Thinking about starting 2nd claim & understanding charges...

[kps_uk]

Hi guys,

 

I have a couple of questions for you that I hopee can be cleared up quickly....

 

1.

Could someone give me a simple laymans explanation of how HSBC 'arrangement fees' work at the moment. I have looked at the website and it is deliberatley vague, telling you losts of what you don't get charged for and little about what you do!

 

 

Is my understanding correct, that you get charges £25 for going overdrawn and a subsiquent £25 for each transaction thererafter + 18.8% on the amount you are OD, but your charge will never be more than the amount you are OD?

 

So if I have 3 DDs which take me £100 OD I would get charges:-

3x£25=£75

18.8% of £100=£1.56

Total: £76.56

 

Thing is I was thinking if I cancel these DDs for a month then I will not be charged £25 each time for them and therefore will avoid the charge next month! or would I sill get the stupidly high charge simply because my previous months charge will put me about £100 OD?

 

2.

Second question, I have current between May last year and this September accumilated approx £1,300 in charges, these are almost exclusively due to HSBC's monthly fees putting me about £100+ OD, which in return result in further fees for the next month, and so on and so on!

 

I have discussed this with the bank and talked about a overdraft for a short period but last time was told (amazing but their words, face-to-face meeting) --

"Sorry but you are not currently considered a valued customer so we can not authorise an overdraft for you, may we sugest you try not to spend over your limit as you will not be charged then."!

 

The only concern I have is that I have a read a couple of cases where people have said that HSBC has then closed their accounts! This in itself does not bother me, but I am not sure if I would be able to open a new current account as I think the Banks seem to have a 'packed'. That is, I seem to struggle to get any sort of C/C, loan, storecard, overdraft, creditcard increase since my last claim last May!

Edited September 9, 2008 by kps_uk

[skyelet]

i would love to know how the charges work, my understanding of it is pound for pound they will charge u what u went overdrawn by...

 

last month my account went £100 overdrawn, they charged me £100 + int...

my hubbys account was £44 overdrawn and they charged him £44 + int...

 

this month my account went £25 over and they are charging me £25 + int, and my hubbys account has gone £125 over so they are charging him £125+int...

 

is there no limit to what they can charge u ?

Edited September 9, 2008 by skyelet
spelling mistakes

[kps_uk]

The website says (and I found this too A guide to Current Account charges

)

 

Says £25 'fee' for each 'arrangement'. Which is basically their way of saying each time a transaction goes out whilst you are over drawn you are making an 'arrangement' to have an overdraft for the amount.

So say you have £55 go out, they will charge you £25 arrangement fee to have a £55 overdraft to over the £55 going out. You will be charged 18.8% on the £55 as well so.

 

£55 @ 18.8%/12 = 86p+£25 fee= £25.86

 

That's my understanding and seems pretty close to what happens to me.

 

I also noticed this on HSBC's very own website

 

In April, the Court confirmed that, under the Banks' current terms and conditions, unarranged overdraft fees are not penalties, as the Banks have always maintained. The OFT did not seek permission to appeal on this issue.

I guess that's why our charges are now called arrangment fees!

[skyelet]

so how did they charge my hubby £44 last month ?

 

i dont get it

[kps_uk]

I have no idea, but the site says nothing about pound for a pound.

 

 

I have no idea how many transactions or withdrawls he made or how much he went overdrawn.