A petition on the site attracted around 5,000 signatures from students and graduates within days, prompting the bank to issue a statement saying it was "not too big" to listen to its customers.
HSBC has now frozen plans to begin charging 9.9 percent interest on overdrafts of up to 1,500 pounds ($3,000) for students who left university earlier this year.
It will also refund charges which it has already imposed.
If the plans had gone ahead, graduates who were in the red would have had to pay up to £12 a month or more than £142 pounds per year.
Facebook attracts more than 30 million visitors a month, and allows its users, mainly young people, to post information about themselves and pictures of their friends, who can link up across the site.
© 2007 Agence France-Presse
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