My Bank stops me

Pschyrembel

Hello Everyone.

Reading all your posts left me unsure if I should write anything at all, but her I go.

I really try hard to get rid off all the things I need to pay off. Mainly nasty utility bills that I tried to pay back in installments and then failed to pay and my creditcard (1000£ +20£overdrawn). I only have a overdraft of 200, but here comes my story.

I would manage to cope with my money if my bank wouldn't cheat me out of my money big time. I stay within my limit and they charge me absolute hidious money for beeing overdrawn the previous month, which brings my account again beyond the agreed overdraft. Next month again, and again and again. They have basically put me in a situation where I can't do anything anymore. I can't pay any bills because my bank (HSBC) is taking my money before I can pay anything.

I really don't know anymore what to do. It looks like they create a debt spirale for me. Even if i don't spend any money I end up overdrawn.

What shall i do?

Frank

natweststaffmember

I still think you have a case to claim back charges. The FOS will still do so in extreme hardship. I am not sure if your case does come under that umbrella(in fact I am not sure if anyone actually knows what that means including the FOS).

Snaggles

Hiya - you may be able to claim the bank charges back, however I believe there is a test case being fought at the moment - see here - so banks may not be paying out until the outcome of this is known.

In the meantime, have you tried speaking to HSBC to see if they can help at all? If you haven't had charges refunded very often in the past, they might be willing to waive last months charges, to help you get out of the charges spiral - I know banks are not known for their generosity, but it's not in their interests for you to go under either, so they may take a sympathetic approach. It's worth a try at least.

wherediditallgo

I assume from what you're saying that your overdraft is unauthorised, which is why you're paying such high charges. Have you asked the bank for an authorised overdraft facility? Even a short-term one of say 6 months would slash your charges down to almost nothing per month, which would enable you to put some money aside & clear the overdraft completely. If you haven't already asked them, I suggest you do.

Alternatively, you could open another account elsewhere with an automatic overdraft facility (I think First Direct do one), then take the cash from the authorised overdraft to pay off the unauthorised one completely. It will require a bit of discipline on your part though to make sure you don't end up with two overdrafts you can't pay, so I wouldn't do it unless you know that won't happen to you.

natweststaffmember

From what the OP has stated, my gut feeling would say the bank MAY refuse it on the basis of previous excesses BUT I think the OP should at least ask.

Snaggles

Yes, I have to agree there - I'm an underwriter and I wouldn't be keen to agree to an increase in overdraft facility where there has been a history of excess - I would rather refund a months charges and try and break the cycle that way.

Pschyrembel

thank you very much for your replies. as you can see, it keeps me awake some nights.
But I have still a few questions...

Who or what is the FOS?
How can I claim refunds? I have spoken so many times with HSBC(online, on the phone and in person) to sort this mess out, but they keep on telling me due to my history they can't help me.

I really don't know what to do anymore, as this History stops me from opening a new bank account elsewhere and make a fresh start.

My fear is, when I start claiming my Bank charges back and no ones gives me a new Bank account. I would be dependent on them and they would block my account or chuck me out completely.

:eek: :eek:

azjh77

Most banks offer a 'step' type account which is open to anyone regardless of credit history. It would be very basic, no overdraft etc, but you could have your wages paid into it and pay a set amount towards the overdraft at the other bank rather than occuring fees. We were £600 OD with the Woolwich and fed up of never being in credit, so I opened an account with Abbey. Have now paid off the OD -just one with Abbey now! - albeit an agreed one with a low rate....

Sea78

HI

If you are unable to get anywhere with HSBC, try getting one of the basic accounts as said above. Then, using your wages (paid into the new account) you can pay off any unauthorised overdraft with HSBC and if able to the same month, clear any debts with the HSBC account before closing it. Yes, it's a bit of a hassle, but it seems that if you haven't got anywhere with HSBC (believe me, I understand all about that!) then this would be the best course of action.

Sea xx