HSBC Overdraft charges

Maktina

One more thing.. Will the overdraft have an impact on my credit rating? On the phone I was given the impression that a missed loan payment, after 30 days, would impact my credit score - But if the payment went through causing an overdraft, does that still count as a missed payment?

grumbler

If the payment was missed, what brought your account into overdraft then?

Regardless, even going over the agreed overdraft limit on it's own can have some negative effect.

Archi_Bald

Maktina wrote: »

One more thing.. Will the overdraft have an impact on my credit rating? On the phone I was given the impression that a missed loan payment, after 30 days, would impact my credit score - But if the payment went through causing an overdraft, does that still count as a missed payment?

If your bank account went into an unauthorised overdraft (doesn't matter why), this will be reflected on your credit file.

If a scheduled loan payment was missed (doesn't matter why), this will be reflected on your credit file.

Your bank account and your loan will be two separate entries in your credit files.

JKSandy

If this is the first time you have ever been charged I would try with the bank to have the charges waived.

Maktina

grumbler wrote: »

If the payment was missed, what brought your account into overdraft then?

The payment wasn't missed, but I was given the impression it still counted as a missed payment due to lack of funds. Is that wrong?

So only the informal overdraft will be on my credit file.

Edit: Is there a facility to opt out of overdrafts? If there is I never 'opted in' so there might be something there.

gt94sss2

Maktina wrote: »

The payment wasn't missed, but I was given the impression it still counted as a missed payment due to lack of funds. Is that wrong?

Yes. As the payment was made, its not considered a missed payment as far as the loan is concerned even though it was paid from an overdraft.

Your credit score probably won't be that badly affected - missing a loan payment would have a much bigger negative impact then going into an overdraft so in that sense HSBC have done you a favour by letting you go overdrawn.

Edit: Is there a facility to opt out of overdrafts? If there is I never 'opted in' so there might be something there.

It might be better to ensure that there is an agreed overdraft in place just in case something like this ever happens again and if so, then the £5/day fee wouldn't apply

As has been said, I would be having words with your employer...

Regards
Sunil

RedLemon

This is the key question

Aquamania wrote: »

Why did you not receive your pay on time?