Quote:
Originally Posted by Adam Ef
+ For anyone who doesn't know and has an HSBC current account with an overdraft, they're shortly to change their interest rates from 19% to about 38% !!! Doesn't seem to be being publicised with no forewarning from HSBC. I found out from a friend then searched onine to find out it's true. Apparently most other banks will be following suit. Apparently it's part of a push to stop people living out of overdrafts and using them as temporary measures instead.
It's pushing rates up to an amount that will trap a lot of people in a cycle of debt from interest though.
https://inews.co.uk/inews-lifestyle/...lained-1333092
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I got notification of the change a while back but doesn't affect me. I have an agreed overdraft facility with them but never used it. If I need to borrow cash, I use my virgin money account when then offer 0% and charge a cheeky 2% arrangement fee. So 2% if you pay within the 1 year term. Generally I could pay quicker but preloading the fee. I want my moneys worth!
But for the wife who would dip monthly into her overdraft facility, it would work out zero cost to use her credit card a pay off each month than to incur this new regime.