HSBC Graduate Overdraft - no longer interest-free!

scottishlass

Moneybags55 wrote: »

If you check the small print it is actually your responsibility to check the terms and conditions. The page on their site for the account can be changed without them needing to inform you.

Sorry can you be a bit more specific about where you get this from.

I was under the impression that since this change is at my disadvantage then I should be given 30 days notice

ellie_jane_2

mikepaulden wrote: »

I received a letter yesterday stating that my overdraft will remain interest-free up to £1000 from 30th July, contradicting the earlier letter which stated that my interest-free overdraft will be withdrawn on 19th July.

I rang HSBC this evening and the person I spoke to told me that the earlier letter was sent out in error, that the second letter is accurate, and that my overdraft will indeed remain interest-free up to £1000 beyond 30th July. I asked for this clarification in writing and was told that letters were being prepared and that I'd receive one over the next few days. Perhaps HSBC is climbing down?

Careful on this one - my friend and I went to the HSBC branch on Saturday about her letters (she, like me, graduated 2 years ago so your letter may be different), and this is the response she got:

- Technically both letters are correct. The overdraft is reviewed at the end of June. Therefore, you are entitled to £1000 interest-free from the end of June until the 19th July 2008, when your interest-free portion will be removed to £0.
- The confusion has occurred because the letters have originated from 2 sources. The £1000 letter comes from 'Marketing'; the 19th July letter from the product team.

The lady she spoke to apologised for the confusion, but would not even let my friend log a complaint as she said she couldn't see that HSBC had done anything wrong! Unfortunately since HSBC can't unify their correspondence we are all subject to confusion and large amounts of interest.

For those who need to pay off the overdraft quickly, apparently there is a loophole which is talked about on MSE, where you can get a 0% Egg card and another 0% card and transfer the balance. Be careful of using any old 0% card as these are not often interest free for paying off cash/bank debts.

scottishlass

ellie_jane wrote: »

- Technically both letters are correct. The overdraft is reviewed at the end of June. Therefore, you are entitled to £1000 interest-free from the end of June until the 19th July 2008, when your interest-free portion will be removed to £0.
- The confusion has occurred because the letters have originated from 2 sources. The £1000 letter comes from 'Marketing'; the 19th July letter from the product team.

Thats what I got told too.

Well I finally found out why HSBC havent responded to my complaint the guy failed to fill in the details. Not a happy bunny at all.

ellie_jane_2

scottishlass wrote: »

Thats what I got told too.

Well I finally found out why HSBC havent responded to my complaint the guy failed to fill in the details. Not a happy bunny at all.

Time to go to the Ombudsman methinks - they were really helpful and have sent me a record of what they're doing and how I can proceed if I'm not happy. Finally I feel like someone is doing something!

scottishlass

ellie_jane wrote: »

Time to go to the Ombudsman methinks - they were really helpful and have sent me a record of what they're doing and how I can proceed if I'm not happy. Finally I feel like someone is doing something!

Already done...like he said on the phone how do I know that I wont go round in circles with them saying that my complaint was never entered in to the system....also managed to get the date when my graduate account was officially transferred.....which is interesting.........

Moneybags55

Quote:
Originally Posted by Moneybags55
If you check the small print it is actually your responsibility to check the terms and conditions. The page on their site for the account can be changed without them needing to inform you.

scottishlass wrote: »

Sorry can you be a bit more specific about where you get this from.

I was under the impression that since this change is at my disadvantage then I should be given 30 days notice

That was just my understanding of how things worked, I may be wrong.

chuckley

i graduated 2 years ago aswell, and the 'marketing' letter i was told to 'just ignore' when i foned up HSBC, coz the original letter said the usual instead tho it said my interest free was gonna stay at 1000 even tho it should be 500. the woman said as i was still in year 2 the other letter was a mistake or 'notification' in her words and the original letter of the new effect date n blah blah was correct. i was very happy.

DaisySteiner

I graduated a year ago from a four year course, as far as I understand it I have a 1,750 overdraft but only 1,000 of it is interest free. Which is fine, I'm trying to get out of my overdraft anyway, the thing that is really p***ing me off is that they have charged me a £25 'Arrangement' fee even though they haven't changed my overdraft limit.

I called them up this morning and asked why I had to pay them £25 for doing nothing, and they said it was because I had been overdrawn in the past 6 months. I replied that it was only a couple of quid and I had already been charged for that at the time, so why were they effectively charging me twice? They then retracted that and said it was nothing to do with going over the limit, it was just a fee they now charge to reveiw my 'borrowing needs' on an annual basis.

So a) can they please make up their minds about what they are charging me for? and b) why do they feel they can charge £25 a year to do nothing to my overdraft? That adds up to quite a lot if you stay with them for any length of time. Do any other banks do this does anyone know?

I too have been with HSBC since I was 16 but now definately want to change, but according to this site none of the graduate account details will be up until August!

Thing is that I have heard that the HSBC ISA is the best one to get, but it's only open to people who already have an HSBC account. I don't want to lose my ISA, can I just take all the money (sorry, overdraft) out of my current account but not close the account, and in this way still keep my ISA?

elbelle_2

I had a similar letter and am actually quite scared, my boyfriend and I are only just keeping our heads above water - I'm always right at the end of my overdraft limit, there is no way I can pay off the amount they are going to charge interest on. Will the interest take me over my limit and then do they have the right to charge me?

Ch4rlieB

ellie_jane wrote: »

month, especially as our wages are not very high and our student loan payments are often very high!

This bit makes me laugh. Student loan payments are linked directly to how much you earn. If your paying a VERY high payment.. your earning loads of money.