Beware! HSBC are introducing an annual fee on authorised overdrafts!

oh_no_you_dont_sunshine

Hi

I recently received a letter from HSBC saying my authorised overdraft was due to be reviewed on date. We are pleased to be able to offer you an authorised overdraft at your existing limit (£100 incidentally) subject to the conditions attached, blah, blah, blah. If we don't hear from you by date then we will assume that you agree and will set up the overdraft accordingly, blah, blah, blah.

Sounds like nothing to worry about, right?

WRONG! A few pages later you realise they want to charge an annual fee of £25 as well as interest on the overdrawn amount!!! I thought this must be a mistake so I phoned them and they confirmed it.

Let me just say, I have a very good credit rating so there's no reason why HSBC should want to get rid of me or levy charges based on risk. They are simply hoping people won't notice and they'll get away with it. Well, they won't with me and hopefully now you lot will be on your guard also.

Obviously, I'm moving accounts as HSBC aren't competitive (and really never have been). They'll have to find another way to fund their pay out of reclaimed bank charges when that saga has run it's course.

If you really want to stay, complain and they will (almost certainly) remove the charge (for this year at least), but I for one am voting against this with my feet.

HSBC Customers, beware!!! :mad:

JohalaReewi

Seems like an updated version of the recent HSBC Overdraft Review Fee.

http://forums.moneysavingexpert.com/showthread.html?t=685493

oh_no_you_dont_sunshine

JohalaReewi wrote: »

Seems like an updated version of the recent HSBC Overdraft Review Fee.

http://forums.moneysavingexpert.com/showthread.html?t=685493

Sorry, did a search but didn't see this. Think it's worth noting that they are still trying this, maybe after a break while they analysed the effect of last time around.

I got the "what can we do to make you stay?" question on the phone but I wasn't entertaining that. Some may say I was being rash, but they've made other mistakes.

The points on the other post about applying this charge to people who asked for an overdraft in the last 6 months were interesting too. HSBC made a mess of paying money into our account, therefore to stop us getting an unauthorised overdraft fee, THEY suggested increasing the authorised overdraft limit for a week. I only agreed after getting them to waive interest charges for that period, but it looks like they had this more sinister money making scheme up their sleaves!!

Anyway, no concern of mine anymore. New account already in place with LloydsTSB (they have there own flaws, but better the devil you know). Will transfer DD's and Standing Orders once the forms come through the post in the next few days, then it's goodbye HSBC!!!

They are losing an ISA (from previous year), 2 current accounts, a savings account and, the most profitable of all for them, my wife's credit card!

ShelfStacker_3

It's hardly a new thing, its been going since November 2007 and is enshrined in the terms and conditions of the account.

oh_no_you_dont_sunshine

Hmmm, just looked at my internet banking and I have a "REFUND OF CHARGE" £25 credit applied! They hadn't even charged me!!!

Do you think they'll be cheesed off when I close the account! :rotfl:

_Andy_

ShelfStacker wrote: »

It's hardly a new thing, its been going since November 2007 and is enshrined in the terms and conditions of the account.

Nice use of the word 'enshrined'.

ShelfStacker_3

_Andy_ wrote: »

Nice use of the word 'enshrined'.

I do try.

And if someone else posts another thread about HSBC's overdraft charges again, I'll scream. It has been done to death, and it's not like HSBC make any kind of secret of it.

oh_no_you_dont_sunshine

ShelfStacker wrote: »

And if someone else posts another thread about HSBC's overdraft charges again, I'll scream. It has been done to death, and it's not like HSBC make any kind of secret of it.

Well if this is the thanks I get...!! Forum etiquette? Perhaps I'll just stop posting at all. If you think I should be charged £25pa for making no changes to my account and never having an unauthorised o/d charge then your as bad as HSBC.

Yes, if you look in the T&C point 7.4 you can see the following
"An Arrangement Fee may be charged if we agree to your formal request. We may agree to provide you with another overdraft at the end of the term of your facility and, if we do so, an Arrangement Fee may be payable."

Now, I'm sure that the overdraft was given with no specific termination date quoted as it was given when the account was opened. Therefore, I think it a little harsh to decide, without notification at commencement, the termination date. It also says "an Arrangement Fee may be payable", so it doesn't say it will and most importantly it doesn't say how much it will be, or how the charge is calculated, or set a maximum limit for the charge. Isn't that illegal? Unfair Contract Terms anyone? It should state in the terms and conditions how any charge is calculated and set limits. Even if it says the limit would be £100, that's fine, it just needs to be in there.

T&C's for those interested:
https://www.hsbc.co.uk/1/PA_1_5_S5/content/uk/pdfs/en/personalbankingterms_conditions.pdf;jsessionid=0000mEhZ4U0nVmxVbFjt2WZ25kM:11j71fovq

Anyway, I won't waste my time on here. It's may be of interest to you if you are a HSBC customer. Alternitively, if you just want to try and put down people who are trying to be helpful, that's fine. I just won't be listening.

debster369

If you have had your account open for a while then you may not have been told about the renewal date but a mailing went out to all customers in September 2006 to say that on 1st December 2006 this policy would come in to play.

Your overdraft is reviewed once per year to see whether HSBC will allow you to keep it. The £25 arrangement fee is only applicable if you have either changed you formal overdraft limit or requested an informal limit (i.e. exceeded your agreed limit) within the previous 6 months.

oh_no_you_dont_sunshine

debster369 wrote: »

If you have had your account open for a while then you may not have been told about the renewal date but a mailing went out to all customers in September 2006 to say that on 1st December 2006 this policy would come in to play.

Your overdraft is reviewed once per year to see whether HSBC will allow you to keep it. The £25 arrangement fee is only applicable if you have either changed you formal overdraft limit or requested an informal limit (i.e. exceeded your agreed limit) within the previous 6 months.

Thanks for your polite and helpful input. The post that JohalaReewi linked to does touch on the requesting issue but this is a lot more concise. It almost sounds like you are a HSBC employee!

The annoying thing is that it looks like this has all come about due to HSBC's own error, as I touched on earlier. They made a mistake, performed a botched temporary fix with the O/D and I'm the one who they try to punish as a result.

Anyway, it has majorly backfired for them this time. I'm actually financially better off as I'm moving to LloydsTSB and now getting 6% interest (for 12 mnths, then goes to 4%), plus HSBC paid me £25 in trying to keep me!

lindseykim13

what a load of !!!!! i got the same letter saying £25 but i have actually been charged £50! is this them charging £25 for everytime i have gone over my od for the last 6 months? if so thats disgusting as i have only gone over by a few pounds and been paid back in within 24hours.