HSBC ATM Policy

notis7

Hello everyone,
I opened an HSBC bank account yesterday and am planning to transfer my account to them from Lloyds. A friend of mine who has an HSBC account though warned me that HSBC will purposefully allow you to go overdrawn on your bank account if you take money out of the ATM machine that you do not have.

For instance - if I have £20 in my account and I withdraw £30 - they will allow this to happen and then I will get charged even though I do not have the funds in the first place. Is this correct? If it is - is there some warning on the ATM machine about this before you carry this out - because surely that goes against all that is right in my mind....

Can someone assist?

daveboy

Yes, use common sense and do a balance enquiry BEFORE you withdraw any money.

It isn't rocket science.

Banks aren't always to blame......sometimes it's people who don't think before they do something.

ShelfStacker_3

HSBC treat going over your overdraft limit as a request for a temporary overdraft increase (for 31 days I think), which they may charge you a fee for - they don't therefore specifically look down on it or attempt to stop it.

So yeah, if you try and withdraw £30 while only having £20, they may allow the transaction and give you the extra tenner as a temporary overdraft. Have a read of their overdraft policies in the T&Cs (always a good idea anyway) which should explain more.

dellwear

There is a warning if you do try to take money out that pushes you OD / over your limit. I think it's only allowed at HSBC machines though.

checkers_2

see this...
might be a similar case

http://forums.moneysavingexpert.com/showthread.html?p=9304115#post9304115

gt94sss2

notis7 wrote: »

For instance - if I have £20 in my account and I withdraw £30 - they will allow this to happen and then I will get charged even though I do not have the funds in the first place. Is this correct? If it is - is there some warning on the ATM machine about this before you carry this out - because surely that goes against all that is right in my mind....

Can someone assist?

HSBC ATM's warn HSBC customers if they are about to make a withdrawal that will make you overdrawn (or over any agreed overdraft).

In addition, as part of HSBC 'Fairer Fees' Policy they do not charge overdraft fees if your account is overdrawn by £10 (or less)

Regards
Sunil

nickmack

gt94sss2 wrote: »

HSBC ATM's warn HSBC customers if they are about to make a withdrawal that will make you overdrawn (or over any agreed overdraft)

I tested this out a few months ago (I can't find the old post at the moment) and there was no warning, I wonder if they have implemented this yet?