What is a Packaged Bank Account?
Paying a monthly fee for your bank account in return for benefits, most often bundled insurance policies such as mobile phone insurance, travel insurance and breakdown cover.
If you’ve chosen one based on a rational decision, it’s probably a good account as they can be the cheapest way to get many types of insurance. However, if you were mis-sold, you may be entitled to claim your money back.
Different banks offer their very own set of packaged accounts, each with unique names such as gold, premier or reward accounts.
The levels of insurance differ dependent on the cost of the accounts, which range from £3 all the way to £25 per month.
Is my packaged bank account right for me?
Firstly, if you do not need any of the insurances provided, then you may not need a packaged bank account. If you feel you could get the same insurances cheaper elsewhere, again you may want to consider whether a packaged account is right for you.
Have I been mis-sold?
There are many reasons why your Packaged Bank Account (PBA) may have been mis-sold to you. If you were:
- told or led to believe that you had to upgrade in order to obtain credit such as a loan, credit card, mortgage, overdraft or to improve your overdraft.
- told that upgrading to a PBA would improve your credit score or give you a better chance of obtaining credit in the future.
- never given the option to start or continue on a free account.
- felt forced into upgrading to a PBA.
- not given important information about the accounts benefits. For example, the policy details of any insurances associated with the account.
- mis-advised or not advised of the cost of the account or led to believe that the account was free because you were a valued customer.
- not aware that you had a PBA until the fee was applied.
- automatically upgraded without your knowledge.
- not assessed or do not recall being assessed for your suitability to the accounts benefits.
- told you had to keep the account even though you enquired about cancelling it.
If any of the above sound familiar, then your packaged bank account may have been mis-sold and we would be very keen to speak with you to see if we can help you reclaim a refund!
Packaged Bank Account Reclaim – Frequently Asked Questions
How much will I get back?
We aim to recover the full cost of any monthly premiums you have paid, plus any interest.
Packaged Bank Account Claim – Frequently Asked Questions
Why do I get interest?
If your claim is successful and your bank agrees to refund the monthly premiums you have paid, we will aim to get an additional 8% (simple) interest this is to compensate you for potential investment loss, in other words if the premiums hadn’t been taken and you had invested them.
Packaged Bank Accounts – Frequently Asked Questions
How long is my policy going to run for?
If you still have a packaged bank account when you make your claim it is possible that the bank will downgrade it to a fee free account. In this case the insurance and non-insurance benefits would be removed from the account (you may have to consider purchasing separate insurances if they are needed). The packaged account may not always be downgraded, you may have to make the decision as to whether or not you wish to remain on a fee-paying account.
The bank account provider has an obligation to treat all its customers fairly. Making this complaint will not affect your relationship with the bank, nor will it affect your credit rating.
If you hold an overdraft with this account, this will not change, however your packaged account may provide you with a preferential rate, which you would lose. You need to consider whether this will affect you financially. We are more than happy to discuss this with you.