Money Saving Expert has issued a warning about packaged bank account mis-selling – and it could mean you’re owed a hefty refund
Customers of Natwest, Lloyds and other banks could be due refunds amounting to thousands of pounds from their current or former providers, as per Money Saving Expert (MSE). These refunds are applicable to certain individuals who pay, or have paid, monthly bank account fees. MSE has stated that many of these accounts were “systemically mis-sold”. Known as packaged accounts, these usually come with a monthly fee, but if used correctly, they can actually save customers money on things like breakdown cover or travel insurance.
MSE explains that regulations require banks to have ensured any extras, such as insurance, were suitable for the customer. Other forms of mis-selling “include being told you needed a packaged bank account” to qualify for another service, or being “‘upgraded’ without your consent”.
One MSE follower, Olivier, shared his experience of opening a free NatWest Current Plus account in 2000, which was later converted to a fee-paying Advantage Gold Account. MSE commented: “This account was not appropriate and after seeing our site and using our tool he got a refund of fees and interest of £4,542”.
Another individual, Lauren, reached out to MSE via email, stating: “I took out a Silver Account with Lloyds when I got my mortgage nine years ago and was told it would need to be maintained to keep my mortgage rate. After a little bit of work, a few emails and phone calls, I got a full refund plus interest approximately £1,400.”, reports Lancs Live.
“Persistence is key as originally they only offered £400! ” the MSE advice highlights, while stating that victims of mis-selling should receive a refund of fees plus 8% yearly interest on claims. You can find out if you’ve been mis-sold a packaged bank account using MSE’s free online checker here.
