First Direct & HSBC

[TJH]

Hi

 

Just a query.....

 

I used to have a HSBC account for which I would like to make a claim for the charges for. I have also had credit cards in the past that used HSBC that I would also like to claim charges for. However I currently have a First Direct current account, cedit card, overdraft and loan! (Yes, I am trying to get debt free!) I could also claim for charges for First Direct too. So, would it be better to wait until I have repaid these and opened a new account with a different bank before taking on HSBC? The loan is due to be paid off at the end of next year but I am hoping to pay it off before then. I am a little concerned that the law may change and I will not be able to claim against HSBC or First Direct. My credit rating is not so good that I can shop around for a different loan etc either.

 

Thanks

[caro]

There shouldn't be any problem taking on HSBC with regard to First Direct. If you claim charges on you FD current account this will not affect your loan or credit card as they are separate contracts. It would be as well to open a parachute account just in case though. There are loads of basic accounts which accept new customers regardless of credit ratings, but you may not get an overdraft. Perhaps your HSBC bank charges might cover your present overdraft.

 

The law is not going to change any time soon, but if you are worried just take on HSBC first and see how you get on. You will find you gain confidence as you understand more so keep reading the FAQ's and forums.

[TJH]

Thanks caro that makes sense but sometimes what is logical isn't what happens! Does a parachute account have to be a basic account or just another bank account with a company that you are not trying to reclaim charges from?

 

I want to be sure what I am getting into before I start playing with the big boys! I have printed off the relevant FAQs and have started reading them.

[caro]

Parachute account can be wherever you like, as long as they will accept you. I just suggested a basic account as you mentioned your credit rating is not too good. I opened mine with Nat West as they do DDs and standing orders, but no cheque book or overdraft. I haven't had to use it yet though.

[TJH]

I think my credit rating is better than what it was. I used to only get offered solo aco****s and now have a switch however most current accounts now request that you have a certain amount going into the account each month.

 

I will look into this as I don't want to be caught out if First Direct close down my account. I suppose if I take on HSBC then the money gained from that will pay off First Direct's overdraft - hopefully!

 

Thanks for your help