legals

All changes take effect from 1 March 2009 except where stated otherwise in the clauses themselves.

You are advised to retain this notice for future reference.

Main changes

Part 1, Clause 1, we have detailed instances when we may change our Account Terms in relation to our Regular Saver Account.

Part 1, Clause 3.3.1, we have updated your responsibilities to help prevent fraud and take care of your accounts

Part 1, Clause 4.2, we have added how either party to a joint account can ask us to vary the terms and interest rates that apply to their joint accounts.

Part 1, Clauses 7.2 and 7.3 have been rewritten to more clearly confirm your liability to us and our liability to you in relation to unauthorised transactions.

Part 1, Clause 8.3 we have amended the reasons when we may change our interest rates.

Part 1, Clause 8.5, has been amended and credit and debit interest rate changes are now dealt with separately.

Part 1, Clause 8.6, has been amended as we no longer accept new Forms R105 from customers who are not ordinarily resident in the UK. This change will not affect any Forms R105 that we have already accepted.

Part 1, Clause 9 gives details of instances when we may change our charges in relation to our Regular Saver Account.

Part 2, Clause 4.3 details further information about charges relating to payments made to beneficiaries abroad.

Part 2, Clause 4.6 has been updated to give further details about the types of Electronic Payments you can make with us and the information we need to send them. This change is effective from 1 January 2009.

Part 2, Clause 4.7.5 advises of the revised anticipated date for the introduction of standing orders using the Faster Payments System.

Part 2, Clause 5 has been amended to give full details about how and when we will issue you with a Visa debit card.

Part 2, Clause 5.7.3 has been amended to remove reference to MasterCard SecureCode as we will no longer be introducing this online service, as all new debit cards issued by us from January/February 2009 will be Visa debit cards rather than Maestro debit cards.

Details of the new limits which apply to the Financial Services Compensation Scheme are set out at the end of the document. This change is effective immediately.

Part 1: General Terms

1 Changes to your Terms

We may change any of these Terms. We will tell you about changes personally which includes post, statement message, email or secure e-message. We recommend that you print or save copies of electronic notifications for your records. If any change we make is to your disadvantage, we will tell you at least 30 days in advance and you may, at any time up to 60 days from the date that we tell you of the change, switch your account or close it without having to pay any additional charges or interest for doing this. We may make any other change immediately and tell you about it within 30 days.

In respect of Regular Saver Accounts only, we will only make changes to these Terms for one or more of the following valid reasons;

• following, or in anticipation of, a change in relevant law, code of practice or guidance or general banking practice;
• to reflect the making of a recommendation, requirement or decision of any court, ombudsman, regulator or other similar body;
• to reflect any change in our systems or procedures relating to this product;
• to make them clearer;
• to reflect any reorganisation of our business as a result of it being acquired, or by our acquiring, another bank or organisation;
• to reflect any event beyond our control.

3.3 Important Security Information – Preventing fraud and taking care of your accounts

3.3.1 In relation to each account you open and the account services you use, you must take all reasonable steps to prevent anyone else using your account without your permission including, but not limited to:

• signing any card we send you for use with your account as soon as you receive it; and
• keeping your debit card separate from cheques; and
• keeping your cards, PIN(s), security details and password(s) safe, not allowing anyone else to have or use them and not disclosing them to anyone even the Police or us, except your card number and other card details when using your card to make payments, or your PIN and/or security details when resetting your telephone or internet banking security (BUT even then do not disclose in full, see Clause 3.1); and
• not disclosing your PIN for mail order payments or when paying for goods and services over the telephone or through the internet; and
• keeping your password(s) and security details unique to first direct; and
• not tampering with your cards; and
• destroying any PIN advice we send you immediately after receipt and safely, for example, shredding it first; and
• never making a record of your PIN, password(s) and security details; and
• not choosing a PIN or security details that might be easy to guess such as a sequence of numbers or letters or the date or year of your birth; and
• taking care to ensure that no one hears or sees your PIN, password and/or security details when you use them; and
• keeping card receipts and other information about your account containing personal details (such as statements) safe and disposing of them safely, for example, shredding them first; and
• complying with Part 2, Clause 5.1.1 when using debit cards to make payments through the internet; and
• complying with all reasonable instructions we issue regarding keeping your card, password(s), security details, PIN and your account generally, safe; and
• changing your password(s) immediately and telling us as soon as possible in accordance with Clause 3.3.4, if you know or even suspect that someone else knows your password(s), PIN or security details or if we ask you to.

4 Joint Accounts

4.2 In relation to any joint account, until this authority is cancelled (see Clause 4.3 and Clause 4.4) each of you authorises us to act upon any instructions we receive from any one of you, including instructions we receive in writing, by telephone, electronically (whether or not via our internet banking service) or by any other means, to:

• make a payment from the account, or where possible to stop a payment from the account, (in either case, including but not limited to, where appropriate, cheques or card transactions, personal withdrawals or transfers or third party payments including automated payments such as bill payments, Direct Debit payments and standing orders), whether the account is in debit or credit; and
• make payments into the account; and
• where relevant, provide or increase or reduce an overdraft facility connected to the account, with or without security; and
• close the account and pay away the closing balance; and
• open further joint accounts in the same names; and
• vary the terms of, or rate of interest that applies to, any existing joint account; and
• provide other account services, such as internet banking or text message banking, in relation to the account if the service is available for that account, in which case you will be bound by these Terms to the extent that they apply to the provision of the relevant service even though you may not have registered for it yourself.

7.2 Unauthorised Transactions – Our Liability to you

7.2.1 Except in relation to card transactions, we will be responsible for any money lost due to unauthorised transactions unless you are liable under Clause 7.3.1 below.

7.2.2 In relation to card transactions, we will be responsible for any money lost:

• if your card is lost in despatch from us to you; or
• if there is a fault on an HSBC Bank cash machine of which we have not notified you by a message on the screen or a notice on the machine; or
• when the law says we are responsible for a fraudulent transaction involving your card or card details.

7.2.3 Where we are responsible for an unauthorised transaction, we will add back to your account any amount deducted plus any related interest or charges. We will have no further liability to you.

7.3 Unauthorised Transactions – Your Liability to us

7.3.1 Except in relation to card transactions, you will be responsible for losses (including the amount of any transaction carried out without your authority) if we can prove you have acted fraudulently or without reasonable care so as to facilitate the unauthorised transaction which includes not complying with Clause 3.3 (and/or Clause 6 if you are using a Text-telephone, Part 3, Clause 1.3 (internet banking), Part 3, Clause 2.3 (text message banking), or if you have acted fraudulently.

7.3.2 In relation to card transactions, you will be responsible for losses if you act fraudulently. If you act without reasonable care which includes not complying with clause 3.3.1 and this causes losses, you may be responsible for them. You will not be responsible for losses as described in Clause 7.2.2 above. Your liability may also be limited by law.

8 Interest

8.1 Where credit interest is payable on an account, it will be calculated daily at the rate(s) applicable to the account on the end of day cleared balance for interest purposes. Unless these Terms say otherwise, interest will be paid to the account monthly and if the account is closed, interest up to the date of closure will be added to the closing balance.
There are special rules applicable to the payment of credit interest on e-Savings, Bonus Savings and Regular Saver Accounts (see Part 2, Clause 1).

8.2 See Part 2, Clause 6 for details of interest you may have to pay when you borrow from us.

8.3 We may vary our interest rates at any time for one or more of the following valid reasons;

• following, or in anticipation of, a change in any relevant law, regulation, code of practice or guidance or general banking practice;
• to reflect the making of a recommendation, requirement or decision, of any Court, Ombudsman, regulator or similar body;
• to reflect any change in the base rate, or any rate that replaces it, as set by the Bank of England or by any bank that takes over responsibility for setting such a rate;
• to reflect any change or any anticipated change in relevant interest rates charged or paid by other major banks or financial institutions in the UK on similar products;
• to reflect changes or anticipated changes in costs associated with changes in relevant market conditions, relevant technology, the costs we pay to others in respect of the product in question, inflation and/or in our costs of providing accounts, services or facilities;
• to reflect our internal policies on competitiveness, market share and/or profitability of our business as a whole, or, in respect of a particular product or service;
• to reflect any changes or anticipated changes in money market interest rates or the cost to us of money we lend;
• to reflect any reorganisation of our business by it being acquired by or by our acquiring another bank or organisation (so that customers with similar products can be treated in the same way);
• to reflect any event beyond our control.

8.4 When you open your account, we will give you our Interest Rates and Charges leaflet which contains details of our interest rates. You can also find out about our current interest rates by telephoning us on 08 456 100 100 or on our website at firstdirect.com. When we change the interest rates on your account we will update this information within three working days of the change. The previous rates will also be available to help you compare.

8.5 We will tell you about changes to credit interest rates that affect you personally within 30 days of the change, which includes by post, statement message, secure e-message or email. We recommend that you print or save copies of electronic notifications for your records. We will tell you about debit interest rate changes that affect you by giving you at least 7 days prior notice by post or statement message. We may notify you by secure e-message or email if you have agreed. (See Part 2, Clause 6 for further details).

8.6 We will pay interest after deduction of tax at the lower rate of income tax. We will pay it gross, that is without the deduction of tax, if you are resident and ordinarily resident in the UK and your total income is below the current personal allowance and you complete and send to us an HM Revenue and Customs form R85. If you require an R85 form let us know. Interest will be paid after deduction of tax until the appropriate form has been processed by us.

8.7 Higher rate tax payers will have an additional liability.

9 Charges

9.2 We may change our fees or our charges for the day-to-day running of your account or introduce a new charge. For details of our day-to-day running of account fees and charges please refer to our Interest Rates and Charges leaflet. If these fees and/or charges increase or if we introduce a new fee or a new charge, we will first give you 30 days' notice in writing (which includes statement messages, and, with your agreement, email, secure e-message or mobile message). We recommend that you print or save copies of electronic notifications for your records. In respect of Regular Saver Accounts only, we will only introduce a new charge or increase our charges for one of the following valid reasons;

• following, or in anticipation of, a change in relevant law, regulation, code of practice or guidance or general banking practice;
• to reflect the making of a recommendation, requirement or decision of any court, ombudsman, regulator or similar body;
• to reflect any change or anticipated change in relevant costs charged by other major banks or financial institutions in the UK on similar products;
• to reflect changes or anticipated changes in costs associated with changes in relevant market conditions, relevant technology, the costs we pay to others in respect of the product in question, inflation and/or in our costs of providing accounts, services or facilities;
• to reflect our internal policies on competitiveness, market share and/or profitability of our business as a whole, or, in respect of a particular product or service;
• to reflect any changes or anticipated changes in money market interest rates or the cost to us of money we lend;
• to raise money that we can use to improve the services we provide;
• to reflect any reorganisation of our business as a result of it being acquired by, or our acquiring, another bank or organisation (so that customers with similar products can be treated in the same way);
• to reflect any event beyond our control.

 

Part 2: Operating your Account(s)

4.3 Payments to Beneficiaries Abroad

4.3.6 If there are any additional expenses incurred in using the services of an intermediary or foreign bank to effect the payment, these will be debited from the amount paid to the beneficiary. first direct cannot be held liable for any deductions made.

4.3.7 If you would like the beneficiary to receive the full amount remitted, please advise us at the time you make your payment request to cover any foreign or intermediary charge which may be incurred. This is in addition to the charges for making the payment. Please note, that we cannot guarantee that the banks abroad will act on our instructions.

4.3.8 In the event that the receiving bank pass any charges to first direct, we will debit your account at the exchange rate applicable at the time the charges are received by us.

4.3.9 Once we have transmitted funds overseas it is almost impossible to cancel the instruction. Depending on the circumstances, first direct may agree to such a request and will endeavour to retrieve funds. If we are successful in obtaining a refund, your account will be credited net of incidental expenses (this includes telephones calls and administration involved in contacting beneficiaries abroad), which can be substantial.

4.6 Electronic Fund Transfers

4.6.1 You can instruct us, via our telephone banking service, to make payments from your account either to another of your accounts or to a third party account by Electronic Fund Transfer, Priority Payment or by SEPA payment if you want to make a payment to an account in the Eurozone (this means member states of the European Union together with Iceland, Norway, Liechtenstein and Switzerland).

4.6.2 For payments to a third party's account or where otherwise requested, you must provide us with:

• the correct details of the receiving bank including that bank's SWIFT Bank Identifier Code (BIC), address, sorting code or national bank code; and
• the beneficiary's bank account number or International Bank Account Number (IBAN) if making a SEPA payment or paying Euro to a bank in the EU/EEA; and
• the name and address of the beneficiary to whom the payment is to be made; and
• your own account number (and IBAN for a SEPA payment), name and address. This is a legal requirement and these details will be passed to the beneficiary's banker; and
• the beneficiary's reference if applicable.

We do not accept liability for any loss or delay caused by any mis-description by you of any details.

4.6.3 Electronic Fund Transfers:

• will be made in sterling;
• will normally debited from your account and credited to the beneficiary on the same day we process the payment.

4.6.4 Priority Payments:

• may be made for any amount in any freely traded currency;
• where possible, payment will be sent in the currency of the destination country, unless you have indicated otherwise;
• will normally be received within 2 to 5 business days;
• business day means the day when banks are open for business both in London and the financial centre of the currency being sent.

4.6.5 SEPA payments:

• Will be made in euro. If your account is not a euro account, we will debit your account with the amount of the payment and then convert the payment into euro at our prevailing exchange rate at that time;
• Can only be made for amounts up to 50,000 euro;
• Will take up to 4 working days to credit the beneficiary's account.

4.6.6 All banks apply different cut-off times for the processing of payments in foreign currencies.

4.6.7 A charge will be debited to your account when you give your instruction. If any additional expenses were incurred in making the payment these would also be charged to your account.

4.6.8 We may make a charge for any enquiries we receive in respect of each payment instruction, whether made by you or another person. We will not charge you if we have made an error.

4.6.9 You cannot normally cancel a payment after we have accepted your instruction. Any refund of the amount retrieved will be made net of any incidental expenses.

4.6.10 If a payment is returned to us we will convert the amount at the exchange rate applicable at that date and credit it to your account.

4.6.11 If you are going to receive Electronic Fund Transfers or SEPA payments you must tell the sender your BIC and IBAN.

4.7 Automated Payments

4.7.5 You can send bill payments via the Faster Payments system (faster payments). Faster Payments will be extended to sending standing orders in late 2009. We will give you 30 days notice of the exact date. For immediate bill payments providing each single payment is for less than £10,000 (£100,000 for standing orders) and the recipient's bank is able to accept the payment via this new service, the payment will be deducted from your account immediately and will normally be credited to the recipient's account within two hours. We will tell you at the time you ask us to make an immediate payment if the recipient's bank has been able to accept it. Payments that are not processed via the Faster Payment service will be dealt with as set out in Clauses 4.7.1-4.7.4.

5 Your first direct Cards

This section covers the use of first direct debit cards and the savings card. Not all cards have all the functions described in this part, if you have a card with one or more functions, only the relevant parts will apply. We will only send you a card if you ask for one or to replace a card already held. From January/February 2009, all new debit cards we issue will be Visa debit cards. If you presently have a Maestro (including Solo) debit card, when this is replaced you will be sent a Visa debit card. We may replace your Maestro debit card with a Visa debit card before its expiry date. Where cash machines or retailers and suppliers display the Maestro or Cirrus logo, you can use a Maestro debit card. Where they display a VISA logo, you will be able to use a Visa debit card. Maestro debit cards cannot be used when only a VISA logo is shown and Visa debit cards cannot be used when only a Cirrus or Maestro logo is shown.

5.7.3 From January/February 2009 when you place an order over the Internet with organisations that participate in Verified by VISA™ (for Visa debit cards) (designed to prevent fraud) you will be invited to register for the service if it is applicable to your debit card. If you do not do so, as part of our fraud prevention measures, we may not authorise the payment for your order and further Internet transactions with participating organisations.

Financial Services Compensation Scheme

first direct is a division of HSBC Bank plc which is a member of the Financial Services Compensation Scheme established under the Financial Services and Markets Act 2000. In respect of deposits with a UK office, payments under the Scheme are limited to 100% of the first £50,000 of a depositor's total deposits with the Bank. Most depositors including individuals and small firms are covered. The Scheme covers deposits made with the offices of the Bank within the European Economic Area and deposits denominated in all currencies are treated alike. Further details are available on request.

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