A packaged bank account is exactly what the name suggests, a bank account which has multiple extra products packaged into it. The difference between a normal bank account & a packaged bank account is that you usually pay a monthly fee for the extra benefits, in return you are given products such as travel insurance, breakdown cover and mobile phone insurance.
Packaged bank accounts aren’t necessarily a bad product, what they can offer you is a partially or fully covered insurance option with one provider, making it easier to manage your finances. If the providers that offered them would have sold them correctly, they wouldn’t have received a bad reputation.
- Was your account upgraded without your knowledge?
- Your provider should have given you the option to upgrade to a fee paying packaged bank account.
- Were the costs of the account clearly explained to you either by an advisor or in writing?
- Any costs associated with a packaged bank account should have been clearly explained to you.
- Were all the additional products of the premium account clearly explained to you either by an advisor or in writing?
- The packaged bank account and all the extra benefits should have been clearly explained to you at the point of sale.
- Were you told that a by having a Packaged bank account it would increase your chance of securing a loan or credit card with the bank?
- Your packaged bank account provider should not have attempted to entice you with future approval of credit.
- Did the advisor or application process explain that this account was optional?
- You should have been made aware that you could shop around for a cheaper packaged account or have a non-fee paying account with the same provider.
- When you first had the packaged bank account, did you (or any account holder) have any issues with your health?
- Any pre-existing medical condition may not have been covered by your packaged bank account and you may have incurred extra charges if making a claim, which you should have been made aware of.
If you pay a monthly fee for your bank account, there is a good chance you have a packaged bank account. If any of the above statements are relevant to you, there is a chance you have been mis-sold your packaged bank account and you should start your claim.
Start your packaged bank account claim yourself
You can start your packaged bank account claim against your provider today, with a bit of research and time spent writing a complaint letter outlining the reasons you think you were mis-sold.
Once you have sent your complaint letter to your provider, you will usually have a response within 8 weeks either giving you a final decision, asking you for more information about your complaint or just acknowledging the complaint.
If your packaged bank account complaint is rejected by your provider, you can escalate the claim to the Financial Ombudsman Service who will make a decision as to whether the provider had valid grounds to reject the claim. The decision that the Financial Ombudsman Service makes will have to be accepted by you and the provider, so it is worth escalating your complaint if you think you have valid grounds.
The disadvantage of making a packaged bank account claim yourself is the time it can take and also the expertise to navigate through the complaint process. Sometimes the packaged bank account providers will try and frustrate the claim process and even unjustly reject your complaint, but if you enjoy a challenge then making a claim yourself will save you any claims management fees if your complaint is successful.
Using a claims management company
The easiest way to make a packaged bank account claim is to use a Claims Management Company, also known as a CMC. With expertise in the industry, they can usually identify if you have valid grounds to make a complaint and how likely you are to be successful. A claims management company will handle your claim from start to finish, dealing with any correspondence with your provider regarding your packaged bank account claim. The only downside is that they will charge you a fee of any compensation you are awarded, but there is a positive to being charged this fee!
A claims management company will only be paid if they are successful with your claim, which means they will be reluctant to take on a mis-sold packaged bank account claim if they don’t believe you have valid grounds. If they do take on your claim, you can rest assured that they will fight tooth and nail to get you the compensation you are due, otherwise they don’t get paid!