HSBC - 'Informal'/'unarranged' overdraft - charges

adonis10

On Saturday I had £0 in my current account so did a telephone transfer for £20 from my online saver. However, you have to enter the pence value, ie. 2000, whereas I entered the pounds value, 20, therefore only transferring £0.20. This was a genuine mistake. I then withdrew £20, taking me £19.80 overdrawn. This was only for a couple of hours as I realised and then transferred more to cover it.

I would hope that I don't get charged for this given that it was a genuine mistake and that I covered it a couple of hours later. Also, i don't understand why they allow it to be withdrawn. If there is 20p available then the withdrawal should be declined, end of story. Is this an underhand way to make money from unauthorised o/d's? If it was declined I simply would have checked my account, noticed my error, transferred more and then withdrew the cash.

Anyone had a similar experience?

zppp

adonis10 wrote: »

I would hope that I don't get charged for this given that it was a genuine mistake and that I covered it a couple of hours later.

Have you been notified of a charge? HSBC unlike many banks have a fair fees policy, so even if you have and it is a first offence, you won't trigger a charge. I would call them to clarify

adonis10 wrote: »

Also, i don't understand why they allow it to be withdrawn. If there is 20p available then the withdrawal should be declined, end of story.

Wrong. If you make a payment request while there are insufficient funds, you are requesting to go overdrawn, which it is their decision whether to honour or not.

adonis10 wrote: »

Is this an underhand way to make money from unauthorised o/d's? If it was declined I simply would have checked my account, noticed my error, transferred more and then withdrew the cash.

Fact of the matter is though, you made the mistake twice on the telephone system. I suggest that you use online banking for your transfers though, as it may eliminate these possible mistakes.

noh

If you bought your account into credit by the end of the day then you will not be charged.

See their fair fees policy.

http://www.hsbc.co.uk/1/2/personal/current-accounts/overdraft-service#label

adonis10

zppp wrote: »

Have you been notified of a charge? HSBC unlike many banks have a fair fees policy, so even if you have and it is a first offence, you won't trigger a charge. I would call them to clarify

Not yet, but it was only Saturday just gone. I had a look on the website and it says that they don't charge when:
- no o/d request has been made in past 6 months
- funds are added to clear the o/d by the end of the day

In light of this, I will leave it and see what happens.

zppp wrote: »

Wrong. If you make a payment request while there are insufficient funds, you are requesting to go overdrawn, which it is their decision whether to honour or not.

It's a good way to benefit from such errors though. Someone may have done it and not noticed for a week, racking up daily charges.

Lloyds don't do this. If you don't have the money in your account, they decline it.

zppp wrote: »

Fact of the matter is though, you made the mistake twice on the telephone system. I suggest that you use online banking for your transfers though, as it may eliminate these possible mistakes.

I did indeed but just looking at the evidence indicates an error. 6pm - transfers 20p, 6.05pm - withdraws £20. 8.30pm - transfers 49.80.

It would be a silly way to lose a customer!

I usually do but I was out and had no 3G coverage!

noh

Lloyds don't do this. If you don't have the money in your account, they decline it.

That is not so.
Unless it is a basic account.
They take a decision to allow or decline the payment. As do HSBC.
http://www.lloydstsb.com/current_accounts/personal_overdrafts.asp

adonis10

noh wrote: »

That is not so.
Unless it is a basic account.
They take a decision to allow or decline the payment. As do HSBC.
http://www.lloydstsb.com/current_accounts/personal_overdrafts.asp

Ah, I have a basic account and assumed it'd be the same with all.