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

AMO

Rafter wrote:

Why shouldn't they charge customers who don't use their accounts actively?

First direct cannot continue to offer premium service, UK only call centres, above average interest rates etc etc. Particularly when the OFT reduces penalty charges to a maximum of £12 next year.

R.

You're right.....except for one thing. The cost to run a current account in today's world is approximately £10-20 / year assuming that they send out paper statements every month and that their customers ring in or walk into a branch once a year.

Those that do not use their account do not do this.

In other places such as Ireland, I believe that they charge every time money moves.

But nevertheless, whilst charges are reasonable, £10 / month is not.

The figure should be a lot close to £10 / year.

AMO

JD554

According to the new terms & conditions (pdf document), or follow the "*Important Information: Our Bank Account - from 1 May 2007" link on this page of First Direct's website, you can still have free banking if you have a savings account.

You will not have to pay the Banking Fee:
For any month in which you:
[...]
hold a first direct Mortgage, Credit Card, Personal Loan, Savings Account, firstdirectory or a first direct car or home insurance policy; or

So if the hassle of changing accounts is too much, open a First Direct savings account, deposit £1 and continue to have free banking.

EagerLearner

JD554 wrote:

According to the new terms & conditions (pdf document), or follow the "*Important Information: Our Bank Account - from 1 May 2007" link on this page of First Direct's website, you can still have free banking if you have a savings account.

So if the hassle of changing accounts is too much, open a First Direct savings account, deposit £1 and continue to have free banking.

I agree that is the easy way - BUT the point does go deeper than this. I already give FD all my money each month - they use this money to make money for themselves. I shouldn't have to pay for the priviledge of keeping my money somewhere - especially as I manage my account well.

Back to keeping under the pillow!

eslick

please please please, dont use excuses like is the hassle is to much, if this comes for FD then all banks will follow and we will end up with only fee paying current accounts for everyone.

If you have an account that can be closed close it now, or investigate other banks as soon as possible. Dont forget you new bank will move your direct debits etc for you but it takes time and doesnt always go smoothly.

JD554

Except for some people the hassle *will* be too much. Granted that on a websites such as this, there won't be many, but there probably will be a few. And it's for those people I'm providing the information to save them the most money.

It doesn't affect me as as I'm not a First Direct customer and, given this bombshell, never will be

eslick

JD554 you might not be a customer of FD but you will be a customer of some bank and when they do it to you then you will be hit as well. The only option is for everyone who is a FD customer to close their accounts, granted many wont but as moneysavers we should all take a stand. Once this is industy practise then we have no choice but intil them we do and we can all make a difference even if its bombarding our current banks and saying we do not want this to happen.

adamchap

Hey,

Anyone looking to move from FD and to punish their greedy actions should come check out the referrer's board and switch to Alliance & Leicester and get themselves £50 bonus for their troubles!

http://forums.moneysavingexpert.com/showthread.html?t=305652

Adam.

cheggers

If oneone does not have a friend already with A&L and wants to be refferred for the £50 bonus drop me a PM and I can help you out:beer: :beer: :beer: :beer:

madkingsoup

joughtib wrote:

I didn't know about this until I heard Chris Pilling, Chief Executive from First Direct speaking on "Wake Up To Money". He was saying that 85% of people will avoid this charge, and they are only targetting people who dont have a good relationship with the bank, i.e. people that dont put enough into their current account, or take other services.

I am astonished that simply not earning at least £24k pa was considered by FD to be equivalent to having a bad relationship with them.

mrcow

madkingsoup wrote:

I am astonished that simply not earning at least £24k pa was considered by FD to be equivalent to having a bad relationship with them.

That whole article doesn't really make sense from a customer care perspective:

"Some customers are more important than others"

seems to sum it up. Has he really gone to the BBC with that statement?!!

But what they seem to be overlooking are the 195000 customers who are prime targets for selling and marketing to who they are now going to push away (perhaps for life?).