HSBC Overdraft charges

Maktina

I have a problem with some charges on my account. I have an active personal loan with my HSBC current account. I missed one payment in November (1st) because I didn't receive my pay on time. My account was brought into overdraft, about minus 160 pounds.

I was informed mid November on the website I would be charged 25 pounds overdraft fee at the start of next month. I wasn't happy with it, but I figured it was acceptable. My account stayed in overdraft until the end of November when I got paid. I didn't use the account not ONCE during this time, no payments of any kind.

My account has not been in overdraft since and has had a positive balance. But for some reason this morning my account now shows a new message that I will be charged 80 pounds(!) daily informal overdraft charge. It says the quantity is '18' whatever the crap that means. Why am I being charged again?

I don't understand why I'm being charged again and where the '18 payments' comes from. According to the the HSBC website overdraft guide:

"A payment from your account takes you into an informal overdraft. You have an informal overdraft for 21 days in a row during the month and you make 12 more payments from the account which we agree informal overdrafts to cover. We will never charge more than £80 per charging month in Daily Informal Overdraft Usage Fees."

Can I claim these charges back? Afterall it was the missed loan payment that did this.

:(

grumbler

>> General Price List (PDF)

My understanding is that it costs you £5/day up to £80/month, where 'month' is a 'charging month' that "normally starts on the day in the month you originally opened your account".

I can guess that first £25 was in the previous 'charging month' (5 days), and £80 is in the next month (16+ days).

YorkshireBoy

Maktina wrote: »

But for some reason this morning my account now shows a new message that I will be charged 80 pounds(!) daily informal overdraft charge. It says the quantity is '18' whatever the crap that means. Why am I being charged again?

The charge for informal overdraft usage is £5 per day. 18 is the number of days you were using it. The reason it's not £90 (18 x £5) is because they cap it at 16 days per month (16 x £5 = £80).

All the details are in their 'Price List'...

http://www.hsbc.co.uk/1/PA_esf-ca-app-content/content/pws/content/personal/pdfs/general-price-list.pdf

YorkshireBoy

grumbler wrote: »

I can guess that first £25 was in the previous 'charging month' (5 days...)

The £25 may have been the charge for the initial informal overdraft request...for them to decide whether to grant the request or deny it?

grumbler

Do you see this £25 mentioned anywhere?
My first thought was the same, but I failed to find it.

YorkshireBoy

grumbler wrote: »

Do you see this £25 mentioned anywhere?
My first thought was the same, but I failed to find it.

I didn't look to be honest, but that's how they used to operate.


I note the price list is dated 10th November, so maybe they don't charge that fee now. If that's the case, your 5 days and billing period scenario looks like the reason for the initial £25.

Archi_Bald

Maktina wrote: »

Can I claim these charges back? Afterall it was the missed loan payment that did this.

It doesn't really matter how you got into the unauthorised overdraft and it is not likely they will waive the charges. Though you could ask (beg) whether they would make an exception as it's the first time this happened to you.

I reckon your "charging month" starts on the 6th of a month, and your account was overdrawn from Nov 1 to Nov 23, right?

The overdraft charges would then be:

• 5 x £5 = £25 for November 1 - 5, listed on November statement
• 18 x £5 = £90 but capped at £80 for November 6 - 23, listed on December statement

Maktina

Thanks for the clarification. I phoned the bank and inquired about the charges and it pretty much aligns with what you guys have said. It's unfortunate because a difficult situation prevented me from adding the funds to my account sooner (I had the money in an RBS account but it was stuck due to their lousy card reader not working etc). Just seems a little unfair to be charged so much for a direct debit payment, that, really, shouldn't have gone through when there wasn't sufficient funds to cover it. Coming from overseas, UK banks completely baffle me.

Thanks anyway everyone.

Aquamania

Maktina wrote: »

I have a problem with some charges on my account. I have an active personal loan with my HSBC current account. I missed one payment in November (1st) because I didn't receive my pay on time. My account was brought into overdraft, about minus 160 pounds.

I was informed mid November on the website I would be charged 25 pounds overdraft fee at the start of next month. I wasn't happy with it, but I figured it was acceptable. My account stayed in overdraft until the end of November when I got paid. I didn't use the account not ONCE during this time, no payments of any kind.

My account has not been in overdraft since and has had a positive balance. But for some reason this morning my account now shows a new message that I will be charged 80 pounds(!) daily informal overdraft charge. It says the quantity is '18' whatever the crap that means. Why am I being charged again?

I don't understand why I'm being charged again and where the '18 payments' comes from. According to the the HSBC website overdraft guide:

"A payment from your account takes you into an informal overdraft. You have an informal overdraft for 21 days in a row during the month and you make 12 more payments from the account which we agree informal overdrafts to cover. We will never charge more than £80 per charging month in Daily Informal Overdraft Usage Fees."

Can I claim these charges back? Afterall it was the missed loan payment that did this.

:(

Why did you not receive your pay on time?

If a fault of your employer, then I suggest you ask them for compensation (of not less than any consequential loss you have incurred) as a result of their breach of contract.

Aquamania

Maktina wrote: »

... Coming from overseas, UK banks completely baffle me....

Your written English ability appears impeccable, so presumably your reading ability in English is equally so. :cool:

Thrugelmir

Aquamania wrote: »

Why did you not receive your pay on time?

If a fault of your employer, then I suggest you ask them for compensation (of not less than any consequential loss you have incurred) as a result of their breach of contract.

My thinking too. Seek reimbursement from your employer.

Not the banks fault.