Overdraft limit £500, so why have they let him withdraw £1000 cash??

[ANNALH]

Hi everyone,

 

Just wanted to tell everyone this.

 

My brother-in-law has a HSBC account with an overdraft of £500, yes he did go over limit a few times and we have taken them to court and are awaiting a response from them.

 

Anyway, he went up to his limit about 2 weeks ago, but ever since, his card has been able to withdraw cash whenever he has tried! He is now over £1000 overdrawn!!!

 

I have never heard of this before - has anyone else had this experience?

I can only assume its because they need to recoup some of the charges they have had to refund so far, lol ;-))

 

My hubby and I got £1800 back from HSBC last week, nice one!

 

I am curious to see when they will cancel his card/write/ring him to ask for repayment etc??

Strange.

[lisag100]

Do you mind me asking which stage you and your husband got to when hsbc gave you a refund of your charges its just that as of wednesday i will be issuing court papers and if things carry on as they are now I cant see me getting the money back.

[ANNALH]

We issued claim, they acknowledged in about 5 days then we got a letter from DG Solicitors offering settlement in full.

 

Regards

 

Anna

[lisag100]

do you mean the online court claim thing as im due to do that on weds sorry to be a pain just wondering as at the moment i dont seem to be getting anywhere.

[jscouser2002]

Hi everyone,

 

Just wanted to tell everyone this.

 

My brother-in-law has a HSBC account with an overdraft of £500, yes he did go over limit a few times and we have taken them to court and are awaiting a response from them.

 

Anyway, he went up to his limit about 2 weeks ago, but ever since, his card has been able to withdraw cash whenever he has tried! He is now over £1000 overdrawn!!!

 

I have never heard of this before - has anyone else had this experience?

I can only assume its because they need to recoup some of the charges they have had to refund so far, lol )

 

My hubby and I got £1800 back from HSBC last week, nice one!

 

I am curious to see when they will cancel his card/write/ring him to ask for repayment etc??

Strange.

 

Does this to me lets me go overdrawn as much as i want, gets me in real trouble sometimes!

[Spiceskull]

Yes - my £500 limit is also an imaginary number. If they are going to let you draw whatever you want, it seems pointless having a limit...

[Neo]

do you mean the online court claim thing as im due to do that on weds sorry to be a pain just wondering as at the moment i dont seem to be getting anywhere.

 

it's all about been patient... worry not..

[jonirvine]

Hi,

 

I've had this same problem. When I was a student four years ago and had a student account (CHARGE FREE), they didn't let me go over my limit. Now they'll allow me to withdraw any amount from any machine even when I'm over.

 

Had no letter or notice telling me this either!

[montymoo]

Hi,

 

I've had this same problem. When I was a student four years ago and had a student account (CHARGE FREE), they didn't let me go over my limit. Now they'll allow me to withdraw any amount from any machine even when I'm over.

 

Had no letter or notice telling me this either!

 

yes same here.

 

have asked them millions of times why they do this...all they said was that i needed to monitor my spending to ensure that i didnt go overdrawn

[irv075]

I often used to find that HSBC would let me go way over my overdraft limit without getting in touch, or asking for the money back.

 

Once, when I was in the branch talking to one of the staff about my account, I could see her computer screen with my account details on it. There was a section on overdrafts, and it had:

 

Advised Overdraft Limit: £700 (which is what my overdraft limit was)

 

and underneath it:

Unadvised Limit: £1200

 

Which looks to me like they let you go a certain amount over before chasing you.

[Spiceskull]

Advised Overdraft Limit: £700 (which is what my overdraft limit was)

and underneath it: Unadvised Limit: £1200

Which looks to me like they let you go a certain amount over before chasing you.

Would this information be subject to a DPA request - it seems obscene that they allow you to overdraw more than they have advised you to, and then castigate you for it...even though they have permitted/authorised the overlimit?

[irv075]

Possibly, but I would like to hear from someone who works in a bank about what the "unadvised limit" definitely is. Like I said, it was just something I happened to see on the screen.

[Sarrahk]

Hi everyone,

 

Just wanted to tell everyone this.

 

My brother-in-law has a HSBC account with an overdraft of £500, yes he did go over limit a few times and we have taken them to court and are awaiting a response from them.

 

Anyway, he went up to his limit about 2 weeks ago, but ever since, his card has been able to withdraw cash whenever he has tried! He is now over £1000 overdrawn!!!

 

I have never heard of this before - has anyone else had this experience?

I can only assume its because they need to recoup some of the charges they have had to refund so far, lol ;-))

 

My hubby and I got £1800 back from HSBC last week, nice one!

 

I am curious to see when they will cancel his card/write/ring him to ask for repayment etc??

Strange.

 

Hi i am new on here and just about to start a claim for my charges from HSBC. I am duisgusted by them and there ridiculous charges! they too let me go over my authorised limit but when i ask for an extension on my authorised limit they refuse becuase "of the way in which my account had been conducted". Bad for their business i say given i am a trainee solicitor! They then levy me huge charges (one time £125 for being £80 over my limit, a charge i eventually managed to negotiate down to £25 but now i intend to claim back in full!!) They have this month just levied me a further £60+ pounds.. This site does appear to be a god send so i am going to see how it goes? Any advice or tips?!

 

By way does anyone know if the data protection disclosure fee of £10 is per account with the one bank or would i have to pay £20 for the disclosure on both of my accounts with HSBC?

 

Thanks sarrah x

[Spiceskull]

Hi Sarah,

 

It really does take a few days to get your head around all the arguments and all the information.

 

You will be setting a timetable (the timetable that the bank says it will work to is irrelevant). In the FAQ you will find 'Step By Step Instructions.' Start this, be clear on what your first step is (requesting the info from the bank so that you can calculate what they owe you)

 

Whilst waiting for the info, read up on your next step. If you make sure you stick to your own thread in the relevant area (eg [username] claim against [bank]), and use this as a sort of diary which you can update as things progress. It will also enable you to check responses to your questions, and people will be able to find your thread a lot easier.

 

Good luck.

 

You are here, you want your money back, you will get help and support in this, but it is YOUR call, and you must be prepared to put in the effort.

[neilloffhagen]

Hi Sarah,

Any advice or tips?!

Read through the FAQ. Most of the information you'll need is in there

By way does anyone know if the data protection disclosure fee of £10 is per account with the one bank or would i have to pay £20 for the disclosure on both of my accounts with HSBC?

I'm sure you can do a DPA request for the one £10.00 fee for all accounts held by the one bank.

 

Neil.

[Sarrahk]

Hi Sarah,

Read through the FAQ. Most of the information you'll need is in there

I'm sure you can do a DPA request for the one £10.00 fee for all accounts held by the one bank.

 

Neil.

 

Many thanks i have started my own thread you can see now to try and keep all advice and progress together! i am very nervous about whole thing!

[Spiceskull]

I am very nervous about whole thing!

Why are you nervous? It's YOUR money, not theirs. They are the ones who should be nervous...

[jscouser2002]

Would this information be subject to a DPA request - it seems obscene that they allow you to overdraw more than they have advised you to, and then castigate you for it...even though they have permitted/authorised the overlimit?

 

I want to know this too! I am thinking about adding this to my dpa letter too!

 

Are they obliged to tell us this information if i requested it

[Sarrahk]

I want to know this too! I am thinking about adding this to my dpa letter too!

 

Are they obliged to tell us this information if i requested it

 

i am having this problem, they repeatedly allow me to go over my limit by £50-80 or so (but in same breath refuse to give me an extension temporary or permanent) but they then whack me on massive charges & add it onto my credit report i think .. how do i deal with this (apart from obvious of not going over limits.. easier said then done at mo!) ?? whats this about adding it to DPA letter as i am just putting mine together at mo.. should i be adding something in about this as it seems absurd ???

[irv075]

OK, before this gets out of hand - what I described seeing on the screen has not been confirmed by myself or anyone else as being a further limit that HSBC will let you go over any agreed limits by.

 

I just wanted to make sure that you all know that it is just my "take" on what I saw, and should not be relied upon as any sort of argument. I think it is that, but I would hate anyone to make a fool of themselves by bringing this into their case and being told that it means something else entirely.

[norvernrob]

I have read somewhere in HSBC's literature that if you attempt to withdraw money or use the card with nothing in the account, they will use their 'discretion' and let you go over the limit, to quote: 'Avoid potential embarrassment'.

 

In other words, spend what you want, but we'll charge you to the hilt for it.

[Spiceskull]

I have read somewhere in HSBC's literature that if you attempt to withdraw money or use the card with nothing in the account, they will use their 'discretion' and let you go over the limit, to quote: 'Avoid potential embarrassment'.

If you could point me in the direction of this, I would also love to read it . Six months ago I would be called EVERY day once I had gone overlimit - since the calls stopped my limit appears to be unlimited. I do believe that they changed their internal rules about 6 months ago, but would like to get something more concrete than hearsay...

[Sarrahk]

If you could point me in the direction of this, I would also love to read it . Six months ago I would be called EVERY day once I had gone overlimit - since the calls stopped my limit appears to be unlimited. I do believe that they changed their internal rules about 6 months ago, but would like to get something more concrete than hearsay...

 

i have read this somewhere too, it hink its in one of the term/conditions or user guide pamphlets you get one you open the account, I have it at home & will check and post it up!

[neilloffhagen]

Advised Overdraft Limit: £xxxx

and ... Unadvised Limit: £xxxx

My curisoity finally got the better of me, so I called the bank and asked them what my current overdraft limit was. I was told, then I immediately asked what's my unadvised limit? The line when quiet for a few seconds, then he said, "well, it's your unadvised limit". So I said okay but what actually is the figure? He chuckled and said, "well, it's unadvised, so I'm not able to tell you". I think he could see where I was going and saw the humour of the situation. He said he'd ask for more information if I wanted, which I did. After quite a few minutes he came abck and basically said the same thing. When pushed, he admitted that it's a figure on which a future overdraft would be based, according to how the account had been run and money coming in to the account regularly. But then I asked about is that what I could exceed my overdraft by before the bank got worried he didn't give an answer. He did say my local branch might be able to give me more information

 

I'm wondering if through DPA we could get them to reveal the figures? But then I'm not actually sure what benefit that would be to anyone? Unless it was how much you could exceed your agreed overdraft before they started to worry about your ability to pay it back?

 

Neil.

[djh1697]

A&L have what they call a shadow overdraft limit. Indeed one of the papers got hold of this.

 

I have reason to believe that all banks have this. It allows you to go over your limit so they can make revenue from you.

 

Interesting that when you use your debit card, most retailers get an automatic authorisation. It should decline it! The banks reasoning behind this? It is a customer benefit, prevents embarrasment in shops!

 

Interesting how it doesnt stop anger at punitive charges!!!