With branches closing across the country, banking by phone has become unavoidable. But as well as the frustration of being held in a queue by an organisation for whom "your custom is important", you are often paying dearly for the privilege of contacting your bank.

Many banks offer 0845 numbers for customers. Unlike 0800 numbers these are not free, and can cost as much as £8 for a 20-minute call from a mobile phone. To add insult to injury, these same institutions often offer freephone numbers to hook in new customers, but make their loyal clientele pay to register complaints about service.

"We want to see providers being fairer to their existing customers and being more transparent on their call charges so that people are clear what it will cost before they pick up the phone," said Richard Lloyd from Which? He also warns customers that mobile users will pay to dial so-called "freephone" numbers.

Telegraph reader Michael Mansfield does not have a landline and says that it would cost him a disproportionate amount to have one installed in his studio flat in West London. However, because he uses a mobile phone, the recent IT glitch from NatWest cost him £20 in call charges, while he estimates that contacting his bank costs him well over £100 a year.

"Freephone numbers should be free from wherever you call," he said. "Banks and financial services companies seem to have a problem understanding that."

Richard Lloyd said that researchers from the watchdog found that many banks and financial services companies fail to give clear information about call charges and that people are confused about what they will pay. With one in seven households no longer using a landline, according to telecoms regulator Ofcom, the charges can be even steeper as those who call from a mobile face the highest costs. It costs more than 20p a minute to ring a freephone number from an O2 pay monthly phone, or 20p a minute with Orange.

New rules that should simplify call charges were announced earlier this month by Ofcom, but these will not come into force for two years. In the meantime, customers have little choice but to pay huge phone bills for being left waiting to bank.

Many banks offer a whole list of numbers to call depending on your circumstances. Many, including First Direct, NatWest, Royal Bank of Scotland and Santander allow those who want to open a new account to call for free, other customers have numbers with prefixes 0845 or 01.

A spokesman for First Direct said: "I suppose we don't want to put a barrier in the way of people who want to join First Direct. It is something we look at frequently." HSBC, which has a similar stance, said that its "use of differing 08 prefix telephone numbers enables us to ensure we offer an effective, flexible and resilient service".

RBS, whose customers recently suffered from a massive computer outage that left them without cash, also charges existing customers for calls. A spokesman said that calls associated with the outage were free from landlines, as well as those where customers are buying new products. "The cost of calls associated with any complaint we uphold is reimbursed," the bank said.

Before you pick up the phone to your financial services provider, check that you understand what it is about to charge. The cost of calling most numbers will vary depending on your telephone provider, the time of day and the call plan that you are on. If you have a BT landline, numbers beginning 0500 or 0800 or 0808 are free. For those using a mobile, however, a local-rate number can be cheaper than a so-called "freephone" line, because these calls are included in call packages.

If the price per minute seems low, consider how much time you are likely to spend on the phone to carry out your transaction. This will include answering security questions and probably queuing for an adviser to take your call. A 20-minute call to an ordinary 0845 number will cost just under 54p with BT , unless your call plan includes free 0845 calls. From an Orange mobile, the same call would cost you £8 if you have a pay monthly contract, or £2.40 for pay as you go customers.

However, there are ways to contact your bank more cheaply – the following tips should help.
Get an app for it

If you have a smartphone, you can phone your bank more cheaply by using an app called 08 Wizard or 0800 Wizard. This allows you to dial the 08 number that the bank has given you. The app will automatically route it through a geographical number instead, which means that the cost will be included on your monthly free minutes allowance.
Say No to 0870

On a less technical level, the website saynoto0870.com will do the same thing. It will suggest a cheaper alternative to 08 numbers.
Ask for a call back

Some banks – First Direct is one of them – will call you back if you ask. Make use of this.
Use secure mail

If you bank on the internet you can do more than just move your money around. Consider using the secure messaging facility to contact your bank.


http://www.telegraph.co.uk/finance/personalfinance/consumertips/banking/9466292/...

sherbert wrote on Aug 11^th, 2012 at 8:58am:

On that particular point, all of those charges should have been refunded.

allegro wrote on Aug 11^th, 2012 at 10:42am:

It is specifically advertised as the overseas number, but I have used it from a mobile phone in the past without a problem.

Quote:

This statement from HSBC simply defends the use of differing numbers. When the Unbundled Tariff is enacted it will bring into the open the presence of the Service Charge of around 2 pence per minute which the bank levies and for which it doesn't mention, let alone defend.

Quite a while ago, First Direct introduced 0113 2766166 specifically for this purpose - and this is answered the same as 0845 6100100.

0113 2345678 is indeed answered for international callers. The staff are the same, the service is the same - and I've never seen 2766166 advertised or publicised since. But think it's fair to make the point...

japitts wrote on Aug 17^th, 2012 at 10:52pm:


Although I've been with FD since 1990 I don't remember the 2666166 number. It may well have been available in the era when an 0345 local rate number was a genuine advantage to customers.

The 2345678 number is answered for both domestic and international callers.