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HSBC

Minivanman
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HSBC

HSBC overdrafts to increase to 40% "so that our customers do not get ripped off".

Err... really?

Not with them m'self but it smells like the other big banks are soon set to follow, so let's be careful out there guys and take it easy on Christmas spending. 

New year New worries? 

No chance. 😉


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28 REPLIES 28
Luzern
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Re: HSBC

I will not comment on the rightness or wrongness of the rates charged for unauthorised overdrafts. However a lot of them are short term and of in C21 terms low amounts. The current £5 daily fee, max £80 in all, may well be for some the greater cost than the actual interest.

As to authorised borrowing, to charge customers, who are courteous enough to ask permission to use others' money, (that is what those who don't ask are doing effectively), the same rate, because of the FCA instruction, is totally idiotic.

I do wonder though, if this step to common rates for all, that all banks will have to adopt, will discourage borrowing that may become unrecoverable in a recession or deflation of the economy.

No one has to agree with my opinion, but in the time I have left a miracle would be nice.
Minivanman
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Re: HSBC

Fair points, bu what amazes me is the  enourmous disparity at the moement between interest that can be earned by the 'common man' and that charged by banks and sure it might be daft to charge different rates for authorised or otherwise, but crikey, it''s once heck of an amount. 

Is 40% any more or less immoral that those charged by the likes of those payday loan companies. Perhaps that's the question we should be asking even if those like yourself @Luzern that once worked for a bank.

Were you never in conflict, or was it just a job for a few bob. 😊

 


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Anonymous
Not applicable

Re: HSBC

The new rules for HSBC come into force next April

In July, Nationwide also unveiled a new single rate of 39.9% across its adult current account range. Its changes came into force in November.

Other banks I am sure will follow

 

Brian A 

gleneagles
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Re: HSBC

So banks in general continue to reduce the number of branches they have and reduce the staff in those remaining branches yet feel the need to charge interest on overdrafts at this rate.......

I wonder how many people on very low or variable incomes are forced to rely on overdrafts just to pay essential bills....thus pushing them further into debt ?

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Marksfish
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Re: HSBC

In a similar way, banks are also increasing the interest on their credit cards. I have had notifications recently about upwards changes (Halifax). Not a problem for me as i pay mine off every month (only use Halifax for overseas spending), but how is it justified? Lastly, 2 of my savings accounts have announced a reduction in interest rates payable. I'm sure the rates last went upwards? 🙄

Minivanman
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Re: HSBC

Time was when any increase would be noticed straight away but in these days of information overload they tend to get missed by the indvidual and in much the same way as companies dealing with massive amounts of invoices get overcharged. 

We get these notices in our emails and tend to click through with reading - even when it clearly says such things as 'important notice'. One thing that's not two, it does not get any easier as you get older, quite the opposite in fact. 

Do those that charge take that into account as an advantage? I'm sure they do. 


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billnotben
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Re: HSBC

It's a shame the clocks can't be turned back just a bit and the money start in the wage earners pockets where it belongs.

Then the banks could get back to basics in offering decent interest rates to attract money out of pockets and into bank accounts.

It appears at the moment banks have little work to do. They have your money leaving too much time on their hands to think of how they can fleece more of that money for themselves.

 

Champnet
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Re: HSBC


@billnotben wrote:

It's a shame the clocks can't be turned back just a bit and the money start in the wage earners pockets where it belongs.

That's not a serious suggestion is it ?

billnotben
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Re: HSBC

What's wrong with people having more control over, what is after all, their own money?

The banks should be back to where they belong. Working for us, not the other way around as is seems to be now.

Minivanman
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Re: HSBC

It's supposed be be a quid pro quo 'something for something' arrangement with banks but how often do we see it's more quids for them and our something becomes, err, nothing. 😋

 


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Champnet
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Re: HSBC

The banks look after and manage our money at no charge.

For those of us who remember receiving a weekly pay packet just imagine how more difficult life would be without a bank account.

gleneagles
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Re: HSBC

@Champnet 

Not sure if that’s true.....

The banks make a lot of money out of those who have loans or overdrafts and get a greater return on any money saved with them than any interest they pay us on savings.

We were fortunate that the government bailed the banks out after the last crash otherwise we would have lost most if not all of our savings....if it happens again then you will lose anything saved as the government does not have the money to cover any losses, unlike last time.

Of course there is a guarantee you will be covered up to £ 85,000 but would you trust any government to honour that, fortunately not a problem for me or most on this forum.

The banks are a business they will use every means at their disposal to extract as much money as possible from as many customers as possible..,...remember.....nothing is free.

We are born into history and history is born into us.
Champnet
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Re: HSBC

Agreed, as you say  “The banks are a business”

Minivanman
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Re: HSBC

@gleneagles 

That did seem like a rather kind reply from @Champnet and you are right of course in that the are a business, and a business that makes money out of our money. Along with those you mention there are also credit cards and crikey, they might run risks but not to worry, to big to fail so Joe Blogs taxpayer can always bail them out.

 


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