Beware - HSBC 'punishment' charge six months after incident

avstar

Yesterday I noticed that HSBC were whacking a £25 charge on my current account for a 'formal overdraft fee'.

I have a £200 overdraft on my current account that I use for a couple of days a month, I haven't been over this limit recently so rung up to query the charge. Apparently because I went past the overdraft limit by £28 for 1 day in August last year they can add this charge on upto 6 months later! :mad:

They call it a formal overdraft fee, when your overdraft is up for renewal each year they can charge you £25 for the privilege of nothing changing.... I didn't even know they 'renewed' an overdraft each year...I've had one since being a student years ago and have gradually shrunk it down to the £200 its been for ages. Since when did it get 'renewed' each year...and why should there be a discretionary charge for this when you're not making any changes?

I explained that last August I was struggling to get to my online banking as regularly because of the crappy key fob thingy and as soon as I noticed I'd gone over by £28 I transferred funds to cover it. I rang them in August and explaained it was an oversight for 1 day, they waived the fee, and I thought that was the matter closed. Not so, now six months later they can charge me £25 because of this incident.

So beware...if you've gone overdrawn by even a small amount and paid the charge, or had the charge waived, they can sting you with another £25 charge upto six months later at 'overdraft renewal' time.....
Time to charge banks I reckon

Crixus00

why not just not remove the overdraft?

A proper budget and no overdraft and you will avoid charges full stop. Just keep a buffer of £100 in the account or something similar. I hate overdrafts and for that reason i won't have one

jalexa

avstar wrote: »

I rang them in August and explaained it was an oversight for 1 day, they waived the fee, and I thought that was the matter closed. Not so, now six months later they can charge me £25 because of this incident.

The policy say this... "we won't charge an arrangement fee if we haven't agreed to a formal or an informal overdraft request from you within the last six months."

The HSBC policy also says this..."we only charge an arrangement fee if you have more than one overdraft request [my emphasis] agreed in a six month period."

As posted I am not convinced you have had "more than one overdraft request agreed in a six month period".

Given the circumstances of waiving your original fee and the "unclear policy implementation", why not "invite" them to waive the £25.

c_denise

Hi avstar,

sorry to hear about the £25 fee charge.

They would charge if you've gone overdrawn 6 mths prior to it being renewed. Check the date when u went overdrawn in august and check the date when your overdraft date is suppose to be renewed. You might be able get away with it

le_loup

I don't know how you could have been unaware that they didn't review and renew your overdraft each year, they do write to you and tell you that they are doing it and then write to you to tell you that they've done it. Do you not read the bank's letters to you? Perhaps that's the cause of your troubles.
Still you know now and better able to look to the future,

Paul_Herring

avstar wrote: »

I have a £200 overdraft on my current account that I use for a couple of days a month, I haven't been over this limit recently so rung up to query the charge. Apparently because I went past the overdraft limit by £28 for 1 day in August last year they can add this charge on upto 6 months later!

I get the impression that if you use the overdraft at all, and you imply you use it every month, you'll get charged the annual fee.

I don't think it's just because you went over the OD limit.

jalexa wrote:

As posted I am not convinced you have had "more than one overdraft request agreed in a six month period".

Really? I read it as they've had at least six OD requests.

avstar

Thanks all, I suppose I'm annoyed because since the August incident (which was an oversight by 1 day for £28) I haven't gone over my authorised overdraft at all. Feels like a punishment for an incident that I sorted out back in August.

I read & file all my bank letters but I specifically DO NOT remember anything saying I need to pay an annual fee of £25 to have an overdraft. I'd have got rid of the overdraft there and then, I don't really need it - it was a psychological cushion as there are sufficient funds in my HSBC savings account just sat there. I've now transferred a couple of hundred quid of that across to my current account and told HSBC to stick their overdraft. I'll just run my account in the black from now on, preferably elsewhere if anyone can recommend - Natwest & Halifax seem OK.

I just posted to make people aware of a sneaky HSBC charge that I never knew about.

GlamGirlie

avstar wrote: »

I just posted to make people aware of a sneaky HSBC charge that I never knew about.

It's not sneaky... it's in the T&Cs and is also explained in the annual renewal notices they send out re O/D renewals.

Just because you didn't know about it doesn't mean it's sneaky!!

Paul_Herring

Here we go - I thought it was HSBC - they've been doing it for a few years - two posts from 2008:

https://forums.moneysavingexpert.com/discussion/1208711

Leew1231 wrote: »

I have my current account with HSBC. I currently have an overdraft facility of £1250, which I am not in. I have received a letter yesterday saying my overdraft has been reviewed, and for the next 13 months my overdraft can stay at £1250. For this pleasure I have been charged £25 for the review of it.

https://forums.moneysavingexpert.com/discussion/785795

dipalipraveen wrote:

I received a letter from HSBC today saying that they have done an annual review of my overdraft and the changes are outlined.

There was no change to my overdraft limit nor did I ask for a review. However HSBC in their infinite wisdom decided to charge me £25 for the priviledge of the review.

avstar

GlamGirlie wrote: »

It's not sneaky... it's in the T&Cs and is also explained in the annual renewal notices they send out re O/D renewals.

Just because you didn't know about it doesn't mean it's sneaky!!

My experience and my opinion, it's sneaky.
They openly quote a low interest rate for their authorised overdrafts but that doesn't include the £25 annual charge which actually makes the annual 'cost' of their overdraft much higher. That bit is hidden in the small print....sneaky

Paul H, how wierd. Never knew the charge been around for so long as I've not been charged before for it and had the same £200 overdraft for years.

Maybe its a discretionary charge and now my face doesn't fit, I've paid off all my debts and am overpaying the HSBC mortgage, they've realised they're not making as much money from me anymore so have to claw it back somehow

gt94sss2

avstar wrote: »

Never knew the charge been around for so long as I've not been charged before for it and had the same £200 overdraft for years.

Maybe its a discretionary charge and now my face doesn't fit,

They only charge it where you have exceeded your overdraft in the last 6 months - otherwsie they write and renew it without charge..

You just haven't been paying enough attention to the letters they send..

Regards
Sunil