Mis sold Packaged Bank Accounts – Were You Paying For Useless Products?

The banking scandals never stop, do they? We’ve had Libor rigging, PPI, endowments, Bank charges, money laundering and as if that wasn’t enough we now have mis sold bank account packages.

Just over 10 million people in the UK pay a fee for their bank account and in return they receive a number of benefits, usually including a selection of the following:

– Mobile phone insurance
– Travel insurance
– Commission-free foreign currency
– National Trust Membership
– Interest-free overdraft
– Breakdown cover
– Legal advice
– Card protection cover

The cost for these extra’s can be anything between £7 and £40 a month, which, at the lower end, seems fairly reasonable. Paying 80-ish quid a year to protect your phone, yourself and get up to £1,500 overdraft interest-free isn’t bad but a lot of packaged bank accounts were sold to people who could never use the products and services that they were paying for. Here’s a packaged bank account FAQ:

What went wrong?

Like with PPI, bank staff were on a commission for selling packaged accounts to customers, irrespective of whether the account was appropriate for the customer.

How do I know if I Have a Packaged Bank Account?

If you’re paying for a packaged bank account, you should see a monthly transaction on your statement. Take a look through your paper or online statements and remember that you can request old statements from your bank – just check how much they’ll charge to send them out to you.

Have I Been Mis sold?

You may have been mis sold a bank account because no one explained to you exactly what you were buying or because the insurance policies attached to the account didn’t actually cover you.

Another mis sell was simply being upgraded to a packaged bank account without being asked. However you may have been mis sold – if you discover a payment, the best thing to do is collect as many statements as you can that show a bank account fee – this will help your case.

How Much Can I Get Back?

As with all mis sold financial products, the amount of compensation you’ll get depends on the product, when you started paying for it, how much you paid and how long you’ve been forking out. The best result is getting back all of the monthly fees you’ve been paying since the packaged account was opened.

As a rough calculation; once you’ve established that you have a paid account and know how much you’ve been paying, you need to see how long you’ve been paying it for. Once you know all of this; simply multiply the monthly payment by the number of months you’ve been paying it.

The payments can really add up, for example: it’s March 2013 at the time of writing so if you’ve been paying £12 per month since January 2008, you could be owed £744 at the very least.

How Do I Claim?

As a result of the potential negligence committed by banks and thanks to new FSA rules; from the 31st March this year you can claim compensation if you’ve been mis sold a packaged bank account. You have two options, you can either fight your bank alone using letters, statements and phone calls, or let a claims specialist such as ourselves take care of it all. To find out more about claiming back mis sold bank account charges, you can speak to one of our friendly claim experts on 0800 840 7292.