Students' Facebook protest against HSBC grows

A student campaign to embarrass one of the country's largest banks into reversing its plans to cancel interest-free accounts for graduates was reaching fever pitch yesterday.

In just 24 hours, the number of people who had joined the protest on the social networking site Facebook had jumped by more than 50 per cent to 4,000 by last night. "Stop the Great HSBC Graduate Rip-Off" began just over a month ago after the bank announced it would no longer be offering interest-free overdrafts to new graduates. In a very modern manifestation of a student protest, the campaign took shape on the phenomenally popular social website, with members calling for a boycott of the bank.

But HSBC insists it was a commercial decision in response to bad debts, misuse of the accounts and graduates who had no intention of building a long-term relationship with the bank.

But student protesters accused HSBCof outrageous behaviour, hitting them when they were most vulnerable, after they graduated with record amounts of debts and no guarantee of immediate work.

One entry on the website read: "I am so disgusted with HSBC right now – it actually makes my blood boil. Never before have I lost so much faith in an organisation." Another said: "I think it is absolutely ridiculous. I can't wait to see what HSBC says when everyone waves goodbye and they lose out."

The protest is being organised by the National Union of Students, which is also staging a more traditional protest outside the bank's London headquarters next Tuesday

"It is outrageous that HSBC have imposed such major changes to these graduate accounts after very little notice and consultation with their student customers," said Wes Streeting, NUS Vice President (Education).

He continued: "The reaction to this campaign has been phenomenal. More and more people are signing up every day. It really does show the strength of injustice felt about this. HSBC are mistaken if they think students will take this lying down.

"The student and graduate banking market is lucrative and competitive. Every year, the major banks are jockeying for position at freshers' fairs with a dazzling array of gimmicks and accounts on offer. Students are spoilt for choice.

"We are encouraging current and new students to look carefully at their banking options. The only way to get HSBC to change their mind is to hit them where it hurts, in their wallet."

The bank had previously offered three-year interest-free accounts to student graduate customers, typically reducing the interest-free overdraft limits by about £500 each year.

However, in a letter to students last month, the bank announced that it would be offering interest-free overdrafts only to graduates who were willing to pay a fee of £9.95 a month. Otherwise, all overdrafts will be charged interest at 9.99 per cent APR. Graduates from previous years will retain their facility.

HSBC insists it will still mean graduates are getting a discounted rate compared with the standard 18.9 per cent APR. It said that many failed to pay much back in the first few years and the bank was keen to weed out those who opened several bank accounts purely to take advantage of all of their interest-free overdrafts.