Can't pay HSBC post-grad overdraft

guapagirl

Hi hope you can help me!

I am a mature ex student, married with kids and on a low income (so low I even get housing benefit).

I have had a student account with HSBC for the last 3 years and it has now converted to a post grad account. I was told that my overdraft (currently £1180 :eek: ) would be interest free. So no worries then.

WRONG! I got a call last Friday saying I have to either pay it off at £50 per week minimum or transfer it to a loan of 17% APR.

I'm not stupid, (I got a first ... just not in money management :rolleyes: ) and told them no. They were however insistant that I had to pay it off!

I can't afford the £50 per month because I am currently in a low paid job. I am applying to do post grad study for which I should receive funding next year. I was going to pay off my OD with my grant then.

Question is, can they force me to pay it off and if so, how low can I keep the repayments?


Any help appreciated!

:cool:

steveh2001

Thats awfull!
Ive just finished a degree and have had a HSBC student account for 3 yrs - and i specifcally rang up sayign when do i have to pay it off - and they said it decreases £500 each year (its £1500 atm) until it hits £0, i even got a letter saying the same thing!

Hope you get your situation sorted!

sockospice

If they insist, you can certainly shop around for a cheaper loan.

Also check the T&Cs in any paperwork you have.

guapagirl

sockospice wrote:

If they insist, you can certainly shop around for a cheaper loan.

Also check the T&Cs in any paperwork you have.

I don't have any paperwork, I'm a bit rubbish like that, but I was told on the telephone that my OD was interest free for the next year and there was no mention of having to pay anything off.

I think it was just one of the call centres trying it on maybe? I'll check with the branch itself tomorrow.

If I could work out which button to press to give you thanks I would, but I can't so here's an old fashioned one...

Thank you both for your help. Much appreciated!

Liz

Joey_3

steveh2001 wrote:

Thats awfull!
Ive just finished a degree and have had a HSBC student account for 3 yrs - and i specifcally rang up sayign when do i have to pay it off - and they said it decreases £500 each year (its £1500 atm) until it hits £0, i even got a letter saying the same thing!

Hope you get your situation sorted!

I have the same too, it's still at £1.5k at the moment (and yes I do need it!), then it should go down to £1k interest free in Sept, £500 the following year, etc.

Hope you managed to get it sorted GG (oh and hi btw!)

emma_b_4

is it bcos you arent paying anything into the account? they can do this i think if you arent using it, as its a current account im presuming..)
wot i did with old accounts with odrafts was set up standing order for £10 a week, or just pay something into it and withdraw it, keep the account 'current'
if not, apply for a cahoot loan, we just got one at 5.8% which was lowest rate i could find.

good luck!!

guapagirl

emma_b wrote:

is it bcos you arent paying anything into the account? they can do this i think if you arent using it, as its a current account im presuming..)
wot i did with old accounts with odrafts was set up standing order for £10 a week, or just pay something into it and withdraw it, keep the account 'current'
if not, apply for a cahoot loan, we just got one at 5.8% which was lowest rate i could find.

good luck!!

Hi everyone and thanks for the replies. Emma got it right! It's to do with keeping it active. I phoned them up and spoke to someone at my branch and they advised me to do what you said Emma. I'm putting in a little bit extra to cover the reduction in OD I get next academic year, if I don't get onto post grad study.

Cheers all and hi Joey! Word is spreading round hairdivision I see!

Liz

Joey_3

guapagirl wrote:

Hi everyone and thanks for the replies. Emma got it right! It's to do with keeping it active. I phoned them up and spoke to someone at my branch and they advised me to do what you said Emma. I'm putting in a little bit extra to cover the reduction in OD I get next academic year, if I don't get onto post grad study.

Cheers all and hi Joey! Word is spreading round hairdivision I see!

Liz

Ahhhh I see, well I use it as my main account so that's probably why I've been fine. Do you know if they keep the overdraft at £1.5k if you do continue to post-grad study? I've been reading up on here and it seems only Abbey do an account specifically for post-grads, but I was wondering if HSBC still give post-grads a student account with the interest free OD? I was hoping to just change it back to a student account from a graduate account if I do start my course in September.

I've been on here a while GG, just haven't used it for a while but seeing as I'll hopefully be a student again soon, I'm trying to save all my pennies to afford it! :money:

melancholly

I'm with Natwest, but after having a year out before going back to do more postgrad stuff, I just went into the branch with my acceptance letter and they changed it back to a student account (exactly the same as when I was an undergrad - interest free OD and everything!). I had real trouble finding anything about it on websites or with the call centres, the woman in the bank said it was best to go to a 'university branch' because the people working there would know what to do with postgrad students. I assume other banks are the same?!

Joey_3

Thanks melancholly, I'll just have to hope HSBC will do the same for me!

emma_b_4

im so suited i got it right!!!glad to have helped i feel all warm and glowing inside now!!LOL

i used to pay £10 a week in and if i was skint kind of used it as a savings account (ok so not great £saving tip i admit but if you have no ££ needs must) it took a while to pay off but came in useful for things. just kept the standing order going so even if account got low, i was still using it, keeping it current

glad to have helped!!