packaged bank accounts

Which banks have been mis-selling their packaged 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.

Packaged Bank Account Mis-Selling

However, in recent years it has become apparent that the banks have been mis-selling the accounts on a massive scale.

The number of complaints has risen sharply from small beginnings as consumers become more aware of what has been happening.

How many?

Latest data from the FCA reveals that 407,954 complaints for mis-sold PBAs were made between January and June 2016, just under half the number which were 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 product after payment protection insurance (PPI) with appeals against bank rejections rising by 107% between 2015 and 2016 – from 21,348 to 44,244.


The rules governing the sale of PBAs were tightened in March 2014 after the regulator recognised the growing concern of consumers.

Banks must make sure their customers are eligible to claim under each policy offered in the package. They are also required to check annually whether the customer is still eligible to use the benefits.

The British Bankers’ Association (BBA) admitted that mistakes were clearly made in the past, but said the industry had responded by implementing the new rules.

Do you have one?

Not sure whether you have a packaged bank account or not? A quick look at your latest statement will tell you because the banks are required to show the fees they charge as a separate item. It could be anywhere between £3 and £25 a month.

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