Terrified, please help.

alexa90

Hi, I hope someone can advise me as I've gotten myself into a real mess and am not sleeping.

I live overseas and have done for 3 years. I have a uk bank account (HSBC current account) which I left open in the UK. It received my last pay check before I relocated which was left to see out the remainder of my phone contract.

2 years ago I signed my dad up to a magazine subscription and paid in the cost for a 6 month subscription, as a present so that the payment was taken from that account. He has just told me that he is still receiving the magazines, so it has been auto renewing.

I cannot access the account via the internet because my hsbc calculator no longer works. I called Hsbc and they locked my account because I couldn't tell them what my 'favourite word' was. They have cancelled the direct debit but can't tell me anything about the account, whether it is in debit or credit etc. and have advised me I need to write to them to request closure of the account after which they will advise me if there are any funds to settle.

I don't know the overdraft limit on the account, I've never gone into it before. In 2 years, if I reached my limit but they continued to take payment (which they must have done as they have continued to deliver the magazines) what would happen and for how long would they continue to charge beyond the 'limit' of the overdraft?

Basically how bad could this be? Thanks in advance for your help.

Voyager2002

Did they have any way to contact you?

If so, then you should stop worrying. Had there been any significant charges they would have written to you or telephoned.

Anyway, I suggest that you write to them asking for written details of the account and see what they say.

indierocker85

Usually if you forget your "memorable word" they can ask alternative questions instead. As I recently had to contact a credit card company I don't make a habit of phoning, and as I forgot the word, they asked additional security questions instead.

I agree that if there was an excessive amount of charges, or if it was in the red by a massive amount, they'd stop paying the debit I'd have thought. Try calling them again, and advise them you cannot remember the memorable word, and is there any other additional security questions they can ask that you can then verify, to discuss the account that way. If they can't it seems a bit daft on their part!

alexa90

Thanks so much for your replies. Voyager, I moved house a year ago and they still had my old address (that part was my fault, I move frequently as is the life of a renter and it is hard enough remembering all the australian companies I need to keep informed of my whereabouts let alone all the uk ones too) but up until last august they hadn't contacted me, no.

indierocker, they asked me alternative questions but because I got that one wrong they transferred me to the security team, who have to call you back. They agreed to call me back in one hour but left it several hours and then I missed two calls from them - I have a 7 hr time difference and their number doens't accept incoming calls so I couldn't return the calls. When I called the customer service line again, they said missing 2 calls from the security team amounts to failing the security check so the account is then locked and cannot be unlocked. I can only contact them by letter.

alexa90

Although, they did have my aus mobile number on file because when I gave that to the security team they confirmed it was the same one that was on file for me. They have never tried to call me - I wonder if they would have done if things were really bad but just don't know whether stuff like that gets flagged. There must be a lot of people in a financial mess after all, they can't call all of us!! Ugh.

eskbanker

It's obviously better if you have an overdraft limit on your account but equally obviously, if you can't access the account it'll be difficult to ascertain what that limit (if any) is!

However, in the worst case, if you go into the red without agreeing a limit in advance, HSBC (as with many other banks) will treat this as an informal overdraft request.

Read up on the charges of their overdraft services at http://www.hsbc.co.uk/1/2/overdrafts/details

Voyager2002

alexa90 wrote: »

Although, they did have my aus mobile number on file because when I gave that to the security team they confirmed it was the same one that was on file for me. They have never tried to call me - I wonder if they would have done if things were really bad but just don't know whether stuff like that gets flagged. There must be a lot of people in a financial mess after all, they can't call all of us!! Ugh.

Banks would usually call if you are exceeding your authorised overdraft limit. Since you know that they have always had your mobile number, you can be reasonably confident that the damage will not be too bad.

alexa90

Thanks for the link eskbanker. I have been through all my paperwork and discovered I have an overdraft of 750 on the account. In that case, would I be right in thinking that worst case scenario is that I owe 750? The magazine subscription would not have cost that much, but I wonder if I would have reached that in accrued overdraft charges if they charged me for each payment and continued to charge. I also don't know what would happen if I hit 750, would they continue to charge beyiond that at a higher penalty - is that an 'unauthorised overdraft'? Thanks very much for all your help, it has calmed me down a bit.

eskbanker

Worth checking the published price lists and how they apply to your specific account, but the way I read it you'll be charged interest at 19.9% EAR, i.e. if you owed £100 on your authorised overdraft it would cost you £19.90 for the year in interest charges. I obviously don't know what the cost of the magazine subscription is but suspect that you won't be very far into your overdraft at all and are likely to have a pleasant surprise coming if you're fearing £750!

Sandstone

This kind of thing is usually easier in store, with your ID. Obviously you are abroad, but would it be possible to drop into a local branch of HSBC to see if they can assist?