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

photoshop · 16 Sep 2009 at 12:25

Fegruson said:
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 was cancelled, so why should HSBC?

OP am I right to say you were not informed either that they cancelled your DD?

Banks are there to make money. They are business'es. They are not there to make life easier for customers. They only look after your money.

He didnt have the money to pay for his O2 bill. He was then charged by HSBC £25 and because he didnt have the money in his account HSBC cancelled his DD.

Read the small print for gods sake. They are within they rights to do that.

Surely to avoid all this would have been to have the money in your account to pay for the O2 bill?

I love it when people blame banks for stuff like this.

-TNT- · 16 Sep 2009 at 12:28

Every bank does the same.

Kenai · 16 Sep 2009 at 12:29

Arthalen said:
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.

It might just be me but i'd suggest if you can't afford a single unforseen cost like that and it causes you to be unable to pay bills you are perhaps living somewhat beyond your means?

If your nursery charges were like £1000 or so then it's more understandable, not many people could absorb an unforeseen cost that big.

edit - oh and I might be wrong but surely cancelling your DD would have prevented more charges? rather than leaving it setup and you being unable to pay again? Not informing you is poor though I will agree with, as I can't imagine O2 would have been best pleased.

bigredshark · 16 Sep 2009 at 12:32

To be honest count yourself lucky, I've had much worse from Natwest.

While tidying up old direct debits I accidentally cancelled one that was paying a loan with them, this was a payment of something like £200. They decided the appropriate course of action was to suspend all my accounts (that is, including my current account) on a Friday afternoon without so much as phoning me.

So when I called them that evening as I couldn't use my card they said 'sorry, your account's been suspended, we can't do anything and that team doesn't work weekends'. I went a bit mad and got hold of a senior manager at home who fixed it but I moved my accounts a couple of weeks later.

Entirely my fault for being careless tidying up direct debits and cancelling the wrong one, but suspending all my accounts for one missed payment while I had in region of £3k in my current account was a stupid reaction. Then telling me that I'll just have to do without money until Monday wasn't terribly bright either. Banks aren't nice to deal with, good luck finding anyone better.

Arthalen · 16 Sep 2009 at 12:36

photoshop said:
He didnt have the money to pay for his O2 bill. He was then charged by HSBC £25 and because he didnt have the money in his account HSBC cancelled his DD.

Read the small print for gods sake. They are within they rights to do that.

Perhaps they are. However, when they take such a measure where they do not inform me of the cancellation and therefore would cost me further charges?

photoshop said:
Surely to avoid all this would have been to have the money in your account to pay for the O2 bill?

Sure, but then I had to pay £1,250 nursery fee's for 3 months up front, which wiped out the meagre savings I did have and ate into the chunk of money I have spare out of my wages....

Arthalen · 16 Sep 2009 at 12:39

Kenai said:
It might just be me but i'd suggest if you can't afford a single unforseen cost like that and it causes you to be unable to pay bills you are perhaps living somewhat beyond your means?

If your nursery charges were like £1000 or so then it's more understandable, not many people could absorb an unforeseen cost that big.

edit - oh and I might be wrong but surely cancelling your DD would have prevented more charges? rather than leaving it setup and you being unable to pay again? Not informing you is poor though I will agree with, as I can't imagine O2 would have been best pleased.

As stated above, the nursery charges basically wiped me out this month. And its not like I cant meet my outgoings every month, I've been doing that very sucessfully for the last 18 months or so.

And no, they would have charged me for the privelege of refusing a Direct Debit when the Direct Debit in question has been cancelled from there side.

Kenai · 16 Sep 2009 at 12:45

Hmmm... I fail to see the point in them cancelling the DD then, if they'd charge you for that anyway, why not just leave it set up? :confused:

Dj_Jestar · 16 Sep 2009 at 12:49

Arthalen said:
Sure, but then I had to pay £1,250 nursery fee's for 3 months up front, which wiped out the meagre savings I did have and ate into the chunk of money I have spare out of my wages....

Life sucks, eh? Not the bank's problem.

When a DD is cancelled, the action of cancelling said DD is noticeable by both you and the company. Namely, you'll have been informed in one of the letters, and O2 will notice when their system cannot get the money from you.

Arthalen · 16 Sep 2009 at 12:49

As Photoshop believes, there a business and there making money out of me this way, without regard for the ethics or methods of how there doing so.

Its not like they dont make any money out of me, even on free banking accounts. You telling me that when the payroll rolls into the Bank, that they haven't got that number stashed elsewhere making them a percentage? Or that money isn't used on the Stock Exchange?

Dj_Jestar · 16 Sep 2009 at 12:51

Banks are not charities. *You* didn't have the funds to pay *your* bills. This is not the bank's problem, it is your's.

Arthalen · 16 Sep 2009 at 12:51

Dj_Jestar said:
Life sucks, eh? Not the banks problem.

When a DD is cancelled, the action of cancelling said DD is noticeable by both you and the company. Namely, you'll have been informed in one of the letters, and O2 will notice when their system cannot get the money from you.

I have one of HSBC's supposedly 'Green' accounts where I dont get letters. I'm supposed to receive a telephone call instead. Which I've not had. and as for O2 noticing when the payment cannot be made, that is exactly the situation I want to avoid! I want my bills paid, not causing me charges

Dj_Jestar · 16 Sep 2009 at 12:52

It won't cause you any more (bank) charges, it just simply won't be paid. O2 will do whatever they do to get your attention (usually blocking your calls.)

Arthalen · 16 Sep 2009 at 12:52

Dj_Jestar said:
Banks are not charities. *You* didn't have the funds to pay *your* bills. This is not the bank's problem, it is your's.

I never asked for charity. I want to know what the bank does with my account, and when it makes changes to it, so that I dont end up getting more charges.

Is everyone missing this point?

bigredshark · 16 Sep 2009 at 12:53

Arthalen said:
As Photoshop believes, there a business and there making money out of me this way, without regard for the ethics or methods of how there doing so.

Its not like they dont make any money out of me, even on free banking accounts. You telling me that when the payroll rolls into the Bank, that they haven't got that number stashed elsewhere making them a percentage? Or that money isn't used on the Stock Exchange?

Of course they make money but not very much on the average person's free account. They are a business and operate within the law which is really the end of it. They don't have to be nice.

The most sensible model for an ethical bank in theory is not to offer free account, charge every customer a set fee annually for their account. Then don't invest (much) of their money. But how many people here would actually swallow paying, say, £25 a month for a bank account? Really?

So that's why we are where we are, people would like a nice ethical, morally upright system but aren't prepared to pay for it. As per usual.

Arthalen · 16 Sep 2009 at 12:53

Dj_Jestar said:
It won't cause you any more (bank) charges, it just simply won't be paid. O2 will do whatever they do to get your attention (usually blocking your calls.)

I was informed, to the face, by the Banking Advisor that if O2 tried to take the direct debit when its been cancelled by HSBC, I would be charged the same £25 administrative charge as for a failed Direct Debit payment.

Dj_Jestar · 16 Sep 2009 at 12:54

And they won't try to take the money, because the DD has been cancelled... If there is no valid DD, money cannot be taken.

HarryPainful · 16 Sep 2009 at 12:56

Abz said:
I dont get it....

pay your bills, make sure you have enough credit in your account

This.

Your fault, not HSBC.

Make sure you have enough in your account, maybe you need to look at your finances and change your life style.

Arthalen · 16 Sep 2009 at 12:59

Dj_Jestar said:
And they won't try to take the money, because the DD has been cancelled... If there is no valid DD, money cannot be taken.

You really are not reading what I'm writing. HSBC will charge me for simply saying "No" to O2. No money will change hands, but it will class as a failed Direct Debit that HSBC has to deal with and thus the 'administrative' charge.

geekyEd · 16 Sep 2009 at 12:59

The bank wouldn't charge you anything as they have cancelled the DD and its no longer their problem, O2 however might do. Again this will go on you record to further screw up your credit rating.

I've had countless direct debits that I have cancelled via the bank and the company go to attempt to withdraw funds, its the company that will then chase you down for the money, if they are actually due it. (my issues were with a gym who liked to charge an extra month and paypal)

I suggest you cut all forms of credit in your life including your mobile phone contract. Re learn how to manage your money properly, then in a few years down the line once you are confident you can manage it try again if the credit companies will let you.

Kenai · 16 Sep 2009 at 13:01

Arthalen said:
You really are not reading what I'm writing. HSBC will charge me for simply saying "No" to O2. No money will change hands, but it will class as a failed Direct Debit that HSBC has to deal with and thus the 'administrative' charge.

I think his point is O2 won't even be able to try and take the money, which is how I thought it worked but then, i'm no expert on exactly how DDs work...