HSBC New Accounts/Terms

[Amethyst]

HSBC are changing the current range of accounts over to Current Account and Current Account Advance.

Basically insufficient funds transactions are now £25 unless the amount over is below £25 in which case its £10. Under £10 over is free.


Basically cloaking penalties but a start on reduction of fees.

What is the cost of the Overdraft Service?

Our Fair Fees Policy means that we won't charge you for agreeing either a formal or informal overdraft request – unless they occur frequently.
You won't have to pay an arrangement fee for any overdraft request (formal or informal) in a charging month if you have not made any requests in the last six charging months. Any further requests within a six month period may incur an arrangement fee. However, we won't charge you an arrangement fee if your daily requests total £10 or less.
You won't have to pay more in fees than the maximum you are overdrawn by in your charging month, so a £15 overdraft is not going to cost you £50. You will not have to pay a fee for an informal overdraft request if you account is credited with covering funds by the end of the same day. We will charge debit interest on all overdrawn balances unless we have agreed an interest free period with you. For more information on fees, interest rates and our fair fees policy please see our price list.

Find out more about interest rates and fees

Arrangement Fees
1st overdraft in 6 months free*
Subsequent overdrafts £25
*No Arrangement Fee is payable if, in the last 6 months, we
have not agreed to an overdraft request from you. See our Fair
Fees Policy below for full details.
Return Fees
We may not be able to grant every request you make for an
overdraft. Where we decline an informal overdraft request we will
not charge an Arrangement Fee but a Return Fee will be payable
for considering and returning payment requests, eg, cheque,
standing order, direct debit etc.
Up to £10 no charge
Up to £25 £10 per item
Above £25 £25 per item

HSBC Fair Fees Policy
We always aim to be fair in the way we charge for our
Overdraft services, therefore:
• We will not charge an Arrangement Fee provided, within
the last 6 months we have not agreed to a request from
you for an overdraft
• we will not charge an Arrangement Fee for an overdraft
request of £10 or less
• we will not charge Arrangement Fees for Informal overdrafts
if covering funds are paid in before the end of the day
• we will give advance notice before Arrangement Fees are
debited from your account
• if debited Arrangement Fees (or interest) cause your
account to go overdrawn or further overdrawn we will not
make a further charge
• arrangement Fees charged will never be higher than the
overdraft requested (eg a £15 overdraft will not cost you
say, £50)
• we will not charge more than one Arrangement Fee a day.
Please note that in addition to the above we operate some
discretionary policies as to how charges and interest rates
apply to overdrafts.

[Tools]

Re: HSBC New Accounts/Terms

From reading that they are obviously trying to re-brand their overdraft charges as "overdraft arrangement fees". You will be charged for each "overdraft" you arrange with them informally ( i.e go over your agreed overdraft)

Interesting to see that they are willing and able to charge only a £10 fee for breaches up to £25 unathourised overdraft. In reality as they allow a £10 buffer you would only be going over by £15 (£10 free + additional £15 = £25)

It`s a good step forward and obviously better for HSBC customers who do incur charges. It also seems to be a marketing attempt to attract `switchers` to gain valuable cash into their coffers, which we all know banks need to operate and survive in the current climate.

Lets see the others rush to follow with their own attempts

[Amethyst]

Re: HSBC New Accounts/Terms

note to past self - ALWAYS UPLOAD A BLOODY COPY - YOU MIGHT NEED IT IN 6 YEARS

[Amethyst]

Re: HSBC New Accounts/Terms

2002 - 2006

SCHEDULE 1
Standard terms of HSBC Bank plc



Pre 2002
“7.1 You must always keep your current account in credit unless we have agreed an overdraft with you.
7.2 If an overdraft is agreed, the interest rate will be shown in a letter that sets out the terms of the overdraft.
7.3 You must not go over any overdraft limit that is agreed with us unless you get our agreement first.
7.7 If we pay a cheque or other item you issue and, as a result, your account goes overdrawn or goes over your agreed limit, this does not mean that we have agreed an overdraft or an increased limit. You must immediately pay enough money into your account to cover the overdrawn amount or the amount that is over your agreed limit.
7.8 If your account goes overdrawn without an agreed overdraft, or you go over an agreed overdraft limit, we will charge you our Standard Debit Interest Rate on the amount by which your account is overdrawn.
7.9 As well as charging interest for unauthorised overdrafts, we may also charge a fee to cover the costs of the administration involved (see the relevant price list).”


From 2002
“7.1 You should always keep your Bank Account in credit unless we have agreed an overdraft with you…
7.3 If an overdraft is agreed on your account, the interest rate will be shown in a letter that sets out the terms of the overdraft.
7.4 You must not go over any overdraft limit that is agreed with us unless you get our agreement first.
7.7 We may decide not to pay a cheque or other item or to allow a card transaction if it would make your account go overdrawn or, .. it would go overdrawn without an agreed overdraft limit or over any agreed overdraft limit. In respect of Bank Accounts this would include standing orders, Direct Debits or bill payments which you had previously instructed us to make or Switch transactions you have made. If this happens, we may charge our fee for returned items.
7.9 If we pay a cheque or other item you issue, allow a card transactions or make any other payment on previous instructions from you and, as a result, your account goes overdrawn or, for Bank Accounts it goes overdrawn without an agreed overdraft or goes over any agreed overdraft limit, this does not mean that we have agreed an overdraft or an increased limit. You must immediately pay enough money into your account to cover the overdrawn amount or the amount that is over your agreed limit..
7.10 If your account goes overdrawn, or for Bank Accounts, it goes overdrawn without an agreed overdraft or goes over any agreed overdraft limit, we may charge interest at our Standard Debit Interest Rate on the amount by which your account is overdrawn or the overdraft limit is exceeded.
7.13 As well as charging interest under 7.10 we may also charge our applicable fee for overdrafts not agreed in advance for any statement period when your Bank Account is overdrawn without an agreed overdraft or goes over any agreed overdraft limit, whether for one day or more, to cover our management and administration costs (see the relevant price list).”


From 2003
“7.1 You should always keep your Bank Account in credit unless we have agreed an overdraft with you…
7.3 If an overdraft is agreed on your account, the interest rate will be shown in a letter that sets out the terms of the overdraft.
7.4 You must not go over any overdraft limit that is agreed with us unless you get our agreement first.
7.7We may decide not to pay a cheque or other item or to allow a card transaction if it would make your account go overdrawn or, .. it would go overdrawn without an agreed overdraft limit or over any agreed overdraft limit. In respect of Bank Accounts this would include standing orders, Direct Debits or bill payments which you had previously instructed us to make or Switch/Maestro transactions you have made. If this happens, we may charge our fee for returned items.
7.9 If we pay a cheque or other item you issue, allow a card transactions or make any other payment on previous instructions from you and, as a result, your account goes overdrawn or, for Bank Accounts it goes overdrawn without an agreed overdraft or goes over any agreed overdraft limit, this does not mean that we have agreed an overdraft or an increased limit. You must immediately pay enough money into your account to cover the overdrawn amount or the amount that is over your agreed limit..
7.10 We may charge interest at our Standard Overdraft Rate whenever your account .. goes overdrawn on the amount by which your account is overdrawn…
7.13 As well as charging interest under 7.10 we may also charge our applicable fee for reviewing overdrafts not agreed in advance on each occasion that your Bank Account goes overdrawn, or further overdrawn, without an agreed overdraft. We may also charge this fee when your Bank Account goes over, or further over, any agreed overdraft limit. The fee is to cover our management and administration costs (see the relevant price list for details of this fee).
7.15 As well as charging interest under 7.10 and the applicable fee as set out under clause 7.13 above, if we pay a cheque which has been guaranteed by your Switch/Maestro debit card or a Switch/Maestro transaction you have made and as a result, your Bank Account goes overdrawn or goes overdrawn without an agreed overdraft limit or over any agreed overdraft limit, we may also charge you our guaranteed payments fee .”


From 2004
“7.1 You should always keep your Bank Account in credit unless we have agreed an overdraft with you…
7.3 If an overdraft is agreed on your account, the interest rate will be shown in a letter that sets out the terms of the overdraft.
7.4 You should always stay within an agreed overdraft limit unless you get our agreement to increase this first.
7.7We may decide not to pay a cheque or other item or to allow a card transaction if it would make your account go overdrawn or, .. it would go overdrawn without an agreed overdraft limit or over any agreed overdraft limit. In respect of Bank Accounts this would include standing orders, Direct Debits or bill payments which you had previously instructed us to make or Switch/Maestro transactions you have made. If this happens, we may charge our fee for returned items.
7.9 If we pay a cheque or other item you issue, allow a card transactions or make any other payment on previous instructions from you and, as a result, your account goes overdrawn or, for Bank Accounts it goes overdrawn without an agreed overdraft or goes over any agreed overdraft limit, this does not mean that we have agreed an overdraft or an increased limit. You must immediately pay enough money into your account to cover the overdrawn amount or the amount that is over your agreed limit..
7.10 We may charge interest at our Standard Overdraft Rate whenever your account .. goes overdrawn on the amount by which your account is overdrawn…
7.13 As well as charging interest under clause 7.10 we may also charge our applicable fee for reviewing overdrafts not agreed in advance on each occasion that your Bank Account goes overdrawn, or further overdrawn, without an agreed overdraft. We may also charge this fee when your Bank Account goes over, or further over, any agreed overdraft limit. The fee is to cover our management and administration costs (see the relevant price list for details of this fee).”
7.15 As well as charging interest under 7.10 and the applicable fee as set out under clause 7.13 above, if we pay a cheque which has been guaranteed by your Maestro debit card or a Maestro transaction you have made and, as a result, your Bank Account goes overdrawn or goes overdrawn without an agreed overdraft limit or aver any agreed overdraft limit, we may also charge you our guaranteed payments fee .”


From 2005
“7.3 You must keep your Bank Account .. in credit unless we have agreed an overdraft.
7.4 We will give you a letter setting out the terms of any agreed overdraft. You must stay within the agreed limit.
7.6. We may charge interest at our Standard Overdraft Rate whenever your account .. goes overdrawn, on the amount by which it is overdrawn…
7.11 Unauthorised overdrafts
As well as charging interest under clause 7.6 we may also charge our applicable fee for reviewing unauthorised overdrafts each time your Bank Account .. goes overdrawn, or further overdrawn, without an agreed overdraft. We may also charge this fee when your Bank Account goes over, or further over, any agreed overdraft limit.
7.13 Our Overdraft Review fee is to cover our management and administration costs…
7.16 We may not pay a cheque or other item or to allow a card transaction, if it would make your account go overdrawn or over any agreed overdraft limit. We may charge you for this. If we do pay the cheque, other item or card transactions and your account goes overdrawn or over any agreed overdraft limit, this does not mean that we have agreed an overdraft or an increased limit. You must immediately pay enough money into your account to cover the overdrawn amount or the amount that is over your agreed overdraft limit…
7.17 As well as charging interest under 7.6 and the applicable fee as set out under clause 7.11 above, we may charge you if we pay a cheque which has been guaranteed by your Maestro debit card or a Maestro transaction you have made and, as a result, your Bank Account goes overdrawn or goes over any agreed overdraft limit.”


From 1 December 2006
“7.3 You can request an overdraft, or an increase to an existing overdraft, on your Bank Account … from us. You can do this in one of two ways, either:
- by way of a formal request, that is, you ask us for and we agree to provide you with, an overdraft or an increase to an existing overdraft limit before you authorise any payments or withdrawals from your account that, if made y us, would cause your account to go overdrawn or over an existing overdraft limit; or
- by way of an informal request, that is, where you authorise a payment or withdrawal to be made from your account which, if made by us, would cause your account to go overdrawn or over an existing overdraft limit without having agreed with us in advance an overdraft or an increase in an existing overdraft limit on your account to cover such payment.
7.5 If we receive an informal request for an overdraft or an increase to an existing overdraft limit from you, we will consider your request and if we agree to it, w will provide you with an overdraft or an increase to your existing overdraft to cover the item concerned for 31 days. An Arrangement Fee may be charged if we agree to your informal request.
You will not be charged further Arrangement Fee(s) provided your account does not go further overdrawn. However, if you account goes into credit, or the overdrawn balance on your account decreases, and you them make another informal request for an overdraft and we agree to such request, we may charge you a further Arrangement Fee.
If we do not agree to an informal request from you for an overdraft or an increase to an existing overdraft limit, then we will not make any payment authorised by you that would cause your account to go overdraft or over any agreed overdraft limit. We may charge for considering and returning these informal payment requests..
7.6 We may charge you interest whenever your account .. goes overdrawn, on the amount by which it is overdrawn…”


From 4 June 2007 The Price list and Interest Rates document
“Arrangement Fees
1st overdraft in 6 months* free
Subsequent overdrafts £25
*No Arrangement Fee is payable if, in the last 6 months, we have not agreed to an overdraft request from you. See our Fair Fees Policy below for full details.
Return Fees
We may not be able to grant every request you make for an overdraft. When we decline an informal overdraft request we will not charge an Arrangement Fee but a Return Fee will be payable for considering and returning payment requests e.g. cheque, standing order, direct debit etc.
Up to £10 no charge
Up to £25 £10 per item
Above £25 per item.

HSBC Fair Fees Policy
We always aim to be fair in the way we charge for our Overdraft services, therefore..
- if debited arrangement fees (or interest) cause your account to go overdrawn or further overdrawn we will not make a further charge
- arrangement Fees charged will never be higher than the overdraft requested (e.g. a £15 overdraft fee will not costs you say £50)
- we will not charge more than one Arrangement Fee a day.”


SCHEDULE 2
Schedule of Charges debited and interest



[Set out account number and name, and table with
- date of charge,
- charge amount
- description of charge from statement
- calculation of interest?].
Use the spreadsheets. Ensure you include all the stated info and head it schedule 2.