HSBC Overdraft 'arrangement' fees

Darkseid

I admit to confusion. My wife has just had this letter, and we can't make head or tail of it. She has an overdraft of £100 per month, which we do dip into several times a year, but make sure we never exceed it and always get it back on track within the next month.

Is this a way of legalising bank charges before the Lords' ruling is made? A back-door way of making profits from charges? Do we actually need to do anything, or will it only affect us if we go over our overdraft?

We DO need this overdraft facility and I'm concerned that if we opt-out (I presume we have to otherwise consent is assumed) that the HSBC would ask us to "kindly go away" and bank elsewhere.

I also find nearly 20% interest is unjustifiable under any cirumstances.

bosch_3

I have just had to waste 20 minutes on the phone cancelling this charge and complaining. It really makes me angry.

Are they trying to lose as many good customers as possible just to get a few £25s from people who don't read every bit of spam in full (i.e. the elderly, vulnerable, and busy)?

Idiophreak

I had this a couple of years back...A couple of strong words with one of the supervisors and they gave the cash back. Just another case of HSBC providing their high levels of service

dfh

gingercat95 wrote: »

Well it's hardly free or where does the 2.4billion profite HSBC made last year come from? The bank uses my money and everyone else's money to go about it's business of making huge profits. Also overdrafts aren't free, there is this charge plus each time an overdraft is used charges are made.

Exactly.Also remember HSBC do not pay any interest on their Curent Accounts.

MadMax2_2

Does this charge apply to student accounts too or are they exempt?

Lokolo

dfh wrote: »

Exactly.Also remember HSBC do not pay any interest on their Curent Accounts.

And the ones that do offer such low rates make it silly. Thats why theres things called Savings Accounts. They're pretty useful.

Does this charge apply to student accounts too or are they exempt?

It does apply. You should have got a new Terms and Conditions booklet just under a year ago which explains about the £25 charge.

gt94sss2

MadMax2 wrote: »

Does this charge apply to student accounts too or are they exempt?

My understanding is that HSBC Student and HSBC Premier accounts are exempt from the £25 arrangement fee charge.

Regards
Sunil

dfh

Lokolo wrote: »

And the ones that do offer such low rates make it silly. Thats why theres things called Savings Accounts. They're pretty useful.



It does apply. You should have got a new Terms and Conditions booklet just under a year ago which explains about the £25 charge.

And the rates HSBC pay on their saving accounts is a joke.Halifax,A&L do pay decent interests on their current accounts.Point is that people do have to look around if they want good deals.Some banks offer deals on overdrafts which can save money.For example,Firstdirect which is run by Hsbc offer a 250 pound fee free OD.Which is why I switched from HSBC to FD.

elliem_85

ok, why is my overdraft arrangement fee £50?!

and are they allowed to charge £50 informal overdraft arrangement fee? I was hit with 2 ridiculous phone bills after I reduced my contract minutes (to save money!) and havent managed to recover, so I did go over my limit. please help! theres no way I'll ever get out of this if they keep charging me £50 every time a standing order goes out, as Im unemployed starting my own business at the moment.

Im definately leaving them as soon as I get out of my overdraft, and when I make my millions they'll not get any of it haha

Lokolo

elliem_85 wrote: »

ok, why is my overdraft arrangement fee £50?!

and are they allowed to charge £50 informal overdraft arrangement fee? I was hit with 2 ridiculous phone bills after I reduced my contract minutes (to save money!) and havent managed to recover, so I did go over my limit. please help! theres no way I'll ever get out of this if they keep charging me £50 every time a standing order goes out, as Im unemployed starting my own business at the moment.

Im definately leaving them as soon as I get out of my overdraft, and when I make my millions they'll not get any of it haha

Have you tried reading your T&Cs? They explain the fees.

However, I doubt you have, and I doubt you can be bothered. So for your own good....

If you go over your overdraft you get charged £25. This is whenever you use your account to take you into, or more into your unauthorised overdraft limit.

As you have been charged £50 this means you have twice done this. This could mean you just using your account twice not realising.

If you are self employed then you really should learn to read small print, as you won't make you "millions" without doing so.