Single bank charge of £100!

moontree

My partner's now spoken to HSBC, and they've said it *is* a single, one-off charge of £100 and not an accumulation of multiple charges. As I understand it, it applies every month she goes over her overdraft limit. They call it an "overdraft arrangement fee", because they interpret a transaction taking her over the limit as an "informal request" to have the overdraft temporarily extended.

FWIW, my partner's style of managing her finances is completely different to my own. (Though I think she's learned from this... it was a big shock!) If you lecture me, you're preaching to the converted.

Please remember that not all accounts with the same bank have the same T&Cs.

System

noh wrote: »

The banking code http://www.bankingcode.org.uk/pdfdocs/BANKING%20CODE.pdf
states


5.5

Before we take interest or charges for standard
account services from your current or savings
account, we will give you at least 14 days’ notice of
how much we will take.

Informal overdraft requests, payment review fees etc are not standard account services. Many banks, as Sunil says, debit these fees immediately.

Nigel

I thought in the recent OFT case, the banks solicitors were arguing that such fees were related to "core services" i.e. standard services

Talk about trying to eat your cake, and have it too :rolleyes: