First Direct has started the ball rolling

Bohica · 2006-11-14T23:16:21+00:00

.....banks are being hit left right and centre with the loss of income from (extortionate) penalty credit card fees, next overdraft fees and soon they will lose the interest on holding onto our money for 3 (or more) days whilst it goes thru' 'clearing'. In five years time, it will be a privalage to not pay a fee to use a credit card or bank account. We can thank the Office of Fair Trading, for their involvement in ending free banking for all. -------------------------------------------------------------------------------------------- First Direct to end free banking First Direct is set to charge bank customers with less than 1,500 in their accounts, effectively ending the principle of free banking. It is proposing to charge people who only have a current account a 10 monthly fee, potentially affecting up to 195,000 customers. The fee will be waived if customers open a savings account or buy products such as home insurance or loans. The bank said the move was aimed at dormant or rarely used accounts. Primary customers About 40,000 of its basic accounts are not used at all while a further 250,000 accounts see fewer than 10 transactions a month. The new charging structure, part of an overhaul of fees for accounts and overdrafts, will come into effect in February. I want to focus our efforts on our most important customers Chris Pilling, first direct chief executive First Direct, the UK telephone and internet banking arm of HSBC, will write to all its 1.3 million customers to let them know how they can avoid the 10 charge. The fee will apply to those paying less than 1,500 into their account each month or who have an average monthly balance below 1,500. "I want to focus our efforts on our most important customers: those who use us as their main bank or who have a number of products with us," said Chris Pilling, First Direct's chief executive. "Many of our customers do not enjoy the full benefits as they use us for a secondary account." First...

Nov 14, 2006 27 Replies

Rate this thread:

Andy Pandy 19 years ago

Even if they did sit around twiddling their thumbs, perhaps patients who sit around twiddling their thumbs while waiting for their appointment (like practically every time I go to the doctors) should get paid for wasted time.

Vote

John Boyle 19 years ago

In message , linkuk writes

Equivalent to US$3,272,000,000.

Rubbish.

formatting link

> they just say "of course most profits come >from our overseas operations". True, but backed up by figures. See above.

They do issue them. See above.

???

formatting link

why?

See above.

I found the data above merely by going to

formatting link

investor relations, then '2006 interim results'. Not really very hard to find...

Vote

ian.tomes 19 years ago

For info, from HSBC Holdings plc Interim Report 2006

formatting link

For the half year to 30 June 2006 total group profit before tax was $12517m, of which $3600m originated from European business (28.8%), of this $2347m was from the UK (65%), of which $629m resulted from serving personal customers with requirements of less than £1m (26.8%).

So as a total figure $629m over $12517m means that UK personal customers represented 5.0% of pre tax profit for the period.

So 5% is the so called 'secret figure' you're looking for...

Ian

l> > I was wrong.HSBC made 6.6billion on a 6 month period. FD is part of hsb c.

Vote

Tim 19 years ago

"Andy Pandy" wrote

I thought the OFT merely pointed out that the law doesn't allow companies to charge "penalties" (only government / authorities are allowed to charge penalties), and then quoted a figure they thought was "realistic" (12). [Am I wrong?]

"Andy Pandy" wrote

The idea, AIUI, is that you are not meant to make a profit from a breach of contract.

I guess it's OK to make a profit on a contract, because both sides will have agreed to it at the start...

"Andy Pandy" wrote

But that doesn't give them the choice of "pay if you want to stay, or decide to close it yourself". Better that the customer has the choice?

Vote

Andy Pandy 19 years ago

Dunno. I thought they were just trying to prevent massively excessive charges/penalties.

So does it cost my bank 12 if I go 10p over my overdraft limit?

The point is that if the customer has breached the contract the bank could close their account. But they prefer to make excessive profit from them.

Vote

Jonathan Bryce 19 years ago

Repeat offenders do get their licence withdrawn, usually after four offences.

Vote

Gordon H 19 years ago

Presumably under the totting-up rules? I've never been booked for anything other than three parking offences, two of them in car parks!

Vote

Adam 19 years ago

Actually, only after they get caught 4 times. Most will have committed hundreds of offences by then.

Adam

Vote

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required