1st Direct Switching Disappointment

Mrs_Hen

So sad that one of my first posts is a complainy one!

I've just got off the phone with a very nice lady at 1st direct, going through the procedure to set up my current account transfer and claim my switching bonus.

BE WARNED. Not all accounts qualify -and this is not widely advertised.

My old RBS One Account does NOT qualify for the switching bonus - even though it has a positive balance. It also does not come under the automatic switch and close scheme, meaning I have some work to do. Apparently this is not the only account to be disqualified.

A very disappointing start.

colsten

If your mortgage has been paid off and your OneAccount is in credit, I would file a formal, written, complaint with First Direct.

Keep it factual (e.g. no warning on FD website that some types of account are excluded) and unemotional. They might still pay up. Or let you switch a different account for the bonus.

If your mortgage hasn't been paid off, I reckon you are on a hiding to nothing.

PRAISETHESUN

You need to be able to use the Current Account Switch Service (CASS) to switch to FD to be eligible for their bonus, and only current accounts are eligible - other types of accounts won't be able to be switched with this system. A list of participating banks is here: https://www.currentaccountswitch.co.uk/banksandbuildingsocieties/Pages/banks.aspx

From a quick google, it sounds as if the RBS One account is actually an offset mortgage account of some description rather than a true current account? If so, this might be why you weren't able to use CASS to switch to FD

colsten

PRAISETHESUN, it is correct that the RBS OneAccount is an Offset Mortgage Account but if people have paid off their mortgage, they just consider it a 'normal' current account with a whacking big overdraft facility. For switching purposes, it's then not really different to a current account with an unused overdraft facility - the new bank just switches any positive balance and all SOs and DDs.

If FD don't want to get involved in switching those sorts of accounts, they should be more explicit about it. Their website makes you think they welcome anyone, really. Their switching offer T&Cs might give more details but I can't even find them on the FD site now. Anyone got a link?

Mrs_Hen

Thanks for the replies.

The mortgage was cleared some years ago, and I reduced the "overdraft" facility to £500. I used it as a bills account, and very much regarded it as a current account.

I accept it is not a standard current account, but I do feel FD should make it clear when an account is not eligible. I even had to enter the sort code and account number of the account I was switching from as part of the application. Surely this would have been an ideal opportunity to flag up any issues?


I will consider a formal complaint once I'm certain everything has transferred ok.

HampshireH

First Direct are really, really clear that any switch has to be via the Current Account Switch Service. So even if you account was in theory eligible i.e. a current account, if the bank isn't signed up to CASS your application would still not be eligible. Likewise if they are not signed up because the account is not a Current Account in the true sense of the word.

If the bank you are leaving doesn't offer the Current Account Switch Service that isn't First Directs fault surely? This is something you would check with the bank you are leaving before applying when such criteria exists

Confused how a complain to FD would be valid which they are explicit in stating a switch must go through CASS. It's the 1st line

Their switching information, guarantee, and FAO's can be seen here;

https://www1.firstdirect.com/1/2/banking/switching-bank-accounts#faqs

colsten

HampshireH wrote: »

First Direct are really, really clear that any switch has to be via the Current Account Switch Service. So even if you account was in theory eligible i.e. a current account, if the bank isn't signed up to CASS your application would still not be eligible.

The bank, RBS, is signed up for CASS.

I contest that the switch offer terms are really, really clear. I cannot even find them on the FD website, that's why I asked earlier whether anyone has the link. Can you point me at the offer T&Cs please?

eskbanker

The (in)ability to switch a One Account via CASS comes up from time to time - most report a lack of success similar to OP but one poster in this thread stated unequivocally that they'd managed it after the mortgage element was dissolved: https://forums.moneysavingexpert.com/discussion/comment/74843337#Comment_74843337.

First Direct's policy is stated at https://www1.firstdirect.com/1/2/banking/switching-bank-accounts:

To get the £100 cash offer you need to open a 1st Account, switch your everyday banking to us using the Current Account Switch Service and pay in at least £1,000 within three months of opening the account.

but they do also say they offer (unrewarded) switches from non-CASS providers.

andi2

They wouldn't switch our one account (even though it was in credit), but they did honour the switch incentive. This was about three years ago.



The thread that mentions a successful switch, that poster had reached the end of the mortgage term, so there was no facility any more (if I remember correctly).

eskbanker

andi2 wrote: »

The thread that mentions a successful switch, that poster had reached the end of the mortgage term, so there was no facility any more (if I remember correctly).

Yes, there was specific mention of the mortgage element being dissolved, so I think you're right that there's a distinction between the account having a positive balance (but still with a secured loan facility available for use) and an account where the mortgage has formally been terminated (and the property deeds returned), so it would make sense that the latter qualifies for a CASS switch but the former doesn't....

alandaniel132

you need to read the terms and conditions first.
Read what type of account is eligible first, dude