HSBC Overdraft Review - beware

Squeakyd_2

Hello all,

Reading the above posts sparked my memory to when my HSBC graduate account was reviewed for £25 without any word from me. Along with 2 'over my overdraft limit' charges i disputed/asked why these monies were leaving my account. Below are two responses from HSBC. Its like something out of fonejacker. Please forgive my ignorance, newbie-ness and long post, but ive only recently started looking into if i can claim anything back from HSBC (i.e. using one of the template letters from MSE.com). After being told these forums may be able to help advise me, i wondered could anyone make sense of the messages below for a bloke with the financial savy of a butternut squash. Any help appreciated. Thankyou.



Daz. :-)



[FONT=&quot](Message 1)
[/FONT]
[FONT=&quot][General Enquiries Date: 03 Jul 2008 [/FONT]
[FONT=&quot]Message:[/FONT]
[FONT=&quot]Dear Mr D

Thank you for your e-message dated 1 July 2008.

Please be informed that the Bank has now introduced an annual review of all our customers formal limits. This provides us and you with the opportunity to consider whether your formal limit is still appropriate to your borrowing requirements. Formal limits will now last for a maximum period of 12 months.

Please note that your formal limit has been reviewed and will expire on 23 July 2008.

Please be advised that in accordance with the bank's charging policy, a GBP25.00 fee will be applied when a formal or informal request for a formal limit is made within a period of six months.

A formal arrangement fee will not be payable provided we do not agree to a formal or informal overdraft request from you before the effective date mentioned above. If we do agree to a formal or informal overdraft request from you before the effective date, a formal arrangement fee may be payable.

Whilst the Bank is pleased to provide you with a new 12 month formal limit, a fee is payable for this as informal overdraft were requested by yourself during charging period 21 February 2008 to 20 March 2008. Consequently I am unable to waive this fee.

Further to your query, since you are in year one of your Graduate Account, the interest free element is GBP1500.00 whilst a GBP1500.00 formal limit is held on your account.

You will not be charged interest on any borrowing up to GBP1500.00 but will incur interest at 18.8% EAR for borrowing above this amount.

I trust this clarifies matters.

Yours sincerely
[/FONT]
[FONT=&quot]Senior Service Improvement Manager
HSBC Bank Plc][/FONT]
[FONT=&quot](Message 2)[/FONT]
[FONT=&quot][General Enquiries Date: 25 Jul 2008 [/FONT]
[FONT=&quot]Message:[/FONT]
[FONT=&quot]Dear Mr

Thank you for your e-message dated 24 July 2008.

I confirm that the charges of GBP50.00 which were debited on 11 April 2008 refer to informal arrangement fees.

Our records show that informal arrangement fees of GBP50.00 have been incurred during charging period 21 February 2008 to 20 March 2008 due to the following :

5 March 2008 - GBP1,524.34 request for an informal overdraft

7 March 2008 - GBP1,562.53 request for an informal overdraft

Please note that we will only charge an arrangement fee of GBP25.00 every time you make a formal or informal overdraft request which we agree to. However, we promise that we will not charge arrangement fees for:

- Any formal or informal overdraft requests that we agree to, if this is the first time this has happened in the last six months.

- Small overdraft requests we agree to that are not more than GBP 10.00.

- If the Bank's charge causes the overdrawn balance.

The final charge is subject to a maximum of GBP150.00, per charging month.

Please be advised that these fees have been applied correctly in accordance with the bank's published tariff.

Should you have any queries, please do not hesitate to contact Customer Telephone Services at ….
Meanwhile, I trust this clarifies matters.

Yours sincerely

Senior Service Improvement Manager
HSBC Bank Plc][/FONT]

ShelfStacker_3

It says that because you went over your limit, they're charging you an arrangement fee for this year's overdraft.

You don't pay if you don't request an OD increase or go overlimit within 6 months of the review.

linni

Thanks for this post Dipalipraveen. I phoned up HSBC (****** call centres) and they said yes if you want an overdraft facility you will have to pay 'an arrangement fee'. So I cancelled it as I never have an overdraft anyway (I hope I wont need one now!). Very clever wording on their letters!!!

ames123_2

This has happened to me too, a little different though. I have banked with HSBC for years. For the past few years have had a student account. Earlier this year I extended my overdraft (but still within the amount that they give to 3rd year students). Then a few weeks ago I received a letter telling me that they have reviewed my overdraft in my graduate account (which was only switched over from the student one in about September) and have re-confirmed it and are charging me £25. I would imagine this is because I asked for a bigger overdraft earlier in the year. But I have two questions:

1) When I extended it is was still within the £1500 they allow to 3rd students.

2)That was for a student account. The loan they 're-confirmed' was a graduate account. Same numbers and everything as the account was just switched over but is now a different type of account. Does this matter?

Thank you!

ShelfStacker_3

ames123 wrote: »

1) When I extended it is was still within the £1500 they allow to 3rd students.

But it was still extended. If you request an increase in your limit in the 6 months before the review (the review happens yearly on the anniversary of your limit being agreed, regardless of how long ago that wa) the fee applies.

2)That was for a student account. The loan they 're-confirmed' was a graduate account. Same numbers and everything as the account was just switched over but is now a different type of account. Does this matter?

Strictly no. Same numbers, same account, regardless of what name it goes by (I can think of at least four or five different names my main current account has gone by in the ten months I've had it, and it's still the same account.)

Lokolo

Ok I am a little confused now.

I got my student OD a couple of months ago before my second year. Thats all good. Now in 9 months will I automatically be charged £25 for the 'review'? Even if I don't want one?