HSBC pulled my Graduate overdraft

anyapitch

Hi All,

I'd like to share what's happened to me and see if anyone has any advice.

I graduated uni last summer and was moved from 'student' to 'graduate' terms on my current account with HSBC which is supposed to have a 1500 interest-free overdraft in the first year and 1000 in the second year *subject to review & account conduct.

Apparently in August they reviewed my account and decided my account conduct was sub par (paid in £600 in July to stay within the interest-free bounds) because 'I wasn't paying money into the account frequently enough' and pulled my interest-free overdraft facility. I've been out of the country this whole time and had no clue they'd been bombarding me with letters and the only communication that I did actually get was a message on internet banking which says this:

To: Anya Subject: Your Graduate Overdraft Date: 28 Sep 2012 Message:
We recently sent you an overdraft facility letter which contained an incorrect expiry date for the interest free entitlement. I can confirm that your Graduate 'year two' interest free overdraft entitlement of £1000 will continue until 30 July 2013.

After this date the interest free entitlement of your overdraft will expire.

I am sorry for any confusion.

Yours sincerely,

Sarah Threadgould
Head of Customer Communications

I've spent way more time than I would ideally want to on a friday evening talking with various HSBC customer service people on the phone and have basically been told repeatedly that yes my overdraft's been pulled for poor account conduct (sometime in October), everything that happened was my fault and I should really have known better.

I asked about what happens with the money I currently owe and at least it sounds like I won't be accruing any charges so long as I don't go further overdrawn and was advised to start making repayments, without any specifics on amounts or dates however. The account isn't frozen, I was told, but I won't be able to pay for anything with it until I've reached positive balance.

Does this mean that my credit rating has just taken a massive nose dive? Does it mean I have all of eternity to repay my outstanding debt to HSBC? I know for sure it means that I won't be banking with HSBC again but do I actually have any rights in this?

Any thoughts would be much appreciated.

Anna

maninthestreet

So when did actually leave university - this year or last year?
You have another 9 months to get you account back in the black - how much do you owe them?

opinions4u

If the account isn't seeing a salary or other monthly credit and just being used like a 0% dumping ground for debt they are always going to be likely to pull the facility.

So does the account see your salary?

Did you go over your limit at any stage?

Are they now charging you interest?

Your post isn't very clear.

anyapitch

Re:maninthestreet
I left university last year. I currently owe them just under 910.

Re:opinions4u
No the account doesn't see my salary. I've never been over my limit on the graduate account - maybe once or twice very briefly when I was a student. They don't seem to be charging me interest.

Their actions seem to make sense to everyone but me - the lump of debt remains there, accruing no interest and the same deadline so what do they actually gain apart from upsetting a customer?

opinions4u

Well, putting it bluntly, you're not much of a customer.

Happy to take the free overdraft. But they don't even see your salary in return.

That's your most likely reason. They want to get rid of you.

dalesrider

anyapitch wrote: »

I left university last year. I currently owe them just under 910.


No the account doesn't see my salary

Their actions seem to make sense to everyone but me - the lump of debt remains there, accruing no interest and the same deadline so what do they actually gain apart from upsetting a customer?

Well HSBC were expecting you to pay your wage in and continue banking with them for the rest of your life. Clearly you have decided that, that is not what you want to do.

Look at it like this. Someone owes you that amount of money. And only pays it back a bit here and there. You know they work and are no longer in education....
What would you do.....

anyapitch

What would I do? Wait until the advertised/agreed overdraft expiry date in July next year for me to pay back the remaining debt (which is what they're doing anyway) and then review the overdraft facility. Fair AND no loss to them in the meanwhile. And then who knows I might just move back to the uk in the meantime and start using their services again.
It's like buying a girl a drink and then asking her to refund it when it turns out she's not into you. Not fair play.

opinions4u

Students get a stunning deal from banks in the UK.

So do many graduates.

One day some of them may just realise it.

meer53

So, in effect you currently have an interest free loan from HSBC, to repay at your leisure, with no fixed repayment amount ?

Can't see the problem myself.