Even though these accounts may sound like a good idea, unfortunately they are not always catered to the client’s needs. Sometimes the terms and conditions weren’t made clear at the point of sale, causing the insurance to be invalid and leaving the client vulnerable if they needed to make a claim.
Many people are unaware they had been sold a packaged bank account and they are not alone. The four points below will help you recognise how a packaged bank account can be mis-sold, and if any of these apply to you, you should take action.
1. You were misled into thinking you required a Packaged Bank Account
Clients may have been told that they needed a packaged bank account to be accepted for a loan, credit card, mortgage or an overdraft, but this may not be the case. Some clients were also told that their overdraft limit could only increase if they upgraded onto a packaged bank account.
2. You weren’t made aware of the Terms and Conditions
When it comes to the terms and conditions of a packaged bank account, there are a lot of things to be considered that may not have been discussed at the point of sale. If your packaged bank account included mobile phone insurance or breakdown cover, the banks may have failed to let you know that if you don’t register the insurance beforehand you would not be covered. It’s not always explained that you’re not automatically registered and this would be something you would have to do yourself online or in branch. For example you could go away on holiday thinking you’re fully insured by the holiday insurance bundled with your bank account, when in reality you’re not covered at all.
Although this may not be intentional, forgetting to mention such information and ensuring the client is fully informed is definitely a form of mis-selling.
3. You were told a PBA would improve your credit score
Categorically a packaged account doesn’t directly improve your credit score. Throughout our years of experience, we are constantly finding that clients are being told if they take out or upgrade to a packaged bank account then it would significantly improve their credit score. Meaning if you were sold a packaged bank account in the hope it would, you may have been mis-sold.
4. The fee for your bank account increased without your consent
A common form of mis-selling is when the banks have simply upgraded their clients from a fee free account to a paid packaged bank account without informing them or getting their consent. This would mean the customer may be unnecessarily paying for benefits they were completely unaware of and that they have no use for.
There are many ways in which packaged bank accounts can be mis-sold. This is why we recommend that if in doubt you speak with one of our trained advisors to discuss your situation. We’ll help you to find out whether you qualify for compensation.
Over the last 12 months we have managed to secure on average over a thousand pounds in compensation per packaged bank account claim.
If you have any questions at all or feel as if you have been mis-sold a packaged bank account, please don’t hesitate to get in touch with one of our financial advisors today.