£25 charge on HSBC Graduate Accounts

DjSatansfury

Mine got changed from a student account to a graduate account automatically, with about £14xx overdrawn with a £1500 limit. The last "x" months they've been charging me £8 interest, which has tipped it over the £1500. Unfortunately as ive been ill since leaving my course (i had to leave due to illness) ive got no way of paying it back!

I'll have to ring them, but its all getting a bit rediculous. If only i had been more prudent beforehand :rotfl:

CrispyUK

HannaB wrote: »

I have been made aware of further instances where you are charged £25 on a graduate overdraft...when you try to pay it back!!

Hanna,

Have you been reducing your overdraft limit as you pay the money off? Hence incurring the 'review/change' charges?

If so you shouldn't need to do this - regardless of what your overdraft limit is you should only be charged interest on the actual amount of it you are using so you can pay the money off and leave the limit unchanged.

You're probably best keeping your extra £250 payments in your current account to reduce the amount by which you are overdrawn, you should then be paying less interest from month to month as these accumulate

HannaB

Hi Crispy,

Thanks for the response.

I have actually been formally reducing my overdraft as oppose to just spending less. However, I seem to work with a woman's mentality, you could say. If I see an available balance on the overdraft, I automatically think handbags and shoes. I need a hard cut-off point. As the lack of stars suggest, I'm a Newbie and I don't think I yet have the mindset of "spending less", it's more along the lines of "getting everything to zero, starting from scratch and then spending less". I'm sure I'll learn one of these days though, and this charge was a knock-back for me.

I just thought I would warn other grads in my position that there are additional charges everywhere, so read the small print.

HannaB

amz84uk

I heard that HSBC appeared on BBC Watchdog yesterday evening regarding this very issue about charging Students/Graduates interest on their accounts. Not sure what the outcome was, but would be interesting to watch/hear.

HSBC did write to me saying they would offer a "review" of my account, but didnt mention any charges (i.e. £25 that some of you lot are being charged). I received another letter stating that HSBC would revert to standard old-practices of keeping student/graduate overdraft interest-free, and apologised for any inconvenience.

phlash

Sorry to hear about the charges guys. This was all being talked about a couple of months ago (just after I graduated) when news of the 9.9% interest charge on the overdraft came about. HSBC did EVENTUALLY back down on the 9.9% and reverted to giving graduates a interest free overdraft.

I, however, on news of the 9.9% overdraft immediately swapped banks to RBS and enjoyed an overdraft limit increase to £2000.

I was never charged this £25 review fee (because I'd left I guess), but it may just be a way of getting a little bit of the money they were expecting from the 9.9% interest charge that they have backed down on. I think it all links back to the credit markets and the turmoil beyond, and banks interested in reducing their liabilities or exposure, or at least getting more money out of their debtors to boost their balance sheet.

If in doubt, just switch, you always pay for loyalty (in banking).

monkeysavers

After recieving a letter from HSBC aknowledging the withdawal of the monthly interest scheme/scam, my account in the past few days has been indicating that there is an interest charge of a few quid slated go be applied to my account toward the end of the month. Has anyone else got this?

Bella_b

I got a letter from HSBC last week.. saying that my overdraft facility is free up to £1500 but my limit used to be £1750!! and I am considerably over that amount and it's charged at 9.9%, i'm sure that percentage has increased! I do not have a job at the moment and I have no money to put into the account to get it back down to the overdraft level! How much is that a month in interest I have to pay? :mad:

I've tried to change banks.. in late july I went to RBS and filled in some forms and they said I would hear from them in a few weeks.. but it is now October 4th and I haven't heard anything from them, nothing at all!! They are so rude.. first when I go to the bank which I had to make a special trip for because it is not local, and then they dont even notice im there for ages!! Customer service is appauling.. and now they havent even contacted me about anything!! I am begining to wonder whether I am switching banks at all!! :mad: