Join the Community

21,630

Expert opinions

43,844

Total members

422

New members (last 30 days)

159

New opinions (last 30 days)

28,577

Total comments

Join Sign in

Stop the great HSBC graduate rip-off!

28 August 2007 Be the first to comment

Paul Penrose

Head of Research

Finextra

University graduates are furious at a decision by HSBC to charge interest on previously free overdrafts. UK broadsheet The Guardian reports on how thousands are now turning to Facebook in a 'viral campaign' against the bank

The rapidly proliferating campaign, called 'Stop the Great HSBC Graduate Rip-Off!' has already brought in thousands of recent graduates. The campaign follows the bank’s decision in July to scrap interest-free overdrafts for university leavers and to charge interest at 9.9%.

The cyber-rebellion, inspired by the National Union of Students (NUS), has attracted hundreds of angry postings and cast a shadow over HSBC’s attempts to lure freshers into taking up accounts when the new University term starts up in September.

Powerless to respond directly, HSBC has offered to meet representatives from the NUS at the end of September.

The case highlights the importance to banks of developing clear strategies for engaging with their customers over important emerging social networks and the reputational risks that lie in wait for those that fail to do so. It also demonstrates the ease with which disgruntled customers and switched-on consumer groups can use online community networks to air their grievances and rapidly escalate campaigns.

External

This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.

6917

Report

Channels

/retail banking

Trends in Financial Services

A community to discuss the future of financial services and any other interesting trends, strategies, ideas, views.

Join group

387 opinions 86 members 28 August 2024

Comments: (0)

Paul Penrose

Head of Research

Finextra

Member since

06 Oct 2006

Location

London

More expert opinions

Kyrylo Reitor Chief Marketing Officer at International Fintech Business