hsbc overdraft query

dolly74_2

I posted something similar afew days ago but still need more info. For a few years now, I have had an overdraft with HSBC.

What i need to know is how much notice would they normally give you if they were going to reduce it or pull the plug on it? I got a letter from them saying they had reviewed it and were going to offer me a new one on same terms when the current one ends. However there was something in the small print about referral to a credit reference agency. All my major dds go out of my account just after the o/d is due to end/get renewed. I dont want to be in a position where they pull the plug on it a couple of days before all my dds do out. I know technically they can remove it at any time but what is likely?

If anything, more cash has passed through my account this year but last year my c/c card company upped my interest rate and my partner got refused a loan so i am just concerned if they go through a credit scoring place, i may not pass the test.

j.e.j.

I used to have an overdraft wth hsbc. You're right, in theory it can be recalled at any time, so i guess you have to be prepared for this. I'd think, from the bank's point of view, though, your overdraft is earning them money in interest, so as long as you don't go over it or breach your t&c's they'll let you keep it till it next comes up for review (mine was reviewed yearly)

MeeNorr

HSBC cancelled my overdraft a few months ago after 'reviewing' it. They gave me about 4 weeks notice that it would be withdrawn on a particular date. I didn't really use it at the time but it would be quite handy at the moment but said they wouldn't give me another for 12 months.

RedTulip

Overdrafts can be cancelled at any time and are exempt from some parts of the CC act. As far as I am aware they can be cancelled with as little as 7-14 days notice, and are repayable, in full, on demand.

Superheavy

What RedTulip just said there is technically true, but the only situation in which you would be asked to repay the full amount and have the facility withdrawn in that short notice would be if your account was over the o/d limit and in collections.

With HSBC, they do review personal overdrafts on an annual basis, you'll receive a letter one month before the end of the overdraft facility telling you if they'll renew at the same level, reduce or withdraw the overdraft. Also, if you have been over your overdraft in the six months prior to the renewal and had the charge for that waived, then you will get charged a £25 arrangement fee.

dolly74_2

Have had that letter and it is like a renewal letter - it says when the old one ends, they are pleased to say they are offering me a new one on same term for another 12 months. However within the small print, there is something saying something about subject to credit checks. Since the o/d is to remain the same rather than be increased, will it go through a credit check? Am i ok for the foreseeable future?
The old o/d expires on DATE (eg 30th March) the new one would then begin on 31st March. Seeng as i have got that letter saying they have reviewed it, does this mean i am ok or is there still a possibility of them pulling it at the end of close of play 30th March? Am probably being paranoid about this. Also, I want to actually start reducing it by £100 a month from this month onwards as I am now in a position to. Is it worth mentioning it to them or wll that just potentially get them digging around more?

NeverAgain_2

I had a Nat West overdraft removed without notice, causing a couple of cheques to bounce.

The account was within limits.

I later found the bank had forgotten to ask me to sign a guarantee.

This was discovered a few months later, and I think the branch manager panicked.

Needless to say, a complaint didn't get very far.

'Repayable on demand' is the phrase to remember.

Having said that, I don't think the OP need worry.

Looks like the facility will be extended, and if the amount overdrawn comes down steadily over the next few months, all will be well.