Find out if you can claim a refund

Krzysztof Grubecki

compensation claims expert

Every bank in Great Britain that offers or sells packaged bank accounts is required to inform the client with regards to any charges, fees and services before obtaining their signature. Furthermore, the bank employee has a duty to advise how the client may benefit from the services offered under the account management and how to use it.

You may be able to reclaim packaged bank account fees if you were mis-sold the account.

When selling a (packaged account), every bank in Great Britain now has to:

  • Check you would be eligible to make a claim under each policy in your account.
  • Give you an annual statement, explaining how to claim each of the benefits included in your packaged account.
  • Check whether each policy is suitable and inform you if some are not.

See what the process of reclaiming the bank charges looks like

Some banks sell packaged bank accounts without fully informing customers, whom unknowingly sign the agreement.
Below, you may find the most common ways of mis-selling packaged bank accounts.
If any one of these scenarios sounds familiar to you, then you may have a case to reclaim the packaged bank account fees. Basically, if the extras on the account are not suitable for you, or you were not aware of the features on the account, then you may be able to claim.

Am I eligible to claim for a mis-sold packaged bank account?

In 2013, it was estimated that around 11 million people paid up to £300 per year for a packaged bank account and it is estimated that as many as one in five packaged bank accounts may have been mis-sold**.

Packaged accounts were mis-sold in a number of different ways, ranging from direct face-to-face sales in local branches to automatic ‘upgrades’.
If you pay for your bank account or have had a bank account that you paid for and you feel it may have been mis-sold, contact us to find out if you could reclaim your packaged bank account fees.

Suddenly, I was informed that I need to start paying charges

You were told you had to sign up for the packaged bank account in order to obtain or make changes to another financial product such as a mortgage, loan or overdraft without being given any other fee-free options.

My monthly fees increased unexpectedly

The Banks were obliged to write to customers informing them of any price change. If you were never told about an increase in the monthly fee on the packaged bank account, you may have a case to reclaim your fees.

I was never told how to use my insurance

The sales person who sold you the packaged account should have made sure you were aware of any next steps you needed to take and also how to use your insurance policies once set up. For example, if you were not told that you needed to register certain items for them to be covered under the insurance policies.

Nobody told me there would be a fee

Some banks actually switched customers from free bank accounts to fee-paid premium bank accounts without telling them. In some instances this was done as the customer took out a new bank account, although in others, customers were told they were a “privileged customer” and that the account was being ‘upgraded’, but it was not explained that it was a packaged bank account and there was a cost to upgrade.

The insurance wasn’t suitable for me

In many cases, packaged bank accounts were sold without checking the suitability of the insurance products for the customer. For example, many travel insurance policies were sold to people older than the upper age limit specified in the policy terms and conditions or were not asked if they had any pre-existing conditions that may have stopped them claiming against the insurance policy.

I was told I couldn’t cancel the account

If you were told that you could not cancel your account, then you may be able to claim a refund.

I was told I was not eligible for a fee-free account

Wherever a packaged bank account was offered, there will usually have been a fee-free account available to you as an alternative. If you were told that you had no free alternative, you may have a case to reclaim the packaged bank account fees.

Check the list of banks selling packaged bank accounts