HSBC buckles under student pressure
October 6, 2007
One of the leading banks in the UK, HSBC, has buckled under pressure from students who lodged a fast growing protest on Facebook.
Angry students lodged the protest and threatened to boycott the bank over its controversial decision to put an end to the three year interest free overdraft facilities that were available on graduate accounts. The bank stated that this was a commercial decision based on abuse of such accounts and high bad debt levels.
However, many students argued that one of their main reasons for joining up with HSBC was to be able to benefit from the three year interest free overdraft upon graduation from university. Many students were outraged, and the Facebook protest gained momentum very quickly, with over one thousand people joining in the last few days alone. As a result of the protest the HSBC has now decided to backtrack and reverse its decision to get rid of these three year interest free overdrafts on graduate accounts.
One official from the bank stated that the HSBC was not too big to listen to its customers. A student union representative said that the way in which the Facebook protest had gained momentum had made a huge difference to the outcome of the situation.
One HSBC official stated: “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.”
A student union representative 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.”
Alan Wright
6th October 2007
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