HSBC Overdraft charges

[DuaneJackson]

I called my old account manager yesterday to tell her, out of courtesy, that we were moving our account to another bank becuase her replacement is close to useless.

A couple of hours later my account gets charged £50. Apparently this is for the "annual renewal of our overdraft". Is this usual? I didn't know there was an annual fee for having an ongoing overdraft facility.

[Alpha]

Duane

yes your overdraft facility gets reviewed and needs to be renewed annually and with many banks there is a standard charge based on the overdraft limit set.

The question is did they notify you that it was due for renewal and ask if you wish the facility to continue. It is usually sent out as a standard letter.

Obviously depending on the renewal date you may be within your rights to tell them that you do not need the facility and expect them to refund the charge. (If you have used the facility since the renewal date then you will have no chance) :D

[DuaneJackson]

Cheeky monkeys,

I'll find out the renewal date. We've not used it for a while so might be able to get a refund - they definetley didn't send us a letter.

Then again, they're totally incapable of updating their system with our new address despite receving a letter from us asking for this and confirming they'd received it and acted upon it. So it might be caught up in the Royal Mail redirection.

[Jayne]

Banks charge for anything Duane, sneeze too hard and they'll stick £50 charge on!

I'd like to know how they justify £50 to review your overdraft? It's not like they have to do anything!

Banks charge too much! :evil:

Jayne :lol:

[Rob]

Certainly dig out your original facility letter -all the terms will be set out there including renewal terms.

As Alan said, if you have not been asked if you want it renewed then you can legitimately ask for a refund.

One word of caution. If you ask for the limit to be cancelled and then find out you need in a few months time you will have to go through the whole application process again and that will probably include a higher fee. Just think before you cancel as £50 may be cheaper in the long run and at least you have the limit for another year in case of need.

[Caladan]

Banks charge for anything Duane, sneeze too hard and they'll stick £50 charge on!

I'd like to know how they justify £50 to review your overdraft? It's not like they have to do anything!

Banks charge too much! :evil:

Jayne :lol:

Whilst I very anonymously state that I agree some charges are excessive and cause immense problems to consumers, I have to say that charging to review an overdraft is NOT unfair. We have to review the status of the account, the way the overdraft is used, assess whether or not the facility is necessary and whether or not it actually causes more trouble to the customer than it's worth.

The people I work for charge £25, which compared to the work I COULD be doing instead is rather cheap.

[Joanne_UK]

HSBC charged us £100 to setup an overdraft and they are supposed to "review" it in December (we had the overdraft only since end of September !)

[Blush]

Now why doesn't it surprise me that HSBC are in the title? When my 'free' banking is over with them I will be switching pronto.They are about as much use as a dead fish to be honest.