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My new hatred for HSBC and a search for a new Bank account...

Discussion in 'General Discussion' started by Arthalen, 16 Sep 2009.

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    16 Sep 2009 at 11:59
      #1
  1. Arthalen

    Wise Guy

    Joined: 20 Apr 2006

    Posts: 2,029

    Location: Leeds, UK

    Well, HSBC has bitten enough out of my backside and I've decided to shift banks. I managed to extricate myself from a financial mess in the middle of last year and have been behaving ever since, paying my loan on time and operating neither an overdraft or credit card.

    I've been on a financial even keel despite the downturn and rising prices, but due to an 'oversight' on my part I failed to reserve enough funds for paying my £45 Direct Debit to my o2 contract and they have charged me for the priveledge to the princely sum of £25.00.

    To add insult to injury (from my point of view), they've charged me in addition for another £18 direct debit that came out 2 days before I got paid, for £18. I guess £25 is the maximum they levy for failed direct debit charges.

    Here's the real kicker: if I hadn't of gone into the branch local to where I work to discuss this, I would NOT have found out that HSBC cancel Direct Debits that are returned, but DO NOT inform the company doing the direct debit. In this case, I would of had O2 on my back again next month for a failed direct debit, AND HSBC would of charged me ANOTHER £25 for the privledge!!!

    "Its because of the all the masses of paperwork we have to do".

    Yeah right. Pull the other one, as your system doesnt simply retract the funds automatically and I bet it even applies the charges automatically. if it doesnt, then update ya 1985 archaic banking system.

    The thing is, this is just the start. I've been here before with HSBC with mounting charges and getting into difficulty, so the buck stops here and I'll pay there horriffic charges and close down my accounts and go elsewhere. I already have a backup account that isnt used with Lloyds TSB, but I was wondering if anyone can recommend a good, understanding Bank that actually helps its customers instead of taking the bejeezus out of them.

    Any suggestions?
     
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    2. 16 Sep 2009 at 12:08
      #2
  2. Abz

    Hitman

    Joined: 27 Jul 2004

    Posts: 678

    Location: London

    I dont get it....

    pay your bills, make sure you have enough credit in your account
     
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    3. 16 Sep 2009 at 12:10
      #3
  3. Furton

    Mobster

    Joined: 9 Aug 2003

    Posts: 2,699

    Location: Liverpool

    No such thing, best bet is to find the bank with the lowest charges for these sort of incidents. I think RBS have just lowered there's to £5 or £12.
     
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    4. 16 Sep 2009 at 12:10
      #4
  4. Kenai

    Capodecina

    Joined: 5 Apr 2009

    Posts: 20,260

    Sounds like your fault to me and I would have thought pretty much any bank will charge you for an unauthorised overdraft or failed payment etc. :confused:
     
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    5. 16 Sep 2009 at 12:11
      #5
  5. Tute

    Capodecina

    Joined: 24 Jul 2004

    Posts: 22,313

    Location: Devon, UK

    Wait a few months for the banks to lose the test case and just claim it back?
     
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    6. 16 Sep 2009 at 12:12
      #6
  6. photoshop

    Soldato

    Joined: 7 Nov 2006

    Posts: 5,514

    so you failed to have enough funds to pay your o2 bill and inturn the bank charged you £25, right?

    And because the DD failed HSBC cancelled it, right?

    Seems fairly fair to me.
    You didnt have the funds to pay the bills and thus you were charged. Standard practise across the board. Any bank would have done the same.
     
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    7. 16 Sep 2009 at 12:12
      #7
  7. J.B

    Soldato

    Joined: 16 Aug 2006

    Posts: 5,922

    In my experiance all banks will have the same procedures that you've been subject too.
     
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    8. 16 Sep 2009 at 12:13
      #8
  8. photoshop

    Soldato

    Joined: 7 Nov 2006

    Posts: 5,514

    Hmm, looking for a bank which has lowest charges for these sort of things (not being able to pay the bills due to not having funds) is a bad idea!

    Its rather backwards.

    Surely, the best bet is to have money in your account to cover bills.

    I've been with HSBC for 15yrs now. I've never been overdrawn or not have money to cover for bills. I've never had any problems and have never been charged.
     
    Last edited: 16 Sep 2009
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    9. 16 Sep 2009 at 12:13
      #9
  9. z0mbi3

    Soldato

    Joined: 9 May 2005

    Posts: 7,422

    Location: Berkshire

    As far as I'm aware they'll let you off that £25 charge once if you call up and complain, this was certainly the case for me last year.
     
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    10. 16 Sep 2009 at 12:14
      #10
  10. mjt

    Capodecina

    Joined: 31 Aug 2007

    Posts: 18,422

    so you didn't have enough funds in your account to cover a direct debit and you got charged..
    whilst i agree that the charges and fees are rather high, you should always make sure you have enough in your account to cover any outgoings.

    changing banks won't help as they all have exorbitant fees. live and learn
     
    Last edited: 16 Sep 2009
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    11. 16 Sep 2009 at 12:15
      #11
  11. Sanchez

    Mobster

    Joined: 20 Oct 2002

    Posts: 2,681

    HSBC are actually an okay bank but I had to change banks when they wanted to charge me £25 to do an anual review of my overdraft.
     
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    12. 16 Sep 2009 at 12:15
      #12
  12. Kenai

    Capodecina

    Joined: 5 Apr 2009

    Posts: 20,260

    The fact he was 'in a financial mess' 6 months ago perhaps implies these are far from the first such charges he has recieved?
     
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    13. 16 Sep 2009 at 12:17
      #13
  13. Basher

    Sgarrista

    Joined: 18 Oct 2002

    Posts: 8,268

    HSBC are utter arses. Unfortunately so are most other banks.
     
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    14. 16 Sep 2009 at 12:17
      #14
  14. A2Z

    Sgarrista

    Joined: 9 May 2005

    Posts: 8,305

    Location: London

    Pretty sure Natwest slashed their charges recently?
     
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    15. 16 Sep 2009 at 12:18
      #15
  15. Snax

    Mobster

    Joined: 5 Jul 2003

    Posts: 4,216

    Location: Larndarn

    TBH my girlfriend was getting bullied down the phone by HSBC.

    She took out a student account when she was beginning uni and the day after she finished uni they said they would be charging her £25 for being overdrawn and that interest would be 20% on her £600 overdraft.

    I tore them a new one and they backed off for a month then the same thing happened. I ended up paying the overdraft off and getting her out of HSBC. They have bulldogs dealings with overdrafts.

    On the other hand first direct are superb and even paid me £100 to swap to them.
     
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    16. 16 Sep 2009 at 12:19
      #16
  16. Arthalen

    Wise Guy

    Joined: 20 Apr 2006

    Posts: 2,029

    Location: Leeds, UK

    Well, thanks for the overwhelming support :rolleyes:

    Not that the bank cares (or the nay sayers here it seems) but I had unforseen nursery expenses for my 1 year old this month thats resorted in me going overdrawn. It couldn't be helped. No nursery == me on the dole and claiming money from Your Income Tax payments.

    Anyways, back to the point, Yes it is my own fault but I think HSBCs policies on this matter are clearly wrong.

    What really, REALLY gets me though is the fact that they cancel a direct debit from there end and then fail to either notify me or the company that I have the direct debit set up with. That will result in another failed direct debit, more charges I can't afford from HSBC and a rather annoyed 3rd party company that I have the arrangement with.

    Thats the bit that really gets me, that I think is downright shady and underhand of them.
     
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    17. 16 Sep 2009 at 12:19
      #17
  17. Fegruson

    Wise Guy

    Joined: 6 Jan 2009

    Posts: 1,049

    Location: Derby

    Cancelling a DD and not informing the company? I wouldn't call it fair. And I doubt any other bank would have done the same. I have recently missed a DD and this wasn't cancelled, so why should HSBC?

    OP am I right to say you were not informed either that they cancelled your DD?
     
    Last edited: 16 Sep 2009
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    18. 16 Sep 2009 at 12:21
      #18
  18. Arthalen

    Wise Guy

    Joined: 20 Apr 2006

    Posts: 2,029

    Location: Leeds, UK

    It was around March/April 2008, hardly just 6 months ago. And it was a position I extricated myself from without the Banks help, I payed off my then Overdraft and Credit card in full.
     
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    19. 16 Sep 2009 at 12:22
      #19
  19. Arthalen

    Wise Guy

    Joined: 20 Apr 2006

    Posts: 2,029

    Location: Leeds, UK

    Thats right.
     
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    20. 16 Sep 2009 at 12:24
      #20
  20. Surfer

    Capodecina

    Joined: 31 Dec 2005

    Posts: 11,179

    Location: Glasgow

    *sigh* sorry for some of the replies you have been getting OP.

    Its about proportionate response. The bank's response to the situation is disproportionate to the "harm" caused.

    And they know this and they will lose the test case. And yes some of you might say...bad financial management of the few just raises the costs the bank will hit their "good" customers wih. (And of course they will put that spin on it)

    The banks are in a unique situation because they are a body that generally every working person has to have dealings with in order to receive payment for work. (generally speaking)

    Which other private institution/corporation is *guaranteed* business like this?

    Ive had a bank rather pay me thousands of pounds than say to my face what their costs are for processing unpaid DDs and the like.

    What does that say about the transparency of their business practices?

    Sure it may indicate that i was rather poor with my money at the time but do we kick someone whilst they are on the ground bleeding or do we help them up? (this is GD so i know what some of the responses will be :p)
     
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