Can my bank really charge me that?

Question

I wanted to increase my overdraft by £100, but HSBC want to charge me £25 to do so. Can they really justify this? It defeats the purpose of me extending my overdraft really!

Answer 1

low value high risk customers will not get an overdraft.

High value low risk customers will not get charged for setting up overdraft.

Those in the middle may now be asked to pay an arrangement fee for setting up/increasing the overdraft and then an annual renewal fee.

A previous answer is i think correct that free banking is ending, but we are one of the last countries in the world to offer free bank accounts, most other countries pay for them.

Do you really need the overdraft?Could you save or budget for the expense? What's the overdraft for? Depending upon the purpose and when/how you plan to repay the debt either a loan or credit card

may be both more suitable and cheaper. Sit down in the branch with a senior member of staff (it may take an hour for a Review) to discuss what you actually need.

The banks only want to give lending that will get repaid but they reasll do want to give that lending.

Talk more to your bank.

Answer 2

Yes they can. But you may find that the fee is a standard one, and increasing your OD facility by £1000 would be not much more expensive. Ask them how the fee is worked out.

Answer 3

speak to the bank manager, and tell them that you have found a better offer  ( make it up)

and would not be willing to pay £ 25 for an extension of your overdraft

there all big corporate pigs  -   just like animal farm.....

Answer 4

Unfortunately yes.  If overdraft limit is not authorised, you risk getting penalised even more.

If short term, suggest you use credit card (eg for food shopping or something else you would normally use current account for), and PAY OFF EVERY MONTH, so no interest.

Answer 5

yes they can, you can blame all the idiots then went overdrawn and now want to claim all their charges back. There is no such thing as free money in banking anymore. if you want access to funds you have not got thenyou will pay for it.