HSBC cash machines to show overdraft warning

| September 10, 2007 | 0 Comments

HSBC cash machines are to show warnings to their customers if they have exceeded their overdraft limit. The warning message will come into force at the 3,500 cash machines operated by the bank on October 1st. The precise wording of the message that will be shown on the screen of the ATMs has yet to be determined.

A spokesperson for HSBC remarked that over 95% of HSBC cash withdrawals are now made at ATMs. HSBC highlighted that customers can already check their account balance before making a withdrawal but added that few people use this facility. HSBC believe that by warning their customers at this point will allow them to make an informed choice about whether to continue.

However, non-HSBC customers using its machines will not get similar warnings as the bank does not have access to their overdraft details.

HSBC added that in accordance with its existing policy, there will be no charge at all if the unauthorised borrowing amounts to £10 or less per day, if it is the first time in 6 months that an overdraft limit has been breached, or if extra money is paid into the account by the end of the day to cover the withdrawal.

The whole issue of charging for unauthorised overdrafts has seen tens of thousands of UK bank customers sue their banks, stating that the charges are illegal and claiming refunds so far this year of more than half a billion pounds. The matter is to be decided in a test case in the High Court in January 2008.

Finally, the British Bankers’ Association remarked that more banks are closing high street branches because in today’s world, more people commute to work, which means they are not required.

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