Advice regarding HSBC overdraft wanted.

bodybox

Hello all. Hoping someone can help me regarding a query I have with an HSBC overdraft. I'm finding it difficult to get a satisfactory response from HSBC and really want to find out if my arguement is valid or if I have just convinced myself that I am right because I'm a bit bitter about the situation (and should therefore not pursue this).

11 months ago (December 2006) I opened an HSBC current account which came with a £500 overdraft. The overdraft was guaranteed for a period of one year (I have a letter outlining T&C's specifically for the overdraft). I didn't use the account as my main account despite two requests to their switching team (I couldn't be bothered after this and continued my bitter / bitter relationship with A&L) although by this stage I had already spent £400 (ish) so my balance was -£400 with a £500 overdraft. I hadn't given this a seconds thought as it's a comparatively small sum of money and besides, the overdraft is for a year so I'll pay it back later. I was due to make some big financial decisions recently so checked my credit report via Experian and was shocked to find default notices (some as high as 3) associated with my HSBC account (and they began the month after I opened my account). No worries I thought, clearly a mistake, it'll all be sorted by the good folk of HSBC (on the flipside, everything else on there is unblemished, which, given 12 years of fantasy finances is a great surprise). I then went to find out the balance via a cashpoint with the intention of paying back the outstanding sum (when HSBC send me a statement it only seems to contain how much interest has accumulated (at the eye-watering rate of 15.9%) and not the actual balance of my account (I know that sounds odd and possibly false but I guarantee this is true. Really very strange). My card was absorbed by the over-zealous hole-in-the-wall so I called one of the off-shore call centres who couldn't offer any information as I'd failed security (I fail security on every call, they send me a form to fill in, I complete it, post it, phone them, fail security and repeat). I made an appointment with someone in my local branch (difficult in itself as when calling the 0870 branch locating hotline, I wasn't told the opening times as I refused to give my postcode...). Chap in branch advised me that my overdraft was overdrawn in June (it was now October) although rather smugly advised me that I would have been sent a letter and that customer make these mistakes all the time. He looked at my account details and sure as sure, I hadn't been sent a letter. I'd had an unauthorised overdraft for 5 months and HSBC chose not to inform me, sending statements (of accumulated interest) every month. So, complaint was raised in the branch, received a standard response (I know it was a standard response as the halfwit that sent it failed to change the reference from "FREECUSTLTTR3" to something a little more specific). Called them (failed security) to advise them that this isn't good enough and got second standard response. I have now written a seven page complaint outlining all the problems I've had with them but before I send it I want some advice:

If I had an authorised overdraft until June 2007, how can HSBC apply default notices for the 6 month period up to this date?

Whilst I know they should have advised me that they were withdrawing my overdraft, is this a valid arguement? Or would it be a case of "we didn't send you a letter. Get over it".

The problem I have is I genuinely don't believe I have made a mistake and HSBC are doing nothing to aid me. Everyone I have spoken to within the organsiation has been obstinate to the point of outright ruseness. My integrity has been questioned, I suffered the misfortune of speaking to Carol on their head office complaint line (0800881155) and was wishing for a sword-weilding St. George (althought I'd imagine that there are a pile of heavily scorched St. Georges in the back office).

Sorry if this isn't that clear (not very good at explaining things) and if anything needs clarifying then I'll do the best I can.

Sperate note: If there was a bank that operated with absolute transparency and moral integrity and charged up to £300 per year for its services then I would sign up immediately.

Anyway, hope someone can advise. Sorry it's a bit long.

Lester

olly300

OP next time you post a long post please make your paragraphs smaller as it makes it easier to read.

I think your issue is that your overdraft ran out and they didn't inform you.

However you need to check HSBC's T&Cs to see if it mentions anything about notifying account holders of when overdrafts run out. Also check your statements to see if it mentions a date about your overdraft facility. Most banks put this information in statements in very small writing.

OK from having problems with 3 banks I have learnt:
1. If you make a complaint do it in writing to the complaints team which can be found via their website. Do not bother telephoning call centres or brances, or going into the branch to speak to them as they will always fob you off and be as unhelpful as possible.

I'm begining to believe from how some of the staff act it's higher management who teach them these tactics.

2. Make your complaint one-side of A4 long. Companies do not read letters more than one-side of A4 long. Try writing in bullet points in chronological order to make things clear.

3. Sent the complaint to them by recorded delivery or fax so you have proof of delivery. This is so they cannot say they didn't receive your complaint as a reason to take no action.

4. If they fail to answer properly the first time, write another letter of complaint in it:
a. mention your previous letter with the date
b. state they didn't answer the issues brought up in the letter
c. reiterate the issues of your complaint
d. end with words to the affect that you will refer the complaint to the financial ombudsman if they don't address the issues in your letter properly.

The address for written HSBC complaints is:
The Manager, Service Quality Team,
HSBC Bank plc,
Arlington Business Centre,
Millshaw Park Lane,
Leeds, LS11 0PP.

daveboy

Pay a rare visit to MSE once in a while and what do we find....

Yet another 'it's not my fault' thread.

You are responsible for your finances...personally I hope HSBC hammer you into the ground for being so irresponsible in managing yourself.

These threads are why MSE is a laughing stock elsewhere on the internet...and is why I rarely bother any more.

bengal-stripe

bodybox wrote: »

11 months ago (December 2006) I opened an HSBC current account which came with a £500 overdraft.....
I didn't use the account as my main account despite two requests to their switching team (I couldn't be bothered)....
although by this stage I had already spent £400 (ish)...

Do I get that right: you opened an account 11 months ago, refused to switch from your previous one, never paid in any money but drew £ 400 on the overdraft.

No wonder, the bank got nervous. Check the conditions. I’m pretty certain the overdraft is given to you to use within the account; there probably will have also been minimum funding requirements per month (£ 500 or £ 1000). You have refused to use the account as a current account (money-in-money-out) and treated it as a free loan. That is the thing, that brought you into the mess you are in today.

Read the small print. Almost certainly, the overdraft depends on you using and utilizing the account within the agreed terms (why would they offer a free overdraft otherwise).

bodybox

olly3000: Thanks for the guidance. I've kept copies of everything and have sent a letter to the Arlington address although have just received stock responses. And I've looked through the T&C's and there's no inormation regarding a overdraft cancellation notice period.

daveboy: Erm, very constructive. Thanks.

MABLE

bodybox wrote: »

olly3000: Thanks for the guidance. I've kept copies of everything and have sent a letter to the Arlington address although have just received stock responses. And I've looked through the T&C's and there's no inormation regarding a overdraft cancellation notice period.

daveboy: Erm, very constructive. Thanks.

Im sure somewhere in the terms and conditions it must say HSBC expect you to pay a regular amount into your account. You have taken advantage of the overdraft facility and it would appear you have not been paying monies into the account. If that is the case surely you must then feel you have been the cause of the problems.

Perhaps daveboy comments are not helpful but there is some truth in what he says.

bodybox

I'm aware I made a mistake, yes. That's why I posted a request for advice here (if you leapt on everyone on this site who was guilty of poor financial management then you would have time for very little else). I have other current accounts that I've never used and they remain active. I was simply trying to find out if a bank can apply a default to your credit report if you are overdrawn but within your agreed overdraft. And I do think it's wrong that my overdraft was withdrawn and I found out 5 months after the event by accident. If they'd informed me then I could have acted.

Some truth in what daveboy says? He hopes HSBC hammer me "into the ground". Possibly the disjointed, erroneous and poorly conceived view of a psychopath but not a rational response to my original query.

McMahon1985_2

Hi all,

I've got an account with HSBC and recently had a cheque paid into my account for £100 that I was told had cleared my account so I went ahead and withdrew 100 pounds from my account. Now the thing is im now overdrawn & HSBC never told me that i'd got an automatic overdraft facility on my account for £100 pounds, this was never mentioned to me when I opened the account by a member of staff nor was in put in writing anywhere when I opened the account with them.

A few weeks ago I received a call from one of their call centres and spoke to a woman who constantly pressured me for a date as to when I would be able to pay money into my account again to reduce my overdraft slightly. I told her i'd be able to pay money in every 2 weeks but sadly have only paid £30 in so far about a month ago. What should I do?

rachel6188

perosnally i think hsbc are unhelpful in any aspects...i dont have any debts with them btw...yes the op has made a mistake but i am disgusted by the attitude of people on this forum...its about helping each other not being so nasty. op they should have sent you a letter....youv been given some good advice and i wish you all the best. rach x

Lokolo

rachel6188 wrote: »

perosnally i think hsbc are unhelpful in any aspects...i dont have any debts with them btw...yes the op has made a mistake but i am disgusted by the attitude of people on this forum...its about helping each other not being so nasty. op they should have sent you a letter....youv been given some good advice and i wish you all the best. rach x

I've never had a problem with them.

And we are nice usually, it depends what people are asking. If people want charges refunded, complaining about overdrafts being taken away we may seem harsh but we are not. We are being realistic.

T&Cs state ODs can be taken away without notice. Simple as.

Everytime you open a bank account you get these T&Cs in a leaflet. If people cannot be bothered to read them, how is it the banks fault then they take it away?

There are plenty of options. Repayment period and loan are just 2 of them.

And this thread is 2 years old. Why oh why delilah, do people not make own threads asking about problems instead of reviving old threads.

rachel6188

didnt realise it was 2 years old....every person will have different experiences with the same company as each circumstance is different.