HSBC changing Standing orders to DD

bigpigsmummy

So I'm just checking my business account and see that suddenly the is a Direct Debit charge.
Mmm, I go back through my accounts and the only thing that has changed is the title of my business loan, (I remember receiving a letter telling me they would be doing this and that I didn't need to do anything)
I didn't need to do anything because they would be doing something sneeky - they have changed the business loan from a Standing Order to a direct debit and are now charging me £0.32 each month on this transaction.
Can they do this?

jonesMUFCforever

Do they not charge the same amount for a standing order?

pmduk

It's hardly sneaky, they told you what they were going to do, surely that would have been the time to object to it?

bigpigsmummy

jonesMUFCforever wrote: »

Do they not charge the same amount for a standing order?

It has been the same for the past 4 years - whats in a name?

bigpigsmummy

pmduk wrote: »

It's hardly sneaky, they told you what they were going to do, surely that would have been the time to object to it?

There was no mention they were going to change the Standing order - free - to a Direct debit - charged for .

The loan repayment was always listed as a Standing Order! Now they have changed the title to a Direct Debit and applied a charge!

pmduk

If that's the case, then complain. I'm not sure of the procedures for business accounts.

There are major differences between a direct debit and standing order. Most importantly, the control is in the hands of the organisation taking the debit. They can usually change the amount/date of the debits.

jonesMUFCforever

What kind of busines worries about one charge of 32p per month when bank charges for business accounts are tax deductable?

olly300

jonesMUFCforever wrote: »

What kind of busines worries about one charge of 32p per month when bank charges for business accounts are tax deductable?

They may be tax deductible but they still come out of your profit margin.

And in this case it seems a matter of principle rather than the amount of the charge.

A DD should be as cheap or even cheaper to collect then a SO.

OP just put in a complaint to HSBC in writing if you are aggrieved. Don't do it on the phone or in the branch as unfortunately the staff aren't authorised to deal with such stuff.

opinions4u

I would think the terms and conditions of the loan agreement require a direct debit for repayments.

I suspect they've just turned a blind eye to this for the last few years and have finally decided to do something about it.

bigpigsmummy

My mum used to say 'Take care of the pennies and the pounds will take care of themselves'