First Direct Rip Off / Scam £175 for 2 weeks over limit

first_direct_rip_off_scam

Hi there,

Got a letter from First Direct a couple of weeks ago saying I'd been charged £25 for an "informal overdraft arrangement".

Today, I get a bill for £175 for going over my limit 7 times in the same month by only around £100.

So essentially they have billed me £175 for going over by about £100.

Their original letter doesn't make it clear that it's £25 each time you are over.

After complainging they offered a 50% rebate but I still feel ripped off and will be mvong my mortgage and current account.

They point to the Terms and Conditions but it sounds like a rip off and borderline scam to me.

Happy Christmas First Direct.

dunstonh

After complainging they offered a 50% rebate but I still feel ripped off and will be mvong my mortgage and current account.

First Direct are well known for cherry picking quality account holders and dont like having those that keep going into unauthorised overdrafts. So, they probably wont mind you leaving.

They point to the Terms and Conditions but it sounds like a rip off and borderline scam to me.

They havent broken any terms. You were the one that failed to control your finances. So, why are you blaming them?

A 50% refund isnt bad for someone that has gone over their limit multiple times. Most banks will refund on first time but not on subsequent times. So, getting 50% on the lot as a refund is very good.

If you fail to control your finances and leave it to the bank to do it for you then you are always going to get charges. In future, make sure you reconcile your transactions and know what your running balance is and dont create transactions that you cannot afford.

jamesd

You'll have a similar experience with other banks. To solve the problem you need to get an arranged overdraft facility sufficient for your needs and avoid exceeding it. If you're going to need to borrow, get a 0% credit card for some regular spending and use the money not spent to accumulate some cash in your current account so you don't go over the limit.