HSBC Graduate Overdraft - no longer interest-free!

ellie_jane_2

redrabbit29 wrote: »

Not bad actually, is the £2K interest-free overdraft for all customers, regardless of position? Also, what's the policy on it getting reduced, e.g. does it only last for 6 months or something?

I've heard poor things about A&L's customer service (mind you, HSBC is hardly great is it?!).

I'm a bit reluctant to switch as I've been with HSBC since I was 16 (24 now). I'll give it some thought though!

The offer is for new customers only, and you have to pay in £500 min each month (if you pay in your salary that should be OK). It lasts 1 year, after which it is still 0% interest but you are charged a usage fee of 50p per day up to a max of £5 per month. However, you could just switch bank accounts after a year and get another good deal :cool:

Know what you mean about switching - I've been with HSBC for 6 years now, but as we know it does not pay to be loyal, and HSBC certainly isn't loyal to its customers! I've also found that almost all call centre customer service is pretty bad so I don't count that as a factor now - you're lucky if you stumble across someone who knows what they're talking about.

redrabbit29

ellie_jane wrote: »

The offer is for new customers only, and you have to pay in £500 min each month (if you pay in your salary that should be OK). It lasts 1 year, after which it is still 0% interest but you are charged a usage fee of 50p per day up to a max of £5 per month. However, you could just switch bank accounts after a year and get another good deal :cool:

Know what you mean about switching - I've been with HSBC for 6 years now, but as we know it does not pay to be loyal, and HSBC certainly isn't loyal to its customers! I've also found that almost all call centre customer service is pretty bad so I don't count that as a factor now - you're lucky if you stumble across someone who knows what they're talking about.

£5 really isn't too bad. I rarely go into my overdraft, but do like to sometimes, say at the end of the financial year - to fill up my isa, I will sometimes purposely withdraw £1500 or something leaving me way in the red but filling the isa up.

Think I will consider them actually. I really have nothing to lose./

scottishlass

lil'H wrote: »

Hi all,

I had the same letter, went to my branch today and saw a customer services advisor who very very helpful (and probably more honest that he was meant to be).

Basically you can now only hold a graduate account for 2 and not 3 years after graduation, thus you will loose your interest free overdraft after two years. Thius decision was made by HSBC in the last couple of weeks due to the credit crunch. In fact I had a letter two weeks ago saying my 1000 interest free element of my overdraft would stay in place until 18th May 2009, and now it'll be gone on 19th July 2008!

The advisor also told me there is a danger HSBC will pull everyones with very little notice, so warned me to get anyone I know to try and clear their overdrafts. I got the sense he was disgusted with what HSBC were doing, hence why he told me more than he should. In fact he even told me that the official line he was supposed to say was that:

"In order to be able to offer new and more exciting products to our customers HSBC are changing the graduate account to be a two year service"

Be warned HSBC customers!

Time to shop for another bank me thinks!

Lil'H

Thanks you have saved me a trip - I can't believe that they are suddenly changing it from three years to two. I had my student account with them for four years and then have had the graduate account for two years and was banking on the third....darn HSBC - I guess I'm lucky in the fact that I dont have that much to clear but I do think less than a months notice is pretty rubbish.

scottishlass

ellie_jane wrote: »

I have been emailing newspapers and media and yesterday got a call from Radio 4, I would suggest that everyone does this too as if we make enough of a noise then they may retract their decision - as they did last year with the student accounts. I have also emailed HSBC with my concerns and they replied saying they are looking into it.

However in the meantime I have also switched to Alliance & Leicester!

When I spoke to HSBC today they started using the line they as long as they gave us 28 days (well the started with 30) then that was ok. Mine arrived on the cut off date but I wonder how many others will recieve their letter after this.

aliwali

I graduated 10 years ago and got a very similar letter then. They gave me 3 months or was it 2 to repay my overdraft. I very soon paid it off and closed the account. That was 10 years ago and unfortunately we are having to deal with them again now for our mortgage and no-one elses rate was as good.

Would never have gone with them otherwise, their customer service was shocking then and clearly thathasn't changed much over the years.

scottishlass

Well having checked all their T&C's they should have given me at least 30 days notice which they have failed to do so I have contacted them and awaiting their response but I'm now in the process of arranging for my salary to be paid into a different account etc so that my HSBC account can be closed if need be. i dread to think how much money HSBC will make out of this. I'm guess that not every graduate of 2006 who was expecting an extra year of interest free overdraft will be able to pay it off in the next three weeks. 18.8% EAR on £1000 multiplied by the number of graduates is going to put a few pounds in their pockets.

emachew

Ive had exactly the same happen, its a big releif to find others in same situation, I was offered graduate account as 3 years, after the 1st, was informed only first £1000 was interest free then they would reduce the overdraft amount each year, so as to make it managable to repay!, now thay have totally pulled the rug from underneath me!

my problem is i also have a 100% graduate mortgage with hsbc, and if i was to sell up, due to the market, id loose quite lot of money because the mortgage is now higher than the value of my house. however because theyve decided take interest free overdraft away, im looking at loosing my home, because i simply cant afford to pay the interest on top of my mortgage and all the other costs, ive cut back as much as possible, the next step is starving myself!

its a hopeless situation, and its all down to hsbc! just as everyone is feeling the pinch coz of the credit crunch, they have taken the final step and made many totally destitute!!

sob story much?

ema

scottishlass

UPDATE - Just made a complaint on the telephone which will also be put into writing - apparently you now have to ask to extend your graduate account to three years from two. So might be worth contacting your local branch to see what they can do.

ellie_jane_2

scottishlass wrote: »

UPDATE - Just made a complaint on the telephone which will also be put into writing - apparently you now have to ask to extend your graduate account to three years from two. So might be worth contacting your local branch to see what they can do.

That's useful, when I phoned on Monday they said there was nothing they could do! I still think the best way is to switch accounts, do NOT want to stay with HSBC after this!

scottishlass

ellie_jane wrote: »

That's useful, when I phoned on Monday they said there was nothing they could do! I still think the best way is to switch accounts, do NOT want to stay with HSBC after this!

Well I thought it was useful until I went all the way to the branch to find out they were talking absolute rubbish and as far as she could see that my over draft from the 11th June is going to stay in place and the current letter won't over ride this. But will have to wait and see what I got back regarding my complaint.

Currently very annoyed with them but as far as I can see they are in the wrong as the failed to notify me of the new Graduate Terms and Conditions which they refer to in their letter.