PBA Claims

PBA Claims

Packaged Bank Accounts offered perceived benefits for customers in return for a fixed monthly sum. For many people, the benefits were irrelevant, offered poor value for money or the benefits would never have been payable.

In some cases, some customers were mis-informed that they needed to take a packaged account to obtain an overdraft, mortgage or loan.

There are approximately 10 million UK adults with a packaged bank account. Most of the accounts include products such as travel insurance, mobile phone insurance, car breakdown cover, airport lounge access and a range of discounts on products and services.

An investigation by Consumer group Which? Found that 1/3 of people with packaged bank accounts had never used any of the benefits. As a result, this could amount to £240-£320 million in wasted bank fees every year.

How were packaged bank accounts mis-sold?

Reasons for packaged bank account mis-sell are:

  • The PBA account was automatically upgraded without the customer’s consent.
  • The consumer was not offered a fee-free alternative account.
  • The cost of the PBA account was not explained, the client knew that they had benefits but did not realise that there was a cost.
  • The customer tried to make a claim on the policy only to find out that they were not covered.
  • The customer found that there were too many limitations on the policy that they would not have had if they had taken the insurance as a standalone policy.

Mis-sold PBA FAQ’s

The Financial Ombudsman reported that there were a number of cases where clients did not know that they had a packaged bank account; this was because the paid account was upgraded without their knowledge.

People who have an overdraft might see the word “charge” on their statement and believe that this is an overdraft charge when it’s actually a charge for a packaged bank account.

If you don’t know if you’ve got a paid-for account you can look at your statements for the word charge.

If your packaged bank account had been mis-sold then you should get back all the monthly fees that you have paid plus interest. E.g if you’d been paying £24 a month for 2 years you will receive £24 x 24 (months) £576 + £46.08 (8% interest) = £622.08*

You should receive 8% in interest on any claim, this is because it is predicted you would have made this amount of interest if you had not paid for the packaged bank account.

If your packaged bank account is still active or ended within the last six years then you can set up a claim. If you closed your account over six years ago then it could be a little more difficult. This is because there is a period of six years within which you can make a claim for misrepresentation or breach of contract. As a result of this, banks don’t need to keep records that are over six years old.

Which banks sold packaged bank accounts?

Packaged bank accounts can cost between £6.50 -£40 a month and are offered by a range of banks under various names, such as “Account Plus”, “Premier Account”, “Gold Account”, “Privileged Account” and finally, “Reward Account”.

Making a PBA Claim

Let us do all the hard work for you. Our simple and transparent process guides you through each stage without hassle.

Crystal Legal Services Ltd is regulated by the Claims Management Regulator in respect of regulated claims management activities CRM20182. Company registration 6837474.

Get in touch with our expert team today to start your claim.

* If you choose to pursue a PBA claim with us we will send you some paperwork to complete to start the claims process. Once you return the paperwork we will commence the claims process. If the PBA claim is successful, our fee is 30% + VAT. A fee may be payable if you cancel after the cooling off period or we are successful in reclaiming any redress.

PBA Form

Simply fill in this quick form and one of our friendly and professional advisers will call you back.
  • We only need the first part, CW1 for example. This helps us match you to your referrer.

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