HSBC Graduate Overdraft - no longer interest-free!

Sharon87

GrammarGirl wrote: »

My graduate overdraft with HSBC was interest free from July 07 (when i graduated) until July this year, when I was sent a letter saying my overdraft would now be interest free for the first £1,000 and charged for the last £500. Since July I've been charged random amounts (ranging from 14p to £3.00) at random dates. I'm pretty much always into the last £500 of my overdraft by the end of the month, but I've never been told if the percentage they charge or the date they take it is fixed... I just find out how much they'll be taking and when they'll be taking it when I log into my internet banking!

Anyway, this agreement is fixed until April 2009 when my overdraft will next be 'reviewed'. Incidently, a 'review' of my overdraft cost me £25 (which I'm currently disputing as I didn't ask them to review anything!) and HSBC also tell me that if I formally amend my overdraft (e.g. contact them to extend or reduce it) more than twice in 6 months they'll charge me for that too. So, even though I want to start reducing my overdraft £100 at a time so it's no longer available for me to spend (and try get within the £1000 interest free limit) I can't because it'll cost me!

They charged me too! I phoned up and complained and they just gave some rubbish how they review the overdraft every year and they charge £25, even if you didn't want it reviewed. It's like a service charge for having an overdraft! I'm paying it off asap, I don't need the overdraft reduced as I'm using a different account now, and paying it off gradually.

Crabman

Warning people - I just checked my credit record with Experian and found that in the month they decided to reduce the overdraft without telling anyone, they also filed a 'missed repayment' or 'going over overdraft' remark against my credit file for no apparent reason.

I suggest everyone affected follow the following article, take a look at the credit file and chase HSBC to remove the error which has a negative impact on future credit scoring. I have asked them to correct my credit record within 7 days.

http://www.moneysavingexpert.com/banking/credit-rating-credit-score

P.S: Go through Quidco for £6.50 cashback

jaxkesa

HSBC just send me another letter saying my OD has been reviewed and is staying the same, altho they are charging me £25 for doing this!! And yet 1 month ago, I received the exact same letter but with no charge, saying it will be reviewed next year!

Can they just keep reviewing it every month and keep charging me? They gave me no notice that they were going to charge me this £25 too - it was deducted the same day I received the letter (altho the letter was dated over a week earlier!)

Crabman

jaxkesa wrote: »

HSBC just send me another letter saying my OD has been reviewed and is staying the same, altho they are charging me £25 for doing this!! And yet 1 month ago, I received the exact same letter but with no charge, saying it will be reviewed next year!

Can they just keep reviewing it every month and keep charging me? They gave me no notice that they were going to charge me this £25 too - it was deducted the same day I received the letter (altho the letter was dated over a week earlier!)

Simply, they can't do that if they didn't tell you about it. I received a letter saying the OD would remain until July 2009 but there wasn't any charge listed (I'd have kicked up another fuss if there had been!). How about making a complaint to them/FOS? It seems odd they'd charge £25 for an extra overdraft review if you didn't request one.

ShelfStacker_3

The second review letter is/should be a mistake. Speak to the bank.

omelette451

Over the past two weeks I've been bombarded with phone calls from HSBC demanding first that I give my details over the phone (didn't they distinctly tell us never they'd never do that? It's always legit but nevertheless I always insist on ringing back on the official number and have to fight to be put through to the right department) and second that I start paying back the money I owe them. Fair enough, it IS their money (even more so since it's been sitting safe in a savings a/c since I became a student four years ago ), but it's a bit cheeky given that they promised me £1500 fee/interest-free for at least a year after finishing uni... Anyway, what really annoys me is that even though I've done everything they told me to do last week, i.e. pay 10% immediately and set up a monthly standing order of any amount, now they've started ringing again with new demands, with an average of six calls an hour until I answer, then asking me very personal questions about my life. Is this happening to anyone else?

jaxkesa

Crabman wrote: »

Simply, they can't do that if they didn't tell you about it. I received a letter saying the OD would remain until July 2009 but there wasn't any charge listed (I'd have kicked up another fuss if there had been!). How about making a complaint to them/FOS? It seems odd they'd charge £25 for an extra overdraft review if you didn't request one.

Thanks, one of the letters said it would be reviewed in July..can't remember which one and I don't have them on me at the moment. I only have one account with HSBC, this is the 3rd letter I have had since June saying they are reviewing my overdraft. It hasn't changed in either of them but I have been charged £25 in two of them. This is on top of the other letter I received in July which contradicted the first one! I will give them another call but didnt have much luck last time.

Crabman

Crabman wrote: »

Warning people - I just checked my credit record with Experian and found that in the month they decided to reduce the overdraft without telling anyone, they also filed a 'missed repayment' or 'going over overdraft' remark against my credit file for no apparent reason.

I suggest everyone affected follow the following article, take a look at the credit file and chase HSBC to remove the error which has a negative impact on future credit scoring. I have asked them to correct my credit record within 7 days.

http://www.moneysavingexpert.com/banking/credit-rating-credit-score

P.S: Go through Quidco for £6.50 cashback

As HSBC were still being useless (their customer service operator didn't know they had a credit referral team :rolleyes:), I asked Experian to remove the erroneous record but apparently HSBC have stated it is accurate and requested that it stay.

I've asked Experian to ask HSBC to justify it as I've never gone over the agreed overdraft or missed any 'repayments' so the entry is still a complete mystery. :think: