HSBC Graduate overdraft - 1 month notice..

mogwai

I just received a letter today that my overdraft facility of £2000 with HSBC will be removed at the end of this month. Its been 1 year since I officially graduated, so they have stuck to their promise of interest free OD for the first year.

However I didnt expect them to be so unreasonable in demanding repayment of the overdraft. Its one month notice to pay back £1500 (which the OD is at).

I think I will just pay the outstanding amount from my savings and close this account down. It seems to me that HSBC are taking advantage of people before they've managed to get both feet on the ground.

But my question is are they allowed to do this? When I opened my student account I was told that the overdraft facililty would reduce at a reasonable rate, £500 every year. Are they not bound by the terms under which I opened my student account and graduate account? So can I force them to operate the account under these terms?

Crabman

The Banking Code states, with regard to changes in terms:

6.4 If the change is to your disadvantage, we will tell you
about it personally at least 30 days before we make the
change. At any time up to 60 days from the date of the
notice you may, without notice, switch your account or
close it without having to pay any extra charges or any

interest for doing this.

However, it could be dependent on whether it says 'repayable on demand':

13.2 If we offer you an overdraft, or an increase in your

existing overdraft limit, we will tell you if your overdraft is
repayable on demand.

Have you read the Top Graduate Accounts 2007-8 article, you may be better off approaching Lloyds TSB or RBoS and ditching HSBC altogether

espresso

Take you business to another bank like Natwest who should give you what you had. HSBC are shooting themselves in the foot with this farce!

Rhia

This has also happened to me. I graduated in July and received a letter stating that they no longer wanted to provide me with the overdraft facility and were removing it. They gave less than 30 days notice but actually pre-dated the letter.

Currently it is coming to the time to pay it back and I cannot afford to repay it. They have offered a loan, combining my OD and my credit card which I did not ask for. I am undecided what to do and time is running out.

You are not alone!

mogwai

Thanks..I don't think I will have any luck with this, and if HSBC have done this to loads of people I guess they must be within their rights..

IDIOTS!! Alienating graduates with lots of earning potential for a couple of extra quid profit has to be the most short sighted action for a bank to take..

Oh well, I do have another graduate account which I wasnt really using with Natwest, and I asked them about an overdraft, and they are happy to provide one, and the terms for reducing the facility are much more reasonable and customer orientated than HSBC too!

Sorry to hear about your situation Rhia, maybe you could consider getting a 0% card to pay off your OD, and then paying that back over a period of 6 months or so..?

Rikki

Natwests graduate account reduces over three years after you graduate. A third less each year and if after three years you still need the overdraft it converts to their normal overdraft rate.

madamstan

Hey Mogwai

This was how I got into the mess I am now - the HSBC student overdraft.
Not only that, their credit cards with ever increasing limits, interest plus the charges.

I didn't want either and ended up with £15,000 debt, depression/illness and a cat in hells chance of ever being allowed a 'grown up' bank account again.

And I didn't even finish my degree due to the money worries!

I can't believe they still get away hooking poeple in like this :mad:

mogwai

madamstan, that sounds pretty crap, i know what you mean about the HSBC credit card. They keep increasing my limits too, despite the fact that I barely use this card.

I used to really enjoy being an HSBC customer, because they seemed to make life as a student easier with their large ODs, and cc limits, but it seems they reserve the right to withdraw these facilities, no matter how unreasonably >:(

Anyway, since Im going to close both the CC and the account, I've decided to go through my old statements, and reclaim my bank charges from them. I wasnt going to bother since itll probably only be a couple of hundred or so and I didnt want to rock the boat, but since they are pushing me that way anyway!! <evil grin>

Hope you sort out your money worries ok, madamstan..