HSBC Overdrafts and charges

warren100uk_2

Hi all,

Me and my partner have had just over £3000 in charges over the last 2 years with HSBC, my partner got made redudant from work, so the bank gave us an overdraft of £2500, this helped while she was out of work, but after 6 months they took the overdraft off and we had no way to pay it back in full.We have three accounts and they all ended up over the limits, so each month HSBC would add £150 charge on each account each month, but because they paid our DD's we just let them. So after 2 years of this the charges had really added up. Account one is £880 overdrawn, account two is £550 and we have paid in £1500 to account three as this was our bills account, but now its no overdrawn. We had to ask family to help clear the bills account as when our wages were paid in and everything came out we were still over £1500 overdrawn, we have tried to put money in each account but the charges just eat up what we put in. Now we have moved banks and swapped all DD's so there is nothing else coming out of the accounts.

I went to the bank today to see if we can stop these charges of £150 each month, today account one is £880 over and £150 being added on the 12th and account two is £550 with another £150 being added ont the 12th. I went in thinking they might be able to stop the charges and allow my to pay some off each month, but they said all they can do is give me a managed loan. I do have loans with HSBC but i can afford to pay them, they will only help if i include the loans, but this option will reck my already not so great credit rating.

I just want to start to pay off the overdrafts which are all made up of charges and stop the charges, but they wont help and said if i dont do the managed loan or pay off they overdrafts in full the will just keep charging me.

Does anyone have any ideas of the best way to handle this? I have already written to them for my charges back, but with the test case going on they rejected it.

Thanks

RAS

Warren

I think you starting point should be to open a bank account with another bank. Move your income and DDs to them and pay a small amount into the HSBC account each month to start reducing the amount.

If your account is in the black for a couple of days each month, then try the Alliance or Leicster, who were offering to match your OD at 0% for a year, but move fast as they have just changed the head honcho and the rules may change.

SimonJ80

I'm sorry to hear that you are in this position. Have you been incurring charges on all three accounts for two years?!
Perhaps you would be best trying to pay off one account at a time. I would suggest you drop in to your local Citizens Advice Bureau as they will either be able to help you or will suggest somebody else who can. They are non-profit so wont try to take advantage of your situation (unlike some companies who advertise 'debt solving' on tv). They can help you set up a plan of action and will have encountered similar situations before. Hopefully you can start reducing the problem before it gets any bigger.

warren100uk_2

Hi Simon,

Yes they have been charging on all 3 accounts, because we have been over our limits,they just kept paying the DD's and to be honest we let them get away with charging us £150 per month, but the charges got out of control. We today have spoke to financial ombudsman who are going to write to HSBC with a complaint from us. As we have defaulted on some payments because of the amount of the overdrafts. We have moved all wages and DD's to our new bank, but cant afford to pay off the amounts for HSBC and dont think its fair to incurr £150 on each account per month, to pay any of it off i would have to put it over £150 in each account just to cover the charges, i have already had to get rid on my car and get money off family to pay off the other account that was £1800 overdrawn, i just want to come to an arrangement with them so they stop the charges and let us pay it off each month.