HSBC Overdraft - they change rates and tell you afterwards!

[chris_awd]

Does anyone else experience this?

A renewal letter of the overdraft arrangement is sent on the same day that the 1.5% renewal fee is charged.. and this letter is also the first time that they tell you what interest rate they have unilaterally decided to charge you for the forthcoming year.

So if you want an opportunity to put an alternative arrangement into effect, or want to negotiate the interest rate then you can not.

Would it not be a more transparent way of banking if they were to post the renewal "offer" in advance so that it can be considered by the business?

Has anyone else suffered as a result of this?

 

[billmccallum1957]

Speak to your bank manager.

from https://www.lendingstandardsboard.o.../The-Lending-Code-Mar-2011-revised-2015-1.pdf

79. This information must be provided either in good time, before the customer is bound by the contract, or where the contract concludes at the payment service user’s request, using a means of distance communication, immediately after the conclusion of the contract.

 

[chris_awd]

Hi Bill
My original complaint just after it happened went to our business manager at the branch. shortly afterwards he left and our account was passed to a central general telephone based service. I pushed the complaint through and it was rejected but with a £100 settlement offer. I'll complete a Financial Ombudsman Service complaint in the coming days and see how that goes.
Thank you for the Lending Code link, I'll include this in my complaint.

Chris

 

[Chris Ashdown]

What do you hope to gain by this when you could spend the time more profitably by looking to the future of your company rather than spending time and effort chasing a large bank

 

[chris_awd]

Valid question Chris.. I will admit it's not a decision devoid of emotion. However, I have a high success rate for the few battles I choose, and the potential reward is between £500-£1000 for around 5-8 hours total work.
My result may also help others experiencing the same scenario and I get to contribute a bit back to the small business community. It's good to push back against usury.
Until we all use bitcoin and take banks out of the loop