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April 28, 2016

How have Packaged Bank Accounts developed over the years?

Complaints filed against the mis-selling of packaged bank accounts (PBAs) towards major banks have risen over the years and much like PPI, PBA claims are now in full swing. As stated in our 2015 article on packaged bank account claims, this has proven to be yet another hit to the reputation of The UK High Street Banking Sector.

The number of companies taking on PBA claims has increased over the years and although both differ in structures and claim processes, have been branded the new PPI. This has also opened the door for the emergence of companies that are solely dedicated to dealing with packaged bank accounts claims such as here PBA Claims.

Is there a difference between PPI and PBA claims?

It is important to state that there certainly is a difference between payment protection insurance policies (PPI) and packaged bank accounts (PBAs).

Mis-sold packaged bank accountsWith more elements to the account, a packaged bank account has more room for complaint. A PBA offers perks and deals in exchange for monthly payments alongside an existing bank account.

Whereas a payment protection insurance policy is a form of insurance that is sold along with loans and finance agreements in order to secure payments should an individual fail to make payments due to circumstances such as illness or unemployment.

As the CMR bulletin states, it is important to acknowledge that the laws and regulations surrounding packaged bank accounts has changed numerous times over the years, this, along with the laws at the time of sale, needs to be taken into consideration when considering eligibility to submit a claim.

What is a packaged bank account and how do I know if I’ve been mis-sold one?

Packaged bank accounts are provided by your bank and are usually sold as an add-on to your current account. You can find yourself from five to 35 pounds a month in exchange for “perks” and discounts via your PBA. The perks usually included in a PBA are:

  • Breakdown cover
  • Gadget insurance
  • Travel insurance
  • Emergency home cover

With regards to questioning whether you have been mis-sold a packaged bank account, there is often a few common tell-tale signs.

It has come to light that in many cases, the benefits that packaged bank accounts have to offer do not apply to the account holder. For instance you may have breakdown cover included in the bundle however you may not own a car. This is a common sign that your PBA may have been mis-sold to you.

Here are some other ways that may define whether you have been mis-sold a packaged bank account:

  • You were told that having a PBA was needed in order to apply for a mortgage or loan
  • You were not aware that you were paying a monthly fee and you were told your account was being upgraded
  • You were not given a choice with regards to having a PBA and told that it was mandatory

Ensure you are fully aware at all times what is included in all of your bank accounts and that you know exactly where your money is going.

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