First Direct Text Message Banking

timpal

Hi All,

My first post - I did check the other posts but couldn't find anything that specifically related to this - so apologies if in the wrong place.

This relates to the use of 'text message banking' for the purposes avoiding 'unauthorised overdraft fees'.

Following all the recent publicity on overdraft fees, and putting aside the debate on whether they are 'fair', I decided I should become a little more proactive avoiding the circumstances where I go over my overdraft limit...

I had previously been using First Direct's text message banking to let me know when my salary arrived in my account - which always let me know on the day it arrived.
Thinking this would be a good way to let me know instantly if I went over my overdraft limit, I set up another reminder to let me know when the balance of my account fell below my authorised overdraft limit. (FD do not charge if money is transferred back into the account on the same day - such as instantly from another FD account I have).

It turns out that the text messages are only sent at one point in the day (07:00 - 09:00), and do not give 'real time' account balances (as the customer service rep explained when I phoned to query).

I have to say I do feel that the way this service is set up and advertised is at worst misleading and at best unclear. In respect of text message banking the FD website claims:

"if you request a 'balance below or above' event message, we'll send you your balance followed by up to five transactions. You'll receive a message every day there is activity on your account and your balance is above/below the amount you have specified."

In actual fact were to go beyond your overdraft limit any point after 9AM you wouldn't be told until the next morning, which would be too late to do anything about it.

At no point was this explained to me verbally, and no where in the literature on the website does it mention delay between account actions and text messages or that the messages are not 'real time', or that messages are only sent at certain times of the day. I was not aware of this until querying it first.

My question is do I have any chance reclaiming my overdraft fees (£100ish) because I was relying on Text message banking to keep me informed if I went beyond my agreed overdraft level? Not necessarily as a traditional overdraft reclaim, but as a FOC complaint that the description of the text message banking service is misleading/ambiguous and does not warn anywhere that the service does not offer 'real time' balances, thus causing me to get charged by the bank.

Any thoughts/ comments would be welcomed.

Thanks

Tim

jambosans

What about checking your accounts online or through First Direct's excellent Telephone Banking? The text message service is designed to help you manage your account, not micro-manage them for you. If incurring charges is a known issue (which you suggest) then be more pro-active than relying solely on one service to counter it.

Also, from what you suggest First Direct allow you to set a limit for when alerts are sent. So instead of setting the trigger limit as your actual overdraft limit, why not say £50 above this. Which means if you come within £50 of your overdraft limit you are alerted before any additional transactions take the account over.

pmduk

I'm not sure if it's ever wise to rely on a text message for this purpose. What if the text doesn't arrive?

timpal

jambosans thanks for the quick reply.

I do use internet banking regularly as my main way of managing my account, I am definately not solely relying on text message banking to manage my money. Instead was using this as a failsafe.

Having a £50 buffer is the ideal solution I agree, and this is how I have always in the past avoided this problem in the past, however due to a change in circumstances (being a part-time student, reduced hours available at work due to recession), this is no longer so simple.

The issue I have is that while they appear to be offering a service, which in the way it is described alludes to help you manage your account better there is no warning about the limitation of the service, which I would expect to see on most financial products or services.

Or to put it another way if it way if it had been mentioned somewhere that 'real time balances can be delayed by 24 hours' I wouldn't have even considered using this service to help me manage my account or as a failsafe.

My question is really about whether the ambiguous information provided by FD about the service is grounds for legitimate complaint, rather than how to manage my account better (which I appreciate is far from perfect at the moment).

focae

"My question is really about whether the ambiguous information provided by FD about the service is grounds for legitimate complaint."

I doubt it.

I have mine set up so that I get alerts for debits above £500, balance below £1000, balance below £500, balance below £100 and credits above £500. That way I get ample warning of impending doom.

If you are relying on text messaging as your primary means of avoiding overdrawing, then I suggest you shouldn't sail so close to the wind. I see the service as a useful tool - but that is all that it is - a useful tool.

focae

My question is do I have any chance reclaiming my overdraft fees (£100ish) because I was relying on Text message banking to keep me informed if I went beyond my agreed overdraft level?

Why are you asking the question here? I have always found First Direct to be very helpful and if you call them and voice your problem to them in the correct tone (ie...... beg ........and above all, don't be aggressive), then you may be pleasantly surprised.

Of course, there is also the chance you may be disappointed, but you are still better asking them the question rather than the forum.

heloid

The cause of the issue is that the text messages go by your balance, not your available balance.
When you exceed your available balance, that's when you are in unauthorised overdraft.
You purchase something, your available balance gets deducted but your actual balance isn't changed until the retailer contacts the bank for the money. This could be over a week.


So basically, the text messages won't save you because it's sending the wrong information.

jambosans

heloid wrote: »

When you exceed your available balance, that's when you are in unauthorised overdraft.

Are you sure about this? Most banks would consider your account in an unauthorised overdraft from the balance (at which point charges would apply). Debit card authorisations will not always debit, therefore an available balance does not always indicate a future account balance.

I ask the question because I've never dealt with First Direct, so they may be the exception, but I doubt it.