MSE News: FSA: Why we need a packaged account crackdown

wouldbeqaulitymoneysaver

I think Packaged Accounts essentially mean Bank decides what is right for their profits and not for you. DIY add on's in normal way mean Insurance cover of various sorts is you decision and you can be choosy, unless of course the packaged deal is right for one's needs. * I ain't complaining if it meets your needs as it rightly should*

wouldbeqaulitymoneysaver

I agree I think Packaged Accounts are a PPI in the making. Just watch Watchdog et all to see what unfolds. Plus a prog I heard told me that they package insurance deals in job lots to sell to the public. *yeeach*. probably lots of stereotyping of customers going on as well.

magpiecottage

corbyboy wrote: »

While some of the advice such as activating services is useful, I can't help but think much of this is common sense.

I agree. Clearly if they have been told something that is untrue or misleading consumers should be redressed.

However, if a bank is forced to pay redress to a consumer who was too stupid or lazy to think about what they are doing that is unfair not only on the bank but all the other customers who the costs are passed on to.

Similarly it is unfair that the bank (or any other firm) is forced to pay a fee of £500 to FOS even if it has no case to answer like some car clamping scam.

opinions4u

magpiecottage wrote: »

Similarly it is unfair that the bank (or any other firm) is forced to pay a fee of £500 to FOS even if it has no case to answer like some car clamping scam.

Previously, I've been a believer in the current set up of "bank meets all the costs". Basically it's in the indstry's interests to be seen as fair.

Given that many referrals to the FOS still get batted back to the bank without a fee being charged, even after the 8 weeks has passed, I'm not sure a change is needed.

What would you suggest is needed? Nominal fee (£25) payable by the customer, waived in cases of hardship and refundable on success? Or something more radical?

Or perhaps a different charging structure for smaller firms?

Quite interested in others views on this.

scomjak

Amongst other things, my bank offered me free travel insurance if I upgraded my current account. On further enquiry, I found that the travel insurance would have been no good to me as I am over 65 and have a number of pre-existing illnesses. The insurance company would not cover me. I have a friend, in a similar situation, who blithely went on holiday believing herself to be insured. She wasn't.

Most insurance companies will not pay out on your holiday travel insurance policy if you have not informed them of any pre-existing conditions. So, if you think you are getting free travel insurance, make sure there are no reasons why the insurance company would turn you down. The bank won't tell you.

mumsthewordhere

My 82 yo father in law has banked with LTSB since he needed a business loan in the 1950s and they agreed to lend him £200. He has a joint current account with my MIL who is 83, terminally ill and in hospital.

On the third page of his bank statement received today, he says it advises he will be charged £12pcm for a 'Gold Account' from this month. He has no car, no mobile, cannot travel on holiday and has never had an overdraft. How dare LTSB impose these charges on elderly people, it's scandalous?

I haven't seen the bank statement myself yet, but have no reason to think he's mistaken. I have done him a letter to sign & insist they make his account a Classic account (no fee, no extras etc). As he said, if a million people don't read their bank statement, thats £144million pa into Lloyds TSB. Disgraceful!!!

Poor dad thought he'd have to move his bank account, and that's the last thing he needs right now.