HSBC Changing all Bank accounts

Lokolo wrote: »

If you don't need your overdraft remove it. They are doing it because they need to earn money somehow and the courts are going against the bank charges (something like that). So now, every year, they 'review' your overdraft and charge £25 for the pleasure.

Shelfstacker will pop along at some point and explain better.

He will?

HSBC introduced expiry dates on all of their overdrafts. Where previously you could have an overdraft that had no set expiry date, now the longest you can have one for is 12 months. If you had an overdraft before the expiry date was introduced, it expires on the next "anniversary" of the limit being approved after November last year - so if you applied for an OD in November 1999, it'll be expiring now.

After the expiration, that limit is cancelled and a new one set up in its place (not just charging for keeping the same limit, although it seems that way - limits can be reduced or removed at the review as well). If you've increased your limit or gone over it in the six months prior to the expiry date, you get charged an arrangement fee for arranging another yearly overdraft - if you haven't, you shouldn't.

The rationale is that the £25 fee makes an overdraft seem less like a free, cheap, on demand loan or whatever and more like what it is - short term debt for when you know you have funds coming in but need to withdraw cash now. It also has the side effect of making people ask themselves whether they truly need a facility.

You won't get very far asking for the fee to be refunded unless you cancel the overdraft within 14 days of the previous one's expiry - it's a charge for a service, basically, and you can either take that service or not.

I somewhat agree with it.

I agree that if you want an overdraft, a fee to arrange one is fair.
I agree if you want to change it (unless to remove it) then a fee is fair.

I don't believe a yearly fee is fair. i.e. just keep things as they are.

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Just reading over Shelf's reponse. So if I have a £x overdraft, and I never go over this, I shouldn't be charged no?

Also, you say cancel within 14 days... can you find out this anniversary date from a branch or internet banking (internet banking I haven't seen anything, could have missed it though!)

I had an overdraft and still have one but I have only used it once in something like 10 years and as far as I know I am not been charged for it.

ShelfStacker wrote: »

It can be seen onscreen in branch if you ask. On internet banking, if you go onto the statement page for the current account concerned and then choose "Amend overdraft" on the left, your expiry date will be shown.

Current Limit: £1000
Expiry Date: 17/08/2009
Awesome!!!! I can also cancel online! woop woop. However, I shall keep my nice sum of £1000 for the hell of it. My account balance at the moment is -£697 Bad me bad.

Thanks for the 100th thank you. It is good to know that most of us will not be charged.