Disgruntled First Direct customer
November 16th, 2006 by Wendy McAuliffe
I had hoped to make this post yesterday before the news broke nationally that online bank First Direct was to begin charging customers £10 a month for the priviledge of holding a current account with them.
I received my written notification yesterday in a letter which, I’d hastily like to add, looked much like circular spam. I almost binned it, but luckily cast my eyes to the second half of the letter where it warned that from 1 February 2007, I’ll need to pay a balance of £1,500 per month into this account, or be charged a banking fee of £10 a month.
Not only was I shocked at being told how I should use my current account i.e for salary payment, but I was also extremely disappointed that an internet bank should be the first to test the water with paid-for banking.
I appreciate there is a cost to the bank for running an account, but with such marginal interest rates offered to the customer and its reduced overheads through being an online bank, I do not think this cost can be justified in the UK at the moment.
As an ex-new media journalist, I’ve written countless stories about the future of free online banking, versus the likelihood of high street banks having to charge for their services in the long-run. But never did I expect an internet bank to be the first to take the plunge.
I’m not a finance expert, and since the news broke, many have heralded this as the beginning of the end to free banking in Britain. But the message this sends to online banking newbies is unfortunate, and it comes at a time when stories of online banking security breaches have once again hit the headlines.
Some serious crisis management is called for by First Direct, as I am yet to see a satisfactory public response from them. If this letter is the only form of explanation I’m to receive, I’m on the lookout for a new current account!
