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Original poster

Best bank for overdraft?

22 replies

HinnyPet · 13/09/2010 22:24

Having been charged over a grand this year by HSBC in bank charges, anybody recommend a bank that doesn't charge £150 for going over overdraft?

(I know we shouldn't go over overdraft limit, but so many things have happened this year, plans are afoot to improve our finance and I now have a job, yay!)

OP posts:
DancingHippoOnAcid · 14/09/2010 09:02

Heck, that's a lot of money Shock

Have you challenged any of these charges? They seem disproportionate and it is worth a try asking for them back - banks have been getting into a lot of trouble lately for high charges.

Original poster
HinnyPet · 14/09/2010 17:47

Ooh yes, I've tried asking for them back, no luck. They said because the bank "does not have to repay them now as they are not unfair as the Court decided in their favour"

Problem I have is that the fees accrue and get paid in the next month, so already next month I have £150 xs o/d, £15 returned direct debit ( from a payment to them!!) and interest of £33 on the xs overdraft. FFS Angry

I truthfully said I had 6p in my purse, they gave me my child benefit (which was due to be paid to me tomorrow anyway) as apparently "we have to pay you as you are entitled to it", I never knew that!

They told me to cancel my Sky subscription, as its sending us over the o/d limit, I retorted that their charges are sending me over the limit!! But they do not see my point of view...

I think we are going to NatWest

OP posts:
Original poster
HinnyPet · 14/09/2010 17:48

Ooh, and apparently I'm not "in hardship". So I can't try and get my charges back that way.

OP posts:
DancingHippoOnAcid · 15/09/2010 08:51

If they are not prepared to refund as a goodwill gesture then I would move your account as they clearly don't want your business. HSBC have got themselves a bit of a reputation for this kind of thing, I believe.

Things will get better now you have more income. Congrats on the new job and good luck with improved finances in the future Smile

Original poster
HinnyPet · 15/09/2010 20:07

Thank you dancing hippo, I think we are going to go to Natwest. The manager is really canny. :)

OP posts:
DancingHippoOnAcid · 16/09/2010 00:18

If you have found a sensible switched-on bank manager then definitely move your account to them. The managers have a lot of leeway to help you if they want to.

Hope you have a beter relationship with Natwest.

Original poster
HinnyPet · 16/09/2010 00:27

Me too!
Can't believe I've been with hsbc 24 years and I'm just an insignificant blob to them.

OP posts:
DancingHippoOnAcid · 16/09/2010 08:29

Sadly that is the case with most banks these days.

The only way to get good service is through a relationship with a good manager. Unfortunately these days most people are not assigned a personal manager so get no service.

Original poster
HinnyPet · 16/09/2010 17:22

FFS. Angry Sad Angry Sad

I am so miserable. Sad

I have just had to borrow money from kids savings to pay into HSBC bank or our accounts will be frozen as we have not paid in sufficient funds.

I really could sob and sob.

OP posts:
TeaRocks · 16/09/2010 17:57

We're having a similar experience with Barclays - we thought we had a good relationship with a good manager and she has turned out to be absolutely dreadful. I am so angry with them. We have been with them for years and until the past year, we have always been excellent customers. We are now on our way up after a bad time financially, but they don't want to know.

We are also thinking Natwest. Fingers crossed.

Original poster
HinnyPet · 16/09/2010 19:00

What happened TeaRocks?

OP posts:
TeaRocks · 16/09/2010 20:04

DH's business suffered this year after a family bereavement. He is working really hard to build things up again, and he's doing really well, but it's a long, hard process. He's still grieving and the whole situation is so stressful.

We asked for a slightly bigger overdraft for a few months. They asked us to provide evidence that our finances were on the up and we did that but then said it didn't matter and they wouldn't give us the overdraft. The manager in question kept asking us for more evidence and saying it wouldn't be a problem. We gave them everything they asked for and thought it all showed us in a positive light - we were wrong!Then today she came back and said no and we don't actually understand why.

I know things could be worse and are worse for so many people, but it is still horrible. Sad

I really hope you have more luck with Natwest. If you have a good manager, hopefully that will make all the difference!

Original poster
HinnyPet · 16/09/2010 21:55

Your poor dh! Are you going to complain abou the manager? Ah, the banks are all shit.
I think we need to find a template letter that isn't the typical bank charges letter iykwim? One that says " you have not helped and you are supposed to" or something!

OP posts:
DancingHippoOnAcid · 17/09/2010 09:10

Tea, it may not have been the manager's decision - lending decisions are usually taken by the bank's underwriters who are in a different department.

We have just been refused a remortgage that would have saved us £1,000 a month despite having plenty of income to cover it.

Our manager could not explain why as it was not her decision. It is Natwest.

So it is probably not worth complaining about the manager as it was probably not down to them. just look for another bank with a more sensible attitude. Whatever they may say in their adverts they are most definitely NOT there to help!

Will probably look around for another account with someone who is prepared to do business. It is difficult at the moment as most banks are still not prepared to lend.

staryeyed · 17/09/2010 09:18

I wouldn't use Nat west for an overdraft. My mum had one with them a few years ago and got seriously ill (hospitalised fro months) and missed a payment by a few days which took her over. She ended up paying an absolute fortune and had no sympathy for her situation at all.

What about the much smaller banks which claim to offer a more personal service/

comtessa · 17/09/2010 09:24

I use Lloyds TSB, they've recently reduced their unauthorised OD charges, and our overdraft of £1k costs us around £10pcm in interest.
Also, if your bank has refused to refund charges, write to the Financial Ombudsman with the most recent letters from the bank confirming that they will not refund you the charges. Lloyds and HSBC refunded me charges a couple of years ago once the Ombudsman got in touch. Worth the cost of a first class stamp to try. Check out www.moneysavingexpert.co.uk

Original poster
HinnyPet · 17/09/2010 15:08

Thank you, ive looked at money saving expert and it's not that clear to me if I can claim or not (as the banks have stalled the bank charges with the recent ruling on the refund of charges campaign)

So do I claim for previous charges (£700 ish on a claim that was going to court but got stayed 18 months ago) and then add on the rest of the charges since then?
Or do a totally new letter requesting this years charges back as I am in financial hardship?

OP posts:
comtessa · 17/09/2010 15:14

Claim for all, and write to Ombudsman. I seem to remember that you can download forms from the Financial Ombudsman website.

Original poster
HinnyPet · 17/09/2010 15:20

Thank you Comtessa, that's tonights job!

OP posts:
comtessa · 17/09/2010 15:24

You're welcome! I should make it my tonight's job too - got a letter from Smile months ago saying they won't refund, have been meaning to contact Ombudsman for ages. (Slaps own wrist at being so lax).

Original poster
HinnyPet · 17/09/2010 20:23

What are we like! I think I'm putting it off cos I don't want the rejection letter.

OP posts:
TeaRocks · 19/09/2010 08:21

DancingHippo - I'm sure you're right and that really annoys me, too. I don't know what the point of a manager is if they can't make decisions like this. I expect I'm being unreasonable in many ways but we're just so pissed off right now!! It's all just so shit. Sorry.

Hinny - good luck with the ombudsman.

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