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Packaged account mis-selling victims can claim compensation
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# 41
financial ombudsman representative
Old 09-02-2012, 4:48 PM
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Hello Shirleyk

I work for the Financial Ombudsman Service - the free service set up by law with the power to sort out problems between consumers and financial businesses. A business has up to 8 weeks in which to look at a complaint - however if you do not get a response or you are not satisfied with the response the ombudsman service may be able to help on 0300 123 9 123.

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I am the official representative of the Financial Ombudsman Service. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"
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# 42
pmduk
Old 10-02-2012, 9:05 AM
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Quote:
Originally Posted by whitewater View Post
at point of sale lloyds do a demands & needs document which shows why you have chose the account, they cant recommend it, they can only give you the info to make a choice.
I can assure you from personal experience in branch they not only recommend these accounts but push them very hard. I could also hear a member of staff making cold calls to sell these accounts to existing customers.
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# 43
Shirleyk
Old 13-02-2012, 12:55 PM
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Quote:
Originally Posted by financial ombudsman representative View Post
Hello Shirleyk

I work for the Financial Ombudsman Service - the free service set up by law with the power to sort out problems between consumers and financial businesses. A business has up to 8 weeks in which to look at a complaint - however if you do not get a response or you are not satisfied with the response the ombudsman service may be able to help on 0300 123 9 123.

Thanks
Phillipa
Thanks for your reply. Today I received a letter from the Complaints Department of Lloyds TSB. Apparrently my first letter was never received by them. Anyway, they are refusing to refund any money to me. They said that there was notes on my file saying that "the home emergency cover was the main benefit for me". This is rubbish as I have Home Emergency Cover with my Buildings and Contents Insurance through another provider. Also, they said that an earlier reference on my account was that I had received preferential rates on a personal loan. They say that they are surprised that I am claiming now when I cancelled the packaged bank account in 2007. This was when I discovered that I did not have to pay for a bank account. I was told at the time of selling the packaged account that accounts were being changed over and I did not have the option of a free account. Anyway, I am totally dissatified with their reply. The letter is actually quite impudent and certainly not what I would call "customer caring". Anyway, what should I do now? Should I contact the FOS by telephone or letter? What method I use, what are my chances of a successful outcome? As we all know Lloyds TSB have taken advantage of many customers over the years by "smooth talking salesmen" in a bid to make a fast buck. Thanks in advance for your reply.
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# 44
Shirleyk
Old 13-02-2012, 12:58 PM
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Quote:
Originally Posted by pmduk View Post
I can assure you from personal experience in branch they not only recommend these accounts but push them very hard. I could also hear a member of staff making cold calls to sell these accounts to existing customers.

I agree with you entirely. Accounts were mis-sold to many customers including myself. None of the benefits were of any use to me. The way the salesmen (sorry the bank employee) sold the account to me was that my account was being changed and that a basic bank account was no longer available. Obviously I believed them. After all, if you can't trust your bank, who can you trust? Well, we've all found out that this is not the case with recent events but I was left with NO option at the time. I only discovered years later that I was paying for something that I DID NOT ask for or require.
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# 45
pmduk
Old 13-02-2012, 1:10 PM
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I can only suggest that you now refer the matter to the Financial Ombudsman Service providing Lloyds TSB say that they have completed their complaints procedure or it is at least 8 weeks since you made the original formal complaint.

Last edited by pmduk; 14-02-2012 at 9:48 AM.
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# 46
Shirleyk
Old 13-02-2012, 3:36 PM
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Originally Posted by pmduk View Post
I can only suggest thast youh now refer the matter to the Financial Ombudsman Service providing Lloyds TSB say that they have completed their complaints procedure or it is at least 8 weeks since you made the original formal complaint.
I've written back to Lloyds and challenged their decision. Clearly they did not read my letter properly. My main point was that the Packaged Bank Account was mis-sold to me. Assuming that they do not amend their decision then I will have no hesitation but to go to FOS. Will keep you posted.
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# 47
Borderlander
Old 14-02-2012, 8:59 AM
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Default mis-sold packaged bank accounts

Wrote to my bank 4 weeks ago as a result of reading your item on mis-sold packaged bank accounts - exactly 4 weeks later and Co-op Bank have just credited my account with 863, the whole amount I had paid since opening the account in 2003. Well done Co-op Bank, well done Martin`s Money Tips!
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# 48
Shirleyk
Old 14-02-2012, 9:30 AM
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Quote:
Originally Posted by Borderlander View Post
Wrote to my bank 4 weeks ago as a result of reading your item on mis-sold packaged bank accounts - exactly 4 weeks later and Co-op Bank have just credited my account with 863, the whole amount I had paid since opening the account in 2003. Well done Co-op Bank, well done Martin`s Money Tips!

I'm pleased for you. At least the Coop have shown the way - the proper way to respond to customers. My battle with Lloyds TSB continues but I will not give in.
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# 49
rockitup
Old 14-02-2012, 2:15 PM
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I have been with Citibank UK for almost 20 years now using their free account but late 2011 they withdrew that account and just upgraded customers to a Plus account with the usual free travel insurance etc.

The travel insurance is of no use to me as I tend to take a long trip every 2 or 3 years and travel for 3 or 4 months, but the policy only includes something like 31 or 45 days.

As of now I just keep the minimum of 20k in a savings account to avoid fees but would rather be free to invest this 20k outside of Citibank (they charge 3% initial fee plus high annual fees)

Does anybody know if any banks who have withdrawn free accounts from their site have in fact allowed existing customers to keep them?

I have not asked Citibank yet as I did not want to risk having my accounts closed as I use 2 US Dollar accounts with them too and these are handy for my travels and online purchases.
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# 50
MyOpinionCounts
Old 23-02-2012, 9:32 PM
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Default LTSB biggest culprits of mis sold PPI

Quote:
Originally Posted by Shirleyk View Post
I was one of the victims of mis-selling when I was advised that I had to change my current account to a gold account. It was then upgraded to a platinum account without me being advised. I initially paid 8 for the gold account which was then increased to 10. My account was then upgraded to a platinum account without my consent and an increase to 15. It then increased in February 2007 to 25 which I thought was ridiculous so I went into the branch and was advised that I did not have to pay for a bank account.

To make matters worse, I did not require any of the benefits of either the gold or platinum accounts. I do not drive so don't requrie AA cover. I have pre-existing medical conditions so don't qualify for standard travel insurance. I have card protection through my Contents Insurance Provider so don't require Sentinel Cover. My mobile phone is provided by my work so I do not require that either. In reality the upgraded account was worthless and all it did was lose me money and help Lloyds TSB increase their profits.

I do not have bank statements going years back but I know I was paying from when these accounts were introduced. Can someone advise me when Lloyds TSB introduced these accounts please? Also, can someone give me the address to make a complaint to Lloyds TSB please?

Thank you in advance.
I read ShirleyK's post with interest. I have banked with LTSB since at least 1985 till today. I made a complaint about mis sold PPI at the end of Nov 2011, however I also complained about Packaged accounts (had one since 1995). I NEVER asked for one but was sold a Gold account on the basis that because I money going thru my account at that time did I know I qualified for......etc, etc, etc. When I later applied for a Loan I was told did I know my interest rate would be better if I had a 'Platinum' account. You get the picture. Unfortunately for LTSB I have ALL my bank statements (bar the 1st year) since opening my account and there is a definate pattern. I have paid thousands of pounds in fees and interest over the past 26 years and have NEVER used any of the benefits on my account apart from 'slightly' lower interest on overdrafts and loans, but because of the large amounts we were encouraged to borrow we never noticed any benefit. I trusted LTSB financial advisors and every time we went in for a financial review we ALWAYS left with a new product (also sold life insurance despite having death benefit worth more with my DH employer). We were exploited when we were most vulnerable and have spent years digging ourself out of a financial pit. I expect LTSB to be as prompt in refunding as they were in taking the money from us in the first place, although we are experiencing the same delays as everyone else.

I have a friend who I advised on reclaiming mis sold PPI from Natwest; she only wrote to them last month and has had an offer of almost 10,000. LTSB simply must do better.

The ironic thing is I wrote to them '8' years ago about mis sold PPI and they partially refunuded a couple of loans stating no accecptance of any liability, so at least I can prove that I am not just jumping on the mis sold PPI bandwagon as I had concerns even way back then. I will wait until middle of next week and call again (sigh).

And for those of you wondering why we stayed with LTSB that long, we had to because of our financial obligations to them, although once this is all resolved we will be moving on, they don't deserve our loyalty.

In answer to Shirleyk's question about when these accounts were introduced, they were definately available during the mid 1990's.
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# 51
MSE Sally
Old 02-03-2012, 4:29 PM
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Default Packaged Bank Accounts - reclaiming

Hi all,

Great news Borderlander! Would be great if you could send me a private message or post how and why you reclaimed. Good luck to those of you trying too.

In general we're very interested in all of your experiences of packaged accounts and in particular, whether you've successfully reclaimed and how.

We're currently researching for a new guide due out soonish so would really appreciate your help.

Thanks ,

MSE Sally
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# 52
iesous23
Old 02-03-2012, 8:34 PM
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I currently pay for my hsbc advanced account, i have no problems paying and i will say that when i did enquire about it, the staff explained everything to me in detail, i was also pushed very hard by lloyds to open a packaged account with them, they did try very hard even when i flat out said no they carried on.

The thing i am going to say is that i think a lot of people nowadays know what they are signing up for, they just have no interest in spending ages in the bank and ignore bits of it. I've seen it before and then they complain because they want something for nothing. Nearly all people know what they pay for, shame that so many people will see they can make money from this and jump on the "i got mis-sold the account" bandwagon
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# 53
rockitup
Old 02-03-2012, 11:15 PM
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Quote:
Originally Posted by iesous23 View Post
I currently pay for my hsbc advanced account, i have no problems paying and i will say that when i did enquire about it, the staff explained everything to me in detail, i was also pushed very hard by lloyds to open a packaged account with them, they did try very hard even when i flat out said no they carried on.

The thing i am going to say is that i think a lot of people nowadays know what they are signing up for, they just have no interest in spending ages in the bank and ignore bits of it. I've seen it before and then they complain because they want something for nothing. Nearly all people know what they pay for, shame that so many people will see they can make money from this and jump on the "i got mis-sold the account" bandwagon
Sounds like you're happy to pay for the insurance element sold with packaged account "benefits"

No way should packaged accounts be forced onto customers, we are not asking for "something for nothing". It is the banks getting "something for nothing" by using our deposits (earning a miserly rate of interest) to lend out or invest with

I have no problems with the bank using our money to make money, that's business. But I do have a problem with all the BS so-called benefit package they force on us.

If a customer wants to pay for all that, fine but let them just ask for it. Travel insurance policies and the like can be bought much cheaper elsewhere if you don't have to fund the huge amounts of commission the banks make when selling these.
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# 54
billbennett
Old 05-03-2012, 1:29 PM
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Originally Posted by HJA View Post
I was switched to advantage gold after i graduated in 1999 and didn't realise that I had to pay for it until about 6 yrs into it
Sorry to sound heartless, but you didn't read ANY bank statements between 1999 and 2005? Not even one? The fee is clearly detailed on the first page every month as "There are charges on your account. These are detailed below, and will be taken on [X date] this month."
In "Monopoly", what makes the "Super Tax" so super?
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# 55
Shirleyk
Old 01-05-2012, 4:46 PM
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I contacted Lloyds in January about this. I heard nothing so I followed it up with another letter. I then received a letter rejecting my claim but was advised to contact them again if I had further information. Since the person who handled my complaint completely mis-read what I had written and did not address any of the points, I telephoned the number given and spoke to someone. He assured me that he would pass it to his colleague. I then followed it up with a letter. This was in February and I've heard nothing since so I have now sent my complaint to the FOS. I doubt if they will come back to me anytime soon due to the large number of PPI claims being received by them. Given that I did not ask for the account, was told that my account was changing and then the payments rose from 8 to 25. I then learnt that I should not have been told that I had to take on the Gold then Premier Account with them. None of the services provided by this "expensive" account were of any use to me. I will update you if I ever get a satisfactory response or a conclusion.
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# 56
hollow333
Old 26-11-2012, 2:55 AM
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Hi there, I am looking for a little advice.
I too feel I was miss sold my Advantage Gold Account. Mine was done in branch back in the late 90's, I had my meeting with the branch Manager to talk about a loan when I left the bank, I had a loan,Credit Card and an upgraded Bank account? I really needed the loan to consolidate other cards and I think the Manager took advantage of this fact for over 15 years I have been paying for this account and have not used any of the benefits that apparently come with it?

Does anyone think I have any recourse to this?
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# 57
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Old 26-11-2012, 7:01 AM
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Originally Posted by hollow333 View Post
Hi there, I am looking for a little advice.
I too feel I was miss sold my Advantage Gold Account. Mine was done in branch back in the late 90's, I had my meeting with the branch Manager to talk about a loan when I left the bank, I had a loan,Credit Card and an upgraded Bank account? I really needed the loan to consolidate other cards and I think the Manager took advantage of this fact for over 15 years I have been paying for this account and have not used any of the benefits that apparently come with it?

Does anyone think I have any recourse to this?
My honest view is: For over a decade you had a monthly charge made to your bank account. Why have you waited until now to ask?
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# 58
hollow333
Old 26-11-2012, 10:16 AM
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I think it is like most things with banks, it is only now coming to light that banks used quite hard sell tactics. Since a child I was always brought up to believe that bank managers were trustworthy members of society, this was not a sales person, I made an appointment with the branch manager to discuss a loan not apply for a credit card or apply to have my free account upgraded, these were sold as being necessary for the loan to be granted and now as it transpires they were not necessary they were sold for the sole purpose of making profit for the organisation. She took advantage of my fear of the loan not being granted.
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# 59
pmduk
Old 26-11-2012, 11:12 AM
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Originally Posted by hollow333 View Post
Mine was done in branch back in the late 90's, I had my meeting with the branch Manager to talk about a loan when I left the bank,

Does anyone think I have any recourse to this?
If I read this correctly, you were working for the bank when sold these accounts? If so, that fact together with the time that has elapsed is certainly going to work against you, unless you worked in a non-financial role.
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# 60
hollow333
Old 26-11-2012, 12:13 PM
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Sorry pmduk when I said "left the bank" I meant walked out the branch.
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