HSBC overdraft arrangement fee

luprice

I'm a newby to the forum but I was so annoyed at my bank today that I thought I'd ask for advice and reading Martin's articles about unlawful bank charges I wondered whether this applies in my case.

I have a pre-arranged £1000 overdraft facility which they did not charge me to set up and they don't charge me for having. I rarely go overdrawn but every now and again it happens. This week I'm making a large cash purchase (2nd hand car - dealer doesn't do credit cards) and there will be about 24 hrs before savings clear my account - I anticipate slightly exceeding my overdraft limit.

I rang the bank to ask them if I could extend the limit for a couple of days and they told me sure, but for £25!! Personally, I think this is disproportionate to what I'm 'borrowing' (which I would have to pay interest on anyway). I asked why they hadn't charged 'arrangement' fees last time round, apparently this is because I had been with the bank a long time and was a good customer. I asked why, as a good customer, they couldn't extend this flexibility and waive the charges this time too, seeing as it is only for a day or so. Point blank answer, no.

Am I right to think this is unjust and definitely un-customer friendly, particularly so as I am informing them prior to me knowing that I will be overdrawn.
Any suggestions??!!!
cheers!

Twinkly

The difference between reclaiming bank charges and what you are doing is that they would be charging you for a service in this instance and not a penalty. My advice is buy the car a day later, put a deposit on it for now that doesnt exceed the overdraft limit and save yourself the fee

tom188

This is part of a new charging structure HSBC introduced last year. You will have been informed about this charge through the new terms and conditions sent out to you.

It is not a penalty charge as such so reclaiming arguments do not apply. These fees used to be the norm before "free banking".

techno_geek

I thought HSBC offer customers one free overdraft extension/request every 6months?

If you're a longstanding customer you could try asking to speak to a supervisor, explain the situation, and ask them to waive the arrangement fee on this occasion...

-EDIT-
Here's what I found on HSBC's website:

You will not have to pay for your first agreed overdraft request (formal or informal) in any 6 month period. Each further request in a 6 month period may incur an arrangement fee.

Jarlawuk

luprice wrote:

I'm a newby to the forum but I was so annoyed at my bank today that I thought I'd ask for advice and reading Martin's articles about unlawful bank charges I wondered whether this applies in my case.

I have a pre-arranged £1000 overdraft facility which they did not charge me to set up and they don't charge me for having. I rarely go overdrawn but every now and again it happens. This week I'm making a large cash purchase (2nd hand car - dealer doesn't do credit cards) and there will be about 24 hrs before savings clear my account - I anticipate slightly exceeding my overdraft limit.

I rang the bank to ask them if I could extend the limit for a couple of days and they told me sure, but for £25!! Personally, I think this is disproportionate to what I'm 'borrowing' (which I would have to pay interest on anyway). I asked why they hadn't charged 'arrangement' fees last time round, apparently this is because I had been with the bank a long time and was a good customer. I asked why, as a good customer, they couldn't extend this flexibility and waive the charges this time too, seeing as it is only for a day or so. Point blank answer, no.

Am I right to think this is unjust and definitely un-customer friendly, particularly so as I am informing them prior to me knowing that I will be overdrawn.
Any suggestions??!!!
cheers!

Why not wait till your savings clear and don't go into your overdraft so often?

_Andy_

luprice wrote:

I'm a newby to the forum but I was so annoyed at my bank today that I thought I'd ask for advice and reading Martin's articles about unlawful bank charges I wondered whether this applies in my case.

I have a pre-arranged £1000 overdraft facility which they did not charge me to set up and they don't charge me for having. I rarely go overdrawn but every now and again it happens. This week I'm making a large cash purchase (2nd hand car - dealer doesn't do credit cards) and there will be about 24 hrs before savings clear my account - I anticipate slightly exceeding my overdraft limit.

I rang the bank to ask them if I could extend the limit for a couple of days and they told me sure, but for £25!! Personally, I think this is disproportionate to what I'm 'borrowing' (which I would have to pay interest on anyway). I asked why they hadn't charged 'arrangement' fees last time round, apparently this is because I had been with the bank a long time and was a good customer. I asked why, as a good customer, they couldn't extend this flexibility and waive the charges this time too, seeing as it is only for a day or so. Point blank answer, no.

Am I right to think this is unjust and definitely un-customer friendly, particularly so as I am informing them prior to me knowing that I will be overdrawn.
Any suggestions??!!!
cheers!

The fee is charged because you want a temporary increase. Just ask it to be until further notice and there shouldn't be the fee.

IoweIoweitsofftoworkIgo

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