Withdrawn Bank Facilities

smileysmile67

Hi - wondered if anyone has any advice or thoughts on my current situation with First Direct? Sorry if this is a bit long - winded.

I discovered yesterday that FD have withdrawn my banking facilities. I am currently unemployed but have been with them for over 20 years, keeping my account in order and repaying loans on time etc. I have a visa card (5k limit) and a £2000 overdraft facility, which are what I had in place before being made redundant.

They are saying I am in default because I have missed 2 credit card payments, though I believed these had been taken by direct debit when I was in funds. They say the payments were reversed because I wasn't in funds and that they sent me a default notice in October. All i have received from them are letters re. some direct debits bouncing and the charges incurred as a result but nothing regarding the credit card, which I haven't used for at least 2 months. The total amount owed on the card is just under my credit limit, and my overdraft is £500 within the agreed limit, but they are saying they won't reinstate my banking facilities even if I make payment arrangements re the card which I am willing to do. I have offered them the payments outstanding (which were only due to them being reversed without my knowledge) but they say they still will not reinstate my banking facilities even if I do. I have gone over the o/d limit occasionally by approx £200 at most, but usually much less, though I did ask them not to honour payments that caused this, and have paid them heaps of bounced dd charges as a result.

I am at a loss as to why they simply didn't take the missed payments by d.d. when I was in funds as other credit card companies have done and it almost seems as though they have set me up and want to get rid of me because I am not earning a wage currently.

I have payment protection insurance being paid into the current account which covers my mortgage and most of my other bills and have been fortunate enough to have received financial help from friends and family. I have reduced the monthly amounts payable on my mortgage and credit cards but although my outgoings are reduced they say my ingoings do not cover them. Although this is the case by approx £100-£200 per month the amount I owe to them has not increased significantly because of the help I have received from friends etc, nor will it, so why are they asking me to repay my credit card and overdraft when they know I can't?

I have significant equity in my house (over £100k) and obviously hope to be in work soon but they are adamant they want repayment now. Whilst I know they can do this surely this is just unfair? If they keep my latest insurance payment (I was unable to stop it going to them) I will not be able to pay my mortgage etc or other credit cards either and the whole situation could spiral, when I had been keeping it on an even keel.

PS - I also only found out about their withdrawal of facilities when I rang yesterday to check if I hadn't enough funds available to make a payment. I had spoken to FD 3 out of the last 4 days on the phone but no- one mentioned any problems. I also use online banking almost every day and received no messages online about the issue, nor have I received any phone calls or message from them.

Help!!!

cifpower

You will need to set up a new basic bank account ASAP like Halifax Easycash or Barclays Cash Card account. FD have seen that a lot less money is being credited to your account, you have exceeded your overdraft limit and have had bounced direct debits. It seems like you are no longer the type of customer they want and no longer want to do business with you.

Techhead_2

First direct did this to me.
I came to realise that with an overdraft and outstanding balance on cards and with much less income; I wasn't keeping things on as even a keel as I thought.
At the time I really thought I had been dumped in it. But now realise it was something of a wake-up call to make some arrangements.