Escalating hsbc bank charges

[Purpose247]

I need help, went to my bank July 09 asked for a £100 overdraft as I could forsee would go overdrawn. Was refused....told not enough activity on my account!!

Went overdrawn by apprx £55 at end of July 09, I am now over £400 overdrawn Dec09, I am being charged £8 per working day.

I wrote disputing as I came in for help and was not given any....just told to borrow from friends and family. Received standard template letter, pay up! wrote again to customer service manager, they responded pay up!!

Now going to write to the Fiancial ombudsman.

My anger is had they helped me back then, I would not be overdrawn to this extent. They are refusing to help, I am receiving in excess of 10 calls a day.

 

I have direct debits returned, despite me paying money in to cover the direct debits, but because my account was overdrawn, returned unpaid. I received default notices from virgin and hsbc credit card:-x now on my credit file.

Wrote again, there response our charges are correct...blah blah and pay up. These charges will bring to over £500 overdrawn at end of Jan 10.

Should I close the account but have a credit card linked to the account, can't afford to be backed in a corner to pay off in full.

Help, what should my direction be now, I have opened the parachute account with another bank.

Edited January 13, 2010 by Purpose247
spelling

[reallymadwoman]

Move all your payments in and DDs etc to the parachute account immediately. This stops HSBC from effectively helping themselves and puts them in the same position as everyone else.

Re the credit card, they could terminate your account but whatever they ask, you can't pay money you don't have.

It seems entirely unreasonable that the charges should have escalated like that, but I suspect the FOS won't help. However, having a complaint with the FOS for however long it takes them to get around to looking at it means that, in theory, HSBC should leave you alone for a while and that might at least give you some breathing space.

With the FOS try approaching it as a complaint about HSBC not helping rather than as a complaint about the level of the charges themselves. If you have any grounds to claim hardship, do so. If you're not sure what those are, there are some good threads on the subject on the forum.

If you have any specific questions or would like help with debts generally, then just post on this thread.

[Purpose247]

Thanks very much, I have heard FOS pretty much work in the banks favour. Should I make an offer to pay something monthly, at this point the issue is actually a complaint about HSBC, they offered nothing, yet are happy to apply £8 per day on my account, I am now almost just over £500 overdrawn. I became overdrawn by £28.88, (sorry not £50) which was my fault, therfore £470 of my overdraft is all HSBC bank charges. I do have grounds for hardship...so will write another letter to HSBC, explaining hardship, then will make a complaint to FOS, all correspondence has been in writing and at no point have HSBC offered a solution accept to say the charges are within there terms and conditions.

I'm just concerned that each day the charges are escalating.

 

Your response has made me realise that in fact I want to make a complaint about HSBC and get back my bank charges.

Thanks

[Purpose247]

I forgot to mention the account is a T/A business account, does this change things...

[reallymadwoman]

I'm not good on either bank charges or business accounts, and yes, it might make a difference. I suspect the hardship rules may not apply, but it has to be worth a go anyway.

Move everything to your parachute account as I suggested. Whilst the complaint is going on, obviously you don't want this to escalate any more so you could offer a monthly payment to HSBC (make it something you can reasonably afford) on condition that they stop adding any more charges or interest.

[yourbank]

Just on the hardship side of things if you are overdrawn have a look at the Lending Code which might help Lending Standards Board and yes FOS will handle your complaint if you get no joy from HSBC.

[Mikey_London]

This happened to me - it's a stinker. So I wrote to them likewise and they on 'appeal' refunded the charges. I had gone O/D as a result of paying the Business card DD and didn't spot it. But I did have a long history with them with no probs so don't know if that helped.

[Castlebest]

Business accounts are different to personal accounts because businesses cant be classed as consumers so you cant use the Consumer Credit Act.

 

I believe people are looking at other ways to tackle this but I'm not up to date with everything at the moment. I think your best bet is to ask in the Business Claims forum here...

 

Business claims for bank charges - The Consumer Forums

 

pete