HSBC consults with National Union of Students

"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 National Union of Students (NUS), we have taken the decision to freeze interest charging on 2007 graduates' overdrafts up to £1500 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".

Andy Ripley, HSBC's head of product development

"We are very pleased that HSBC have listened to the concerns of their student and graduate customers. NUS welcomes this decision and looks forward to future dialogue with HSBC about how their account offerings can benefit students and graduates alike. 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. NUS is committed to encouraging students to think hard about the consequences of increasing debt and to managing their money carefully by choosing the appropriate account for their circumstances."

Gemma Tumelty, NUS President

NUS celebrates victory as HSBC U-turn

Following enormous pressure from thousands of students and graduates from across the country, HSBC has today (Thursday) made the welcome decision to reverse its decision to charge full interest on graduate overdrafts.

Commenting on the decision, Ama Uzowuru, NUS Vice-President (Welfare) said:
"We are pleased that HSBC has recognised that this policy would hit graduates just as they are at their most vulnerable. Students often struggle in low paid, insecure jobs upon graduation and the prospect of having the security of the interest-free graduate service pulled from under their feet is clearly unacceptable. Graduates are now more likely to be in debt than ever before.

"NUS looks forward to future dialogue with HSBC about how their accounts can benefit students and graduates alike. Banks must realise that it is in their interests to support students while they are studying and after they graduate. We remain committed to ensuring that banks do not punish the increasingly indebted graduates of the future. "

This NUS campaign attracted enormous support from students and graduates, along with widespread interest from the media because it was conducted almost entirely online, particularly on the online networking site, Facebook and the 'Stop the Great HSBC Graduate Rip-off!!!' group, which has attracted more than 4,000 members.

Commenting on the nature of the campaign, the Facebook group's founder, NUS Vice-President (Education), Wes Streeting said:

"There can be no doubt that using Facebook made the world of difference to our campaign. By setting up a group on a site that is incredibly popular with students, it enabled us to contact our members during the summer vacation far more easily than would otherwise have been possible. It also meant that we could involve our former members - the graduates who were going to be most affected by this policy.

"HSBC's decision to reverse this policy is a victory for this NUS campaign and the individual action of students and graduates across the country. The fact that this U-turn has been forced is a testament to the role of unity and communication in empowering students and encouraging fair deals from student and graduate bank account providers."

• Facebook group - http://www.facebook.com/group.php?gid=2371122959
• For more information or to speak to the NUS Vice-Presidents, contact the NUS press office on 07866695010 or pressoffice@nus.org.uk
• To see the joint HSBC/NUS press release go to http://www.nusonline.co.uk/news/