First Direct £500 interest-free overdrafts

Sara1972

I just enquired through the First Direct direct chat whether you can benefit from the interest-free £500 overdraft banks have put in place. I have an agreed £250 overdraft limit, which was always interest-free for First Direct customers. I was told: "The fee-free amount only applies to the first £500 of your agreed overdraft. If you have an overdraft lower than this then it would just be for the amount you have.” So basically, First Direct customers, maybe all bank customers (?), will have to pay interest on their overdrafts if their agreed overdraft limit is under £500, and their overdraft goes above their agreed limit. This is not right! Banks cannot favour the rich in this time (let’s face it, only those with money, not necessarily the rich, but people with a decent income) have an arranged overdraft of £500! Everyone should be favoured, whatever their income!

Illusionary

Have you requested an increase in your agreed overdraft limit? As with all forms of credit this would need a credit check, but £500 is now their standard agreed overdraft limit.