HSBC Graduate Overdraft - no longer interest-free!

HoplessCase

PHTC wrote: »

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?

Yeah this happened to me too, whole overdraft £1750 will be subject to 18.8% with just a couple of weeks notice - Thanks HSBC.

So I went online and swicthed to the A&L account. That was over a month ago now and the switching is still another month away I found out when I called them today. So I am paying the interest on HSBC in the meantime. And better than that A&L informed me that I don't qualify for the overdraft matching service, in fact I don't qualify for an overdraft at all. So if I go overdrawn I will be charged at a rate of £5 a day. I spend about half the month in my overdraft so now I am panicking like mad about what to do next... :eek:

Crabman

HoplessCase wrote: »

Yeah this happened to me too, whole overdraft £1750 will be subject to 18.8% with just a couple of weeks notice - Thanks HSBC.

So I went online and swicthed to the A&L account. That was over a month ago now and the switching is still another month away I found out when I called them today. So I am paying the interest on HSBC in the meantime. And better than that A&L informed me that I don't qualify for the overdraft matching service, in fact I don't qualify for an overdraft at all. So if I go overdrawn I will be charged at a rate of £5 a day. I spend about half the month in my overdraft so now I am panicking like mad about what to do next... :eek:

Have you made a formal complaint about the lack of 30 days notice given by HSBC?

HoplessCase

No I haven't - they very cleverly dated the letter simply 'June 2008' and the date they have said that the interest will no longer be available is 19th July. So they can just claim it was sent at the beginning of June...

Crabman

HoplessCase wrote: »

No I haven't - they very cleverly dated the letter simply 'June 2008' and the date they have said that the interest will no longer be available is 19th July. So they can just claim it was sent at the beginning of June...

I'd speak to the ombudsman about that as it's a bit naughty. Just checked and my letter is dated 17th July 2008.

Just make a note of the date you received it, is there a postmark/stamp somewhere on the envelope, if you still have it to hand?

In any case you have 60 days from time of notification of a change in terms to switch without penalty, so you could still try to transfer to one of the Graduate Accounts offering an interest-free OD:

Top Graduate Accounts 2007-8: Cut the cost of banking

scottishlass

Crabman wrote: »

Have you made a formal complaint about the lack of 30 days notice given by HSBC?

I've done this and their argument was that since 2006 the Graduate Account has been 2 years and so I should have known it was going to change.......but I never recieved any info regarding this changing from a 3 year to a 2year account . Still waiting an official reply to my complaint......

RedBern

my daughter has(had?) a graduate account with HSBC - she had an overdraft limit of £1500 but was only £180 o/d. HSBC withdrew the overdraft whilst she was away travelling. I called in to the branch to explain she was away and would deal with them on her return at the end of July. Another letter arrived asking for immediate payment of £180 - so I again went to the branch - they asked me to pay it off for her (!) - I suggested £10 per month which we'd pay in July. Went in to the bank on about 16th July and was told account closed. When my daugher returned there was a letter from a debt collection agency - HSBC have sold her debt on and they are now demanding immediate payment. Any advice welcome!

Infidel

Do HSBC deliberately make the letters they send confusing?

After reading mine several times it made out that my interest free portion of £1000 would remain until July 2009 and then be reduced to £500.

HOWEVER they've gone and made the whole £2000 overdraft chargeable at the criminally high rate of 18.8%, so already i am being charged an extortionate amount for interest. Hell it's cheaper to use my Halifax Credit Card than it is to use my HSBC account. Needless to say i am not amused, i want to change banks.
Does anyone have any advice on the best thing to do?

Crabman

Infidel wrote: »

Do HSBC deliberately make the letters they send confusing?

After reading mine several times it made out that my interest free portion of £1000 would remain until July 2009 and then be reduced to £500.

HOWEVER they've gone and made the whole £2000 overdraft chargeable at the criminally high rate of 18.8%, so already i am being charged an extortionate amount for interest. Hell it's cheaper to use my Halifax Credit Card than it is to use my HSBC account. Needless to say i am not amused, i want to change banks.
Does anyone have any advice on the best thing to do?

Complain (via FOS) and demand that they stick to the terms and conditions of the account, & if they decide to change the account, allow you the timescales as stated in the Banking Code (that gives you 60 days to transfer out without penalty).

Has anyone who's already complained actually heard from HSBC yet? They're a cunning, sleazy little bank and have refused to even acknowledge receipt of the complaint - it's their policy to confirm receipt within 5 working days! :rolleyes:

scottishlass

Crabman wrote: »

Has anyone who's already complained actually heard from HSBC yet? They're a cunning, sleazy little bank and have refused to even acknowledge receipt of the complaint - it's their policy to confirm receipt within 5 working days! :rolleyes:

haven't heard anything - once the first 5 working day deadline passed I rang to find out where my response was to be told that they had conveniently not recorded my actual complaint (although had marked my record to say that I had phoned and made a complaint) and that they would log another one that would be receipt in 5 days( and give me a call back funnily enough haven't heard from the since) so went through the FO but still haven't heard anything yet.

meinnit

I emailed a complaint on 24th July but I haven't heard anything since. Just wrote a reminder email so just gotta wait and see!