MPs attack First Direct Bank over extra charges

MPs have slammed HSBC-owned First Direct Bank for slapping extra charges on current account holders who do not have mortgages with it.

In a recent early day motion, five Labour MPs expressed concern over First Direct’s decision to levy a charge of 10 a month per current account on customers who do not deposit a minimum of 1,500 each month, have savings of the same amount or do not use the bank’s other services such as mortgages and credit cards.

The MPs argue that such levies should not be imposed without the agreement of customers.

A spokesman for First Direct says: “All our customers were given notice of this charge. The fee only applies to customers who have current accounts with us.

“Most people are unaffected and we are pleased with the response from our customers to these charges.”