Household HSBC Watch

HSBC has been accused of imposing a stealth charge of £25 on customers who go over their agreed overdraft limit. £25 is about $50 (USD). HSBC claims the charge is fair because it covers the time taken to review the customer’s account, but campaigners say it is a device to get round the rules on unfair penalty fees. The charge is levied on customers who have gone over their authorised overdraft limit more than once in the previous six months.

Overdraft chages in the UK, which can be as high as £40 each and earn UK banks around £10 million a day, are at the center of a multibillion-pound battle between consumer watchdog the Office of Fair Trading (OFT) and the banks. In the US one bounced check can cost $39, but at $80 each (£40) we can see why customers are complaining.