The Guardian have published an article over the weekend detailing how the Consumers Association -which?- have found an dramatically sharp increase in the amount of complaints being made to the Financial Ombudsman regarding bank accounts with a monthly premium.
The Ombudsman are now receiving up to 400 complaints a week. Don’t forget that complaints only go to the Ombudsman if the consumer feels they are not happy with the outcome of the complaint after they have already dealt with their bank or building society. The exact amount of weekly complaints going to these banks or building societies can only be speculated about, but we do know that at least 400 a week are being rejected.
Which? has reported that there are 62 million live current accounts in the UK, with 14% of them being paid for. This equates to 8.6 million current accounts with a monthly premium attached to them.
Not all of these accounts are considered to be mis-sold. For instance the Nationwide FlexPlus account is very good value for money. At £10 per month it offers genuine comprehensive breakdown cover, worldwide family travel insurance and mobile phone cover. Not all providers are as good as Nationwide though; with many of them having hidden exclusions which are rarely mentioned at the point of sale. Just as an example, the TSB Select Silver account has most of the features the Nationwide FlexPlus account has but only covers you for roadside assistance. This means if your vehicle cannot be fixed at the side of the road, you better get your wallet out. The cover is also not included for breakdown at home. In this same instance the Select Silver account only covers for European cover as opposed to the worldwide cover of Nationwide.
What it all boils down to is that each and every provider have their own terms and conditions. It is in the small print and exclusions that the true value of these accounts can be found. Some appear to have a genuine interest in helping their customers out, whereas others are still at their old habits of locking people into policies that have not been fully explained.
If you would like to speak to us about the possibility of your packaged bank account being mis-sold, please do get in touch with us where we will be happy to assist you in making a claim for compensation today.
You can reach us by calling 0333 321 0123, writing to It IS Your Money, Quay House, Torquay, TQ2 5BS or emailing us at firstname.lastname@example.org.
Original article published by the Guardian: theguardian.com/money/2014/sep/27/complaints-soar-packaged-bank-accounts-fail-to-deliver