Student charge u-turn

By admin on September 6, 2007 12:00 AM

STUDENTS have forced HSBC into a climbdown after the bank charged interest on its graduate overdrafts.
The bank bowed to pressure following a 5,000-strong petition on the social networking website Facebook and a planned demonstration outside the company's offices at 8 Canada Square.
Students were outraged that they were being asked to pay 9.9 per cent interest on overdrafts of up to #1,500 for those who graduated this year.

Gemma Tumelty, president of the National Union of Students, said she was very pleased that HSBC had listened to their concerns.
She said: "Students and graduates are valuable future customers for banks, and it is therefore crucial that those banks recognise that their support and fair treatment is likely to be rewarded with customer loyalty in the long term."
HSBC bowed to pressure last week, cancelling the interest and refunding charges it made to graduates in August. Andy Ripley, the bank's head of product development, said: "Like any service-orientated business we are not too big to listen to the needs of our customers.
"Following the feedback from our graduate account holders, both directly and via the NUS, we have taken the decision to freeze interest charging on 2007 graduates' overdrafts up to #1,500 and refund any interest charged in August.
"We are also pleased that we will be working with the NUS to enhance our new account offer so that it fully reflects the needs of recent graduates."
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