HSBC - Reducing Overdraft

Sharon87

HSBC are really confusing me with the overdraft request charges. Here's the thing I want to reduce my overdraft by say £50 or £100, but I've already reduced it 4 months ago. I was under the impression that requesting an overdraft twice in 6 months will incur an overdraft arrangement fee. But I'm not so sure now after reading the terms and conditions on the website

You can request an overdraft, or an increase to an
existing overdraft, on your bank account in one of
two ways, either:
• by way of a formal request, that is, you ask us for
and we agree to provide you with, an overdraft or
an increase to an existing overdraft limit before
you authorise any payments or withdrawals from
your account that, if made by us, would cause
your account to go overdrawn or over an existing
overdraft limit; or
• by way of an informal request, that is, where you
authorise a payment or withdrawal to be made
from your account which, if made by us, would
cause your account to go overdrawn or over an
existing overdraft limit without having agreed with
us in advance an overdraft or an increase in an
existing overdraft limit on your account to cover
such payment.

It says that these 2 options will result in a £25 arrangement charge if requested more than once every 6 months. No mention of reducing the limit. It then goes on to say

We will not charge an Arrangement Fee
provided that, within the last 6 months, we
have not agreed to a request from you for an
overdraft

Which implies that if I request a change in overdraft, like reducing it, it will incur a charge!

I would go into branch, but it's a Sunday.

YorkshireBoy

Sharon87 wrote: »

I would go into branch, but it's a Sunday.

Do you bank online? If so, ask them via secure message.

But why are you reducing by such small amounts? If it's a willpower or discipline issue then address that instead?

Sharon87

It is a bit of willpower issue, which I am currently trying to address. It's because I've had it for so long (6 years from start of uni). I'm starting now to see it needs paying back, I'm using my other bank for every day spends whilst still getting my wages go into HSBC, then transferring what I need into the other bank (it needs £500 a month paying in at least to keep it). I'd rather reduce the limit if I can, that way I can see it being paid off.

I'll try the secure message

CLAPTON

Sharon87 wrote: »

It is a bit of willpower issue, which I am currently trying to address. It's because I've had it for so long (6 years from start of uni). I'm starting now to see it needs paying back, I'm using my other bank for every day spends whilst still getting my wages go into HSBC, then transferring what I need into the other bank (it needs £500 a month paying in at least to keep it). I'd rather reduce the limit if I can, that way I can see it being paid off.

I'll try the secure message

always seems strange to me to basically tell a bank that one doesn't trust oneself with money

Sharon87

I'm just telling them I don't want this much credit anymore! I want to get it down to a limit of around £500, so if something unexpected comes up I have a back up. Student overdrafts shouldn't be so big, it's too much temptation at 18 years old.

Lokolo

Changing your overdraft 2+ times will incur a fee each time. This is how I understood it anyway.

-edit-

Obviously once every 6 months you get a free change.

CLAPTON

Sharon87 wrote: »

I'm just telling them I don't want this much credit anymore! I want to get it down to a limit of around £500, so if something unexpected comes up I have a back up. Student overdrafts shouldn't be so big, it's too much temptation at 18 years old.

I wasn't suggesting you were actually TELLING your bank that you weren't good with money; it's just that your ACTIONs speak louder than words

and I was asssuming that you weren't 18 any more

however it's clearly your choice but better budgeting and controlling your spending would be a better solution to reducing the OD