Please help me with 'Arrangement Fee' issue!

[Crasherkid22]

Hi there,

 

I have never posted on this site before, but now need some advice.

 

I've got a graduate bank account with HSBC. I've been wih the company for around 15 years (I'm 24) since they were Midland Bank.

 

I've recently finished a post-grad course, and am now in work. My rent came out last week and I went over my overdraft limit of £1500. HSBC allowed this, but I've now been charged a £100 'Arrangement Fee'. Although I'm working, I don't have a lot of money. To be honest, I can't really afford this fee and I'm very pi*sed off that HSBC has treated me like this. They charge me interest on my overdraft which I have no problems with, but this arrangement fee is ridiculous.

 

I'm thinking of calling them this evening. Is this a wise move?

 

Thanks a lot.

[Castlebest]

Hiya crasher, if its a one off fee your probably better off going to see your branch about it, HSBC's phone system is centralised and your unlikely to get to talk to anyone at your branch and to be honest you will be lucky to find anyone who could give a damn in the general telephone support department .

 

One off charges are sometimes refunded by the local branch if you explain your situation so see what they say

 

pete

[Crasherkid22]

Thanks for the response. I will go in tomorrow morning and speak to them about it. I'll keep the site posted if any progress is mad

 

Crasherkid22.

[nickfarmer]

hi iv had the same, i get charged every single month for going over my £1500 limit and this month iv paid £125 for an arrangement fee??? il go n see them n keep it posted,, thanks nick

[lateralus]

if they won't refund it - you can start to process to reclaim it - just follow the step by step instructions - but be warned - it will take some time now that this test case with the oft is on the burner. try, very, very hard to find some money so that this doesn't repeat itself next month. this is how everyone on this forum started - by one month going over their overdraft.

making your overdraft limit higher (if that's what they suggest) as that only compounds the problems.

as pete says above - the very first time you go over your limit - if you are very reasonable and persistant and polite and assertive - you may get lucky and they will reverse it - this works once (if at all) next month it won't work - so try to get your financial act together -

 

here's a little piece written by one of the moderators and i think it has some good general advice - Taking back control of your finances (1 2)

 

let us know how you get on.

[freakyleaky]

I would always advise phoning the bank every time you get charged. They have reversed the charges for me on a few occasions. As lat says, an assertive but polite approach will normally get results. the line they use is normally something like " on this occasion we are willing to refund the charges" but don't let that stop you trying evey time. If they don't agree, tell them you will be taking legal action to recover the charges as you feel they are unlawful and dissproportionate to the breach (which they are).

 

As allways though, not getting charged in the first place is the way forward.

[jowalshy]

Hi crasherkid, did you go and speak to someone in your branch? if you did how did you get on?

[Crasherkid22]

I went into the branch on Saturday, but they said that no one could deal with me then. They asked me to come back on Monday, so i'll go tomorrow. I don't think they were trying to put me off, just there was no one around who could help me. I'll get a better idea tomorrow though, so i'll let you know how i get on then.

 

Thanks for the interest, it's very much appreciated.

 

Crasherkid22

[jowalshy]

Oh well, never mind. Good luck for tomorrow.

[Crasherkid22]

Right then,

 

I have just visited a local branch of HSBC and they have given me some bull**** statement of "We are unable to refund any charges due to the investigation." or words to that effect. I was everything you suggested - calm, authorative, collected, but getting my point across. I can't believe that they are treating me like this. It's disgraceful. I like the way that they can charge me while the inquiry is going on, but I can't get this money back...

 

Anyway, they suggested that i write a letter to the manager of their 'Service Quality Team'. Is this a good move, or is there another way of going about this?

 

Thanks a lot for helping me thus far, it's been greatly appreciated.

 

crasherkid22

[jowalshy]

If you do a letter to the service quality team, I have a feeling you will get a standard fob off letter saying exactly what HSBC said to you ie ongoing test case blah, blah blah.

 

You could always start a claim from scratch (although it will more than likely get stayed due to the test case), but at least when the test case is over and you have followed each step correctly, (and the OFT win) you would have accrued a little interest on the charge.

[Crasherkid22]

Cheers Jo, that's helpful advice. I've already had a little look around, but being not particularly computer minded, can't seem to find the instructions as to ow to start a claim. Could you post me a link to follow, and I'll figure out what i have to do.

 

Cheers,

 

crasherkid22.

[jowalshy]

Here is the link for the preliminary letter to the bank. You can either send this direct to your branch or you can send it to the Service Quality Team. Eithr way it will get to the Service Quality Team. This letter basically is the fist letter you send asking for your charges back. It gives 14 days in which to comply and you will probably get the fob off letter as I beautifully described in my earlier post:-

 

http://www.consumeractiongroup.co.uk/forum/bank-templates-library/671-2-letter-preliminary-approach.html

[Castlebest]

Hiya crasher sorry to hear they wouldn't do anything for you, heres the thread with details of how to start a claim.

 

http://www.consumeractiongroup.co.uk/forum/welcome-consumer-forums/13664-welcome-all-newcomers.html

 

pete

[Crasherkid22]

Hello all,

 

Right then. Today I got a call from someone called 'Dave' who works for HSBC (which btw, I believe stands for Hideously Strong Bank Charges). He told me that I was over my overdraft limit. I told him that I knew that, and that i had been to see someone on Monday about it. He then informed me that I've been charged another £25, as well as the other £100 coming out on the 19th October. The extra £25 is being charged because a direct debit bounced. I questioned 'Dave' about this, and I was told that it replaced the previous £100 charge. I was fairly happy about this as you can imagine.

 

I then checked my internet banking, and saw that the £100 charge was still there. I phoned up HSBC, and they said they knew nothing about the £100 being removed. So now I'm being charged £125.

 

My question is this. I was going to send out the initial letter to complain, but can I claim back this new £25 charge as well as the £100 arrangement fee?

 

I must admit, I'm fairly pleased that I haven't shown my true feelings in this message. I'm furious with this bunch of pi*s atists and I can't believe how they're screwing me.

 

I explained to them that by taking money away from me in charges, I can't pay back my overdraft. I also explained that I can't afford to go to work next week, let alone eat (which is true) and their response was 'Why don't you take out a small loan with us?" W*nkers!!! They won't even give me an overdraft extension, so why are they offering me a loan???!!!

 

Anyway, as ever, your help would be much appreciated.

 

Thanks,

 

crasherkid22.

[jowalshy]

You can lodge an offical complaint regarding the £100.00. I would ask them to refer back to the call you had from Dave to say that you were going to be charged just £25 instead of £100. (whether they will investigate it I don't know as this is a charges complaint and all those sort of complaints are being put on hold) They should be able to do this as all phonecalls are supposed to be recorded. And the answer to the £25 & £100 charge as to whether you can reclaim these - the answer is yes. You can add on charges right up to the day you file a claim with the court.

[Crasherkid22]

Thanks Jo,

 

I'm going to send out the preliminary letter this evening. Just one other question (sorry to sound like a moron...) - who do i send it to? My branch manager or is their a more centralised person who i should be sending it to?

 

Thanks all,

 

crasherkid22.

[jowalshy]

Senior Service Quality Officer

Arlington Business Centre

Millshaw Park Lane

Leeds LS11 0PP

 

Or you can send it in to your own branch. either way it will end up at the address above

[Castlebest]

Welcome to the worlds local bank

 

pete

[jailbird]

Hi Crasher,

 

I have had a few problems (like a lot of others on this forum) like this.

 

After being told a charge would be reveresed and then it was not I telephoned Qualilty Assurance Team and asked for an investigation to be started and details of the telephone call referred to where you were told the money would be refunded (they tape their calls so they have access to them). Ask for a reference number then you have for later reference.

 

I dealt with a Mr Bowley and remember to send EVERYTHING recorded delivery.

 

If you need any more help let me know.

 

Good luck

 

Chris:p

[lateralus]

and please don't fall for the old managed loan [problem], once they have you going over your overdraft a few times - you'll start to get calls offering a solution to your problem - you take out one of their managed loans and maybe a few quid extra for something you want or need and suddenly, kid they've got you by the short and curlies!!! the managed loan is to be avoided like the plague - you will be paying this off for the foreseeable future - like slavery - you will be very, very sorry - there are numerous threads written by people who have been paying them off for years and are not much closer to the end of the debt - so whatever you do - don't let them talk you into a managed loan. try, very, very hard to get out of this some other way - like maybe a small loan from an understanding parent or whatever - and try to get out of the vicious circle of charges every month. good luck - and re peating what jo said -

prelim letter - wait 14 days then do the letter before action and then 14 days later you can file your claim - and all charges up to the actual filing can be included in your claim.