HSBC change mind on graduate interest

[Deleted User]

http://money.guardian.co.uk/saving/banks/story/0,,2159132,00.html

"Following the feedback from our graduate account holders, both directly and through the NUS, we have taken the decision to freeze interest charging on 2007 graduates' overdrafts up to £1,500, and refund any interest charged in August," said Mr Ripley.

Idiophreak

FACEBOOK POWER, baby

PS - Hope everyone leaves HSBC anyway...

Crabman

Idiophreak wrote: »

FACEBOOK POWER, baby

PS - Hope everyone leaves HSBC anyway...

May as well stooze their now interest-free overdraft, THEN ditch them for the best current account

sly_dog_jonah

also covered on bbc:

http://news.bbc.co.uk/1/hi/education/6970570.stm

maniac886

Fantastic news!

influence

Did they say if a graduate can be under free overdraft for how many years? 3? 5? or forever?

jazz_vendor

influence wrote: »

Did they say if a graduate can be under free overdraft for how many years? 3? 5? or forever?

Well, I don't think that bit's very clear:

No interest will be charged on the first year graduate overdrafts up to £1,500.

That's off their web site today, so it remains to be seen whether they will extend it back to how it was.

I've still got another year at uni yet, and was going in this week to close my account, and still will be, definitly doesn't change my mind. After the lack of communication between branches/offices I witnessed during the last two months, and the letter dated "July 2007" which they claimed was sent out a month before the 16th July, I don't trust them with my money!

This mistake has cost them big time. Not sure if its just the facebook group thats done it really, think the fact that they must have just lost thousands of accounts is part of it too.

cam101

PEOPLE POWER!!

I am so pleased that they have changed their minds, I wrote a stinky letter of complaint- along with thousands of others i'm sure! I'm sure it was the combination of campaigns, bad publicity and letters that did it.

I was just about to start the process of switching, but with a new mortgage on the go, that seems more trouble than it's worth now (I still hate HSBC though!)

*Pops champagne at the thought of saving time and effort. Oh, and money!*

tomwakefield

influence wrote: »

Did they say if a graduate can be under free overdraft for how many years? 3? 5? or forever?

Prior to the announcement, the system was as follows:

Each year the free part of the overdraft is reduced £500, with the remainder charged at the standard 18.9(ish)%. The total overdraft facility stays at the same level.

So two years after I left uni, I still have a £1500 overdraft facility, but only £500 of that is interest free, the remaining £1000 is charged at standard rate.

Of course, I have that £500 earning interest in another bank account until that, too, loses its interest free status

With the feedback at the alterations, it seems the only sensible thing for HSBC to do is to revert to that system, but that may not happen.

influence

With all the 'grey' traps planted, it just seems to let us step into one of them and explode.