The term packaged bank account (PBA) or paid-for account may be unfamiliar. Most people will know them by the name of the product in their particular bank. There are many names in use such as Premium, Gold and Reward. These types of accounts charge a monthly fee and give you a range of insurance and non-insurance benefits in return. Packaged bank accounts have been named as one of the top 10 most useless financial products by Which?
This poor reputation comes from the fact that many of the benefits being paid for aren’t of any use to the account holder. They might be providing free mobile phone insurance, breakdown cover and travel insurance but if the account holder isn’t using them what use are they?
There is increasing evidence that huge numbers of packaged bank accounts have been mis-sold. You could get back all of the money you have spent on your packed bank account plus interest! If you believe your account isn’t providing value for money its time you asked yourself the question, was my packaged bank account mis-sold?
There are many ways that packaged bank accounts were mis-sold.
I didn’t need the benefits
Having mobile phone insurance and travel insurance is fine, but if you already had insurance on the phone and had no plans to go abroad these benefits aren’t of any use. And even if you did need the insurance could you have bought it cheaper elsewhere?
Insurance not fit for purpose
Many of the claimants we deal with were give free travel insurance as a benefit. However, when they submitted a claim they were told they were too old to claim or were excluded because of a pre-existing medical condition they were never asked about.
Lack of instruction
It can be the case that even when the insurance could have been of use that the account holder wasn’t told that they would need to register their details with the insurance company.
You have to have one
We often hear about customers who were told they had to have a packaged bank account to qualify for a mortgage, loan or even an overdraft.
I never even knew!
We are always surprised at the number of our clients who tell us they didn’t even know they were paying a fee for additional benefits. It could be a mistake by the bank or you may have been upgraded without your consent.
We are often not the first port of call for our clients; many have tried to cancel with their bank only to find it incredibly difficult. If this has happened to you, let us fight your case.
Sharp sales practices
As with most things in life there is a right and wrong way of selling something. If you think your account wasn’t sold to your fairly tell us. For example, were you told that having a packaged bank account was a privilege? Or perhaps you were never told the full cost or felt pressured into it by a pushy sales person or were told it was a way to improve your credit score?