Packaged account mis-selling victims can claim compensation

Former_MSE_Guy · 9 January 2012 at 2:28PM

This is the discussion thread for the following MSE News Story:

"If your bank has mis-sold you a paid-for 'packaged' account, you can claim your money back ..."

Read the full story:
Packaged account mis-selling victims can claim compensation

fannyanna · 9 January 2012 at 3:21PM

I'm confused.

I am aware that the FSA are looking into packaged accounts and how they are sold but your article makes it look as though their review has been completed and they have come to the conclusion that there has been mis-selling and that consumers can start seeking compensation.

Has the FSA concluded their review or is your article misleading?

Please clarify!

Alpine_Star · 9 January 2012 at 5:47PM

fannyanna wrote: »

I'm confused.

I am aware that the FSA are looking into packaged accounts and how they are sold but your article makes it look as though their review has been completed and they have come to the conclusion that there has been mis-selling and that consumers can start seeking compensation.

Has the FSA concluded their review or is your article misleading?

Please clarify!

Why would the FSA want to go through the expensive and time-consuming process of issuing consultation papers on introducing new rules on selling packaged accounts if they didn't think there was a significant mis-selling issue?

fannyanna · 9 January 2012 at 6:21PM

Alpine_Star wrote: »

Why would the FSA want to go through the expensive and time-consuming process of issuing consultation papers on introducing new rules on selling packaged accounts if they didn't think there was a significant mis-selling issue?

I'm not saying there isn't an issue. I'm just saying that I think it's misleading and wrong of MSE to state that the FSA has said people can claim compensation for mis-selling. I can't find such reference from the FSA but perhaps I'm wrong. That's why I asked MSE to clarify the point.

2sides2everystory · 9 January 2012 at 6:33PM

Of course they are generally missold, especially in the branches. Most banks have even been so lazy as not to produce a tailored demands and needs statement such that the D&N stement is just another single sheet piece of bumf handed across the table after "sign here and here and here".

What's the problem?

Alpine_Star · 9 January 2012 at 6:56PM

fannyanna wrote: »

I'm just saying that I think it's misleading and wrong of MSE to state that the FSA has said people can claim compensation for mis-selling.

You must be reading a different article because the one linked to this thread only states that it is the FOS who said people could claim compensation.

corbyboy · 9 January 2012 at 10:57PM

I am not sure I understand the mis-selling of paid-for accounts. The bank clerk gives you a list of the "benefits" of the account and you need to decide if it's for you or not. Why are people agreeing to buy accounts that are not suitable for them?

As for the example of the elderly couple who were moved to a paid account, how is this mis-selling? No selling occured. Surely the bank clerk who did this was comitting a simple case of fraud?

stclair · 9 January 2012 at 11:37PM

I guess this will be an interesting one... As when a bank sells these products there with the customer for at least 20 mins if not longer explaining all the benefits etc

HoneyAndLemon · 10 January 2012 at 12:26AM

Having worked in a sales department 'selling' these accounts, the scripts took about 15-20 minutes to read, customer had to agree to it at several points throughout. we could only tell them factual information about the account. all calls recorded etc.

dont see how any of it could be mis-selling. but i have no doubt this will be the next thing customers latch onto. perhaps in the branch it was different because they couldnt be monitored the same way.

Alpine_Star · 10 January 2012 at 7:08AM

HoneyAndLemon wrote: »

Having worked in a sales department 'selling' these accounts, the scripts took about 15-20 minutes to read, customer had to agree to it at several points throughout. we could only tell them factual information about the account. all calls recorded etc.

I see.

So if a typical packaged account is made up of say 6 different insurance policies (plus the account T&Cs themselves), you reckon that about two and a half minutes is enough to cover all the benefits,,eligibility, suitability and exclusions of each product for a particular customer to make a genuinely informed decision.

This is the problem isn't it?

These products are being flogged as current accounts with bells whereas they are in fact insurance products and as such should be sold and regulated as such.

In my view the FSA have correctly understood that bundling the products should not mean that the sales process should be bundled.

Paulgonnabedebtfree · 10 January 2012 at 8:10AM

I wondered about the validity of referring to this as mis-selling too. If things were concealed from the prospective customer at the time of taking up the offer then I suppose it is.
What also occurred to me is that if any of the bundled items are only available if you open an account, that might be mis-selling. Could such instances come under the heading of only being able to obtain a particular product if you also buy another product - something that was outlawed quite a long time ago. My guess is that the latter may be the case. I see that some accounts were added without consent too. When will these sharks stop doing such things?

Packaged account mis-selling victims can claim compensation

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