first direct--a cautionary tale

averageguy

I opened a first direct current account in 2010. I'm a healthcare professional with a regular salary. Happy with the service provided and their smartphone app is excellent.

About seven years later I had severe depression, was admitted to hospital for two months and resigned from my job while receiving treatment, and because it was clearly going to take a while to get better and return to work.

While I was a hospital inpatient I called first direct to let them know about my circumstances, specifically that my income would stop for a while. I had an overdraft of £1k and £4k on a credit card not at that point in arrears. Because I had stopped working and was not sure when I was likely to return to work they closed my bank account.

TL;DR first direct closed my current account in the middle of an episode of serious illness. I am sure it is in their terms and conditions but it isn't terribly helpful and not what I would expect from a responsible bank. Opening a new bank account was the first thing I had to do after discharge from hospital.

Zanderman

averageguy wrote: »

Because I had stopped working and was not sure when I was likely to return to work they closed my bank account.

That's not a reason for a bank to close an account. There must have been some other factor involved.

mgdavid

Zanderman wrote: »

That's not a reason for a bank to close an account. There must have been some other factor involved.

AIUI they don't need a reason to close an account, if they no longer want your custom then they give notice and close the account. Normal.

averageguy

The account specifies minimum paid in of 2k per month.

averageguy

Sure. I'm not saying they have broken any regulations. I think it's important for people to remember that if something unexpected happens they will close your bank account.

It is also noteworthy because Martin is forever bigging them up on here because they offer a cash bonus for switching. Ex-customers do not participate in satisfaction surveys.

agrinnall

averageguy wrote: »

The account specifies minimum paid in of 2k per month.

If you told them you couldn't do that then closing the account seems like a reasonable course of action. However, I might have expected them to offer you an alternative account, even if it was just a basic one, rather then withdraw banking facilities entirely.


What are you hoping to achieve? Your best option is probably to make an offical compaint to FD, and if you're not satisfied with their response escalate to the Financial Ombudsman.


https://www1.firstdirect.com/legals/listening/complaints-form/

averageguy

As I say, it's an FYI cautionary tale and a reminder that you should consider what will happen if your financial circumstances change when choosing a bank account.

I personally don't think it's a compassionate course of action and it isn't a great way to help someone with acute mental illness, but hey ho they are a bank.

xylophone

The account specifies minimum paid in of 2k per month.

https://www1.firstdirect.com/banking/current-account/

I have had a FD account for about five years - I opened it and keep it for the sake of the Regular Saver. I don't recall any condition concerning £2000 a month at the time I opened mine.

There was a condition concerning £1000 a month to avoid the account fee but this is easily avoided (see above) by eg having a savings account other than the RS with them

I have such a savings account and pay in a small amount each month by SO from the current account to keep it open and active.

Zanderman

averageguy wrote: »

The account specifies minimum paid in of 2k per month.

Well, if you told them you couldn't do continue to meet the minimum pay-in you were, in effect, choosing to close the account as you were telling them you no longer met the T&C. This would be the 'other factor' I was suggesting above. If you don't meet the T&C you should expect the account to be closed. Which seems harsh admittedly.

But as others have pointed out they could have offered you an account that didn't have those conditions. If they didn't then I agree they were very unsympathetic. But perhaps they did and you chose not to change the type of account?

As for FD's 'exalted' status on MSE polls I think many would disagree - FD are no better than many other bans and indeed have clunky and annoying online systems. There are much easier banks to use out there!

maisie_cat

I've been with FD since 1995 and had a mortgage since 2002. I don't particularly rate them, I do most things online but I've had 2 issues in the last year and frankly the response I got was not what I'd expect from a so called gold standard bank.
We're trapped with them because we are trapped in a mortgage, our income has fallen and although we've never missed any kind of payment they will not allow a transfer.
Businesses don't care about their customers. only the business they bring.

sausage_time

I have a mortgage with FD, and we fell out with each other over various issues. I have switched my current account but left the mortgage with them. Was no problem. I think they were glad to see my rear end!