Anorak News | HSBC Teaches Students A Lesson About Debt

HSBC Teaches Students A Lesson About Debt

by | 22nd, June 2007

students.jpgYOU can’t help but bear ill will towards students.

With their loud parties, overuse of irony and non-existent hygiene, not to mention their precious youth and the fact that they have most of their lives still ahead of them. What’s not to dislike? Or at least be jealous of?

Well HSBC have decided to wipe that smug and sarcastic smile off students’ spotty faces (that’s enough – ed) by announcing the scrapping of free overdrafts for students fresh out of university.

Banks have, traditionally, allowed new graduates time to clear their debts by offering a gradual reduction in the free overdraft facility over the first three years after college.

But now graduates who bank with HSBC will be forced to pay almost 10 per cent interest on their overdraft from this August onwards.

HSBC spokeswoman Karen Garner says: “The new service is put together to create a more level playing field, we wanted them to distinguish between being a student and graduate, because as the latter you are in a position to earn money. It softens the blow of realising the costs associated with borrowing, and graduates will be more inclined to take action if they realise they are paying for something.”

So the bank is only doing it to teach the new graduates some valuable financial lessons and not simply to make even more money?

How very thgouhtful…

Posted: 22nd, June 2007 | In: Money Comment | TrackBack | Permalink