To be pi**ed off with HSBC, for suddenly deciding today to stop my Overdraft Facility

[shoshe]

Got a letter that my £450.00 overdraft facility has been withdrawn, no reason why.

By this time of month it is always up to about £400.00 (and yes I know I shouldn't use it, but being SEmployed, I never really know what money is coming in)

It will stop from the 22.05.08, when they will want the overdraft paid off.

Of course I have a spare £400.00 knocking about, so it will be asy to pay it off NOT, if I had it I would be using the bloody overdraft!

HSBC seem to be turning into real arses - I had this problem a few weeks back luckily my Dad helped me out.
I also rang them to see if I could consolidate my lending and they refused and only if I miss repayments will they look at possibly helping me so I have to completly mess up financially before they will help rather than doing something now before it becomes a problem

I've been with the same bank for 32 years (it was Midland then) put up to £2000.00 a month into the dammn account, they have stopped DH's as well, who puts £1500.00 into his.

I only had a £200.00 until september last year when they put it up without me asking!

Change banks

Have thought about that, but am paid by Parents am a CM, by vouchers which took enough to set them all up, really dont want to go through the rigamorole again, especially the Army ones.

Also have all utlitles and Mortgage, NI everything by DD, so it would be a nightmare.

And from talking to frinds, alot of banks are doing it.

I take it its to do with the credit crunch.

I am more annoyed that we have only been given a months notice, than that they have cancelled it.

On a school holiday month, when I have lots of fulltime children, I can pay it straight off.

Ask another bank if they will honour your existing overdraft facility if you move to them. Provided you do this before 22 May then you are being truthful about your overdraft limit.

If a bank treated me in this way with no reason given I would move.

And being Army, it is one of the banks that are easy to accsees abroad.

X posted. Most banks will move direct debits etc for you and set up a temporary overdraft for a month or so until all DDs have been successfully moved. I agree it sounds like a lot of trouble to go to, but then it depends how much they have pissed you off.

They have form - just look what they did in Argentina

Seriously, pissed off, but dont know if its enough to change banks with all the trouble it would be.

Also all our home, house, travel insurance, things like that is with them, through a premier account.

Oh and my credit card, (not much on it tho)

That's really scary.

That is so out of order. Banks are just using this credit crunch thing to make excuses. You would think they would want to keep the ones that use their overdraft facility because it means being able to charge interest. It is hassle to swap banks but if you need an overdraft then you will probably have to do that now.

This is interesting. After years of only being pushy about trying to sell us products they recently phoned us insistantly over a few weeks about reducing our (then) unused overdraft. It was a real PITA to then set it up again.

Just spoke to DH who has said just to pay it for now, (we have got savings) but I DONT WANT TO, will be writing to them to find out why, they have taken this decsion with any previous contact from them.

we had this with the clydesdale a few years ago £700 overdraft and one day it was withdrawn with no notice, i was not working at the time and dh's wage was tied up with living expenses. i called them in tears (proper upset ones not put on!!) and they let me pay it of at £100 a month.

They did this to me (when they were Midland) when I was a student!

I work for one of the high street banks (not HSBC! although they're all as bad as each other!) and I've never known anyones odraft being withdrawn for no reason. We'll only do it if the customer is seriously taking the piss and goes £100s of pounds over the limit all the time. and even then we send warning letters and even try to help them!

I would send a massive letter of complaint to head office telling them that they have x amount of time to sort it out or you will move banks (even though you know you're not going to!) or just go straight to watchdog.

When they did it to me, it wasn't possible to go over the limit, if you tried to make a transaction, it would just get rejected.

To be fair, I was in the overdraft or at the limit all the time, but I WAS a student FFS! It totally messed me up, thye just took almost all of my student loan payment to cover the debt and left me with nothing.

I wonder if this is all part of the general credit tightening atmosphere - we have an OD limit on an offset account - never asked for it - NEVER used it and have had a letter saying ti has been reviewed and reduced - no reason given - but it has never been used and the account always has a credit balance - we thought it quite a strange letter - and as it had no impact have ignored it - perhaps it is something similar for you?

My DDIL got one as well saying the same thing, she has never used her overdraft!