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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.
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.
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