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Packaged Account Complaints Surge

Posted on: March 4th, 2014 | Author:

The Financial Ombudsman (FOS) that settles disputes between consumers and financial firms has revealed that packaged account complaints are increasing.

FOS usually receives around 1600 cases regarding packaged account complaints every year but is currently receiving around 60 a week which mean FOS will receive around 3000 complaint this year alone.

Most people make a complaint after they have tried to make an insurance claim only to find out that their policy offered only limited cover or only pays out under particular circumstances

FOS spokesman Rory Stoves said it had been contacted by people who complained after trying to make a claim on the mobile phone insurance attached to their current account, only to be told their phone was too expensive and was not covered under their policy.

Others had travel insurance claims turned down because they were too old, or had a pre-existing medical condition, said the spokesman for the Ombudsman service.

Mr Stoves said: ‘There are two separate issues we’ve got with packaged accounts.

‘One thing is people who are unaware they have been signed up for one and only find out afterwards when they see the fee on their statement.

‘Then there are people who are aware they have got a packaged account, but when they try to make a claim on one of the policies it gets rejected.’

The reasons why Packaged Bank Accounts have been mis-sold:

  • You were signed up without being told.
  • You weren’t told you could have a free bank account instead.
  • You were told you would get ‘unbeatable’ deals on other financial products or services by taking out this account, but found you could get them cheaper as a new customer.
  • You were told you had to get a packaged account in order to access other products such as a loan or mortgage.
  • You were signed up to an account and your bank knew you wouldn’t be eligible to claim on one or more of the benefits, eg you were too old to be able to use the travel insurance.
  • Your bank or building society failed to tell you that you were no longer eligible for one or more of the benefits, eg you had passed the maximum age limit to claim on the travel insurance.

Consumers confidence with financial firms has been affected by a number of scandals over the last few years, mis-sold PPI and mis-sold mortgages are just a couple of examples in a series of incidents.

If you have a packaged bank account that you feel was mis-sold then we can help you process a claim and reclaim your money. Call us today on 01270 44 66 44 for professional and friendly advice or submit the online enquiry form.