A packaged bank account is simply a special kind of current account sold by banks throughout the UK which offers a ‘package’ of extras. The benefits were sold as an added extra to the standard current account and cost anywhere between £3 and £25 a month.
When sold properly they bring extra benefits to the customer like roadside breakdown cover, mobile phone, holiday insurance and others.
They often offered substantial discounts on a range of different stand-alone policies and services, but that was not always the case.
Like the better known payment protection insurance (PPI), accounts were often mis-sold because the products sold were not suitable for the consumer and/or the deal was not properly explained to them.
Some examples of mis-selling may include:
The potential amount recovered will depend on how much the consumer has paid each month and how long they have owned the account, but the average payout for a claim is around [AverageRefund]‡.
If you have a packaged bank account you should closely examine the terms of the deal to see if you are happy with what you signed up to.
The Financial Conduct Authority (FCA) is the UK’s financial regulator and they recommend consumers ask themselves the following questions:
If the answer to any of those is ‘no’ then it is possible that you have been mis-sold and have the right to claim back.