Please Help. First Direct charging us £185 bank fees!

BaritoneUK · 20 May 2005 at 1:32PM

Hi.

My wife and I have been with FD for a year and a half and we've been really happy with them. I know they aren't the best deal, but the convenience of the telephone banking is excellent.

Over the last year, since finding out about MSE we have been cutting back and going for all the best deals as much as possible. We changed our loan to a different company and our monthly expenditure has gone right down. We've tried not to use our overdraught facility at all so that we weren't having to pay interest. We have a 0% credit card also.

The past few months have been difficult as quite a few of my pupils (I am a teacher) have not paid me for this term. I have gone into overdraught. I thought I had something like a £300 facility. But it seems that I have had a £100 one. This means that First Direct will be charging me £185 for going over my overdraught aggreement. It seems they charge £30 for the first day and then £25 after that. They charged me £30, then £100 and now £55- hence £185. I only realised that today. Obviously I should have checked things. But this is so much money- and they are not exactly helping me and my wife get out of debt with this fee! I am very upset and really don't know what to do. We really can't afford this, and we have no money left for the holiday that we booked (a cheap one by the way...)

Is there anything we can do?

mrcow · 20 May 2005 at 1:44PM

Hi Baritone,

Have you called them about this? The fees do seem excessive if over a short period of time. I'm only asking as I've found their customer services to always be extremely approachable and helpful.

Obviously you've breached the T&Cs of your account, and so penalty fees would apply, but it wouldn't hurt to see if there is anything that they can do to reduce the amounts.

It's interesting that you say that £30 was charged and then £100. Was this £100 because of transactions completed on the same day? As after the initial charge, they will only charge you a fee for each day that a new transaction takes you further over your limit.

BaritoneUK · 20 May 2005 at 1:49PM

The £100 comprised of four £25 fees...

I haven't phoned them yet. They told me this this morning, and to be honest I was too in shock to do anything at the time. I wanted to post here first before I phoned them...

grumbler · 20 May 2005 at 2:35PM

'Charges for excess overdrafts
If during any statement month your overdraft exceeds the agreed limit, an Overdraft Fee will be incurred for the first day the excess occurs. In addition, an Excess Overdraft Fee will be incurred for each subsequent day during the same statement month that further debits increase the excess, or an excess recurs after the overdraft has been brought back within the agreed limit.
Deduction of charges
The overdraft fees incurred will be stored on our system until your monthly statement date. On this date any Overdraft, Excess Overdraft charges and the overdraft interest to be charged to your account which has accrued within the last month will be calculated. The charges will be detailed on a pre-notification advice included with your monthly statement, and they will be deducted from your account 21 days after the statement has been produced.
If at the end of the first working day of the next statement month, there is an excess, even if caused by deduction of overdraft fees incurred during the previous month, an Overdraft Fee will be incurred, with an Excess Overdraft Fee incurred for any subsequent day where there is an increase in the excess or recurrence of an excess during that month, as set out above.

Overdraft Fee £30 Excess Overdraft Fee £25 '

You should stop this ASAP! Do you have some other credit card besides that with 0%? Withdrawing cash from CC to pay overdraft will cost you less than these awful fees.

You are not the first victime: 'I can't believe banks can get away with this...'. I agree that fees are too high, but they are still a result of your negligence. You go into overdraft and do not check your limit and do not know T&C...

JanCee · 20 May 2005 at 4:04PM

It is always worth complaining to the Bank first about these charges. If you have never been overdrawn before and you explain that you were under the impression that your overdraft was £300 and not £100 they may be sympathetic. You have nothing to lose and you may be pleasantly suprised. You should also try and get your overdraft limit increased to cover you for any future eventualities.

Let us know how it goes.

BaritoneUK · 20 May 2005 at 4:08PM

grumbler wrote:

You should stop this ASAP! Do you have some other credit card besides that with 0%? Withdrawing cash from CC to pay overdraft will cost you less than these awful fees.

You are not the first victime: 'I can't believe banks can get away with this...'. I agree that fees are too high, but they are still a result of your negligence. You go into overdraft and do not check your limit and do not know T&C...

You say stop this ASAP, but how? If I change to another bank they will probably still charge stupid fees. I could go to a bank with lower interest on overdraughts I suppose, but I am still going to have to fork out £185. I do admit that I have to take responsibility, but I do feel banks aren't making it easy. It's not always easy to keep track of your money in the busy lifestyles people are leading these days.

Oh well. here goes, I am now going to phone First Direct now. Please think of me....

Magentasue · 20 May 2005 at 4:27PM

I have a FD account and a £250 overdraft - I thought that was standard.They offered me £500 if I paid in £1000 a month but I don't use it as a primary account. Although you're at fault for not keeping within terms, if it's a first offence, you'd think they could waive at least some of the charges. If I were you, I'd want them to at least make a gesture in reducing the charges or I'd cop a strop and walk.

BaritoneUK · 20 May 2005 at 4:46PM

I've phoned them...

Am I a walkover? The first woman was very unsympathetic, but she passed me through to a manager. She was kind of sympathetic but said that the fees were true. I said that other banks were much better and that it seemed like a bit of a kick in the teeth after we had tried to get out of debt. Anyway to cut a long story short, she was prepared to meet half way. I'm still quite upset, but I suppose £90 is better than £185. Should we stay with FD or go elsewhere? I really don't know what to do. All I want is convenience and also not to be ripped off.

GlennTheBaker · 20 May 2005 at 4:48PM

I am with First Direct and had a problem a few months ago where we slipped overdrawn for a few days and ended up with massive charges. I emailed them and said that I'd basically got my sums wrong and that I knew I was at fault and asked what could they do. As usual, their Customer Service was brilliant and friendly and they agreed to reduce the charges to the equivalent of going overdrawn for one day.

I would suggest that you be as nice as you can, explain the situation and ask if they can help.

Magentasue · 20 May 2005 at 4:53PM

I think they've been fair. Yes, the charges are too high but given they're applied automatically, they've been reasonable. Stay with them if you're happy and keep in credit. If not, move elsewhere.

stanmoresaver · 20 May 2005 at 8:16PM

Do you have a mobile phone because they have text message notification.
Essentially, this will advise you of the transactions that will occur durring the day and allow you to make adjustments. When you have yourself sorted, ie when you get the lesson fee's paid, open a saving account ( use it for the tax bill) and keep an amount in it that can be transfered instantly and you will escape charges.
( If you want to be really sassy- try explaining this to F/D and see if opening a savings account might encourage them to reduce the charges further! )

First Direct are not the cheapest bank, but IMHO, their service is A1

Please Help. First Direct charging us £185 bank fees!

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