Package accounts see complaints shoot up
25/08/2015
New figures from the financial ombudsman have revealed that the number of complaints about “package” bank accounts has increased dramatically.
In 2015 so far, banks have received 25,000 complaints about the accounts. This is more than the whole of 2014 combined. The Ombudsman is currently receiving an average of about 1,000 complaints about packaged accounts every week.
Package accounts are current accounts that come with additional benefits such as insurance or cheaper overdrafts, for a monthly fee of between £5 and £25. Most banks and building societies offer these accounts, which are often called “gold” or “premium” accounts.
Many customers believe they have been sold these accounts unwittingly and never wanted the accounts in the first place. Others found once they had the accounts, the benefits did not apply to them and could no be claimed. People also complained when they asked for the accounts to be cancelled but the bank failed to do so.
Barclays bank has already put aside £250 million to compensate customers who were mis-sold the accounts.
The Financial Ombudsman has claimed that it is only upholding about 10% of cases that have come through so far. They also advise that if you feel like you have been mis-sold an account, you should make a complaint to your bank, and then to the ombudsman yourself, rather than go through a claims management company.
Need financial advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Share this..
Related stories
How is the UK banking sector thriving?
Whether or not the top 5 banks in the UK announce cumulative profits of over £8 billion for the first 6 months of 2010 is irrelevant really, but how is the UK banking sector apparently thriving while the rest of the UK struggles to make ends meet? It has been a staggering turnaround for the UK banking arena over the last 12 months, after the multi-billion pound bailout from UK taxpayers effect...
Read MoreUK building societies pull rank
It has been revealed that John Goodfellow, the outgoing chairman of the Building Societies Association, has advised members not to comment on one another's profitability and prospects for the future. Quite rightly, Mr Goodfellow is highlighting the serious nature and damage which rumours can do in the current environment and how even a simple comment can be blown out of all proportion.
Nationwide protests over FSCS bill
The Nationwide building society has issued a stark warning to the Financial Services Authority with regards to the £250 million bill the society has been hit with for its share of the Financial Services Compensation Scheme. The scheme is being put together to ensure that deposits up to £50,000 are guaranteed thereby giving some more backbone to the UK banking system. However, the Nationwide buil...
Read MorePeople with overdrafts can switch bank accounts
22/05/2015 Many people with an overdraft on their current account believe they are unable to switch their account to a different provider, The UKs competition authority has found. Customers with an overdraft don’t think to look around for a better deal, as they mistakenly believe they are locked out of switching their current account. Many high street banks are happy to accept new custome...
Read MoreNationwide closes yet more branches
The so-called "secretive closure" of Nationwide building society branches across the UK seems set to continue with more closures announced this week. Research by the Daily Mail indicates that 15 Nationwide branches have been closed over the past 12 months although there has been no official announcement to confirm this. It would appear that the UK mutual sector is under pressure, as are all financ...
Read More