Informal Overdraft Fees with HSBC - Advice desperately needed

AcertainMonk

Hi everybody,

Hoping one of your good selves can give me some advice here.

I've had an HSBC account for about 7 years now. It's at a point now where I've had no other option but to open a new bank account to have my wages paid into, and have cancelled all DD's and S.O's with HSBC. My new account is with Natwest and I opened a Barclays current account for backup.

Anyway, I've had a £2000 formal overdraft with HSBC and have been maxing that out for about a year now - not once going over. As it stands, the balance is currently at £2410 and HSBC are now wanting to charge me a further £150 in informal overdraft fees aswell as an additional £30 in interest.

My income vs expenditure isn't exactly the greatest - income (on average) is about £1000 after tax per month and my expenditure about £900.

I would like to know if it would be best for me to call HSBC and is there a chance they would waiver the fees? I'm struggling at the moment and this situation is worrying me greatly. I'm unsure as to whether I should call as it seems a lot of people are against doing anything over the phone and often suggest keeping a paper trail.

I've considered sending HSBC a SAR. If I did this, and highlighted all of the interest they have charged me on the overdraft plus any other fees, would I be able to reclaim any of them?

What are the chances they would be willing to freeze the interest and fees and allow me to set up a repayment plan?

Also, another concern is that I currently have an outstanding personal loan balance with them which currently stands at £4000 (it was a £5000 loan originally - I've already cleared the interest on it) as well as a credit card which is maxed out at £500 (I currently repay £30 per month on this).

I would greatly appreciate any advice you can give.

Thank you

Wywth

AcertainMonk wrote: »

Hi everybody,

Hoping one of your good selves can give me some advice here.

I've had an HSBC account for about 7 years now. It's at a point now where I've had no other option but to open a new bank account to have my wages paid into, and have cancelled all DD's and S.O's with HSBC. My new account is with Natwest and I opened a Barclays current account for backup.

Anyway, I've had a £2000 formal overdraft with HSBC and have been maxing that out for about a year now - not once going over. As it stands, the balance is currently at £2410 and HSBC are now wanting to charge me a further £150 in informal overdraft fees aswell as an additional £30 in interest.

My income vs expenditure isn't exactly the greatest - income (on average) is about £1000 after tax per month and my expenditure about £900.

I would like to know if it would be best for me to call HSBC and is there a chance they would waiver the fees? I'm struggling at the moment and this situation is worrying me greatly. I'm unsure as to whether I should call as it seems a lot of people are against doing anything over the phone and often suggest keeping a paper trail.

I've considered sending HSBC a SAR. If I did this, and highlighted all of the interest they have charged me on the overdraft plus any other fees, would I be able to reclaim any of them?

What are the chances they would be willing to freeze the interest and fees and allow me to set up a repayment plan?

Also, another concern is that I currently have an outstanding personal loan balance with them which currently stands at £4000 (it was a £5000 loan originally - I've already cleared the interest on it) as well as a credit card which is maxed out at £500 (I currently repay £30 per month on this).

I would greatly appreciate any advice you can give.

Thank you

I would certainly advise you speak with HSBC over the situation you are in.

I can't say they will waiver any fees, but when HSBC become aware you are no longer crediting your account regularly with the amount you were when you were provided the OD facility (i.e. with your wages), they may just call the OD in if they are not made aware of the situation

AcertainMonk

Thanks for the response. Should I mention that my wages are being paid into a new account now? Also, what about sending in a SAR and reclaiming? Any advice is greatly appreciated.

[Deleted User]

AcertainMonk wrote: »

Thanks for the response. Should I mention that my wages are being paid into a new account now? Also, what about sending in a SAR and reclaiming? Any advice is greatly appreciated.

There really is little point in sending a SAR to ascertain what charges you have paid. Banks will only consider refunding charges if you meet their "hardship" criteria and typically only for the last six months.

As Wywth said, of far more importance is the fact that you no longer have any regular income being paid into the bank. HSBC will likely want to see this restored or the money you owe them completely repaid.

AcertainMonk

Thanks for another response. I'm sure they will be willing to allow a repayment plan but my concern is how much I can afford, i'm not sure my offer of £50-£100 will suffice. That, and whether or not they would be willing to freeze interest and unfair charges.

[Deleted User]

AcertainMonk wrote: »

. I'm sure they will be willing to allow a repayment plan

Don't be too certain if your wages no longer go into your account with them.

AcertainMonk wrote: »

That, and whether or not they would be willing to freeze interest and unfair charges.

The Banks won the court battle over "unfair" charges. They really aren't obliged to refund anything or cease to charge if you are over your agreed limit.

I think you may have to consider an IVA etc. I recommend you make an appointment with your local CAB.

meer53

AcertainMonk wrote: »

Thanks for another response. I'm sure they will be willing to allow a repayment plan but my concern is how much I can afford, i'm not sure my offer of £50-£100 will suffice. That, and whether or not they would be willing to freeze interest and unfair charges.

If you only have £50-£100 a month disposable income, how can you afford £50 a month for a repayment agreement ? I would advise you to contact Stepchange for advice, and also to call HSBC as soon as possible.

AcertainMonk

meer53 wrote: »

If you only have £50-£100 a month disposable income, how can you afford £50 a month for a repayment agreement ? I would advise you to contact Stepchange for advice, and also to call HSBC as soon as possible.

£50-100 is roughly what i'd be left with after ALL expenditure including priorities like rent, council tax etc. and food, energy, fare. Everything basically.

Anyway I've just got off the phone to HSBC. Have to admit they were very helpful. They gave me an additional few weeks to see exactly how much I can afford to start repaying the overdraft. They haven't waivered the fees however I suspect they will prevent any further charges or interest once I make my suggestion of what I could afford. If they refused to do so then I would take whichever route necessary to ensure they stop adding additional charges, even if it meant dragging them to court.

I should have some additional money coming in within the next 2 months or so so hopefully I can get the overdraft back down to below the agreed £2000. I had been on an advanced account, paying £12.95 and they have cancelled that which gives me some leverage.

I'll report back when this sorted out as I feel other people out there might find some of this information useful as obviously a lot of people are in similar situations to myself.

Thanks to all for your replies

Wywth

AcertainMonk wrote: »

£50-100 is roughly what i'd be left with after ALL expenditure including priorities like rent, council tax etc. and food, energy, fare. Everything basically.

Anyway I've just got off the phone to HSBC. Have to admit they were very helpful. They gave me an additional few weeks to see exactly how much I can afford to start repaying the overdraft. They haven't waivered the fees however I suspect they will prevent any further charges or interest once I make my suggestion of what I could afford. If they refused to do so then I would take whichever route necessary to ensure they stop adding additional charges, even if it meant dragging them to court.

I should have some additional money coming in within the next 2 months or so so hopefully I can get the overdraft back down to below the agreed £2000. I had been on an advanced account, paying £12.95 and they have cancelled that which gives me some leverage.

I'll report back when this sorted out as I feel other people out there might find some of this information useful as obviously a lot of people are in similar situations to myself.

Thanks to all for your replies

I'm glad you took the advice provided and spoke to HSBC over this matter.

Your suggestion that you might have otherwise have taken "whichever route necessary to ensure they stop adding additional charges, even if it meant dragging them to court" is unwise.
I have no idea on what basis you would "drag" the bank to court. Based on the information provided, I can't even see a claim being entertained by the court let alone get to a hearing stage.
All it would do is waste more of your money in court fees; money that would surely be better put against paying off the overdraft.

Whilst on the subject of the overdraft, your aim must be to pay off the overdraft IN FULL (as Martin would say), and not just get it back below £2k, especially as you no longer use this account to pay in your wages. (and I would urge you to then close the account)