Arrangement Fee for changing status

katerina_emily

I bank with HSBC and in February my student bank account became a graduate bank account.

I have received a letter telling me that they are charging my a £25 arrangement fee for the pleasure.
From July I will have to pay interest on a portion of my overdraft, fine. But charging me £25 for this "service", which benefits only them seems outrageous.
Furthermore I suspect that when I reduce my overdraft and change the limit to avoid paying interest they will again charge me £25.
Is this the norm?

mrschaucer

Natwest certainly doesn't charge when a student account becomes a graduate account. Are you sure that's what the £25 is for?

jambosans

katerina_emily wrote: »

Is this the norm?

For HSBC, yes.

HSBC_General_Price_List_and_Interest_Rates wrote:

Arrangement Fees
1st overdraft in 6 months free*
Subsequent overdrafts £25
*No Arrangement Fee is payable if, in the last 6 months, we have not agreed to an overdraft request from you.

Taken from linked PDF below:-
http://www.hsbc.co.uk/1/PA_1_5_S5/content/uk/pdfs/en/90030_9_bankacctcards_trav_q1_new_web.pdf

Sharon87

Have you exceeded your overdraft limit in the past 6 months or changed the limit in anyway? If so that's the 2nd time your overdraft is 'changing' so they charge £25. They review overdrafts every year, and if you request a change in overdraft twice within 6 months they charge £25 and this includes the review. I had that too when mine changed from student to graduate.

jonesMUFCforever

It is an arrangement fee for the overdraft not anything else.

katerina_emily

Sharon87 wrote: »

Have you exceeded your overdraft limit in the past 6 months or changed the limit in anyway? If so that's the 2nd time your overdraft is 'changing' so they charge £25. They review overdrafts every year, and if you request a change in overdraft twice within 6 months they charge £25 and this includes the review. I had that too when mine changed from student to graduate.

No, no change in over a year until now. I guess the moral of the story is that they'll find some way to punish you for existing. And I'll just move banks as soon as possible. They don't provide the best facilities for graduates anyway. Thanks everyone.