a 1.*% charge. I can't find anything on the HSBC website about this....My account is just a standard current account.

Can anyone shed any light?

grumbler

If you use your overdraft within your agreed limit, this doesn't mean that it is absolutely free. Their typical EAR for agreed overdrafts is 15.9% (1.24% p.m.).
As far as I understand, if you go over your agreed limit, they charge you £25 fee and 1.24x15.9% interest rate.

T4i

Thx grumbler.

Is this a new from HSBC? I've never been charged £17.50 before for using my overdraft and I've been using my overdraft for years

Cheers.

grumbler

I don't know. Usually interest-free overdrafts come either with student/graduate acoounts or as short-term introductory offers. The only exception I know is permanent £50 Cahoot interest-free and fee-free overdraft.