Avoid First Direct - They are gonna charge all customers £10!

Red13

Could it possibly be the same as a bank's 'premium' account etc etc where you get charged a tenner a month for increased overdraft, bit of a discount on loans etc .... they can't charge you 10 quid just for the hell of it and not expect people to ditch them...it just sounds like one of those "upgrade to a premium plus plus account and get some vouchers you never use - oh and its £10 a month!"

mrcow

Red13 wrote:

Could it possibly be the same as a bank's 'premium' account etc etc where you get charged a tenner a month for increased overdraft, bit of a discount on loans etc .... they can't charge you 10 quid just for the hell of it and not expect people to ditch them...it just sounds like one of those "upgrade to a premium plus plus account and get some vouchers you never use - oh and its £10 a month!"

"Apparently" it's not one of those.

Just had to comment on your sig btw. Well done! :T

Paul_Herring

MPH80 wrote:

Paul_Herring ...

How do you want the banks to make any money on current accounts? Or would you prefer all banks become non-profit organisations?

Perhaps you missed this bit from my message which answers your question.

Me wrote:

If the banks want to skim a percentage off, tell us how much instead of obfuscating it behind their current rates.

MPH80

Paul_Herring wrote:

Perhaps you missed this bit from my message which answers your question.

Originally Posted by Me
If the banks want to skim a percentage off, tell us how much instead of obfuscating it behind their current rates.

You're right - I did - but do you expect Tesco to tell you how much profit they take on each can of beans? I doubt you do - so why do you expect the banks to?

Paul_Herring

MPH80 wrote:

You're right - I did - but do you expect Tesco to tell you how much profit they take on each can of beans? I doubt you do - so why do you expect the banks to?

Because other parts of the financial industry are subject to exactly this sort of transparency? Pensions, S&S ISAs, Mortgages, Annuities etc.

CopperPlate_2

Paul_Herring wrote:

Because other parts of the financial industry are subject to exactly this sort of transparency? Pensions, S&S ISAs, Mortgages, Annuities etc.

Yes, and look at the state they are all in...

There is no situation that cannot be made worse with government/regulatory intererence...

CopperPlate_2

As of 13 August the offer for £45 through Quidco for opening a FD account is being closed. Seems that a previous poster has hit the nail on the head in that abusing the system only leads to the withdrawal of the offer.

It's a shame that genuine potential customers will lose out on the chance to bag a bit extra (might've helped go towards offsetting the prospect of a £10 monthly charge :rolleyes:)

EagerLearner

I agree that if FD are introducing this £10 charge on current accounts they will package it with some sort of offers / discounts / better saving rates etc.

I have been with them for 8 years and have 1 x current account, 1 x e-savings and 1 x credit card.

Are these enough to warrant me 'escaping' the £10 charge I wonder? I mean, how many products do you have to have to be exempt?

If those 3 products are not enough and the £10 doesn't come with a heck of alot of goodness in it, I'll be moving to Halifax I think, despite loving FD to bits - oh, and no matter what, I don't agree that all banks offer 'the same features' as FD as some have suggested. It may seem so on paper, but FD are a first class act when it comes to resolving problems etc and actually sounding interested in late hours when you need to call them...

Please don't do this FD!

old_goat

The letters for this scheme were due to be distributed to customers in September warning them of the charges being brought in next year. The charges are £10 per month for your bank account and they are giving back money for each additional product held with First Direct including insurance, mortgages, savings accounts etc. In order to benefit from this or even break even you need to have most or all of your finances with First Direct in order to cultivate a "mutually beneficial customer relationship" which basically translates as blackmail to stay with them! I have banked with First Direct ever since I worked for them many years ago and for the first time am considering changing my account. I would recommend others do so too but I'm sure you will when you get your letter in September. Don't ignore their usual circulars around this time or you may wind up being charged without even realising it until you get your statement. If it is any consolation nearly everyone I have spoken to thinks the proposals are ludicrous and with such a massive backlash they might have a change of heart before it's due to go live.

EagerLearner

I have spoken to 2 people at FD on this in the last 24 hours - one was on holiday for the last 2 weeks and knows nothing and other was going to look into it. I told both the info is here on MSE so they both said they'd check this site - you never know, someone might log in anonymously and advise more now...

I don't need anymore than 1 current, 1 saving and 1 credit card with them, so if they force me to pay £10 a month I will leave for sure (in fact have just looked at Halifax & A&L accounts).