First Direct bank..to charge £10 per month for current accounts

[baconbuttyman]

this is the result of the bank refunds i think, they are paniking, this could be the end of all free banking??????

[clint1974]

I Think everybody should boycott these in protest!

[baconbuttyman]

me too. but the bankswere bound to recoup the losses some where, as soon as my bank charges me, i will close it down and get a bigger mattress

[dave]

Trust me, they are not making losses. Far from it. Pure greed. This is basically a public admission that they were profiting from unlawful penalties, and now they've been bought to law and order, they are trying to grab the *lost* money from elsewhere.

[Bookworm]

Threads merged - again.

[monkey_uk]

It is worth noting that FD do a different bank account. I think they literally call it a "bank account" rather than a current account. They downgraded my current account while I was banking with them due to my difficulties (caused by their charges).

 

I don't think that it had the same restrictions (i.e having to pay in £1500 per month).

 

It had a white card, no switch/solo and no chequebook, but if all these aren't improtant, and it is just a basic bank account you're after, it may be worthwhile exploring the possibility of downgrading. I could still use the online banking and telephone banking in the same ways.

 

ALSO, their announcement states that if you have a savings account you won't be charged this fee, so maybe you could open a savings account with them and deposit the minimum amount (which I seem to recall is £1.00), or am I missing something, as this seems stupidly obvious as a "solution".

 

Quite a shame to see FD going this way, as I think they're the best of a bad bunch (banks) in terms of my dealing with them on a day to day basis (forgetting the charges issue). Their call centres are in the UK (Leeds and somewhere in Scotland, either Edinburgh or Glasgow, can't remember), they answer their phones VERY quickly (generally, although I understand that their phonelines are taking a hammering today...) and their staff are very friendly.

 

Oh well, such is life...

 

Hope this info helps some of you.

[curtlyb]

.............. and their staff are very friendly.

I'll give them a ring tonight and see how friendly they are after today

[SilkySmooth]

This was an inevitable outcome really, eventually all of the banks will convert away from the 'free banking' model. At the end of the day they are only interested in one thing, lining their own pockets.

[bottomburp]

deleted

[david.m]

Quite right, Jan!!!

 

I have to say it is a bit of a worry for parachute account, isn't it. We advise people not to close their account anyway even after they've switched, but that could prove catastrophic if all banks follow suits, as we would then have to go round closing all the dormant ones...

 

At the last count, I have 5 "live" accounts, and I think I may have an old LTSB somewhere, but I don't know if it's still open... If they all start charging, I'm going to have to rethink things fast....

 

i wonder if theres any state benefit your not claiming?, perhaps if you did claim something and had that payed in, then you could use that as the protection against charges, i know they take this money anyway but those blue books i posted elsewere say they cant take it, you then at least have a valid reason to go to court perhaps?..

 

the timeing seem odd to me too, just before cristmas when everyones going to be looking to spend more cash/credit!.

[Guest ian cognito]

Could it be that HSBC are trying this out on FD to see what the consumer reaction is before they go for it too? Do they think we're daft enough to buy another product from them when they have done the proverbial froma great height?

 

Went into Balloon Street at lunchtime and Co-op confirmed they have no plans to start charging for current accounts (how gullible am I) so at this moment in time, that is where I will be going.

 

Any news on 'The Royal Bank of CAGland' yet?

[monkey_uk]

Could it be that HSBC are trying this out on FD to see what the consumer reaction is before they go for it too?

 

In my opinion, that is exactly what they're doing. Jeez, I'm sooo cynical!

[ValF]

I agree with Baconbuttyman, I think all banks will end up with these sort of charges. FD being the first one, but I was speaking to a Financial Adviser from Barclays and I mentioned the fact people are claiming back bank charges and asked him how this affected the bank.

 

His reply was these are the sort of accounts we do not want anyway, you get this group of people that go from bank to bank. So I don't think they will care if this group leave them, they do not want this business anyway.

 

I do think the Banks are solving the problem of the lost revenue once these bank charges are stopped and getting it from the same group of customers.

[shellshocked]

According to the news on BBC at 1 o'clock you can get round these charges by either getting a FD credit card - you can cut it up as soon as it arrives or by opening a deposit account and putting £1.00 in.

 

If that's true what the heck is going on? FD say it's because it costs a lot to administer accounts even if they aren't used.... do they need to be kept in good decorative order or something?

 

This is nothing but penalty in disguise levied at those who can least afford it. SHAME ON YOU FD.

 

its not that simple tho, try getting a credit card when your credit rating is bad. I suspect the savings account workaround could soon be closed by then increasing the min deposit to something over £1500.

[Guest NATTIE]

Sorry Jan, missed the question re RBS accounts. The answer is NO there is no plans to charge for current accounts as yet, although from reading the various financial website and the like, it is likely that credit card charges may be on their way back although no official word of it as yet. That means paying a yearly fee for having a credit card

[laira540]

When i heard about this new £10 charge i called first direct straight away. the nice gentleman on the end of the phone assured me i was ok as i have a savings account linked to my current account.

i'm going to stick up for them as first direct are the best bank i've ever been with, they have excellent levels of customer service as opposed to many other banks.

and besides, all of them will do the same sooner or later, so to all the people who say they're going to close their accounts...whats the point?

[Guest ian cognito]

Because if enough people dump first direct now the other banks will have to find another tactic to get round this one, they don't all want to lose all their customers and despite what they say about not wanting customers with low deposits, they lose a hell of a lot of money without them!!!

[maridavi]

Ooops! I've just signed up with FD. I notice they are supposedly only charging if you don't have a savings a/c or other products. They opened my account with a savings account and I was totally unaware of it until, as I was gaily paying in money and looked at my statement I found the credit sums had disappeared! I thought that was a bit much (and fast) even for the bleepy banks! Rapid heartbeat and panic for a while, but all was finally well!

 

Am I glad to have found this site. For many years in the past I was preyed upon by the banks and used to end up changing accounts because I was so sick of them. They seem to spot a weakness and charge for the juglar vein, ie heaping bank charges on those who are doing a marvellous balancing act with the pennies only to find it knocked every which way by the bleepy banks stupid, unhelpful, illogical actions. Blood pressures going up again. I'll stop now. Mutter, mutter .....

[laira540]

originally posted by janquinny

'Because if enough people dump first direct now the other banks will have to find another tactic to get round this one, they don't all want to lose all their customers and despite what they say about not wanting customers with low deposits, they lose a hell of a lot of money without them!!!'

 

 

fair point...

[david.m]

i dont mean to take this thread off topic but i assume the big hitters are still reading this thread for the moment.

 

the pm boxs are full for the main guys so i couldnt point them to dayglows post about the county courts asking him to tell them why they can hear his case.

 

how are ordinary people expected to tell the courts what they can and cant do ?.

 

perhaps some of the readers can help him as i dont have a clue with this.....

sorry for OT.

 

"

http://www.consumeractiongroup.co.uk/forum/legalities/29293-dayglos-mission-get-his-25.html#post374657

Yesterday, 19:26

ok everyone - fairly bad news I'm afraid - I got this from my local court today

 

Quote:

IT IS ORDERED THAT

 

unless the claimant do by 4:00pm on the 29th November 2006 serve on the defendant and file at court a statement in writing settling out the legal basis upon which he asserts that the County Court has jurisdication to hear this matter, the power that he alleges the County Court has to strike out an entry on a credit file, and the precise legal nature of the remedy which he seeks, the claim shall be and is by this order struck out

 

 

I have no idea what to do."

[PhantomReclaimer]

I Think everybody should boycott these in protest!

 

I take the opposite view. I think EVERYONE here should open a FD account then after the first month hit them with thousands of claims for their unlawful £10 penalty charge - just to ram the point home.

 

P.

[pelham9]

I cannot understand the ethusiasm shown for Fiirst Direct. The only thing they have going for them is exellent customer service.

 

The current account though competent pays a low rate of interest and overdraft and loan rates are hardly the lowest. None of the savings accounts have competetive interest rates and the esavings account though almost competetive has this silly 'no interest on the whole balance for any month that a withdrawl is made' term which in my view is a [problem] to catch the unwary. They have a good website but no better than many others.

 

The so called arrangement fee for unauthorised overdrafts is no more than a cloaked penalty - see the T&Cs for the new regime and this is dishonest. The annual rates they charge as a lender are higher than the %APR they quote. Unfortunately this is lawful because the %APR is lawfully quoted to one decimal place - lawful but not honest. This is par for the majority banks.

 

Now they are going to charge a disciminatory annual fee! Ther is no question that this is the tip of the iceberg.

 

We have accounts with FD direct which will not attract an annual fee but have been running down as they become less and less competetive. In a few months we will no longer be a 'valued' customers so the accounts will be closed then. We will close them now. If this small gesture breaks the camels back of this HSBC experiment I will be extremely surprised but if it were to galvanise other 'valued' FD customers to reassess increasingly poor value accounts and close them now rather than later it would add extra straws which may do so.

 

My view is that HSBC are using past glories of FD to swing this experiment not realising that FD is deteriorating rapidly and is now poor value. Why not leave a sinking ship now and scupper HSBC as well.?

[TETSUO]

FD is my parachute account. As it happens, I haven't needed it, none of my claims resulted in account closure.

 

I'll be closing my account with them in January, and making sure I tell them why. I suggest anyone who does the same lets them know very loudly and in no uncertain terms that this is the reason. This is a chance to get our voices heard.

 

They are my parachute account too, but they phoned me yesterday confirming that my accont welcome pack would be with me soon. I asked them about they charge and she said I will not be getting it as I took out three products with them.. The nice lady said it was to encourage people to use them as a proper bank....

[dinah777]

For those of us who will be hit by this and do not have the option of closing the account on account of not have the financial means to do so, nor a relationship with FD that would engender them to opening up a savings account with £ 1.00... would it not be wise for us to look into law that counters this at a deeper level.

 

For instance, we may have signed original credit agreements, yet if the term that says they have the right to change the terms (ie - by bringing in these charges) such as by giving themselves the right to charge a tenner a month.. well, could this be challenged under the unfair terms in consumer contracts regs?

 

Likewise the issue of disclosure in relation to their figures in relation to the actual need to charge this fee.

 

The other banks WILL follow suit sooner or later and you have to assume that financial institutions are going to be dishonest according to their nature. Don't get me wrong I have a certain healthy respect for the enemy so to speak. Yet with my own position in mind, I would expect somewhere it will be illegal. The question is looking into where.

 

Look at it this way. When we pay money into an account that's in the black we are 'crediting' the bank and in relation to us the bank then becomes a 'debtor'. Therefore how can it possibly be lawful for someone who owes you money as a debtor to then charge you for giving them money. I know this is how a market economy holds up, yet as an individual if the bank owes you money then you should should be charging the bank money/interest. Not the other way around. To keep the state running it's unavoidable, yet at an individual level it takes the ****.

 

Peace - Dinah777

[sharpblue]

I await the first people who get a £25 - £30 fee for having insufficient funds in their bank when FD take (your) tenner. That could be interesting.

 

I am looking into ways of not having a bank account at all!