We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
We're aware that dates on the Forum are not currently showing correctly. Please bear with us while we get this fixed, and see Site feedback for updates.

Fine print of FD Gold card Ts&Cs

I have just sent in the credit agreement for the FD Gold card, that I intend to use for slow stoozing. As documentation for the card, FD sent me some flyers, a sheet with a "Summary box" about the Gold card and a leaflet with their Credit Card Terms.

The "Summary box" sheet and the flyer both state, as expected, that all BTs will be charged the 2.5% fee. The credit agreement I signed also states "Balance Transfer Fee - 2.50% of the amount transferred (minimum £2.50)", however it then continues " see clause 3(b) for further details." Since I am the curious type, I looked up clause 3(b) of the Credit Card Terms and it says that you will pay a BT fee on any BT that either:
1) Is below £500
2) Is above £500 but takes place more than two months after account opening
3) Takes place within two months of account opening but is the second or subsequent BT from the same lender.

This clearly means that a BT of >=£500, done in the first two months and being the first from a particular lender, does not carry a fee! Puzzled, I called FD but alas the lady at the end of the line could not help me confirm or disspell my interpretation (though she had a lovely Scottish accent).

I had intended to do the required £100 BT, pay it off a few days later and live with the £2.50 charge and any interest accrued (though the order of application of payments for FD works in your favour here), but the Ts&Cs suggest I could avoid the fee alltogether if I upped my BT to £500 or more. I am not sure I have the energy to challenge FD over £2.50 so I probably won't bother, but it would be interesting to hear if anyone else has used this apparent loophole to avoid the fee?

Comments

  • Milarky
    Milarky Posts: 6,356 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    You've highlighted the 'general terms' on all First Direct cards which allow a single balance transfer to be fee-free provided the specific terms don't say otherwise. Unfortunately with the gold card they very much do.

    See here

    a fee of 2.5% (minimum £2.50) applies to all transfers
    Meanwhile the standard FD credit card has a differently worded offer (see here)
    a fee of 2.5% (minimum £2.50) applies to all transfers less than £500 or for second and subsequent transfers to the same card company
    and, because of that, the general conditons apply and that card gives you one fee-free transfer over £500 (albeit at 2.9% for 6 months)
    .....under construction.... COVID is a [discontinued] scam
  • LeifGR
    LeifGR Posts: 188 Forumite
    Milarky wrote: »
    You've highlighted the 'general terms' on all First Direct cards which allow a single balance transfer to be fee-free provided the specific terms don't say otherwise. Unfortunately with the gold card they very much do.

    I know -- what is interesting is that the terms I quoted are in the T&C leaflet that was sent to me alongside the Credit Agreement, which refers to the T&C. So by signing the Credit Agreement, surely I have agreed to the T&C that were sent to me, which state quite clearly that BT fees will only be charged under certain circumstances?

    The question is whether the mention in other material of a marketing nature that a 2.5% fee applies to all BTs for the Gold card has any legal effect, when I have signed an agreement that makes reference explicitly to the T&C but not to any other documents.
  • Milarky
    Milarky Posts: 6,356 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    LeifGR wrote: »
    I know -- what is interesting is that the terms I quoted are in the T&C leaflet that was sent to me alongside the Credit Agreement, which refers to the T&C. So by signing the Credit Agreement, surely I have agreed to the T&C that were sent to me, which state quite clearly that BT fees will only be charged under certain circumstances?

    The question is whether the mention in other material of a marketing nature that a 2.5% fee applies to all BTs for the Gold card has any legal effect, when I have signed an agreement that makes reference explicitly to the T&C but not to any other documents.
    You have a point. But I fear you won't be able to make First Direct see it your way because the 'there is a fee' statement is clearly understood. You're saying the agreement only gives the right to set a fee in certain conditions - which you believe you can avoid (more than £500 made within 60 days etc) however the agreement is not referring to a 'promotional' balance transfer and that is why (I suspect) they can argue for attaching any other condition they like to this one. The terms of the promotion - almost by definition - won't sit within the general agreement terms, and can be stipulated separately. You may take the card (subject to agreement) but that doesn't mean you are either eligible for - or necessarily choose to make use of - the specific promotion which is an extra.?
    .....under construction.... COVID is a [discontinued] scam
  • LeifGR
    LeifGR Posts: 188 Forumite
    Well put Milarky. It pays to think like the opponent! I strongly suspect the "promotional terms add-on" strategy is what FD would employ.

    I admit I was not giving the apparent loophole strategy a fantastic chance of success, which is why I won't bother testing it for the sake of £2.50 (and some change).

    Having looked at the Tc&Cs, they are actually a bit lacking in some parts so it would be interesting to see them get tested at some point.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.3K Banking & Borrowing
  • 252.1K Reduce Debt & Boost Income
  • 452.4K Spending & Discounts
  • 240.9K Work, Benefits & Business
  • 617.3K Mortgages, Homes & Bills
  • 175.7K Life & Family
  • 254.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.