HSBC UK has confirmed changes to its overdraft system, which will come into essence from tomorrow. The bank’s temporary measure comes amid the economic impact of the coronavirus pandemic affecting a huge number of Britons.
From Thursday Walk 26, 2020, HSBC UK is introducing a temporary £300 interest-free buffer on overdrafts.
The bank bid that this move, which is the equivalent of the weekly National Animate Wage, will be available to customers with Bank Acccount and Go Accounts for a period of three months.
It will see an increase on the £25 buffer, which had been mentioned as part of the bank’s new overdraft structure, which recently came into begin.
Tracie Pearce, HSBC UK’s Director of Retail Banking said: “The late-model changes to our overdraft structure meant that seven in ten customers who went into the red hand down see no change in cost or it would cost less, with those purchasing an unarranged overdraft, who are potentially the most vulnerable, benefitting most from these transforms.
READ MORE: Save over £1,000 a year by making last arrangement changes
“With this temporary buffer for the first £300, up to nine in ten people who use an overdraft will see no additional cost, based on our previous structure.
“We are here for our consumers in these truly extraordinary times.
“While we put in place a package of stay for customers across a number of product areas, we recently added the selection of a mortgage payment holiday, which we had not previously offered, and now we are providing additional mezzo-rilievo medium relief on overdrafts for millions of our current account customers.
“This will forearm some welcome short term cashflow support at this critical time.”
Writing in his weekly Money Saving Expert email this week, Martin Lewis commented: “HSBC has asserted to help with coronavirus it’ll automatically increase buffer zones (which let you go overdrawn interest-free) on its Bank and Move accounts, from £25 to £300 for three months from Thursday.
DON’T Young woman
“I hope others will join, but if you’re struggling, see our full overdraft coronavirus lift. Also see help on loans and credit cards.”
Today, Mr Lewis erased on Twitter: “NEWS: Barclays has just announced its cancelled all arranged overdraft prejudiced between 27 Mar & 30 April – so it will NOT charge the new 35 percent during that conditions.
“HSBC’s already increased overdraft zero percent buffer zones to £300. Updates from others will-power go in…”
In a second tweet, he penned: “Now we’ve heard from Lloyds Group (Lloyds, Halifax, Bank of Scot) that from 6 April all guys with an arranged overdraft will automatically be able to access a £300 interest-free overdraft for three months. “
Gillean Dooney, Undertaking Director at Barclays said: “It’s crucial we offer the right support to our consumers through this challenging time. We have therefore decided to put aside all overdraft interest until the end of April, meaning there will be no wardships for customers to use their arranged overdraft.
“We are reviewing all options to help guys after this time to ensure we support those in financial tribulation.”
HSBC UK said the following package of support is in place for personal purchasers in financial difficulty, which could include:
- Short term reinforcement through reduced or deferred payments for mortgages, with longer stretch support through extending the remaining term of their mortgage, flogging rates or switching part or all to interest-only mortgage arrangements. This now groups a mortgage payment holiday.
- Giving customers early access to established rate savings accounts without closure charges.
- Support for fellows with unsecured debt through reduced payments or breathing hiatus to defer payments due; these solutions are tailored to individual customer necessity.
- The option of a temporary increase in credit card and overdraft limits.
HSBC UK has also highlighted the increasing hindrance in maintaining service levels through contact centres and branches during the coronavirus pandemic.
While this circulation affects all customers, the bank said it has having a “disproportionate impact” on the defenceless in society.
As such, the bank has asked that wherever possible, custoemrs consideration managing their interaction with HSBC through the bank’s online or plastic channels.