HSBC and their "fair fees"

Little_Miss_Uni-Debt

Hey all,

Went to check my bank balances today, logged into my HSBC account.

I have a long history of HSBC screwing me over and I've always been extra careful since as I got my unfair charges back in 2007 and I haven't gone over since as I knew I was lucky to get them back.

I looked at my account and it says - charges to be applied 30th July = £98.48 !!!!!!:eek: £12.48 is for interest which is normal but they are taking £86 in fees!

I've got no idea how they have arrived at this amount. It used to be £25 a time but this is even more! This will put me over my overdraft limit next month so I'll just keep getting charged over and over.

I know I operate close to my small overdraft limit but I'm always very careful.

Because I get paid weekly, it seems that on 3 occasions this month my account has gone £1/£2 over limit.

They are putting the transactions out of order. For example I got paid on the 24th June and bought items in the afternoon.

On my statement the items go out first taking me £1.68 over limit and then after that transaction, my wages go in on the same day bringing me back in limit.

Speaking to the branch is useless. Last time I went in there I was spoken to by a girl who and I quote offered me the advice "just be more responsible, just stop using your card"

I was a nanosecond away from karate chopping her in the windpipe so I am reluctant to go back.

I know I'll probably get the response that I should be more careful but I'm already checking balances daily and I only buy things on pay day.

To top it all off they kindly offered me a fee paying account for £15 a month to avoid overlimit and return charges.

I'm just wondering if there is actually anything I can do! Do you think I'll have a chance of getting them stopped? Personally I don't think I've got a hope as they already refunded me 4 years ago.

I think I'm going to sell some of my belongings to get rid of this account asap.

Thanks all.

Tixy

If this it the first time this has happened in over 6months then you should find that they will either refund or maybe refund half.

The best way I know to get this goodwill gesture from them is to go in branch and explain and point out the issue with payments going out on the same day money went in (so you were not over you limit by the end of the day) and ask what they can do - be nice and smiley and apologetic (not matter how mad you are internallY). I see you didn't have a good experience last time, hopefully you'll get someone else this time, try to speak to someone in the seperate rooms in the bank not just at the counter.

BigCraigJohn

They do have some funny systems and I believe the online system is set up to catch you out.
For example payment leaves my bank and my account goes overdrawn, I credit my account to cover overdrawn amount. Check back at 6pm and all good, everything paid and overdrawn for a couple of hours so no issues.
Check bank again the next morning and the payment has now been returned incurring a £25 charge despite the money being in there and it showing as paid the night before.
Ring bank and they inform me that I needed to ring them before 3.30 to make sure.
Needless to see im on the blower every time this happens now but I bet people get caught out.

RosaBernicia

Hi Little Miss

It's thoroughly unhelpful of them, and if you have information saying the funds were available before you made purchases then I would think you have a good case for getting a refund. Do you know what time your wages go in? For example, can you sign up for text message banking? I get a message when my pay goes in and they usually come through at 7am, so I have a record of them telling me the credit was made - but in your case I don't know if this would show up first thing on the day, or the next day.

I would also ask them for clarification of the exact rules about timing - last time I rang my bank to explain that I might go over the limit but had already transferred money and could they note this to avoid the charge, they said they only look at the amount at the end of the day and so long as it's within limit then it's fine. But it sounds like your bank are less helpful. Not sure what you can ultimately do except move accounts and stop giving the ********s your business.

Good luck

Rosa xx

suzitiger

HSBC are AWFUL with fees, I am in the procees of trying to claim all mine back, as they really hit me when I was down. They are not allowed to do this, I completly didn't realise my rights. Go through the guide to bank charges on this website or on the bank charge reclaim part of the forum. I spent 45mins on the phone to them insisting to speak to a supervisor and it WORKED. Patience really pays off with these people when they realise you are not going to be fobbed off or go away. Believe me, many times I have wanted to karate chop people in HSBC for saying silly things like that, once when I went in to get halp managing my money the guy asked 'why was i spending so much on my rent each month' !!! and 'why don't you just get a full-time job?' yeah i was a student?? no brainer really! *takes deep breath* sorry, little bit of a rant there, that's why I just had to reply to your post.
So, to explain the fees, they charge for every transaction that takes you over your overdraft, not just how much you're over it each day, so if you had 3 d.debits go out in one day that all took you into your overdraft, they would probably charge £12 for each, or £25 for the first one and then £12 after that. It is a big headache and long winded but keep a record of the charges and the dates they take them, what dates the charges were incurred (when you went overdrawn) and write them a letter, that's what I'm doing so if you want some mutual support on how we're progressing keep in touch.

Sharon87

I've recently been reading HSBC fees and they go as follows from what I can remember. They charge you an overdraft arrangement fee of £25 if you go over your limit twice within 6 months. They do charge fees for unpaid items and going over your limit and the latter never exceeds how much you've gone over by. Also they have a £10 'cushion', so if you go over your limit by less than £10 it won't incur charges. And also if charges take you over your limit they won't add extra charges for that, unless you make a transaction whilst over your limit.

Seems to be fairer than some banks use to be, I went over my limit for a recurring card payment because Blockbusters hadn't closed my account, and got hit with £35 charge then at the end of the month took a further £27 which took me over my limit again (didn't know that was coming out) and got hit with another £35 charge! For a transaction of £14.99. HSBC seem more than fair.

I would ask for a breakdown of charges and see if they're obeying their own terms and conditions, it could be a mistake.

Little_Miss_Uni-Debt

Hello all!

Thanks everyone for the replies! They're really helpful and give me hope.

I really can't afford to be almost £100 down at the end of the month!

It's not helpful for them to lump it on as one charge, so I can't see what they are charging for. I do need to get a breakdown so I can contest the costs. :T

I don't have any direct debits going out. I used to but that caused chaos in 2007. I have my dd's with my Lloyds account who I have never had any trouble with. That's why I'm so sure that they're taking things out of order because I'm in control of everything that goes out.

If I had gone way over or I had bought things days before I get paid then fair enough, I know I'd be stung for that. I accept they need to make charges but not £25 when it's for less than £2 on the same day I'm paid.

I think I will try to phone them first. Saves a trip to the branch.

Going to get a list together of the charges made, by how much I was over and how long it was until I was back within my overdraft.

If they DO have a £10 cushion rule in their T's & C's Im'a hammer that point home! It'd be good to find that in their documentation.

***Rolls sleeves up*** Right! I'm on it! :j

Will update later!

Sharon87

Found the fair fees part on the website

Our fair fees policy means that we won't charge you for agreeing either a formal or informal overdraft request unless they occur frequently.
We won't charge an arrangement fee if we haven't agreed to an overdraft request from you within the last six months
We won't charge you more in arrangement fees than the overdraft requested (e.g. a £15 overdraft will not cost you say, £50)
We won't charge you an arrangement fee for an overdraft request of £10 or less
We won't charge you additional fees if it's the overdraft fees (or interest) that have taken you overdrawn, or further overdrawn
We will not charge you more than one arrangement fee a day
We won't charge you an arrangement fee for informal requests if your account is credited with covering funds by the end of the same day

http://www.hsbc.co.uk/1/2/personal/current-accounts/overdraft-service

May be of some use to. I'd go in with a print out from the website and ask to speak to someone and ask for a breakdown of the charges, and see if they're obeying their own terms and conditions

naomi123

Im in a similar situation to you OP.

I rang up HSBC last night and asked them to take away the fees and they said no, as it was my fault.

This morning, I went into branch, with my best sob story and said that their fees were going to put me into hardship, and because them, I would end up going over my overdraft limit each month- thus racking up more fees and getting even more into debt. They agreed to take the fees off in this intance- hooray!

Moral of the story is, if at first you dont succeed, try again!

Little_Miss_Uni-Debt

Wow, thanks Sharon87, that's perfect.

From looking at that, then they definately should return them! That covers my points exactly.

I'm going to ask for the breakdown of charges first to see what they are citing the charges as. Then I'll point out they are not following their own T's&C's.

I'm sure they'll try to pick holes in the wording of the t's and c's but I'll be ready for em .

After they refund them I'll clear the rest. Oooooh that will be such a sweet day going into branch to close the account.

That's encouraging Naomi123.

When I had my charges refunded in 2007 the branch staff were like a broken record "we don't refund fees, we don't refund fees"

It took a long time and lots of back but forth they gave in after I went back with a letter from head office agreeing they'd help.

Thanks again all. Updates to follow!