Why have First Direct introduced current account fees?
First Direct denied that it was trying to boost fees, says Ian Cowie in The Daily Telegraph. Instead, it said that it was targeting 300,000-odd dormant and rarely used accounts, the idea being either to get rid of them or make them use their accounts properly. “We expect that 85% of our customers will not pay the fee and would be happy if none of them did,” said a spokesman. “That is why we have made it simple for them to avoid the charge – either by paying more in or taking out another product, such as a savings account or credit card, in addition to their current account.” Those who’d rather move their current account should find that it has never been easier to switch bank accounts. Since the Banking Code set minimum standards, it takes three days to transfer debits and standing orders and any charges incurred for delayed or missed payments during the transfer must be cancelled. To switch accounts, you need first to decide what type of customer you are. If you tend to be in credit,
