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I asked my bank, HSBC., to withdraw my overdraft facility, they then allowed my account to go overdrawn and charged me their maximum fee to doing so. It took them a year to finally come up with "no" (that they would not refund their charges, on some occasions they didn't even answer my complaints.
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159It is costly to take staff time to familiarise themselves with your account, and then more costly to return an item unpaid.
In many cases such decisions are made by computer based upon the operation of your account.
If you don't want charges - don't go overdrawn. It is a simple matter to keep track of an account and to keep a small reserve there in case of need. In over 40 years of operating a current account, I have never gone overdrawn.
There is a mechanism that you agreed to when you opened the account to determine what happens if you do. In each occasion the item taking the account overdrawn was one you had authorised and therefore it is not unreasonable for the bank to assume, wanted paid.
Posted on 16 November 2010 |
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824Which would you prefer?
To be charged an overdraft fee/interest for payments that you obviously wanted to make.
Or
To be charged a fee every time the bank had to reject a payment together with your embarrassment when the recipient quite rightly demands their money, quite possibly with added charges for having to re-apply for the money.
Alternatively are you looking for an excuse for defaulting on a payment? That would be fraud!
Mike
Posted on 16 November 2010 | Love 0 loves
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0Sorry Joe, you're wrong - Banks can control the overdrawn situations simply by organising their computers correctly, it's not a staff thing. In the case I was referring to the transaction was an ATM withdrawal whilst I was overseas, and immediately followed a check on the internet banking site which confirmed there were funds in the account - the bank was 4 days late in updating the balance, but well done that you've never gone overdrawn, I hadn't in my 40 years until now. There was no agreed mechanism, instead I had 3 lettersemails from the bank (HSBC) stating that I had no overdraft facility - at my request I might add.
mike GG1, also wrong, in these modern days computers are used you know - HSBC won't let my account go over the funds available in my account whilst using their net service to transfer funds from one account to another, but they will allow it will on cash withdrawals - exscuse for defaulting on a payment, your'e obviously well versed on that point. Your assumptions are wrong and you haven't read the question.
missingoz - thanks mate, you read the question - yes, they do manipulate these occasions to charge fee's, interestingly, their terms and conditions will probably tell you that if there is no facility for an overdraft on your account then that decision is adhered to, I've already referred my case to the Financial Ombudsman.
Posted on 17 November 2010 | Love 0 loves
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18Halifax do it all the time go into an unathorised overdraft by say 1pence (or if you dont have one) and they charge you £5 a day, its just daylight robbery.
Posted on 20 November 2010 | Love 0 loves
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5Further to this. I only have debit cards, never had and never wanted credit card. This means I can only spend what I have and not get credit( debt!). Therefore when presented and transaction declined it's because I have not enough money in account. I am sure I had this happen once in a supermarket. However couple of years ago I had a debit card transaction passed with not enough funds to cover. (only £2 on £300 transaction). I had used the wrong card as they were both the same colour. When I got a letter saying they were charging me £70 for this I immediately went to the bank and complained and had this charged removed. Needless to say did not have a satisfactory answer as to why this transaction was allowed to go through in the first place.
Why use silly US spell check on a UK site!
Posted on 20 November 2010 | Love 0 loves
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