Mis-Sold Packaged Bank Account Complaints Rise as More are Withdrawn
Posted on: June 16th, 2014 | Author: crystaladmin
Mis-sold Packaged Bank Account concerns as HSBC are the next bank to pull the plug
HSBC are the latest bank to suspend the sale of their packaged bank accounts, not long after growing concerns about the rise in mis-sold Packaged Bank Account complaints.
HSBC stated that the suspension of their Advance Current Account was unrelated to any regulatory scrutiny but they are now the 4th high street bank to make changes or remove their paid for accounts completely.
In January 2013 Lloyds pulled the plug on the sale of its Packaged Bank Accounts in branch and over the phone so that they could “harmonise” the way they were sold and to re-train their current sales staff. Barclays updated their range of Packaged Bank Accounts so that customers could choose what insurance benefits they wanted and in October last year Santander stopped selling Packaged Bank Accounts altogether so that it could improve its customer service and simplify its range of current accounts.
1/3 of consumers with a Packaged Bank Account have never used any of the benefits
All banks state that their decision to change their range of Packaged Bank Accounts has nothing to do with concerns that a predicted 1 in 5 accounts have been mis-sold.
New rules introduced in March 2013 revealed that a firm must take reasonable steps to establish whether the customer is eligible to claim under each policy and inform them whether or not they would be eligible to claim. They must also provide the customer with an annual statement that sets out any qualifying requirements to claim under each policy and remind them to review whether they meet these requirements. A firm must also ensure the suitability of its advice on a policy included in the package.
Currently 10 million UK adults have a packaged bank account but according to a survey by consumer group which? Only 30% use any of the benefits, this could mean that up to £320 million is being wasted in bank account fee’s every year.
The Financial Ombudsman recently reported that Packaged Bank Account complaints have increased by 248% since last year and have overturned 80% in favour of the consumer. The majority of complaints have been around the sale of these accounts and the exclusions in the policy that the consumer only became aware of when they tried to make a claim on the policy.
The Financial Ombudsman only deals with complaints that have been rejected by the bank which suggests the true level of Packaged Bank Account complaints could be a lot higher.
Concerned that your Packaged Bank Account was mis-sold? We’ve helped hundreds of our clients recover their fees. Simply complete an online form and one of our friendly & professional advisors will call you back, or call us on 01270 44 66 44 and we’ll be happy to answer any questions you may have.