Help :(

edited 30 November -1 at 1:00AM in Reclaim Bank & Credit Card Charges
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bipbop2013bipbop2013 Forumite
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edited 30 November -1 at 1:00AM in Reclaim Bank & Credit Card Charges
When I upped my overdraft limit with HSBC to £300 I thought that this would mean that I would not be able to go over this £300 as it is a LIMIT. But it seems that this is not the case. As I rarely have the chance to check my account balance, I rely on this limit and I thought that I would not be able to go over this. Today my card declined and to my dismay I discovered that I was over £600 overdrawn and left without any money until I get paid at the end of the month. I immediately called HSBC and had no option but to up my overdraft. I have also learned that I will also be charged £150 for going beyond my overdraft limit. I would like to know what is the point of having it stated as an overdraft limit when a customer is able to go over it? Has anyone had the same experience? Am I able to claim back these charges?

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  • societys_childsocietys_child Forumite
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    I think the LIMIT is the the limit you're expected to stick to. Didn't you wonder where all this extra money you were spending had come from?
  • edited 12 July 2013 at 8:44AM
    DomRavioliDomRavioli
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    edited 12 July 2013 at 8:44AM
    I highly doubt you will be able to get anything back.

    You were made aware of the overdraft, it is in your interests to define what that is, not to assume and be made to pay in fees. If you are ever in any doubt as to what something means, ask whoever it is that gives you the information.

    (Text removed by Forum Team)

    In short, pay the fees, and remove any overdraft if you cannot cope with having one.
  • edited 12 July 2013 at 8:45AM
    dunstonhdunstonh Forumite
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    edited 12 July 2013 at 8:45AM
    When I upped my overdraft limit with HSBC to £300 I thought that this would mean that I would not be able to go over this £300 as it is a LIMIT. But it seems that this is not the case.

    The limit is an agreed limit between you and the lender. The systems are not advanced enough to control your spending and it is possible for you to exceed the limit if you do not exercise self control. For example, many retailer consoles will not check against the balance for transactions up to a floor limit (the limit will depend on the retailer and and they will usually vary the limit to avoid it becoming known)
    As I rarely have the chance to check my account balance, I rely on this limit and I thought that I would not be able to go over this.

    That is a very bad way to control your finances as you are just asking for trouble.
    I would like to know what is the point of having it stated as an overdraft limit when a customer is able to go over it?

    I would like to know what bit of £300 limit you failed to understand.

    (Text removed by Forum Team)
    Am I able to claim back these charges?

    If it is your first time incurring over limit charges then the bank may offer a goodwill refund of some of the charge. I say some because you havent really just gone over it slightly by mistake. You have gone out on a spending splurge. Indeed, if I was the account manager, I would be thinking about pulling your card and marking your credit worthiness down.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • WywthWywth Forumite
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    bipbop2013 wrote: »
    When I upped my overdraft limit with HSBC to £300 I thought that this would mean that I would not be able to go over this £300 as it is a LIMIT. But it seems that this is not the case. As I rarely have the chance to check my account balance, I rely on this limit and I thought that I would not be able to go over this. Today my card declined and to my dismay I discovered that I was over £600 overdrawn and left without any money until I get paid at the end of the month. I immediately called HSBC and had no option but to up my overdraft. I have also learned that I will also be charged £150 for going beyond my overdraft limit. I would like to know what is the point of having it stated as an overdraft limit when a customer is able to go over it? Has anyone had the same experience? Am I able to claim back these charges?

    It's the limit of your authorised overdraft facility and therefore the limit at which authorised overdraft charges are applied.
    Beyond that, then you are into unauthorised overdraft territory and the higher charges that apply. Also, the bank may refuse a transaction you authorised, for which a fee will apply too.

    No you cannot reclaim the charges. You agreed to pay them.
  • edited 12 July 2013 at 8:46AM
    SparklableJewellerySparklableJewellery Forumite
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    edited 12 July 2013 at 8:46AM
    (Text removed by Forum Team)
    bipbop2013 wrote: »
    When I upped my overdraft limit with HSBC to £300 I thought that this would mean that I would not be able to go over this £300 as it is a LIMIT. But it seems that this is not the case. As I rarely have the chance to check my account balance, I rely on this limit and I thought that I would not be able to go over this. Today my card declined and to my dismay I discovered that I was over £600 overdrawn and left without any money until I get paid at the end of the month. I immediately called HSBC and had no option but to up my overdraft. I have also learned that I will also be charged £150 for going beyond my overdraft limit. I would like to know what is the point of having it stated as an overdraft limit when a customer is able to go over it? Has anyone had the same experience? Am I able to claim back these charges?

    I have recently had a similar issue with Nationwide. Apparently it is 'normal' for over draft limits to have another band afterwards whereby they can honor payments without you actually having the funds in your account. This was news to me too. Sadly there is no way of getting your money back (unless you are lucky and have someone with a sympathetic ear).
  • edited 12 July 2013 at 8:46AM
    dunstonhdunstonh Forumite
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    edited 12 July 2013 at 8:46AM
    (Text removed by Forum Team)
    Apparently it is 'normal' for over draft limits to have another band afterwards whereby they can honor payments without you actually having the funds in your account.

    Not exactly. They have apply a strict limit but it is still possible to go over limit even with a strict. A strict limit typically gets applied to accounts that are misused as the first stage in a reduction of credit status at the bank.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • happycamel_2happycamel_2 Forumite
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    It's just like speed limits when driving, you can exceed them but there are penalties for doing so.
    I'm a qualified accountant but please make sure you get expert advice as any opinion is made in a private capacity.
    "A goal without a plan is just a wish" Antoine de Saint-Exupery

    Mortgage overpay 2012: £10,815; 2013: £27,562
    Mortgage start £264k, now £232k
  • roonaldoroonaldo Forumite
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    Its it your responsibility to check your account? It's time to start checking your balance.
  • TheMoneyTheMoney Forumite
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    Your overdraft limit is the agreed limit. From time to time, your bank may allow you to exceed your overdraft and honour a payment you've made, although £150 sounds excessive, what is the specific breakdown of the charges?
    It's very possible to go over your limit, even with basic account that don't have an overdraft facility. The most common reason for this is how long a merchant takes to collect your payment. Whenever you use your card, the payment will be authorised or declined by your bank instantly, if authorised the money is taken from your available balance and set aside for the merchant to claim. Each payment will have between 7 and 14 days for the merchant to claim before it is automatically made available to you again. Once that time has passed and the merchant hasn't taken the payment, you may well spend the money again, but the merchant has up to 6 years to take that money. If they collect the payment and you have insufficient funds, you will be taken over your limit as any authorised card transaction is a guaranteed transaction, and will be honoured regardless of your available balance at the time. Basically, if the bank says yes, the money will leave eventually, but its a shock to most as your will have already received what you've paid for - this being for the simple reason the transaction was authorised initially, card transactions are guaranteed, the merchant instantly knows they will definitely get their money so are happy to provide your goods/service.
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