HSBC's New ATM Service

SimpyTimpy

HSBC's now launched a new ATM facility which allows users to withdraw money from their bank account, even if they don't have the funds in there to do so, as long as they're prepared to face up to a £25 informal overdraft fee. See: http://www.mirror.co.uk/news/money/city/2007/09/07/hsbc-cash-machines-give-out-overdraft-warnings-89520-19747937/

I have a few questions though if anyone knows how this service works.

1. If I don't have an overdraft facility with HSBC, and have £0, can I withdraw £150 for example as long as I'm prepared to pay the £25 fee?

2. Is the fee a one of charge and then followed up by interest, or is it a cumulative fee that is processed daily?

If anyone has any info on this it'd help

Thanks guys.

gt94sss2

HSBC have not changed anything - apart from their ATM's now giving warnings to their own customers if a withdrawal will make them overdrawn or go over their overdraft limit.

Otherwise their overdraft policy continues and if they allow you to go overdrawn by more than £10 then they will charge you a maximum fee of £25 (free the first time every 6 months) + daily interest - subject to their 'fair fees' policy..

However, its better not to go overdrawn or to arrange an authorised overdraft in the first place.

Regards
Sunil