Can I close my student overdraft before repaying it off?

im with HSBC and they are alwaysn on my back about how much I owe them. I've just finished first yr and I thought they'd be more reasonable. It's not like I have their £500 in my back pocket. Why do they keep pestering me?

Is there any way to close my account and join a new student overdraft?

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Reply 1

claireestelle

You can't close it if there's any debt. Payback what you owe and then switch banks I say.

Reply 2

Rajy9

-£500 means you spent their money they want it back

Reply 3

thecatwithnohat

You shouldn't spend what you can not afford to pay back

I guess you'll have to reason with them i.e. plan to pay in installments or at least pay them back little bits at a time

Reply 4

The Empire Odyssey

Thanks for the HELPFUL answers.

Reply 5

thecatwithnohat

Original post by The Empire Odyssey

Thanks for the HELPFUL answers.

erm hello I said call them and ask to make installments :innocent:

whether it be to pay £10 every week to paying £10 every 3 months or something. The last thing you'll want to do is get a bad credit rating for "refusing" to reimburse the money they gave you.

Gosh, feisty TSRians these days :innocent:

Reply 6

SonicOfPron

Original post by The Empire Odyssey

1]It's not like I have their £500 in my back pocket.

2] Why do they keep pestering me?

1]Eh, yes you do have their £500 else you wouldn't be overdrawn.
2]Wouldn't you keep pestering your mates if they had borrowed 500 quid.

So no HSBC aren't gonna just let you close your account when you OWE them money,

Reply 7

The Empire Odyssey

Ive already set up a plan to put £5 in a week BUT they still sending me enails, letters through by post, and texts! Its getting ridiculous!!

Reply 8

russellsteapot

Might be a silly question, but do you have balance/activity alerts switched on? My bank used to 'update' me all the time about how I was doing, until I called them and asked them not to.

Reply 9

Tiger Rag

Original post by The Empire Odyssey

Ive already set up a plan to put £5 in a week BUT they still sending me enails, letters through by post, and texts! Its getting ridiculous!!

They might be automated.

Reply 10

BANS2012

No you can't close any account with debt owed. If you are having difficulty paying it back , speak to the bank about the possibility of paying it back in instalments

Reply 11

SophieSmall

And this is why people need to learn how to finance and what all the terms and conditions are before opening overdrafts, getting credit cards etc.

OP you owe them money, they're not just going to forget about it. You can't close your account until it's paid off. If the messages are annoying you find out why you're getting them, chances are they're automated or you have updates activated on your account.

Reply 12

lascelles

When my brother went beyond his overdraft limit with Halifax, he just phoned them, said he couldn't afford it, and they wrote it off. HSBC might be different though.

It's really easy to up your overdraft limit with HSBC though, so you should have done that before going over it.

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Reply 13

The Empire Odyssey

Update: my overdraft was £500 and I spent £499 of it. I've paid over about £30. They said if I don't pay it off in 55 days, it will effect my credit score for the next six years, even though my overdraft has been open for less than a year. Can they really do this when A) I'm a student so they should have some compassion that I won't be able to pay off all this money and B) I thought credit scores get worse if you don't pay it off by the end of your studies..?

They are so unclear. All of the phone people seem to be Indian people who have such strong/thick Indian accents, I am forever asking them to either speak up, slow down or just generally speak in a coherent manner. I do this several times and just tend to say "OK" because I cannot be bothered to ask them to repeat what they have said (no relevance, just a rant!).

Reply 14

afctom

Original post by The Empire Odyssey

No absolutely not. An overdraft is not free money, when you made the conscious decision to spend money you didn't have, you knew it would need to be paid back one day. You're going to need to raise some money to pay it back; whether that be selling a few things or asking for help from family. You really don't want a bad credit rating.

Reply 15

lascelles

I don't quite understand. HSBC have never asked me to pay back my overdraft. Student overdrafts are usually free for up to a year after graduating. I've been up to £1250 overdrawn and not had any issues. Is your £500 definitely an agreed student overdraft?

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Reply 16

The Empire Odyssey

Original post by afctom

I kwow it's not free money but they never mentioned I would get a bad one if I don't pay it back. I shouldnt have to pay it back until after I graduate, that's what I'm saying.

Reply 17

The Empire Odyssey

Original post by lascelles

That's exactly what I thought, so why are they pressuring me to pay it back all in one? Yeah it's the student one where you can have up to £3000 over 3 years, but you have to apply for it by phoning them up and they look at your credentials to see if you're eligible for it.

Should I just ignore them? I will pay back like £150 by Sept once my loan comes in but that depends if I get a part time job!

Reply 18

Tiger Rag

No, don't ignore them. That's just going to make things worse for you.

Reply 19

The Empire Odyssey

Original post by OU Student

No, don't ignore them. That's just going to make things worse for you.

I've set up a repayment plan. £5 a month... Yes not a lot, but I had to buy several new things. But I will be putting in at least £150 in Sept. I just need to get a part-time job.

I just can't believe they are on my back for £499. I know other people who have almost finished theirs and they aren't getting hassled by their bank.