Packaged Bank Account mis-selling: The Truth

CHECK IF YOU WERE MIS-SOLD

What are Packaged Bank Accounts

Packaged Bank Accounts are bank accounts that include benefits such as travel insurance, car breakdown cover and mobile phone insurance for a fixed monthly fee. Unfortunately, a lot of these accounts have been mis-sold to people who either didn’t need the benefits, couldn’t use them or weren’t aware they even had the benefits.

Did you know that 1 in 5 people in the UK have a Packaged Bank Account so just think how many of these could have been mis-sold.

Did you know that 1 in 5 people in the UK have a Packaged Bank Account, so just think how many of these could have been mis-sold.

(stats recorded in July 2016)

The scandal of mis-sold Packaged Bank Accounts

Banks are watched carefully by the Financial Conduct Authority (FCA) and they noticed that people were complaining because they felt they had been mis-sold a Packaged Bank Account.

So, in 2013, the FCA introduced much tighter rules to make sure the banks were operating in customers’ best interest.

You could have been mis-sold if you felt:

1.

UNDER PRESSURE

  • You were told it was the only way to get an overdraft.
  • You were told this account would improve your credit score.
  • You were refused when you asked to cancel your Packaged Bank Account.
2.

LACK OF AWARENESS

  • You may have been upgraded from a free account to a fee-paying account without realising.
  • You weren’t given all of the facts when you signed up to the account.
  • If the monthly fees increased on your Packaged Bank Account without any notice from the bank.
3.

NOT ELEGIBLE

  • The benefits included in the account weren’t relevant for you and your situation.
  • You were too old or had a medical condition which meant you weren’t able to claim.
  • You weren’t updated every year on the benefits that were included with the account.

Unfortunately, a lot of people have been kept in the dark but it’s time to change this.

THOUSANDS OF PEOPLE HAVE ALREADY INVESTIGATED WHETHER THEIR PACKAGED BANK ACCOUNT WAS MIS-SOLD

We’ve created a report based on data from over 20,000 claimants to see who’s claiming and whether where you live makes a difference on the likelihood of being mis-sold a Packaged Bank Account.

With just under 12 million people having a Packaged Bank Account in the UK, there is a high chance that you’re paying for benefits with your bank. The key is to ask whether you need all of the benefits included, whether you’re eligible and if you know the conditions of every benefit that’s included- if not, you could have been mis-sold.

Who's Claiming

48% of people claiming were male, while 52% were female, but gender made no difference to the success of the claim.

48% of people claiming were male, while 52% were female, but gender made no difference to the success of the claim

The largest proportion of people claiming are between 29 and 48, and it is this age group that has the greatest chance of having been mis-sold their Packaged Bank Account.

Demographic distribution of claimants

Demographic distribution of claimants

There is a percentage of success across every age bracket and with 5% of successful claims coming from people aged over 79, it’s never too late to investigate whether you have been mis-sold.

NEW FOS COMPLAINTS

The number of new complaints that were escalated to the Financial Ombudsman Service (FOS) between the 1st of April and the 18th of November in 2015 exceeded 28,000.

New FOS Complaints

Source (www.which.co.uk, 2016)

Which regions did most claimants come from?

The largest proportion of claims came from northern regions such as Sheffield, Nottingham, Manchester, Newcastle upon Tyne and Birmingham.

TOP 5 most likely locations for pople to claim from

Map

Have you been upgraded to a paid account without realising or are you paying for something you don’t need?

Whether you live in one of the regions more likely to claim from, or are in one of the most successful age demographics, you could have been mis-sold to. If you’re paying for benefits you can’t use, don’t want or didn’t even know you had, then you may be owed compensation.

It’s not right if the banks haven’t acted in your best interests. You could, and should, make a claim if you think you’ve been mis-sold a Packaged Bank Account.

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