Overdraft charges

[Valhalla]

Hi

 

I hope that creating a new thread is the right thing to do.

 

Can't find any other thread addressing this question so here goes

 

My business has an overdraft facility with HSBC . They have just debited the business bank account with £325 for renewing the overdraft for another year.

 

As far as I am aware all that is involved in renewing the facility if writing me a letter, although I accept that there may be some admin work that goes on behind the scenes, but 325 pound's worth ???

 

I thought that bank charges had to be comensurate with the work involved and the cost of that work to the bank.

 

Can anyone advise on this please ?

 

Thanks,

 

Valhalla

[tiglet]

What do their terms of business say from when you opened the account or any subsequent communication?

[Valhalla]

Hi tiglet and sorry for not getting back to you sooner about this

 

To be honest I haven't looked at the T & C.

 

My point is that bank charges whether they be for interest on a credit card or anything else, are supposed to represent the real cost to the bank of the charge levied and should not just be an opportunity to squeeze more money out of the consumer - standing up for consumers in just this sort of situation is the whole purpose of the CAG as far as I see it.

Would you agree ?

 

I can't see how it can possibly cost £325 to renew an overdraft. All it invloves as far as I am aware is writing a letter saying, OK your o/d is approved for another year.

 

Valhalla

[tiglet]

There is a difference between a penalty charge and a "service" charge - this is an important distinction and depending on the wording of your contract/T&C's this will make a difference as to how you can tackle this.

[Valhalla]

Hi Tiglet

 

May I come back to your last post even though a lot of time has pased since then?

 

I've just posted on the thread

Why let your bank keep your money? Calculating your charges claim

 

I'm being charged hundreds of pounds ( £8/day ) for an O/D facility by HSBC. Thi sin not inteest but charges

HSBC say tha it was in the T & C so tough

 

I'd like to think that despite this any charge has to be in line with the service offered doesnt it? The money I actually borrowed ( payments out, excluding bank charges - less payments in, can to only £25.

So how can they charge me hundreds for using only £25?

 

I should have paid in sufficient money weeks ago to bring the balance to zero when a fairly small sum would have done it, but I didn't and now the amount needed to square the account is too high to do in one go, plus I am reluctant to pay HSBC money for these charges.

 

Any thoughts please?

 

Thanks for your help