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HSBC launch opt out overdraft account - cost £15 pcm

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  • HSBC launch opt out overdraft account - cost £15 pcm

    16 March 2010

    HSBC welcomes OFT PCA study and extends range of accounts
    ** New account carries no unauthorised overdraft or returned item charges **

    HSBC welcomes the findings of the Office of Fair Trading’s investigation into the Personal Current Account market. The bank agrees with the regulator’s conclusion that the range of choices available to consumers and the quality of information to which they have access has increased dramatically in recent years.

    It also agrees that more can and should be done to ensure that every PCA provider gives their customers information that is absolutely clear and simple to access.

    While, as the OFT notes, the range of options available to consumers has expanded in recent years, HSBC will add to its range of current accounts to ensure that the bank offers a solution for everyone, regardless of their circumstances or preferences.

    The new account – to be known as HSBC Bank Account Pay Monthly – will be available from 26 April 2010 and features a strict overdraft limit that cannot be exceeded unless the bank has formally agreed a higher limit beforehand. While the vast majority of customers will want to retain the flexibility offered by HSBC’s other accounts, those seeking a high level of control over their daily spending now have a unique option.

    The account has a monthly price of £15 and because the overdraft limit cannot be exceeded, it carries no unauthorised overdraft charges and no returned item fees. The account will be offered to new customers and to existing customers, who can choose to move to the Pay Monthly option while retaining their existing account number.

    The strict limit on overdrafts that is a central feature of Bank Account Pay Monthly could mean that customers experience more bounced cheques or unpaid Direct Debits than they are used to and their credit rating could be affected. As such, HSBC will provide every Pay Monthly applicant with a financial review to ensure that they understand how the account works and that it is appropriate for them.

    The new account stands alongside the existing HSBC Bank Account, HSBC Advance and HSBC Premier products, all of which feature the unique HSBC Fair Fees Policy. This policy waives fees in a range of circumstances, including no charge for going up to £10 over the agreed limit with a maximum of one overdraft charge per day. HSBC believes its existing overdraft proposition offers the majority of customers the best value in most situations.

    HSBC is also the only bank with ATMs that warn its customers if a cash withdrawal will take them over their limit and the only bank to conduct an annual review of its customers’ overdraft limits to ensure the limit remains appropriate to their financial circumstances.

    To help customers stay on top of their balances, Bank Account Pay Monthly also features text overdraft limit alerts sent as customers have used 60, 80 and 95 per cent of their overdraft limit, as well as online money management tools. Every Pay Monthly account also comes with a £50 buffer so short term emergency payments can be made and small miscalculations are not an inconvenience. Subject to status and credit scoring, customers can ask to alter their overdraft limits as often as they wish.
    “We may not win by protesting, but if we don’t protest we will lose. If we stand up to them, there is always a chance we will win.” Hetty Bower

    Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

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  • #2
    Re: HSBC launch opt out overdraft account - cost £15 pcm

    first of many ?

    maybe

    now we have

    Lloyds Control - no overdraft/bounces everything - £10 per month, plus £10 per bounced transaction

    Santander Zero - linked to mortgage/investment ISA with bank - no fees, still has discretion whether to pay stuff or not

    and this HSBC one.... which of course we cant judge fully until the full T&C's are released in April


    who's next ?
    “We may not win by protesting, but if we don’t protest we will lose. If we stand up to them, there is always a chance we will win.” Hetty Bower

    Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

    If we have helped you we'd appreciate it if you can leave a review on our Trust Pilot page

    Find Solicitors offering fixed fees on our sister site - JustBeagle.com

    Comment


    • #3
      Re: HSBC launch opt out overdraft account - cost £15 pcm

      All very quickly prepared lol do you think they knew what was coming ?

      Comment


      • #4
        Re: HSBC launch opt out overdraft account - cost £15 pcm

        lol I doubt they read the report at 10.30 this morning, and went TING, I KNOW LETS.....
        “We may not win by protesting, but if we don’t protest we will lose. If we stand up to them, there is always a chance we will win.” Hetty Bower

        Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

        If we have helped you we'd appreciate it if you can leave a review on our Trust Pilot page

        Find Solicitors offering fixed fees on our sister site - JustBeagle.com

        Comment


        • #5
          Re: HSBC launch opt out overdraft account - cost £15 pcm

          Originally posted by enaid View Post
          All very quickly prepared lol do you think they knew what was coming ?
          Most definately, I bet they've all 'been prepared' for months.

          Comment


          • #6
            Re: HSBC launch opt out overdraft account - cost £15 pcm

            Originally posted by Amethyst View Post
            lol I doubt they read the report at 10.30 this morning, and went TING, I KNOW LETS.....

            Well that reply has made me feel really stupid now lol. I honestly thought it was something that would be announced to all concerned together, I had no idea that the banks already knew how little the OFT were going to make them change their ways lol.
            Think I needs a rum !

            Comment


            • #7
              Re: HSBC launch opt out overdraft account - cost £15 pcm

              They planned this ages ago I would imagine.

              If they lost the case they would have done it as a 'we lost, now we'll get our money back'.

              Instead they are doing it as a 'we're doing what the lovely OFT asked us too do, aren't we grand old souls?'.

              I am still undecided how to feel about this, I guess it will help some people who have their charges spiral out of control, yet £15 still seems a bit steep to me to just have an account that stops when it gets to zero.

              The one thing I do know is that HSBC aren't doing this for their customers, they are doing it for themselves, and somewhere in the T&C's when they get released will be some very small fine print somewhere with confirms this.

              Comment

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