Debit Interest on HSBC Account

ohglobbits

Mac_Sami wrote: »

You'll have to excuse my confusion here.

I have a £1500 interest free overdraft on my HSBC account.
I have never gone over this overdraft limit, at most hitting about £1000 overdrawn.

I find today a notice on my internet banking telling me that I am being charged "debit interest" between 17/09/2007 and 16/10/2007 for the pricely sum of £0.30 (yes, you read that right).

What does this mean, and why such a small amount?! I've never gone over my limit, and whilst it's only 30p, I'm confused as to why they're even charging it in the first place.

Any advice much appreciated.

Thanks.

I had the same issue. I have a graduate account and am in my 3rd and final year. I received 2 letters in July, one stating that my overdraft was being terminated in a couple of weeks, and the other telling me my graduate account was being changed to a current account in the same week.

Well this was ll very confusing so I rang to check and was told both letters were a mistake and that I still had a graduate account and that I still had a £1000 interest free overdraft until November, when it would be ended.

All good. or so I thought...

I just got charged £9.31 for being in my overdraft. Why, I hear you cry, when it is interest free? Well, it seems my graduate account is no more and it is now a current account with charges whenever I go overdrawn.

I managed to get this charge refunded as I was not informed of the change - well I kind of was but was then told to ignore it as it was incorrect. But as of now I am gathering interest while I am minus £832. :mad:

I've ranted enough now, but I feel better. I hope no-one else has this problem. If you had either of these letters through I'd check your account status and make sure you actualy have the account you think you have.

ohglobbits

Mac_Sami wrote: »

You'll have to excuse my confusion here.

I have a £1500 interest free overdraft on my HSBC account.
I have never gone over this overdraft limit, at most hitting about £1000 overdrawn.

I find today a notice on my internet banking telling me that I am being charged "debit interest" between 17/09/2007 and 16/10/2007 for the pricely sum of £0.30 (yes, you read that right).

What does this mean, and why such a small amount?! I've never gone over my limit, and whilst it's only 30p, I'm confused as to why they're even charging it in the first place.

Any advice much appreciated.

Thanks.

I had the same issue. I have a graduate account and am in my 3rd and final year. I received 2 letters in July, one stating that my overdraft was being terminated in a couple of weeks, and the other telling me my graduate account was being changed to a current account in the same week.

Well this was ll very confusing so I rang to check and was told both letters were a mistake and that I still had a graduate account and that I still had a £1000 interest free overdraft until November, when it would be ended.

All good. or so I thought...

I just got charged £9.31 for being in my overdraft. Why, I hear you cry, when it is interest free? Well, it seems my graduate account is no more and it is now a current account with charges whenever I go overdrawn.

I managed to get this charge refunded as I was not informed of the change - well I kind of was but was then told to ignore it as it was incorrect. But as of now I am gathering interest while I am minus £832. :mad:

I've ranted enough now, but I feel better. I hope no-one else has this problem. If you had either of these letters through I'd check your account status and make sure you actualy have the account you think you have.

Richard019

Ebany wrote: »

The total overdraft doesnt decrease, just the interest free portion, so while you will still see an authorised overdraft of £1500, anything over £1000 will start getting interest charges - thus producing the small amount of interest you have had.

Not sure why they couldn't explain this to you as to my awareness it has been this way for years...

That's standard practice I think. My NatWest one is the same. Last summer they sent a letter saying they were reducing it from £1,700 interest free to £1k but left the full available limit. It was due to go down to £500 this summer but I've not had a letter.

I wonder if they only send letters where people are using more than the new 0% limit around a month before hand by way of reminding them ("Banks do something to help people avoid paying interest" shocker :rotfl: )

Last year I was using the full amount and got a letter, this year I had a standing order set up (so I wouldn't forget) for about a month early.

In normal circumstances I would say they needed to send you a letter informing you of the change, but it's not actually a change to your T&Cs as the reducing 0% overdraft and it's limits at each stage are included in the T&Cs for the account.