HSBC and unauthorised charges

Badcreditgirl

Hi all,

Just looking for some info with regards to my current account with HSBC. Basically, we moved a few months ago and our rent is due each month on the last day of the month so the standing order comes out around the 27th. There was enough money in the account to cover rent but two other direct debits came out (early!) which means I have been charged for an unauthorised overdraft twice! At £25 each time that means I have been charged £50 for going into debit by £30.

Over £700 went into the account 2 days after I went into the unauthorised overdraft and I think it's a bit unfair I was charged this much for direct debits going early. I have spoken to HSBC and they have advised me to call back once the charges have been applied to my account (apparently this will happen the end of this month) and they might be willing to waive the charges.

I'm just wondering if anyone has had any lucK avoiding these charges from HSBC?

Lokolo

First time offence? If you are nice and get a nice HSBC employee, then yes.

If you've done it before? No chance.

magpiecottage

Contact the bank and tell them that these direct debits were not authorised and you want them reversed, and charges reimbursed, in accordance with FSA rule BCOBS 5.1.11R

This is strictly correct if, at the time the payments were taken, the originators were not authorised to take the money.

Then complain to the originators and inform them that you hold them responsible and if they cannot be trusted to take the payment at the correct time you will have to cancel their mandates.

gt94sss2

As has been said, contact HSBC and tell them that the direct debits were unauthorised and they will reverse them

There was enough money in the account to cover rent but two other direct debits came out (early!) which means I have been charged for an unauthorised overdraft twice! At £25 each time that means I have been charged £50 for going into debit by £30.

HSBC would not have charged you £50.

Have a read of their fair fees policy (page 2). It includes:

• Arrangement Fees charged will never be higher than the overdraft requested (e.g. a £15 overdraft will not cost you £50).
• We will not charge more than one Arrangement Fee a day.

Regards
Sunil

exel1966

Badcreditgirl wrote: »

There was enough money in the account to cover rent but two other direct debits came out (early!)

What exactly do you mean by they came out early?

Some DD's have +/-3 days built into them (to take into account weekends/bank hols etc), they are not all the same and you should NOT regard a usual day as the day it will always happen. You should also have funds in an account the last business day before a DD comes out.

eg. If it's due out Monday the funds should be in place by close Friday.

First offence? Ask nicely and they might refund though they don't have to.

Ben8282

Direct debits are instigated by the company taking the payment not by the bank which makes the payment. HSBC cannot therefore be responsible for these direct debits coming out early.

Direct debits being taken early is a very rare occurence which I don't think has ever happened to me. For more than one company to have taken a direct debit early in the same month is sufficiently unusual for me to seriously doubt what you have claimed.

innovate

magpiecottage wrote: »

Contact the bank and tell them that these direct debits were not authorised and you want them reversed, and charges reimbursed, in accordance with FSA rule BCOBS 5.1.11R

gt94sss2 wrote: »

As has been said, contact HSBC and tell them that the direct debits were unauthorised and they will reverse them

Sorry guys but this sounds a seriously bad suggestion and I would not do this if I were the OP.

Asking for a reversal could make matters a lot worse still - - the Direct Debits weren't unauthorised in principle, they were apparently only taken early. Making HSBC to pull back the money would most likely set in motion a huge train of problems with the direct debit recipients, overdue payment markers on the credit file etc.

Best to either demand the charges from the Direct Debit takers - - or bite the bullet and accept that it was a misunderstanding on the OP's behalf to start with.

magpiecottage

innovate wrote: »

S
Asking for a reversal could make matters a lot worse still - - the Direct Debits weren't unauthorised in principle, they were apparently only taken early.

If they were taken before the date agreed then they were unauthorised.

Making HSBC to pull back the money would most likely set in motion a huge train of problems with the direct debit recipients

Very unlikely if a complaint is made to the originator as well telling them what had happened and why they had reversed it.

overdue payment markers on the credit file etc.

Again unlikely if it arose from a dispute.

innovate

My brain hurts.

Take this example:

• Company A is authorised to take DD on 5th. This is for service for the next 30 days
• Company A takes money on 4th, 1 day early
• Account owner asks bank on 6th to reverse payment which bank duely does. Therefore service to be provided for the month by Company A is suddenly unpaid.

And that is were things such as late payment markers, plus all sorts of other complications can start.

I am certainly not condoning DDs to be taken early (and tbh cannot imagine how this could happen, particularly with 2 at the same time) but reversing the DDs is just asking for more trouble.

dalesrider

magpiecottage wrote: »

Contact the bank and tell them that these direct debits were not authorised and you want them reversed, and charges reimbursed, in accordance with FSA rule BCOBS 5.1.11R

This is strictly correct if, at the time the payments were taken, the originators were not authorised to take the money.
.

Spliting hairs and opening a can of worms so big it would make £50 of charges seem like a token donation...

Given it was bank holiday weekend, they will have been requested early to ensure payment hit the co in time.

You may even find that HSBC would not action the request due to the above reason.

Given the fact that money was paid in to cover the DD's before they were due, had it not been a B/H weekend. I would think it would be a very hard faced rep that would decline the request, unless OP is doing it every month.
If it was then raised as a complaint. Then they would get the charges back. Due to the timings.

What I don't get is why it was not resolved straight away. As it is actually easier to stop the charge being applied, than it is to reverse after the fact.

magpiecottage

innovate wrote: »

And that is were things such as late payment markers, plus all sorts of other complications can start.

There would not be a late payment marker because the payment was not late. On the contrary, it was early.

reversing the DDs is just asking for more trouble.

Only if they were legitimately taken in the first place. If they were early then they were not and the originators have exactly the same ground for complaint that the payment was reversed as they would if it had bounced - i.e. none.