I sent the standard letter to First Direct with a spreadsheet showing all the charges over the last six years (I had kept all the statements). Within seven days they replied saying the didn't accept any fault on their part but that they would pay in full to avoid legal costs. I had to sign and return an acceptance slip and within 5 days £1044 was credited to the account. Brilliant! I never thought it would be so easy. I will keep the account for now but if they don't change their policy on penalties I will probably switch.