"review" of overdraft facility

[oliver-emily]

14 days after sending our first letter to hsbc to reclaim bank charges we recieved a letter stating "following a review of your overdraft facility we would like you to repay the money outstanding on your overdraft and continue in future without an overdraft limit on your account". they have asked us to pay the money back in 14 days. Obviously attempting to intimidate us. We have now sent the letter before action. Couldn't find much on the forums about stopping overdrafts, is this normal? can i expect my account to be closed next? Any advice would be very much appreciated. Better go and open another bank account! thanks oliver-emiy

[stephenfletcher]

Not surprised, though I don't know if they've done this before.

 

err... "..without an overdraft limit on your account." Does that mean you have an overdraft with NO LIMIT!! :o) cool.

 

I realise it's not helpful to others but I took the precaution of clearing both overdrafts and my cc balance before starting this venture. Leaves HSBC rather toothless.

[sopsps]

hi emily-oliver

I haven't heard hsbc do this before, although I know they have asked a few people to close their accounts... this may be a new tactic though to deter others from claiming. How much is your claim for? Is it loads?

[HSBCrusher]

Account closure is not normal.

Does your claim cover the overdraft? If so, then this will not be a problem.

I do not have the HSBC T&C to hand, do they give a notice period there?

[stephenfletcher]

If your circumstances are largely unchanged since they gave you the overdraft, is it worth asking what specifically caused them to withdraw it.

 

We all know why it will have been withdrawn but are they allowed to do this...?

[oliver-emily]

my claim is only for around £800 over the past six years so i was a little surprised. All the money i wish to claim is for exceeding my authorised overdraft limit, sometimes only by a few pounds. I have managed to open another bank account today but dont relish the thought of having my hsbc account closed as i presume it will affect my credit rating. I am currently about £800 overdrawn (within my limit), should i pay this off and close my account? They have given me 14 days. I was unsure about going through the small claims court before but now feel very annoyed by these bulling tactics. to the small claims court, onwards and upwards!!!!!

[stephenfletcher]

I would pay off the OD if you can and leave the account open until proceedings have finished.

 

I don't think closing a bank account can damage your record. Just don't give them excuse to default you (for non payment of overdraft for example). They'll jump at it to cause you as much hassle as they can, to discourage others from following the same route.