HSBC move me to graduate account with less than a month's notice... EAR 18.8%!!

melancholly

charis18uk wrote: »

Actually I would have to disagree. Having a maxed out interest free overdraft at the end of three years is excellent planning. As long as you have stoozed the amount and stuck it in an ISA for the last three years like me

ok fair enough! but then you wouldn't be in a panic over having to pay interest on the overdraft as you would have plan B set up!!

ed666

Same thing happened to me......

Although I happened to receive my "annual account review" about a week prior to receiving the standard mass mailed letter regarding my account being converted to a standard account and the overdraft cut from £1000 interest free to £1000 at 18.8% EAR.

In my annual account review it stated my £1000 overdraft was agreed to continue until July 2009 interest free! I graduated 2 years ago.

HSBC have no record of the mass mailed letter what so ever and with both their branches and call centres seeming completely incompetent!

Which letter do I believe? One of their call centre people advised me to just ignore the mass mailed letter!!!

melancholly

last year HSBC tried to put everyone onto an account charging interest rather than staggering it over a few years. all their customers went nuts and they changed their minds:
http://news.bbc.co.uk/1/hi/education/6970570.stm

josiep00

I had the same prob as Ed.
2 letters in the post, saying very different things. 1 saying they are charging me on ALL overdraft, another saying they will only charge me on money over £1000 in my overdraft.

I'm off to my bank today about it.

My boyfriend received the same stuff and went to our branch Saturday, they knew nothing about this letter and he managed to haggle to keep his account. I'm not as good at haggling, but hopefully I can convince them to let me keep the £1000.

We def need more warning about these changes!

DrNat

I received the same letter re interest from 19th July and wanting 500 paid off in one year, so I went into my local brach complaining that I will not receive my first paycheck untill the end of August and therefore it was unfair to charge me interest when I have just graduated and have a guaranteed job in place. I told them that I will pay off the 500 at the end of August and I asked whether they could reimburse the interest charges on my OD from July 19th which they agreed to. I would advise anyone who has this problem to go into their local branch and talk to someone.

Fire_Fox

What are the terms and conditions on this account? When do they say interest free overdrafts will be reduced?

CindyT

Fire_Fox wrote: »

What are the terms and conditions on this account? When do they say interest free overdrafts will be reduced?

I was informed by letter that my Interest free overdraft would descrease to £1500 as soon as I graduated (July), and reduce to £1000 the following year and I think it stops. It is all in the paperwork sent out every year with the T&Cs stated. You get a reminder a month before they drop the interest free limit as well.

http://www.hsbc.co.uk/1/2/personal/current-accounts/graduate-banking/graduate-service/more-info;jsessionid=0000VuZ5jcsLBsAW1sH9a_PG3nb:12c58n73a

But saying this I was told conflicting information in the branch which If I had have accepted at face value and not phoned up the helpline to check I would have been charged extortionate overdraft fees! They also kept sending post to my previous address despite me having changed my address online over a year ago - so sometimes it's best to double check everything.

Shoshannah

Mine has been converted to a Graduate account with no notice whatsoever. I knew it was coming because I was told when I set up the Student Account in 2004, but I didn't know exactly when. Thought I would just log on and check now and it has changed!

Luckily I'm only £200 into the overdraft and start my new job on Monday. My interest-free overdraft was £2500 in my final year and is reduced to the £1500 for the graduate account; kind of makes the extra £1000 useless doesn't it? Unless you can pay back £1000 overnight, unfortunately I don't have that much in accessible savings.