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

KatieKins

That is so cheeky! I haven't had the letter yet but I don't have 1500 paid in each month and I don't have any other products with them! I will definitely not be paying, Im going to close it. Soon it will be more and more conditions to have your free account

mrcow

KatieKins wrote:

That is so cheeky! I haven't had the letter yet but I don't have 1500 paid in each month and I don't have any other products with them! I will definitely not be paying, Im going to close it. Soon it will be more and more conditions to have your free account

When I called to close, they tried to explain how I could avoid paying the charge (by taking extra products etc). I just told that I wasn't interested in being bribed into being force sold products that I didn't want/need.

She got rid of me quite quickly after that

KatieKins

mrcow wrote:

When I called to close, they tried to explain how I could avoid paying the charge (by taking extra products etc). I just told that I wasn't interested in being bribed into being force sold products that I didn't want/need.

She got rid of me quite quickly after that

This makes me so mad. It is true though, for this year it will be 'get an extra product' then next year it could be do this/do that.

Everyone should just close and go to a free account.

Considering Im a very basic account user (no o/d, pay money in and out each month as and when needed) I don't see that I should pay for that privilege to help increase the fatcat bosses profits!! :money:

oops_a_daisy

I havent had the letter so thanks for this thread - thats another customer of over 15 years lost by FD

WestonDave

Unless you've had the letter I'd be careful about closing accounts on principle. For those that aren't going to be affected by the charges, there is a strong chance that FD will become a stronger more competitive bank out of this, as they will be losing most of the expensive low income current account only customers. Having shed that expense they will then be in a better position to offer good rates to attract the better customers they want from other banks, whilst still detering those they don't want - those that they make no money on.

That might sound harsh but FD like all banks are businesses, and few businesses will tolerate long term having customers that don't bring in any money - try sitting in your local pub for a while without buying a drink and see how quickly you get thrown out!

There is a double bonus for FD - all those that leave will presumably go to their competitors and make their costs worse, further strengthening FD's competitive position. Those that stay may well be in for improved deals as FD seek to replace the lost accounts with more lucrative customers from other banks.

Horasio

I only have a savings account - would I be affected by it?

If I get the letter, then I will be closing it pronto!

WaltD

smipx013 wrote:

The facts are these:

First direct WILL start charging £10 per month per current account for those customers not paying in at leat £1500 pcm or with an average balance of less than £1500 in any one month UNLESS they have other savings products with First Direct.

This is absolutely correct. I have been a First Direct customer for about 15 years and I received a letter from them this morning saying exactly what you stated above. The change comes into effect on 1 February 2007.

There is also a new paragraph in their revised "Terms and Conditions" booklet:

"Banking Fee.
You must pay our banking fee for each month or part of a month that you hold a Bank Account or Cheque Account unless we have agreed to waive the fee. Full details of our banking fee and our current waivers may be found in our Interest Rates and Charges leaflet and on our website."

The "current waivers" are as you state. In fact, just ONE other banking product is sufficient *at the moment*, e.g. a Savings or eSavings Account would do. However, in their letter they had the cheek to try and sell me their "firstdirectory" product at a cost of £11.95 per month, with a minimum subscription period of 12 months!

I shall be monitoring their Terms and Conditions with great care from now on.

WaltD

P.S. The header on their letter is "Banking the Way You Want". What a joke!

seven-day-weekend

mrcow wrote:

Closed mine yesterday

so did I.:rotfl:

sallywill

I cant believe more people havent yet received the letter from FD.
I have had one this morning about the new £10 charge coming in to effect from 1st feb 2007 if i dont pay in a minimum of £1500 per month. i will incurr this charge and on subsequent accounts i hold with FD.
i immediately phoned and spoke to FD and was told that this will happen unless i pay in the amount per month or buy another product, i.e. mortgage, credit card, loan, insurance etc and the charge will be waivered!!
i have had an account with them for approx. 18 years and am absolutely apalled that i will be penalised because my earnings have become less and because our mortgage is coming to the end (with another company) so therefore do not wish to re-mortgage, and we have no credit cards to transfer, we will have to pay the cost.
i am obviously not going to be dictated to by FD, so have decided that i have no other option but to close the account.
hope this verifies to other people on this thread, that this is actually going to happen with First Direct.

nbbradshaw

WestonDave wrote:

Unless you've had the letter I'd be careful about closing accounts on principle. For those that aren't going to be affected by the charges, there is a strong chance that FD will become a stronger more competitive bank out of this, as they will be losing most of the expensive low income current account only customers. Having shed that expense they will then be in a better position to offer good rates to attract the better customers they want from other banks, whilst still detering those they don't want - those that they make no money on.

That might sound harsh but FD like all banks are businesses, and few businesses will tolerate long term having customers that don't bring in any money - try sitting in your local pub for a while without buying a drink and see how quickly you get thrown out!

There is a double bonus for FD - all those that leave will presumably go to their competitors and make their costs worse, further strengthening FD's competitive position. Those that stay may well be in for improved deals as FD seek to replace the lost accounts with more lucrative customers from other banks.

Sorry but I think you have your head in the clouds if you think that "FD will become a stronger more competitive bank out of this". It only makes more money, in theory, for the shareholders.

As already discussed on a number of threads in the forums, it is almost impossible for the banks to provide an actual costing of how much it costs to run any of their accounts.

I'm in the final stages of leaving FD and after being a loyal customer for 10 years I'll be sad to leave but better off in doing so.