14 day warning - HSBC

[pblackie]

In the T&C's of my bank it states that if a charge arises due to a returned DD etc they will give me at least 14 days notice before the apply the charge. If therefor they recall a direct debit on the 15th of the month and apply a £30 charge for the recall on the 16th of the month are they acting legally? surely they will at least have to leave 14 days from the 15th before applying the charges. If this is the case should they be refunding all the charges applied in this way?

[BankFodder]

If I understand that you are saying that they bounced the DD one day and charged you the penalty the next despite a clear commitment to give you 14 day notice of any charges - then yes it seems that they have acted contrary their own T&Cs and this at the very least entitles you to the return of the money. However, it wouldn't then stop them from sayig "OK here's the money back but we will take it away again after the 14 days" (pretty unlikely, though).

 

However, be careful. It is unusual for banks to make such a mistake as it is all highly automated. It is quite possible that the charge which you are referring to relates to a bounced direct debit or some other "trangression" which occurred over 14 days earlier and which you simply haven't noticed. In this case, the charge which they made on the 16th would be within their T&Cs.

You don't want to get egg on your face, do you. Approach this cautiously.

Phone or visit your branch. Ask them exactly which "transgression" the charge applies to. If they confirm that it is the bouncer the day before then you can point to their T&Cs and ask for the money back. You can also refer to the banking code of practice and show them that even in the code they are obliged to give notice of charges.

 

However by refering only to their T&Cs you may create in their mind an impression that you in some way accept the much larger principle that excessive penalty charges are applicable and enforceable.

It is not a good idea to do this. Make it clear also that the charge is excessive and as such is not enforceable. However, if they prefer to rely on their own T&Cs as a face-saving measure, then that is up to them.

Be quite firm about this. It will do you good to practice facing down the bank. You never know when you will need to do it again.

 

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If, on the other hand, it turns out that the charge was made in respect of an earlier bouncer and that the notice period is correct, then you will have to resort to the General Principle whcih is the main target of this forum. Excessive penalty charges are invalid an unenforceable.

 

Come back here if you need more info.

[pblackie]

This topic was closed on 03/05/19.

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