Who have been selling Packaged Bank Accounts?
All of Britain’s high street banks have sold packaged bank accounts under many different names.
Consumer champions Which? have estimated there are around 9 million packaged bank accounts in the UK. They first appeared in the 1990s and have grown in popularity since.
Millions of packaged bank accounts were thought to have been sold in the UK by January 2010 and many people were sold these accounts either knowingly or unwittingly. In many cases, it wasn’t made clear just how the additional products accompanying the accounts worked, what the insurance cover was for, what customers needed to do or the position that they had to be in to claim. Sometimes customers were put under pressure to open an account or were provided with inaccurate information making them think that they had to have one.
If you are unsure if you have a Packaged Bank Account below is the list of the banks together with the account names that they have used for selling their respective PBA accounts.
How big is this problem?
Data from the Financial Conduct Authority reveals that 407,954 complaints about mis-sold PBAs were made between January and June 2016, just under half the number which was made for mis-sold PPI.
The problem has grown to such a level that The Financial Ombudsman Service (FOS) says PBAs are now the second most complained about the product after payment protection insurance (PPI) with appeals against bank rejections rising by 107% between 2015 and 2016 – from 21,348 to 44,244.
Your bank or building society must take reasonable steps to check whether you would be eligible to make a claim on each insurance policy provided by your packaged bank account and to share that information with you when you are considering opening the account. They should also make you aware of the cost of your account, as well as the key features and exclusions of each insurance policy.
On an ongoing basis, they are also required to give you an annual eligibility statement. It sets out the eligibility requirements for each of the insurance policies in the account.
You may have been completely unaware of the fees when you signed up. Maybe the extras were genuinely unsuitable for you yet you were actively sold the account, for example, if you did not want or need travel insurance. You may have been ‘upgraded’ to one of these paid accounts without even being told or as a result of being made to feel like it was your only option.
If you have a packaged bank account and were not fully aware of what you were signing up for or you feel the benefits of the account do not apply to you, then you may be eligible to reclaim the fees you have paid.
Do you think you may have been mis-sold a packaged bank account?
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