HSBC cost of living overdraft

Caroash

Hi I applied for an HSBC cost of living overdraft,it's interest free for a year.Itvwas approved via email yesterday.However today I received an email saying I had gone into unarranged overdraft.I messaged them and they say I can only have an overdraft if have one already.I told them that I had already messaged them reg this and was told cost of living OD was separate.They said sorry for misunderstanding,and that it's happened with a lot of their customers.Surely if I've received an email with approval with t and C's it should be legal binding.I can't believe they are saying I can't have one when it's been approved by email.

eskbanker

I think you may have misunderstood the proposition - it's simply an offer to temporarily waive the interest charges on an existing arranged overdraft, not to provide you with an overdraft facility if you don't already have one.

https://www.hsbc.co.uk/help/money-worries/overdraft-support/

A helping hand with the rising cost of living

With prices continuing to rise sharply, our focus is on offering support wherever we can. That's why we're bringing in temporary measures to help those most in need to pay less for their arranged overdraft borrowing on our Bank Account, Advance Account, Bank Account Pay Monthly and Current Account.

With this support, we won't charge existing overdraft customers interest on their arranged overdraft up to and including £500 for a 12-month period.

[...]

You should not submit a request if:

• you don't hold an eligible account.
• don't have an arranged overdraft in place.

[...]

What happens I don't have an arranged overdraft? 

This support is only available if you have an existing arranged overdraft. Requesting this support does not automatically add a limit unless you already have an arranged overdraft on your account.

If you want to add an arranged overdraft to your account, you can apply for this online through our Manage Overdraft Service. Applications are subject to our usual checks.

If you want to check if you’re likely to get an overdraft without making an application, you can use our eligibility checkereligibility checker. This will have no impact on your credit rating.

Once you've been approved for an arranged overdraft limit, you'll need to come back to this page and complete the online form to request the support.

Caroash

Hi thanks for your reply and the information,I read this before I applied and did think I wouldn't be eligible as don't already have an overdraft,but I messaged on their help chat and they said it was a separate cost of living one and it didn't matter if I didn't have an overdraft already.So I applied and got a reply next day saying it has been approved.Wjy didn't they email saying "sorry as you don't have an overdraft already we can't offer you this" He said lots of people had applied and been told yes when they shouldn't have been and urged me to make a complaint.Ive since received a complaint email with case number It's just so frustrating as thought it had been approved.

eskbanker

Caroash said:

I read this before I applied and did think I wouldn't be eligible as don't already have an overdraft,but I messaged on their help chat and they said it was a separate cost of living one and it didn't matter if I didn't have an overdraft already.

It does seem odd for them to say that but then again it does also seem odd for you to read the page that clearly explains what the offer is (and, more importantly, isn't) but to ask them anyway - if there's a chat transcript showing that they gave you dud information then I'd expect them to be prepared to waive the unarranged overdraft interest incurred as a result of the misleading steer and/or offer some sort of goodwill gesture.

Caroash

Hi yes we'll tbe message said "You can apply for our temporary arranged OD support even if you don't have anOD yet."This temporary arranged overdraft support up as an arranged OD on your account "This was exactly what was said to me.So that's when I applied and then got a. Email saying it had been approved.Until tbe email that came later saying I had gone into an unarranged overdraft.Sok confusing.

born_again

Caroash said:

Hi yes we'll tbe message said "You can apply for our temporary arranged OD support even if you don't have anOD yet."This temporary arranged overdraft support up as an arranged OD on your account "This was exactly what was said to me.So that's when I applied and then got a. Email saying it had been approved.Until tbe email that came later saying I had gone into an unarranged overdraft.Sok confusing.

The bit in bold is the bit that jumps out.
So you need to apply for a overdraft, or have a application in place already. 

So it is the YET that is the crux of the matter. 

Caroash

Hi yes thanks for your reply, ,also encouraged to apply, despite not having OD yet and they are saying this is a separate thing as in "A cost of living Overdraft" ,but the main thing is it was approved,cos I received a very detailed email stating the approval with all terms and conditions.It was only because I received an email saying you've gone into Unarranged overdraft that I queried why.Then I went I to chat and they said I couldn't have an overdraft and that that shouldn't have been sent to me,they said it's happened with lots of their customers.Im just wondering can they just reverse this offer,is that legal .I've not received anything saying that I can't have this overdraft.O ly sent a customer complaint case no by pwrson in chat,but no official email saying they have changed their mindm

eskbanker

Caroash said:

the main thing is it was approved,cos I received a very detailed email stating the approval with all terms and conditions.

[...]

Im just wondering can they just reverse this offer,is that legal .

It would be normal for overdraft Ts & Cs to include a clause stating that such facilities are repayable on demand and/or can be withdrawn at any time, so even when they say you can have one, that wouldn't stop them from effectively reversing that decision.

My suspicion remains that you're unlikely to be able to get them to honour the (apparently mistakenly agreed) arranged overdraft, and that the more realistic outcome will be them rectifying their error by waiving the interest you incurred and/or making some sort of goodwill gesture.

pecunianonolet

I had the same case. had an agreed overdraft of 300 (although only the first 25 are really only interest free). Applied and got approval email the next day. Tried the same day to clear the account and put 400 into savings (increase stooze pot slightly). Transaction failed, been on to the chat and they said that the 500 were approved but since I only have a 300 overdraft I can also only access this. Applied in the app for the overdraft to be raised to 500, instantly approved and could move the money. 

The folk on the chat didn't know about the email, thought first it is scam. Only aftre I copy pasted bit by bit in and waited 30 min for them to check they confirmed the email is genuine. 

eskbanker

pecunianonolet said:

I had the same case. had an agreed overdraft of 300 (although only the first 25 are really only interest free). Applied and got approval email the next day. 

Surely that's not really the same case as OP, who didn't have an arranged overdraft when applying for the temporary support?  Granted, it's a similar principle if you had an email offering interest waiving for a different figure, but not really the same as such, given that according to the offer terms you were entitled to temporary support and OP wasn't....

pecunianonolet

Digging out this old one. Couldn't see anything on the HSBC site and only that it expires after 12 months and original rules are reinstated. However, has anyone tried to apply again to see if an extension is granted? Doubt it, but worth to ask.

HSBC says that applications are accepted until 26th October 2023. Just in case somebody missed it.

https://www.hsbc.co.uk/help/money-worries/overdraft-support/