Help :(
bipbop2013
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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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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.
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In short, pay the fees, and remove any overdraft if you cannot cope with having one.
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)
That is a very bad way to control your finances as you are just asking for trouble.
I would like to know what bit of £300 limit you failed to understand.
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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.
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.
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).
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.
"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
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.