Change of tactics by HSBC - amend prelim. letter? Advice please!!

[ladybird17]

Last year, HSBC informed customers that unauthorised overdrafts would now be called "informal" (or something similar). If you hop over your limit, they immediately send you a letter thanking you for your request for this informal OD (regardless of whether you've requested it or not) and the "arrangement fee" will be £25. Now obviously, this is a penalty dressed up as something else, but the prelim. letter will rebound back immediately as they will say it's a fee for a service. Any ideas on slightly changing the wording in the prelim?

[ladybird17]

bump

[Castlebest]

as they will say it's a fee for a service. Any ideas on slightly changing the wording in the prelim?

 

I personally don’t think we need to.

We are arguing all of the fees we are claiming back are unjust and illegal because they are so high and do not represent what it actually costs the bank to provide these services.

I don’t see that it matters what they call a fee, if it doesn’t fairly represent the actual cost to the bank its still unjust and illegal.

pete

[ladybird17]

yes, you're right. Having thought about it, I reckon that if they want to argue about it being a "fee or a service" rather than a penalty, then they can trying arguing that to a judge.

[maleo]

As an aside, they're unjust and unlawful - not illegal... I know it's pedantics, but we must never get into the habit of calling these charges illegal. They are unlawful.

 

However, I agree entirely that they look like old charges dressed up in new clothes...

[Castlebest]

As an aside, they're unjust and unlawful - not illegal...

 

Agreed and well corrected... I'm getting sloppy... I need to sharpen up in case they choose ME to prove they are illegal

 

pete

[Guest NATTIE]

I think changing the prelim is unnecessary because if they wish to go on the route of service then what is it that is being given to you to charge you. It is unlawful and service charge has to benefit both parties. SO does £25 really benefit you?