Packaged account mis-selling victims can claim compensation

Thrugelmir · 12 January 2012 at 10:22PM

[QUOTE=Molly_Magic;50142879
I phoned to reject the upgrade but was advised that I am unable to retain the Advantage account and the only other option is a free current account without "benefits".
Any ideas / suggestions?[/QUOTE]

Choose one of the 2 options............

lucy010112 · 13 January 2012 at 11:03AM

Hi there,

I believe I was mis-sold a packaged bank account: I asked in branch and over the phone about having a debit card instead of just a cash card some years ago. I was told that only the "Gold" account or higher came with a debit card, so I had to pay for the account, which came with lots of extra insurance products (none of which I have ever used, except the travel insurance). I agreed to the change and have been paying £12 a month for around 10 years.

It was only recently that I realised they do have a basic bank account with a debit card, and because I specifically asked the bank this. They still tried to tell me I shouldn't switch to the basic account, but to their "Silver" account, with a slightly smaller fee and less added insurance products.

In the past the bank had given me free "Wealth Checks" to see if I was using the full benefits of the package account, and every time they said I should stay with the account. When I told them I only used the travel insurance, they said that alone was worth paying the £12 a month for. I'm new to Money Saving, and had trusted what my bank told me. It's only now I've seen the relevant articles that I realise we have to push banks for basic accounts.

Are there any templates we can use (there are templates for PPI claims and bank charges claims) to use as the basis for initial complaint to the bank?

Thanks
Lucy.

HJA · 13 January 2012 at 12:35PM

Like Lucy I was told similar.
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 and there was no alternative account for my needs at the time. I have used the travel insurance which is excellant, I've just been caught out with the mobile phone insurance as I didn't report the fault immediately, who does if your phone turns it self off you live with it for a bit. When I complained I was told it was my fault for not reading my pack. My pack which I received 10yrs ago....I have now written to the bank asking for an up to date benefit pack but they are too keen to direct you to the website. I want a paper copy to read when travelling etc. The preferential rates they offer and discounts on goods are not very good. I've found cheaper, better house insurance and cheaper white goods, dvd's etc on line via here or comparison sites.

It appears that they are concerned about switching as Natwest called yesterday offering me a financial review, and checking that I was aware of the benefits of the advantage gold account. The natwest website now has a tab for this account

lucy010112 · 16 January 2012 at 3:37PM

Hi HJA,
I'd be interested what Natwest tell you in your financial review - they seemed to suggest I should keep paying for the account, even though I only used one benefit.
Another thing I remembered is that I took out a credit card with Natwest, and because I had an Advantage Gold account, I should have had a preferential rate, but it was not automatically applied. When I applied for the credit card, they knew I had an Advantage Gold current account because they linked the credit card to it! It was only when I called (again, probably at least a year or so later) that they told me I should have been on a better interest rate.
Are you going to try and seek the monthly charges back from Natwest?
Lucy.

leclerc · 17 January 2012 at 12:48PM

lucy010112 wrote: »

Hi there,

I believe I was mis-sold a packaged bank account: I asked in branch and over the phone about having a debit card instead of just a cash card some years ago. I was told that only the "Gold" account or higher came with a debit card, so I had to pay for the account, which came with lots of extra insurance products (none of which I have ever used, except the travel insurance). I agreed to the change and have been paying £12 a month for around 10 years.
That is blatant misselling and I have heard that old chestnut before as well.
It was only recently that I realised they do have a basic bank account with a debit card, and because I specifically asked the bank this. They still tried to tell me I shouldn't switch to the basic account, but to their "Silver" account, with a slightly smaller fee and less added insurance products.

In the past the bank had given me free "Wealth Checks" to see if I was using the full benefits of the package account, and every time they said I should stay with the account. When I told them I only used the travel insurance, they said that alone was worth paying the £12 a month for. I'm new to Money Saving, and had trusted what my bank told me. It's only now I've seen the relevant articles that I realise we have to push banks for basic accounts.
That is utter nonsense what they told you.
Are there any templates we can use (there are templates for PPI claims and bank charges claims) to use as the basis for initial complaint to the bank?

Thanks
Lucy.

Lucy, I would simply write to the bank concerned and specifically state what you were told above and I would look at the quotes for insurance and state that in your circumstances that only x or y benefit gave you what you required for the account. MSE is in the process of doing a guide which will be available soon. I am not a fan of templated letters because I think you need to explain your individual circumstances and why you feel it was missold. From what you have said, then clearly it was missold and when you complained about it they simply said that paying nearly £150.00 for travel insurance was reason for keeping the product. Clearly it is not.

leclerc · 17 January 2012 at 12:50PM

HJA wrote: »

Like Lucy I was told similar.
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 and there was no alternative account for my needs at the time. I have used the travel insurance which is excellant, I've just been caught out with the mobile phone insurance as I didn't report the fault immediately, who does if your phone turns it self off you live with it for a bit. When I complained I was told it was my fault for not reading my pack. My pack which I received 10yrs ago....I have now written to the bank asking for an up to date benefit pack but they are too keen to direct you to the website. I want a paper copy to read when travelling etc. The preferential rates they offer and discounts on goods are not very good. I've found cheaper, better house insurance and cheaper white goods, dvd's etc on line via here or comparison sites.

It appears that they are concerned about switching as Natwest called yesterday offering me a financial review, and checking that I was aware of the benefits of the advantage gold account. The natwest website now has a tab for this account

if you pay £150.00 a year and the cover does not benefit you then you can downgrade the account for a non paying account. I think you need to read Martin's guide to insurance cos there are alternatives for travel insurance and mobile phone insurance

wegle · 18 January 2012 at 12:45PM

I have today sent a letter off to LTSB stating I believe we were mis-sold the account on the grounds that:

the benefits available we already had cover for e.g AA Breakdown,

Some benefits we would never use and had the right questions been asked this would have been obvious, e.g Interest rate on balance over £3000, interest free overdraft (we don't have a good enough credit rating for overdraft), Travel Insurance (we don't go overseas).

We specifically asked for a free account but were bullied/co-erced into taking out the paid for account which was completely unsuitable for us.

I've requested that they downgrade the account and refund the full amount of account fees we have paid. I shall let you know how I get on.

whitewater_2 · 18 January 2012 at 9:05PM

teganfaulkner wrote: »

I have today sent a letter off to LTSB stating I believe we were mis-sold the account on the grounds that:

the benefits available we already had cover for e.g AA Breakdown,

Some benefits we would never use and had the right questions been asked this would have been obvious, e.g Interest rate on balance over £3000, interest free overdraft (we don't have a good enough credit rating for overdraft), Travel Insurance (we don't go overseas).

We specifically asked for a free account but were bullied/co-erced into taking out the paid for account which was completely unsuitable for us.

I've requested that they downgrade the account and refund the full amount of account fees we have paid. I shall let you know how I get on.

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. If they still have the demands and needs statement you agreed to i doubt you will have much luck.

Worth a try though

Shirleyk · 8 February 2012 at 6:13PM

I wrote to Lloyds TSB in the second week of January as I believe that I was mis-sold a Packaged Bank Account. I have not heard anything from them, not even an acknowledgement. I was wondering if anyone else had written to Lloyds TSB to complain and if so, have you had a response? If you have received a response how long did it take?

Thanks.

financial_ombudsman_representative · 9 February 2012 at 5:48PM

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

Packaged account mis-selling victims can claim compensation

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free