Benites:

I think the HSBC system is one of the fairer (only relatively speaking of course) overdraft charging systems. What you explained is the fees and charges are never more than the maximum overdrawn in a charging month.

Compare that with Barclay's Reserve, £22 every 5 days for £1 overlimit. Its a disgrace that the laws of our land allow that to be described as 0% APR!

Yes I have spoken to HSBC., They say that it is a good system! If you go over the permitted o/d limit by say £1 you are charged £1 but if you go over by say £200 You pay the maximum charge of £150. In addition to the above interest is charged!

Thanks for any help anyone can give.

Barry

Hi Barry,

That seems an extortionate charge, as does the 20 per month (for a special reward account?)

Is it definately a 150 charge and not a repayment of going over the limit.

Have either of you spoken to the bank in a calm but firm way to say that this is the first (I'm guessing) time that this has happened due to the non receipt of funds or something and ask them to not charge it on this occasion.

£150 is 7.5% charge per month (on 2000) which is an extortionate 138.2% APR (I hope I've calculated that correctly, it's a minimum of 90%)

Have they threatened to come round and break your legs too?

I'd get on the phone to HSBC to get to the bottom of it.

Good Luck

Sparky.

My son has a current account with the above. He has an approved overdraft facility for which he pays £20 pm. His limit is £2000. He has recently gone over his limit and now incurs a charge of £150 each month. This is the maximum sum they impose. Can he claim back the £20 and £150 charges back.

Barry