HSBC Overdraft 'arrangement' fees

heloid

Don't change your overdraft or exceed your overdrafts limit you don't get charged £25 for the renewal. I use my overdraft regularly and have never been charged since asking for it over 2 years ago.

B-no

Caladan wrote: »

I wont get into a debate about overdraft charges as a whole, personally I agree with them to an extent but find them excessive in certain situations.

First thing I'll say is this, when a Bank charges you, it isn't personal, and trust me, those £25 fees sure as hell don't hit staff pockets. However, we're the ones who review the accounts and as such understand why the fees are charged.

In HSBC, the Annual review was introduced NOT to generate revenue via charges (Most people get by on their agreed overdraft, the fee is only generated if overdraft increases are requested frequently), but to ensure the overdraft is necessary for the customer.

For example, at the moment I'm £100 overdrawn in my Nationwide account, I haven't used the account for months but my overdraft is "Until further notice." Theoretically they could never get that money back, however seeing that I don't pay in to that account they're simply losing more and more on it (balance + interest).

From that respect, I would EXPECT to pay a fee to keep the overdraft facility there.

The UK has been desensitised to paying for banking to the extend that people complain about every fee they're expected to pay. We offer overdrafts free, debit cards, cheque books, counter service, internet banking, telephone banking, statements, even tax returns, all for nothing.

Is it therefore wrong of us to charge for reviewing your lending position (which like I said we only do if it's frequent), or for spending 20 minutes writing out a bankers draft and performing the necessary checks?

Yours,
Customer Services Officer - HSBC

I can see the point of having to charge a frequent user of an overdraft facility, a small nominal fee for each time it is used or per month for each time you dip into it. I do not fall into this category, I have used my overdraft once in 6 years and for all of three days! This dip was not charged for after a short phone call. I generally keep my account quite healthy, but I did like having the security that if I ever did pay a cheque in late or mistimed a payment I would be covered until I would square the balance up. I cant understand for the need to charge me £25 a year for this privilege, where if it is not setup they will charge me £25 for going overdrawn on each occasion. Therefore if my history repeats itself over the next 6 years I could save myself £125 for not having an overdraft setup officially!! This baffles me, can somebody please explain it?

gt94sss2

B-no wrote: »

I cant understand for the need to charge me £25 a year for this privilege, where if it is not setup they will charge me £25 for going overdrawn on each occasion. Therefore if my history repeats itself over the next 6 years I could save myself £125 for not having an overdraft setup officially!! This baffles me, can somebody please explain it?

If you don't use your HSBC overdraft or change it in the 6 month period before your 'annual review', then they won't charge you the £25 fee.

Regards
Sunil

B-no

gt94sss2 wrote: »

If you don't use your HSBC overdraft or change it in the 6 month period before your 'annual review', then they won't charge you the £25 fee.

Regards
Sunil

Havnt used my overdraft for 2 years nor have i requested a change in size. They still tried to charge me the 25 quid, stopped it just in time but they have removed the facility now. Really !!!!ed off with them now, but dont want to go through the hassle of leaving and changing all DD's and standing orders. Do you think i would be able to get it re-instated without the charge if i go into my branch? Failing that anyone know a bank that will offer this without trying to screw me?

Sharon87

B-no wrote: »

Havnt used my overdraft for 2 years nor have i requested a change in size. They still tried to charge me the 25 quid, stopped it just in time but they have removed the facility now. Really !!!!ed off with them now, but dont want to go through the hassle of leaving and changing all DD's and standing orders. Do you think i would be able to get it re-instated without the charge if i go into my branch? Failing that anyone know a bank that will offer this without trying to screw me?

If you went over your limit within 6 months before the review they charge the £25 fee, as it is 'informal' request to change your overdraft limit. I've had this. I didn't get charged for my last overdraft review last month as I stayed within my limit and didn't request an overdraft change.