HSBC letter on overdraft charge - £25!

Money_Man

I returned home from work this evening to a letter from HSBC stating my overdraft facility was up for renewal, nothing wrong with that I hear you say.

Well they go on to say that I will now be charged a fee of £25.00 for this from April 7th this year. I currently have a £1,750 o/draft limit which I only sometimes use.

To be honest I find this charge staggering given they already charge a APR on o/drafts of nearly 20%.

I have called customer services to register my thoughts on this, also mailed them via internet banking.

What exactly is this fee for? its just more profiteering and to be honest its made me very angry. I would be interested to hear peoples views on this matter and also a recommendation for a new current account as I will not be paying this fee!

Lavendyr

First Direct give a £250 interest-free overdraft.

Money_Man

Food for thought I guess, and presumably an easier transfer process given they are one and the same organisation. Last time I attempted to switch it was a disaster, I applied for a A & L account when they launched their new all singing / dancing current account. It took them 6 weeks to process the application as they were indundated with applications - I cancelled in the end!

:mad:

dellwear

When were you last reviewed for an OD?

They state on their site that they don't charge if you haven't been reviewed in the last 6 months. Bear in mind that you may have been reviews if you authorised a payment that took you over your OD limit at any time.

If you're unsure ask them - all the info on their fair charges

tariff

is on their site.

KTF

If you only sometimes use it then I assume you are in credit for the majority of the time. If this is the case then you may be better off switching banks.

ED

Anyone know if First Direct may also try the £25-fee trick? A member of my family banking with First Direct for many years received out-of-the-blue this February a FD letter announcing their ongoing agreement to provide an on demand overdraft facility of £250. Final paragraph seems ominious, "We may change fees, charges, interest rates or the terms of this letter by giving you at least 30 days notice..." Can First Direct be trusted?

TEDDYRUKSPIN

I have just checked this information for you. You do not get charged for the overdraft facility of £25 if you have never been over your overdraft limit. If you have, you will be charged the £25.

Look on the T&C. You can find this on the website.

ED

Thanks, TEDDYRUKSPIN. (Alas, the Thanks button doesn't work on my antiquated computer/Internet system.) Your clarification will no doubt forewarn many, here.

brookerbabyisababy

is that the same for FIRST DIRECT and HSBC?

msaquib

Money_Man wrote: »

I returned home from work this evening to a letter from HSBC stating my overdraft facility was up for renewal, nothing wrong with that I hear you say.

Well they go on to say that I will now be charged a fee of £25.00 for this from April 7th this year. I currently have a £1,750 o/draft limit which I only sometimes use.

To be honest I find this charge staggering given they already charge a APR on o/drafts of nearly 20%.

I have called customer services to register my thoughts on this, also mailed them via internet banking.

What exactly is this fee for? its just more profiteering and to be honest its made me very angry. I would be interested to hear peoples views on this matter and also a recommendation for a new current account as I will not be paying this fee!

Hi,

Is this is a arrangement fee?

I have received an letter as well. There was nothing regarding £25.00 from April. It does say that no arrangement will be payable for this overdraft.

M

Jim02

Surely this counts as a retrospective penalty? I got the same letter last night, but was not told previously that an annual fee would be introduced. They might just as well say, "Because you went over your limit, we're going to amputate a limb. This is our new policy." I've paid my charges for when I went overdrawn, how can they justify a further charge?

And speaking to their customer service rep in Outer Mongolia, it seems it does indeed cost more to arrange an overdraft for someone who's used their overdraft, than for someone who hasn't. Although the chap was unable to state what was done differently in each of these situations.

Is this a premature reaction to the result of the unfair penalty charges test case, does anyone think?