hsbc overdraft query

dolly74_2

I have a £1500 overdraft with HSBC. I have had it for a good few years now. It gets reviewed and usually renewed on an annual basis. I got a letter recently, telling me that my o/d comes to the end at the end of March but they have reviewed it and they are pleased to offer me a new one on the attached terms (same amount/interest) until the end of March 2012. Great - i thought - but then i noticed that there was a clause at the bottom of the letter that said something about "...if we reject your credit application on the basis of consulation with a Credit Reference Agency".
I am a bit conufused does this mean they dont actually review it until the end of March and they then send it to be credit checked and so they could change their mind? If so, why not write to me then, not now? Is there anyone reading this that works for HSBC that can shed some light?

Also, if they decided not to renew it, how long would they give me to pay the money back? I could probably get my hands on £500 but the other £1000 may be harder to find. I know for all you know it alls out there that thats why you shouldnt live in your o/d etc etc etc but i just want to know if this happened, where would it leave me? I expect if they needed it back say within a month i would have to try and take out a high interest loan for people with bad credit as i know when my partner last applied for something in November, it was refused as i think we now have too much debt. I am starting to panic a bit now...

Ideally, i would like to reduce it month by month but i know that when i had another o/d with Natwest (which i have now paid off), they told me that they couldnt do this because even though i was reducing it, it would still mean a credit check at every reduction and that wouldnt be good for my file! (How silly is that - i know!!!)

For all you people who think i sound foolish to live in my o/d in this way, we have managed to get the debt down from £24,000 to £14,000 (combined - my partner and I) over last few years but it is a long hard road and we are reducing it slowly but surely.

bottleofred

Hi dolly,

I think years ago overdrafts were just renewed by someone in the branch and no credit checks were carried out on the applicants. However, from personal experience, I was refused a renewal about 6 years ago on mine as they had carried out a credit check and believe this to be the case. If they do refuse the overdraft, treat them as you would any other creditor and try to come to an arrangement to clear the overdraft over an agreed period of time. However, don't let them bully you into something you can't afford and you could also consider changing bank accounts if the worst happens, as they will take your salary if it goes into the account and not worry about you having any money to live on for the month.

Good luck

Red

dolly74_2

Thanks for the info. I already have another bank account, a nat west one which although it has an o/d, i am not using it. If hsbc terminated the o/d on the 28th when i think it expires, all my major dds (mortgage etc) go out on the 1st, so that doesnt give me much time to sort them out through the other a/c. Thats why i was wondering how long they had to give you/notice that they were pulling the plug if the credit check thing doesnt go through ok.