HSBC Business Banking Overdraft Renewal Fee

pamore

Just wondered if anyone had any thoughts on the following.

I have an HSBC business account with a small overdraft, which I have had since I opened the account 5 years ago.

HSBC charge a 'renewal fee' of (at the moment but soon to go up!) £50 each year for 'reviewing' the need for the overdraft. Leaving aside the hideous amount that they charge for doing this, my problem with them is that they never (except for the first year in 2008) give me any prior-notification of the charge and all I receive is a letter that is generated on the same day the charge is applied to my account, and which reaches me 3 or 4 days later. The charge is not applied on the same day every year but is always around the first 2 weeks of this month and can cause over-overdraft problems if I am not prepared for it, not to mention it being frustrating.

I have complained to them on several occasions in the past couple of years but I never seem to get anywhere with it. The most recent letter I got from them (yesterday) says that they are "not obliged to provide you with annual pre-notification of the renewal fee" because, apparantly, I agreed that there would be a fee when the account & overdraft was originally arranged, payable on renewal. But, I also agreed that there would be other charges attached to my account for day-to-day banking but they give me notice of how much those will be.

The first letter I received from them in 2008 regarding the renewal gave me all the details associated with the overdraft and stated that they would write to me again next year, giving me 35 days notice. They didn't and I've never had anything since.

HSBC have now said that this is their full & final response. I am not disputing the charge but why should this charge be any different to other charges where notification is given? Is it worth me taking it to the Financial Ombudsman Service which is apparantly what's left open to me? Do they have a legal obligation to pre-notify me? Or am I wasting my time?!

Thanks in advance for any thoughts.

Gromitt

Would it not be easier to just increase your overdraft amount by the cost of the overdraft renewal?

But yes, if you wish to file a complaint and HSBC say they have reached the end of there complaints process, then you can try the FOS and see what they say.