First Direct - Charging to renew overdraft

TheEffect

I've been with first direct for a few years, but I started at university and ever since have been in and out my overdraft (£250 limit).

I got my statement with £34 charges on this month. I phoned and was told after the adviser did some digging around in my notes that £9 was for first directory (which I knew about) and £25 was for the luxury of them renewing my interest free £250 overdraft for another 12 months.

I told the adviser I was only aware they charge you £25 if you change your overdraft, but was told as I've been in my overdraft quite a lot, they've charged me £25 in fees for renewing it.

Is this correct? They've never charged me before for renewing my overdraft!

Scrounger

This article may be of interest:

http://www.guardian.co.uk/money/2010/oct/02/first-direct-overdraft-fee

Scrounger

katejo

TheEffect wrote: »

I've been with first direct for a few years, but I started at university and ever since have been in and out my overdraft (£250 limit).

I got my statement with £34 charges on this month. I phoned and was told after the adviser did some digging around in my notes that £9 was for first directory (which I knew about) and £25 was for the luxury of them renewing my interest free £250 overdraft for another 12 months.

I told the adviser I was only aware they charge you £25 if you change your overdraft, but was told as I've been in my overdraft quite a lot, they've charged me £25 in fees for renewing it.

Is this correct? They've never charged me before for renewing my overdraft!

Did you get a letter in Feb/early march about the renewal of your overdraft? I get one every year and it is renewed without charge. I do use mine frequently but never over £100. I have never been charged for it.

missile

I guess they charge whatever they like if it is in the T&Cs. Quoting from Scrounger's link

"All customers were notified of this change when our T&Cs were amended. The fee was correctly applied and the solution to avoid the fee was to remove the overdraft facility at renewal, which the customer did not want to do."

You ought to be able to find them on their website. If not, I would ask them to forward a copy and highlight the relevant section.

In effect, it seems you are paying 10+% AER for your "FREE" overdraft.