HSBC Graduate Overdraft - no longer interest-free!

Dekazer

DaisySteiner wrote: »

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?

In a similar position, I took out an HSBC graduate loan after uni, and am still paying it off (having checked that my interest earned elsewhere is sufficiently high to mean early payment would be a bad choice). However, after the bank treated me appallingly when I did my postgraduate degree, I moved to the Co-op. However, HSBC refused to let me close my graduate acount while the loan was still open, or make loan repayments from a non-HSBC account.

A fair amount of negotiating in the branch eventually resulted in a compromise - I can now make repayments from my Co-op account (where my salary is paid in) so long as I keep the EMPTY HSBC graduate account open.

From this I would surmise that you should be fine to keep your HSBC account open and empty and still qualify for the ISA. Otherwise you could try to negotiate a minimum amount to pay into the current account each month, and then transfer it straight into the ISA. This should make sense so long as it remains free to hold a current account in credit!

DaisySteiner

Thanks Dekazer, I'll give it a go.

Further to my last post, I checked back and saw that they had raised my 'Arrangement Fee' from £25 to £50! Called up and the person I spoke to said it was for going over my overdraft twice. So I asked why they called it an arrangement fee, is it to stop me from re-claiming the charges from the bank? After saying that I would definately be claiming the money bank, and that I was considering changing bank over this etc etc, he said that he would waive the whole £50 fee as I had been misinformed the last time.

So there is hope! Keep up the complaints! Still opening an Alliance & Leicester account though, could really do with the extra £100 and free insurance!

SiuLoong

My fiancee has a HSBC account and graduated last year with a £2000 0% OD, they now want to charge her £25 to drop it to £1500 interest free, seems to be better than they are offering most people, anyway I told her not to accept the £25 fee as my bank (Natwest - I graduated 2 years ago) doesn't charge me anything for dropping the limit as the years have gone by. She didn't have time to complain so I have become a third party signatory on the account and went in for a meeting, by the end of the meeting they'd waived the £25 fee, since then she has been charged some interest but I've had that removed as well.. just waiting to see what happens next month!

SiuLoong

Also, tried opening an A&L account for her but only got £350 o/d they will only raise it to match your current overdraft (up to max £2k) if you use their switching service to move over which she didn't want to do just yet.

Mac_Sami

Well well well HSBC, you've gone and done it again, haven't you? You naughty, naughty things.

I've been hearing a lot about people who received a letter reviewing their graduate bank account overdraft (mine was dated 19th June 2008), and then receiving a conflicting letter saying that their account would be converted to an ordinary bank account (mine was dated June 2008).

Oops, HSBC. You made a little mistake.

See, they have to provide 30 days notice on changing terms on my account. As far as I'm concerned, changing the bank account, overdraft interest rate et. al. is a change of term. Given that their conflicting letter stating I would be on an ordinary bank account was simply dated June 2008, how do we measure 30 days of notice from there? Ah, wait, we can't!

I also moved home recently, and changed my details with HSBC. They got my new address right for my letter telling me I still have an interest free overdraft, but for some reason sent the other letter to my home address (bearing in mind my address was changed 2 months ago). Whoops....

A quick trip to the local branch, and I explained all of this in simple terms - that they cannot impose such a change without 30 days notice, and that the notice they provided was void. It lacked an accurate date, and was sent to the wrong address that is no longer on file. Of course, they say there is nothing they can do, so I simply withdraw my life savings, walk down the road and put them into Nationwide.

2 hours later, I get a call to say they can offer me an interest free overdraft for a year, due to my "good credit history". I laughed, said great, I'll take it, and then pointed out that any money I once had with them would be gone pretty soon, as it was being moved to Nationwide. Then I signed up to A&L's 1 year interest free overdraft offer.

Sure, I'm one small customer in a very big pond. But banks like HSBC need to be punished hard when they make these serious mistakes and fail to offer any form of help until the 11th hour. For me, an overdraft isn't essential, and I'm sure my money isn't essential to them.

HSBC are USELESS. I can understand if they want to change something. Just please, please, follow the rules you set in the first place. Oh, and provide clear communication to a single contact!

Epiphany

What exactly are HSBC playing at??

First I get a letter stating that my interest free overdraft would be expiring (as was expected) on the 19th July 2008.
Last month i received a letter stating that they had decided to extend my interest free overdraft by a year until 19th July 2009.
Today, I've received a letter stating that the letter informing me of my extension was in fact a mistake, and that actually, I would be losing my interest free overdraft on the 19th July 2008. The letter is dated the 17th July, and it arrived on the 22nd...way to go HSBC! I specifically didn't clean out my overdraft beacuse of last months letter, so if they charge me a penny for being overdrawn I will go ballistic! :mad:

I'll certainly be closing my HSBC account, and my credit card in light of this if this is how they feel they can treat their customers...

Crabman

Epiphany wrote: »

What exactly are HSBC playing at??

First I get a letter stating that my interest free overdraft would be expiring (as was expected) on the 19th July 2008.
Last month i received a letter stating that they had decided to extend my interest free overdraft by a year until 19th July 2009.
Today, I've received a letter stating that the letter informing me of my extension was in fact a mistake, and that actually, I would be losing my interest free overdraft on the 19th July 2008. The letter is dated the 17th July, and it arrived on the 22nd...way to go HSBC! I specifically didn't clean out my overdraft beacuse of last months letter, so if they charge me a penny for being overdrawn I will go ballistic! :mad:

I'll certainly be closing my HSBC account, and my credit card in light of this if this is how they feel they can treat their customers...

Call the Financial Ombudsman Service and make a complaint (I did this morning) - it's not acceptable that HSBC are giving us -2 days notice of interest charges!!

maniac886

Crabman wrote: »

Call the Financial Ombudsman Service and make a complaint (I did this morning) - it's not acceptable that HSBC are giving us -2 days notice of interest charges!!

I have not got a clue whats going on. I have received 3 letters stating different things.

I rang them before and they stated

My overdraft limit would remain at £1500, but only £1000 would be interest free. This was implemented on the 19th July..so not much warning there then.

They say my limit will remain at £1500 until November when it will be reviewed.

If any of you use facebook then this page is usefull

http://www.facebook.com/group.php?gid=2371122959

Regards

Maniac

rednaxela_76

My first letter was dated 10 June 2008 offering me a new formal £1000 interest free Overdraft facility until 14 July 2009 once my current OD came to an end on 14 July 2008. That letter further states I need take no action and the OD will be arranged automatically.

The Chris Pitt letter of apology is dated 17 July 2008 (received today 22nd), therefore well passed the activation date of the above OD. Technically as per T&Cs HSBC can revoke an OD at any time provided they give 30 days notice and good ol' Chris is indeed offering an extension on my current OD till November 08.

However, I would encourage anyone with the above letters to take them in to their local HSBC branch on Saturday and request to speak to someone about closing their account (so you don't get fobbed off at the entrance) HSBC know they've f***ed up royally and I'm positive they will offer me the full year OD if I kick off (as Mac Sami confirmed)

Remember, you should be able to clear your HSBC OD with, say an A&L one if push comes to shove. T&Cs can't stop you from leaving HSBC and they can't stop bad publicity either. Let's make 'em bleed for their mistakes exactly the way they bleed us with late payment charges.

See you at "HSBC, Your Local Branch" on Saturday!

PHTC

Exactly the same position here, i feel no loyalty to my bank however so will call them later today and if i'm not hapy with the response or service (even after threatening to leave) I will do.

Like others here i'll probably move onto the A&L account, the £100 would come in handy but does anyone know if you can get quidco in addition to that? i've checked on the site and it's £50 so that would make for £150 (to go towards clearing the overdraft lol) for anyone who's set this up so far is the process completely online and have you tried this?