HSBC - now charging £25 a year fee for overdraft!

jolenejolene

Hi,
I thought it would be worth mentioning this as it has recently come to my attention. I have banked with HSBC for 16 years and always had an overdraft. Between my husband and I we have 3 currant accounts with them. Yesterday i got a letter telling me that now they are reviewing overdrafts yearly and I will be charged £25 for this as an 'arrangement fee'. We have 3 accounts with overdrafts so would be paying £75 a year for basically nothing! I have not asked for any changes to the amounts etc so find this very annoying. I have cancelled the overdraft on one account which I never use - and am in the process of moving my bank accounts. I did call into my branch and was told that yes it is policy - here is a leaflet! Thanks but no thanks. I object to this and am moving to a bank which doesn't make nonsense rip off charges for overdrafts. (By the way, they had taken one payment of £25 without me noticing - this was on the account I have cancelled the overdraft so got it refunded immediately. Apparently I should have received a letter but never did...........) :mad:

YorkshireBoy

jolenejolene wrote: »

I object to this and am moving to a bank which doesn't make nonsense rip off charges for overdrafts.

When you find such a bank, and one that doesn't 'go with the flow' later, be sure to come back and tell us.

jolenejolene

I know! They are all much of a muchness!! However, they don't all charge you £25 a year just to have an overdraft do they ( as well as a % charge of you use it)?

ManAtHome

They didn't last year, but could be a sign of things to come (avoids all those reclaim cases...)

jonesMUFCforever

Before complaining too much can you tell us what the APR for the overdraft was last year and what is it now?

Beate

Hm. I bank with HSBC and hadn't heard this before. I think I do have an overdraft but I have never used it. If they introduce fees, I will cancel it straight away, seeing that I never use it anyway.

morg_monster

They sent letters out about this earlier this year. I've cancelled my overdraft with them as the account is basically dormant and got them to confirm I wouldn't be liable to any charges if the account stays as it is. I kept meaning to close it over the withdrawal of free o/ds for graduates but never got round to it, and now that's been sorted I think i'll keep it as a just in case account...

jolenejolene

ejones999 wrote: »

Before complaining too much can you tell us what the APR for the overdraft was last year and what is it now?

No I can't. I presume that you can though?

Iamthesmartestmanalive

There not the first and they wont be the last

The banks have been forced by a minority of the financial inept to penalise everyone

I and everyone else who controls their finances are being well and truly !!!!!! by those who spend what they want when they want

PBA

This is at least the second incorrect thread about this. There is no £25 annual fee. You do get charged a £25 overdraft request fee for applying for an overdraft more than once every 6 months.

Tariff of charges: http://www.hsbc.co.uk/1/PA_1_5_S5/content/uk/pdfs/en/bank_acct_cards_trav_q4.pdf;jsessionid=0000IZ6PZb3c6H881ks_qh29nAP:11j71fovq

jolenejolene

This is not what I was told in branch. I have not made any requests for any change whatsoever in the last 5 years at least. I was told that they have to review overdrafts yearly now and that there is a charge of £25 'arrangement fee' to do this. That is what I was told in person. One charge had already been taken.