MSE News: Lloyds halts packaged current account sales

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  • biglugs
    biglugs Posts: 2,945
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    At the end of the day however way you look at it you'll get the same cover as a packaged account 50% cheaper if you done it individually the reason people go for these packaged accounts is because £15 or £20 a month sounds cheaper a month then £200+ a year if paid annually.

    Worldwide travel is now cheap as chips along with cashback and roadside assistant and for the other jargon that's put there is as worthless as a plastic pound coin.
    Worldwide travel is cheap as chips for some people. My mother-in-law has a Nationwide packaged account that she swears by because they are willing to give someone her age travel insurance which is very difficult for her to get on the open market.
    You don't get medals for sitting in the trenches.
  • pqrdef
    pqrdef Posts: 4,552 Forumite
    Mobeer wrote: »
    These sort of accounts can be good value if you can take advantage of all the offers
    They're only good value compared with paying ludicrously inflated prices somewhere else. That's the swindle.

    Why do you reckon card protection insurance is so cheap through a bank package compared with buying direct? It's not because the bank is giving anything away. It's because the true cost is only a few quid a year.
    "It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
  • waqasahmed
    waqasahmed Posts: 1,926
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    At the end of the day however way you look at it you'll get the same cover as a packaged account 50% cheaper if you done it individually the reason people go for these packaged accounts is because £15 or £20 a month sounds cheaper a month then £200+ a year if paid annually.

    Worldwide travel is now cheap as chips along with cashback and roadside assistant and for the other jargon that's put there is as worthless as a plastic pound coin.

    This is not true. Home emergency cover alone cost about £15/month for us originally.

    Using the calculator here, it works out:
    http://www.moneysavingexpert.com/banking/best-fee-charging-current-accounts

    With my own account, I pay for breakdown cover separately but if I needed home emergency cover, I'd consider buying a packaged deal instead
  • DaveW007
    DaveW007 Posts: 381
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    biglugs wrote: »
    As with all financial products you really should read about what you are buying and understand what you are getting for your money.

    At Lloyds we were told to advise customers that the particular account was on an introductory offer for that day only. If they take it then that will be the price they pay. If they don't take it that day then the price will rise and they may also loose some of the benefits!

    None of this was true though as there were no introductory offers nor would they have lost any of the so called benefits if they didn't take it that day.

    We (Lloyds staff) were under pressure to sell and we also put customers under pressure to buy from us whether they wanted it or not.

    A favourite was a customer saying they were going away on holiday. We had to ask if they had a credit card to take. If the answer was no they we HAD to sell then Lloyds credit card. Benefits being "free" travel insurance etc etc.
  • waqasahmed wrote: »
    This is not true. Home emergency cover alone cost about £15/month for us originally.

    Using the calculator here, it works out:
    http://www.moneysavingexpert.com/banking/best-fee-charging-current-accounts

    With my own account, I pay for breakdown cover separately but if I needed home emergency cover, I'd consider buying a packaged deal instead

    You'll need to read the t&cs on home emergency cover first before praising it up as I know of two people who also have this where what they thought was covered wasn't actually covered and they ended up paying out shed loads.
  • At the end of the day however way you look at it you'll get the same cover as a packaged account 50% cheaper if you done it individually the reason people go for these packaged accounts is because £15 or £20 a month sounds cheaper a month then £200+ a year if paid annually.

    Worldwide travel is now cheap as chips along with cashback and roadside assistant and for the other jargon that's put there is as worthless as a plastic pound coin.

    Whilst you've a valid point on travel - especially for under 65s with no health issues, if you can use the accounts' features I still think that they can be good value for money.

    Of course the banks and the service providers are making a big profit, but if they price you are paying to the bank is less than the price you'd get it retail - then I still say that these accounts can be good value.

    Of course, as an earlier poster states, this requires that people accept responsibility for what they bought and why.

    I wonder how many people got a Lloyds Platinum or Black account just for the debit card? :rotfl:
  • Been there and got the t-shirt.......reclaimed a few hundred £££ of LTSB Platinum account fees last year ;)
    Mortgage-free for fourteen years!

    Over £40,000 mis-sold PPI reclaimed
  • Mobeer
    Mobeer Posts: 1,851
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    pqrdef wrote: »
    They're only good value compared with paying ludicrously inflated prices somewhere else. That's the swindle.

    Why do you reckon card protection insurance is so cheap through a bank package compared with buying direct? It's not because the bank is giving anything away. It's because the true cost is only a few quid a year.

    Travel insurance is a big benefit with some accounts. 2 adults annual cover when aged 70+ can easily be £120 each even in good health, which if would be equivalent alone to £20/month fee on a shared account that includes travel insurance.
  • innovate
    innovate Posts: 16,217
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    The fact remains that the bank are not giving anything away. They are making money from these packaged current accounts, and probably a lot more than the fee they charge the account holders. If they weren't making a profit from them, they wouldn't offer them.

    Also, as has been mentioned before, travel insurance doesn't equal travel insurance - i.e. there is a vast array of different T&Cs. Simialr for any other benefits offered.
  • dalesrider
    dalesrider Posts: 3,447 Forumite
    waqasahmed wrote: »
    It's not been mis-sold to us. :rotfl:

    And neither has PPI to many people who have claimed it back..... Didn't stop them though, did it.....

    Even had people trying to claim it back, who actually made a claim :mad:
    Never ASSUME anything its makes a
    >>> A55 of U & ME <<<
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