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
UK banking sector continues to grow
A survey by the Confederation of British Industry and PricewaterhouseCoopers has confirmed that the UK financial sector continues to improve with profitability increasing for the fifth quarter in a row. However, despite the fact that the growth figure was the fastest quarterly increase since June 2007 it would appear to have fallen short of forecasts from analysts. So what does this mean for the f...
Read MoreBritish Gas looks to direct debits
British Gas has announced plans to substantially increase the number of its customers paying their bills by direct debit.The energy supplier is looking to take advantage of the one-day postal strike by Royal Mail staff by highlighting the benefits of paying by direct debit rather than having to rely on the post.British Gas is intending to see a ninefold increase in the number of its customers who...
Read MoreReclaiming 'unfair' charges can lead to 'unfair' commission
As more and more bank customers are trying to reclaim what are seen as unfair charges from their providers, one reclaim company has stood up against colleagues who charge high commission.iWantMyChargesBack.co.uk is a firm that offers to help account holders through their claims cases for a flat fee and has slammed fellow companies that draw up to 40 per commission for their work. The claims compan...
Read MoreIs the UK government about to be embarrassed over the Icelandic affair?
Amid claims that the government were aware of problems in Iceland prior to the collapse of the country's financial sector there are growing calls for a thorough investigation into the collapse where confirmation about what the government did and did not know would be requested. As we discussed yesterday there are claims that Gordon Brown knew about problems as far back as March 2008 although no ac...
Read MoreDo Irish banks now have a competitive edge?
News that the Irish government has guaranteed all bank deposits in the country has led to some rather serious questions across Europe with the European Commission now taking a more of an interest in the situation. Aside from the fact there are many who actually believe that the scheme is illegal many are now starting to ask whether Irish banks have a competitive edge over their European counterpa...
Read More