How can I avoid HSBC's new graduate interest rates?

Compound_2

NovaBlack wrote: »

this is probably a DUMB question... but is there a group (like trading standards / orcom etc) that we can complain to about this? i mean its in clear breach of the banking code.

HSBC have breached sections 5.3 and 6.4 of the Banking Code. You should follow the HSBC complaints procedure, continuing up to the Financial Ombudsman. The details can be found in the ‘How to complain’ box of the ‘contact us’ section of the HSBC website. Basically, you contact your branch manager, then the Service Quality Team (their details have been posted by Bella_b above). Then it’s off to the Ombudsman, which costs HSBC £400 even if you lose. So if lots of people put in complaints … consumer revenge!

The Banking Code Standards Board ([EMAIL="helpline@bcsb.org.uk"]helpline@bcsb.org.uk[/EMAIL]) will launch an investigation and disciplinary action if a breach of the Code affects a large number of customers. They cannot resolve matters for an individual customer, but all complaints are logged and if lots are received, they will act against the bank.

Similarly, HSBC could be reported to the Office of Fair Trading. People can email [EMAIL="enquiries@oft.gsi.gov.uk"]enquiries@oft.gsi.gov.uk[/EMAIL] where the matter will be logged, but no individual assistance can be given. It would be good if NUS got in touch with the OFT. The Consumer Direct service on 0845 4040506 may be able to advise where else you can complain (see saynoto0870.com for geographic numbers).

People could also try BBC Watchdog (off air until autumn but still investigating):
http://www.bbc.co.uk/consumer/tv_and_radio/watchdog/contact_finance.shtml
and Working Lunch:
http://news.bbc.co.uk/1/hi/programmes/working_lunch/6034907.stm

All we got from hsbc was ' oh yeah we know we are the only bank doing this right now but all other banks will follow suite soon enough.. so tough... you can always move if you dont like it'

Banks are not allowed to know each other’s plans for future pricing. The remark suggests illegal price-fixing. Such breaches of competition law can be referred by the OFT to the Competition Commission.

wowzetov

Regarding the Alliance & Leicester account referred to in one of the post's above, they are now offering a 50 quid sign-up bonus until the end of the month, and they regularly offer referral bonuses where for each colleague or relatives that you refer you each/both get 50 quid bonus. They tend to fluctuate the value of these bonuses, but presently they are at their peak 50 quid for accounts opened until the end of July.They are offering a 0% overdraft for a year, and will match your current overdraft. Sneaky tip for the skint: Although you are asked to deposit 500 pounds per month into the account, you can actually deposit 250, withdraw it and then depsosit it again. Or 100 pounds, five times, etc. So if 500 quid a month is a slight burden you can deposit less and 'regurgitate' the money so to speak. For your information, to save time in opening your account, you can sign up online directly on the website for the Alliance & Leicester Premier current account or the
Alliance & Leicester Premier Direct current account which is for those who can do their banking online.
The faster your account is opened, the faster you can start referring your friends and family yourself. You can also now print the 50-quid referral vouchers from there too.
If you don't already know anyone who has one of these accounts who can refer you for your own sign-up bonus, then you can get an Alliance & Leicester referral vouchers online here.This actually seems like quite an attractive alternative to the HSBC graduate account and they offer a much nicer interest on moneys in your account, as well! What do HSBC offer you for referring friends to their accounts, other than a place in the que?

dancingfairy

It's ridiculous. Leaving aside the fact that they have chosen to charge their customers - fair enough you can leave if you don't like it. I think the way in which it has all been handled is disgusting. They should have given everyone plenty of notice. Just because we are students we should not be treated like this. Thankfully I bank with Natwest but I am really cross at how badly HSBC have handled this and hope people can move accounts quickly and tell their friends to move as well. It is an unecessary stress at this time when people are trying to find post graduate courses/jobs/ move house etc and to be hit with charges because HSBC is breaking rules is totally unfair. Good Luck to everyone fighting this one- there are good banks out there- never had a problem with Natwest.

Bella_b

I went to the RBS bank today, even though it is not near me.. and had to make a special trip.. only 2 branches in whole of Bristol! But I may be moving further north soon and there are more branches there.. so that's good. I asked about graduate accounts, they told me a rough outline.. but there wasn't much to tell really.. I told the man that I had an account with HSBC and he said that I'd probably heard about the no-interest free thingy.. fiasco! and I said yes I had and thats why I was there.. cos thinking of switching! So I have a booklet with application form in now.. what do you guys reckon? Should I fill it in? The man also asked if I was employed.. and I said that I wasn't currently, but hope to be by September! However, they don't list being employed to be a requirement to open an account! So, why did he ask? Bit rude, but ok it's the account I want, not the people. He also said that they'd had a lot of people asking about the account that had come from HSBC!
Thing about HSBC was that the staff have always been friendly to be there.. and it's not there fault that the account has changed..and branch is so much nearer right now.. (but not when I move). So I think i'm changing tomorrow! Who's switched to RBS so far? It's better than Natwest right? I know they are similar, but RBS has the edge doesn't it? I just want to be sure I'm getting the best account before I switch.
Thanks, Bella

[Deleted User]

RBS own natwest so they prob have the most branches in the country, dont know if they are allowed to use the different brands branches though, prob not for openning.

Dont forget that most 99% of RBS products are rubbish, there graduate overdraft rate and there bt credit card is the only thing worth having now. So dont let them sting u for a mortgage or loan!

i wouldnt let things like that bother you follow your money not your heart with banks. I have been told by some people that rbs staff are "snobby" but i wouldnt let that bother me either as they are only till jockeys at the end of the day, most wont even have a clue about the main products.

RBS current accounts dont pay interest so make sure you switch once you have paid your o/d off. The best at the mo being alliance and leicester and the halifax.

foxxes

Hi guys, I have been reading through the thread thanks for all the excellent information. I have a couple of questions if someone can answer them please. I also am now being charged interest on my HSBC account and therefore am going to switch.

Can anyone tell me what is better or what the difference is between the Natwest and RBS graduate accounts?

And also when you switch are all your direct debits / standing orders changed for you automatically and if so how long is this process likely to take. (my rent comes out at the end of the month, but I want to switch right away).

Thanks in advance for your help.

[Deleted User]

Read the details on their websites to find out. They are ultimatly the same company but will offer different products under different brands.

morg_monster

NovaBlack wrote: »

gotta say egging employees... that sounds like fun .. although perhasp we shoudl wait until just before the new UNI year (september) and protest outside our local branches to put off any more students signing up with them..

Ah that seems harsh - egging the branch staff who lets face it have NOTHING to do with the decision that has been made. Why don't we pop down Canary Wharf and egg that nice shiny building they've got! And maybe hit some senior management on their way out.

However your second idea is great - i think a bunch of students handing out flyers to new freshers around campus is a great idea, or standing there with a sandwich board on... Most of them probably won't even notice that HSBC is crud as they race for their free MP3 player... Oh actually - yeah whats the betting that as september approaches HSBC have the best signup freebie there is to coax them in?!

Bella_b

If you go into an RBS branch and ask about the graduate account, they give you a pack which has a bit in it about switching.. apparently takes 2 to 4 weeks for the switch process to be complete! Seems long.. I was hoping for it to be days not weeks!

As for standing order & direct debits, there are two options you can choose.. 1) either tell them you want to transfer them to your new account
exactly as they are, and close your other account with your other bank

OR

2) tell them to send details of the standing orders or debit debits to you so you can review them and then inform them of any changes within 10 days and then close the account with the other bank.

I think it's something like that anyway. That's what I read in the brochure for the account. Go and ask in a branch or look on www.rbs.co.uk for more details.

I'm about to fill in the application form tonight! And then open it tomorrow hopefully, but what I'm confused about is that.. how do you close your hsbc account? Do you have to go in there and ask to close it or do you just go into RBS and ask to switch? Then that gives them the power to request the account with the other bank to be closed? What happens, anyone know?

Thanks, Bella ... (and oh yeh RBS said that they just need something that says what award you have been given on it.. I have a booklet that says the modules I have done, degree title and award given.. but don't have my certificate until September because my award ceremony isnt until then. Hope that helps some people.)

Daveyx

HSBC tried to take me off my student account last year as well but I seemed to have been lucky that I found an understanding cashier who sorted it out straight away after I presented them with proof that I was a student. You've probably tried this but keep pestering them and take in as much proof as you've got to prove that you're a poor student!