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The end of free banking with endless bank charges?

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Is the notion of free banking about to become a thing of the past then?  I certainly hope not because I personally think that the major banks make enough money out of us with interest charges, overdraft fees, loans and credit cards etc.

Unless youve been on another planet you may have heard already that First Direct are about to scrap free banking for its customers.  From February 2007 a monthly fee of £10 will now be charged, although it is possible that this charge may be avoided under certain conditions.

If your account is on average in credit by £1,500 each month or you pay in £1,500 or more each month then the fee will be waived.  Other ways to avoid the £10 charge would be to open up a savings account, take out a mortgage, loan or credit card etc. with First Direct.  In other words keep all your eggs in one basket and use exclusively their services otherwise you pay the charge.  Does anyone else here believe that the banks are getting just a little bit too greedy?

A wallet, first direct, lloyds tsb, capital one, free banking First of all service charges are forever being increased anyway, fair enough because theyre unlikely to go down are they?  Next we were slammed with a fee every time we use a cash machine operated by a different bank (obviously not all of them do this) - how convenient is that?  Now their latest trick is to impose a monthly charge on those who can least afford it.

The people that will be hit the hardest are those who are on a low income whilst those who earn more and can afford to have a couple of grand knocking around in their bank account escape the charge.  It's simply another case of the rich getting richer and the poor getting poorer.

Is First Direct only the first and are the rest of the major banks likely to follow suite and scrap free banking for their customers?  If that is the case then keeping money under a mattress is likely to be the only form of free banking there is!


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GD

GD

I have discovered how to avoid ever paying a bank charge

three easy steps

1. check your balance
2. spend less than whats in your account
3. if unsure see step 1

I Thank you !!!
05/09/13 GD
-2
Grioghair

Grioghair

Yeah...they pulled all of my money out on the 22nd, like they said. They were not making any money out of me. This must rate as the first ever time I have had an account closed when I was in the black.
26/02/11 Grioghair
-4
Grioghair

Grioghair

I just had my OD protection removed without notification, and they informed me that they intend to close my account down on the 22nd of February. My account was still in the black - but I haven't used it much. I just kept it open for a UK account - which they actually agreed to - when I left England for the US. Now they want it closed. They seem adamant of that. To keep it open, they want my annual income - when I live abroad. Come on! A bit draconian, don't you think?
14/02/11 Grioghair
3
Tel

Tel

First Direct charged me almost £50 for £10 overdraft - b*st*rds - can't be trusted.
24/07/09 Tel
-9
Mr Hicks

Mr Hicks

Abbey have gone down Hill since santander took over,I rarely get my statements anymore and they have switched their customer services over to India.About three months ago I rang to cancel one of my direct debits,Instead they cancelled my visa card.If anybody does wish to switch banks I recommend they steer clear of Abbey.
17/07/09 Mr Hicks
1
Karen Wilder

Karen Wilder

@Jeff

I had similar experience - maybe First Direct are sifting their customers. Not sorry to leave them

Lloyds seem good, I have no complaints
17/07/09 Karen Wilder
-25
Jeff May

Jeff May

I queried some overdraft charges with First Direct and they closed my account. About a week after I wrote to them (which means they replied immediately) I received a letter saying my account would be closed in 30 days. I couldn't believe it - I've been a customer for nearly 12 years. They're a mean spirited unpleasant bank who pretend to have good customer service.
15/07/09 Jeff May
-5
Angry soon to be ex-customer

Angry soon to be ex-customer

Be very careful of First Direct. They are a complete rip off. They say they pride themselves on customer service, but this is as long as you don't complain. Once you complain to them, you are "being difficult" and they try everything possible to get rid of you.
They first of all charge for a current account which will hit the poorest of people then they take the call centre jobs away from the UK, so will have an impact on unemployment. At a time of such an economic crisis, First Direct feel that they can act and behave in whatever manner they like and retain customers.
The best advice I can give anyone is to move away from this bank and fast. They are not all they are cracked out to be and only when you start having problems do you realise what type of bank they are.
04/11/08 Angry soon to be ex-customer
-12
SuperBambinoCattivo

SuperBambinoCattivo

For those that think that free banking should not be free.
Evidently you don't know what a bank is and where banking comes from.
The history of banks is rather controversial and dirty. They make a lot of money using your money that's why they should not charge you. Banks are not human, they are very suppressive and unreasonable, and they are the scum of earth together with journalists, psychiatrist and politicians. If banks did not exist with their credit cards this world would be a much better place to live in, I really don't understand you people - what world are you living in? Yes, I know what world. Banks are responsible to have bankrupted governments, the reason for tax rise, poverty, depressions, recessions, blackmail - shall we wake up one of these days?
12/06/08 SuperBambinoCattivo
-13
Darren

Darren

There is no such thing as free banking, just different ways to pay for it. If you don't like First Direct's way of charging for it, find another bank that suits you better and stop whining about why you should be geting something for nothing. I personally think that this introduces more choice into the marketplace which is a good thing.
12/06/08 Darren
2
Darren

Darren

There is no such thing as free banking, just different ways to pay for it. If you don't like First Direct's way of charging for it, find another bank that suits you better and stop whining about why you should be geting something for nothing. I personally think that this introduces more choice into the marketplace which is a good thing.
12/06/08 Darren
-8
John Exeter

John Exeter

Why should we get free banking?

Most of us have small amounts in the bank at any one time, write numerous cheques, pay numerous D/Ds and S/Os and still expect free banking!

I'm more than happy to still get it free but what planet are the banks on if they still want to provide this and why should people moan when the banks wake up and start charging a small amount for the cost of providing the account and services anyway!
19/05/08 John Exeter
-2
Maz

Maz

If the OFT is successful in their test case and proves the bank charges are unfair (which they arenn't) then there will be no free banking for anyone because of the amount of money greedy consumers will claim back in compensation.
14/02/08 Maz
-12
Angry young man

Angry young man

MORGAN STANLEY have introduced a £20.00 annual fee for their platinum credit card with effect from 1st June. They are hitting existing customers first so do not show this on their web site application page. Be careful if switching elsewhere, you can only claim any cashback due in exact multiples of £15.00.

What a rip off!
12/07/07 Angry young man
-7
Bennit

Bennit

this scum have the God given right to create fiat money on computers and charge interest on it. With that alone a crime they go on to rape the public again with more charging.
We can collapse this Bank simply by closing our accounts and moving to a fairer Bank.
We the people DO HAVE THE POWER, if only we would exercise it instead of just talking about it. All the data you ever need about Banks in in the book "Human Ecology" by Thomas Robertson. Hard to obtain for obvious reasons. I think Blooomfield books in sudbury suffolk still sell it mail oder.
13/01/07 Bennit
-12

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