What’s the deal with this HSBC Graduate bank account scam thing?!!
what is that? I haven’t heard about that. Don’t trust that bank though… I have my reasons…
HSBC suffers Facebook-led student revolt
Posted on “www.thisismoney.co.uk” (and previously printed by the Daily Mail on 28 August 2007, written by Guy Anker).
HSBC is facing an internet revolt from increasingly angry graduates who have had their interest-free overdrafts scrapped.
Thousands are threatening to leave the bank, and the National Union of Students is planning a protest outside HSBC’s Canary Wharf headquarters in London next Tuesday.
This year’s graduates, already saddled with average debts of over ?12,000, are now charged 9.9% a year interest if they are overdrawn, unless they agree to pay a ?9.95 a month fee instead. Someone with an average overdraft of ?1,500 would be charged ?148.50 a year interest.
Graduates are furious because they say they were told HSBC would provide an interest-free overdraft to help manage their debts after university when they took out their student accounts. However, the bank announced in July it would axe the interest-free overdraft incentive.
A group set up on social networking internet site Facebook, called ‘Stop the great HSBC graduate ripoff’, already has over 3,300 members - and the number is rising by the hour. One post written yesterday by a graduate from Exeter says: ‘Just ditch HSBC and join another bank, then they’ll lose a load of customers! I just moved to Natwest.’
Another livid HSBC university leaver from London adds: ‘Typical HSBC. I hope all students stop using the bank, then it will give a signal to the rest not to follow HSBC in introducing charges.’
A Leeds-based graduate says: ‘I think it’s absolutely ridiculous. I can’t wait to see what HSBC says when everyone waves goodbye and they lose out.’
The NUS is suggesting graduates switch to another bank if they expect regularly to go overdrawn. RBS/NatWest, Barclays, Abbey and Lloyds TSB all offer interest-free graduate overdrafts.
Wes Streeting, from the NUS, says: 'It is outrageous that HSBC has imposed such changes after very little notice and consultation with its customers.
‘We are encouraging current and new students to look carefully at their banking options. The only way to get HSBC to change its mind is to hit it where it hurts - in its wallet.’
HSBC wrote to those affected in late June and early July giving 30 days’ notice of the changes, so some would have started to rack-up charges from July 28. It came after HSBC transferred all student accounts from 2007 graduates into graduate accounts.
Graduates from previous years with interest-free overdrafts from HSBC will retain their facility. Those who graduated in 2006 received ?1,500 interest-free until
this summer and will get ?1,000 for another year. RBS offers a ?2,000 interest-free overdraft in the first year after graduating, ?1,500 in year two and ?1,000 in year three.
It charges 9.4% on any further agreed borrowing. Lloyds TSB has the same offer but with a higher borrowing rate of 16.8%.
Abbey offers ?2,000 interest-free in year one, ?1,000 in year two, and ?500 in year three, with further borrowing at 9.9%. Natwest offers the same terms as Abbey, but with a 17.81% borrowing rate. Barclays offers ?1,500 in year one, ?1,000 in year two and further borrowing at 15.6%. Anyone switching in their second or third year after graduation will remain in that band on their new account.
An HSBC spokesman says: ‘At 9.9%, we offer one of the lowest borrowing rates on overdrafts. We will not charge a higher rate for exceeding the agreed overdraft.’
A Financial Ombudsman Service spokeswoman says: ‘If we receive a complaint, we would look closely at the terms and conditions and any promises made to consumers.’
That’s ridiculous. They are such sharks at HSBC. I’m glad I don’t bank with them anymore. My previous employer had a deal which meant employees had to bank with HSBC; what an arse. They opened me a child’s account and refused to give me a VISA card. In the end I just opened a bank account with Smile and let it be.