First Direct FlexiLoan Cancellation

PPSH

Hi. I have been with FD for maybe 30 years and had their FlexiLoan facility for maybe 20. I find it very useful, I can dip in and out of it instantly to cover unexpected expenses etc.
They have messaged me to say they are cancelling this facility which will be a right pain for me as I rely on it a lot (by rely I mean the balance is usually zero but every few months I might borrow a £1000 for say a few weeks then pay it back.
Is it just me that they are cancelling or are others facing the same thing?

superM

I have HSBC flexiloan for 23 years. I also received an email to say my account will be closed in August.  

They getting rid of these accounts.  I had an HSBC Gold card for the same period and they decided to change the card number and issue a standard card some months ago.  

I did like when it was Midlands but all banks are same now. 
 

 

born_again

PPSH said:

Hi. I have been with FD for maybe 30 years and had their FlexiLoan facility for maybe 20. I find it very useful, I can dip in and out of it instantly to cover unexpected expenses etc.
They have messaged me to say they are cancelling this facility which will be a right pain for me as I rely on it a lot (by rely I mean the balance is usually zero but every few months I might borrow a £1000 for say a few weeks then pay it back.
Is it just me that they are cancelling or are others facing the same thing?

Looks like a credit card is the order of the day then 👍

PPSH

superM said:

I have HSBC flexiloan for 23 years. I also received an email to say my account will be closed in August.  

They getting rid of these accounts.  I had an HSBC Gold card for the same period and they decided to change the card number and issue a standard card some months ago.  

I did like when it was Midlands but all banks are same now. 
 

 

Yes quite agree. 
For me the Flexiloan was the reason for being with FD, they are all the same now. Very disappointed.

PPSH

born_again said:

PPSH said:

Hi. I have been with FD for maybe 30 years and had their FlexiLoan facility for maybe 20. I find it very useful, I can dip in and out of it instantly to cover unexpected expenses etc.
They have messaged me to say they are cancelling this facility which will be a right pain for me as I rely on it a lot (by rely I mean the balance is usually zero but every few months I might borrow a £1000 for say a few weeks then pay it back.
Is it just me that they are cancelling or are others facing the same thing?

Looks like a credit card is the order of the day then 👍

Yes but I could use the flexiloan to pay builders via BACS etc where they don't take cards. But yes CC it is!

For me the Flexiloan was the reason for being with FD

MEM62

born_again said:

PPSH said:

Hi. I have been with FD for maybe 30 years and had their FlexiLoan facility for maybe 20. I find it very useful, I can dip in and out of it instantly to cover unexpected expenses etc.
They have messaged me to say they are cancelling this facility which will be a right pain for me as I rely on it a lot (by rely I mean the balance is usually zero but every few months I might borrow a £1000 for say a few weeks then pay it back.
Is it just me that they are cancelling or are others facing the same thing?

Looks like a credit card is the order of the day then 👍

Or even better, an emergency fund so that you do not have to borrow for unexpected expenses.  

Shockingman

Quite disappointed by this. The Flexiloan has  been very useful for rainy day, unexpected situations that have arisen in the last 20 years since it was set up. A big car bill, diy disaster, sickness etc, which takes more than a month to pay back, so suggestions of using a credit card aren't ideal as this needs to be paid off sharpish. 
I guess  they are trying to direct us to personal loans instead.

It's alright saying they are going to close it, but they don't mention what the best alternatives are.

Disappointed.

DullGreyGuy

Shockingman said:

Quite disappointed by this. The Flexiloan has  been very useful for rainy day, unexpected situations that have arisen in the last 20 years since it was set up. A big car bill, diy disaster, sickness etc, which takes more than a month to pay back, so suggestions of using a credit card aren't ideal as this needs to be paid off sharpish. 
I guess  they are trying to direct us to personal loans instead.

Both need to be paid off sharpish to avoid interest, the flexiloan was 18.9% APR so not significantly cheaper than a credit card

A loan is a very different product to a revolving credit facility, a credit card is by far the closest proxy but has the issue for those people who dont accept cards. 

superM

DullGreyGuy said:

Shockingman said:

Quite disappointed by this. The Flexiloan has  been very useful for rainy day, unexpected situations that have arisen in the last 20 years since it was set up. A big car bill, diy disaster, sickness etc, which takes more than a month to pay back, so suggestions of using a credit card aren't ideal as this needs to be paid off sharpish. 
I guess  they are trying to direct us to personal loans instead.

Both need to be paid off sharpish to avoid interest, the flexiloan was 18.9% APR so not significantly cheaper than a credit card

A loan is a very different product to a revolving credit facility, a credit card is by far the closest proxy but has the issue for those people who dont accept cards. 

Cash access was easier with flexiloan.  If you withdraw money on Credit card there will be very high interest much higher than 18.9% and ATM charges. 

Flexiloan has 18.9% but it has quick access to cash when needed.  

In Credit card there is money transfer options which has cheaper interest rate alternative but it’s not always available.

DullGreyGuy

superM said:

DullGreyGuy said:

Shockingman said:

Quite disappointed by this. The Flexiloan has  been very useful for rainy day, unexpected situations that have arisen in the last 20 years since it was set up. A big car bill, diy disaster, sickness etc, which takes more than a month to pay back, so suggestions of using a credit card aren't ideal as this needs to be paid off sharpish. 
I guess  they are trying to direct us to personal loans instead.

Both need to be paid off sharpish to avoid interest, the flexiloan was 18.9% APR so not significantly cheaper than a credit card

A loan is a very different product to a revolving credit facility, a credit card is by far the closest proxy but has the issue for those people who dont accept cards. 

Cash access was easier with flexiloan.  If you withdraw money on Credit card there will be very high interest much higher than 18.9% and ATM charges. 

Flexiloan has 18.9% but it has quick access to cash when needed.  

In Credit card there is money transfer options which has cheaper interest rate alternative but it’s not always available.

Interest rates on cash withdrawals will vary by card issuer, not all charge a premium over purchases on interest (but most do charge a cash fee).

Had already acknowledged that needing to pay someone that doesnt take cards was the exception, but in most emergency situations like a boiler breaking or oven dying etc there are plenty of card accepting merchants out there to get the emergency replacement one.

MEM62

Shockingman said:

It's alright saying they are going to close it, but they don't mention what the best alternatives are.

I believe I have already suggested the best alternative  :-)

A lot of the unexpected is not actually unexpected at all.  Cars will need repairs, appliances will fail, you will need to repair / replace your boiler.  These are not unexpected, they are just unpredictable timing-wise which is why an emergency fund is the way to go.