sudden change to overdraft

[Freaky_lady]

Hi there

I took out a student account with hsbc in 2000 graduated in 2004 and was put onto graduate account. when i took out the student account there was an interest free overdraft increasing up to £1500 over the four years as a srudent the it was supposed to decrease slowly for the four years after that. However they didn't do the decrease bit with my account so i have kept using the interest free overdraft facility.

 

In July i recieved a letter to say that after 30 days my interest free overdraft would decrease from £1500 to £500 and I would be charged at 18% for anything over. So I quickly paid in £1000 to get it back to £500 overdrawn. Then i recieved another letter saying the bank had made a mistake and i would have the interest free overdraft up to £1500 till november and it would be reviewed then. given the current climate i have had to use uo to that amount.

 

Recieved a letter yesterday to say that i could keep the overdraft of up to £1500 but it would no longer be interest free and charged at 18%. I can't afford to pay it off straight away but don't want to be stuck with that amount of interest to pay.

 

is it possible for me to have the interest stopped and pay off a certain amount each month till its cleared - would that affect my credit status?

 

I'm also wondering if it would be possible for the bank to follow the procedure they originally promised and decrease the amount over a four year period?

 

any advice would be appreciated

[lateralus]

welcome to the hsbc forum freaky lady- you should fit right in here - lol!

 

i hope you kept those letters -

if you did and i were you, i would march my little tushy into the bank manager tomorrow and very politely, but very firmly ask them what the heck is going on.

in the first instance, they will never decrease it gradually as you said it should have done - because then they wouldn't have you by the short and curlies! they want you to owe them 1500. i'm guessing that they sent that letter about reducing it to 500 because they didn't think you'd be able to pay it off - but you did - so they "very kindly" let it build up to 1500 again. they (no matter what the adverts say) never put you and your interests first - they are a money making machine - geared up to make money out of their customers. i do so wish people would realise that an overdraft is the banks way of keeping you tied to them - it's their money that they are letting you use - but it is their money and eventually they will want it back - one way or another.

 

practically speaking - i'd take the letters in to your bank and ask them why the ping pong attitude with your account.

seeing as they never decreased it gradually in the first place and as they admit to a mistake by decreasing it to 500 earlier - ask nicely for them to now decrease it gradually - say by 100, 150, 200 a month (whatever you can manage), tell them politely that you will that way pay it off in a few months and everyone will be happy.

i think if they refuse (and again- you must be always polite but slightly assertive when dealing with banks) you might infer that you think you might have to take this matter up with the oft as the bank seems to have been messing you around and you feel you are acting responsibly and were hoping they they would too.

 

if things stay as they are - i believe that each month you haven't paid it off will result in an entry on your credit rating. so best to try to negotiate the deal with them as soon as possible.

 

 

you'll probably get another couple of opinions to this later this evening when the nightowls prowl.

 

good luck

[Castlebest]

Hiya Freaky and welcome to the HSBC forum (gawd that takes me back to easier times , one of our HSBC friends is called freaky leaky, he's now part of the site team good bloke but welsh ).

 

Anyway were was I... you have some good advice from Lattie there, I agree a face to face meeting is the best way forward to try to get an acceptable reduction in your overdraft or an acceptable interest rate 18% is daylight robbery.

 

Not sure about this one

if things stay as they are - i believe that each month you haven't paid it off will result in an entry on your credit rating. so best to try to negotiate the deal with them as soon as possible.

 

HSBC have been using the credit reference agencies to report defaults against current accounts but I've not seen one yet for late payment, I think they would be on thin ice if they tried it because the terms and conditions of current accounts effectively allow for late payment... and arguably default since we received the judgments so far from the test case so I think your credit rating is safe for the time being .

 

pete

[lateralus]

you are probably right, pete - i just felt as she asked in short if she continued to pay less than they were asking (not the full interest) then they would be making blots on her rating - but right or wrong - freaky lady you need to get this straightened out as soon as possible - let us know how you get on

[freakyleaky]

Hiya Freaky and welcome to the HSBC forum (gawd that takes me back to easier times , one of our HSBC friends is called freaky leaky, he's now part of the site team good bloke but welsh ).

 

LOL. Easier times indeed me old mate.

 

And I am only just welch you know. (See I can't even spell it) Can't speak a word of it and anyone south of manchester would swear I was a scouser.

 

 

Good to see you lattie.

 

Sorry for the hijack Freaky.

[lateralus]

hi ya fl, how are the sheep?

[freakyleaky]

Hi Lattie.

Sadly, due to the credit crunch I am either wearing them or have eaten them.

[lateralus]

gives new meaning to mutton dressed as lamb

[Freaky_lady]

Thanks for the advice

Am hoping to pop into a branch and explain the situation. willletyouknow how i geton - make take a few days to actuallygo there tho - am away from home and havent anypaper work with me but am sure i have it at home somewhere.

 

thanks