Packaged account mis-selling victims can claim compensation

di3004

No updates up to now on Shirley's case then?

Maybe still with the FOS.
Just wondered how she got on.

j0hnyoung

Borderlander wrote: »

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!

Any chance of an update on how you claim and what sort of things you put in your letter? You seem to be the only person who has had any reported success so far!

Milano55

I’ve had a packaged bank account for many years now (est. 2003) taken out as my first joint account with my wife. Having written to my bank asking them to provide me with a record that I signed up to the account and that it was suitable for me, they’ve written back to confirm no records of the sale exist. I genuinely don’t recall signing up to this or being offered free alternatives which I now understand were available.

Most annoying is that I had no idea of the benefits that came with the account so I’ve paid for cover like breakdown and travel insurance over the years. It was only in the last year they’ve started to properly communicate with me over the benefits available, and conveniently shortly after starting to communicate they now say the premiums going up by £5 per month to £15.00.

I’ve now submitted a complaint and converted my account to a free alternative. Not overly confident anything will come of it but will keep you posted.

Mara69

Victims? Really? I don't think anyone 'mis sold' a bank account (and the phrase mis sold is used very, very lightly) can be called a victim.

money_maker_2

I never understand how so many people can be "mis-sold" a product.

Unless someone holds a gun to your head and makes you sign up for something its 50/50 blame wise. You have to take a little bit of responsibility for your own actions.

Yes misleading does happen but then its up to the individual to use some common sense and think.... does this suit my needs? Do I need this? What am I signing up for? Can I actually read? Should I be left unattended?

It must be so confusing when you sit with a sales person for x amount of time, sign lots of paperwork, then 3 days later all this information comes through the post addressed to you with yet more details about what you signed up for the other day. Then fees start appearing on your statements each month,yet it takes years and years for people to stop and think... what the heck is this I'm paying for? (or a news article for possible mis-selling at banks forpeople to think "could I have a chance to claim back some cash?".

For those who actually have a real case for a mis-sale get some solid evidence together (not just feel your entitled to a refund because everyone else is) and give yourself a kick up the bum for letting yourself get into the situation.

I wonder how many people who were "mis-sold" ppi also claim for "mis-sold" current account packages?

skintsue

Any suggestions what I can do.
I was put onto a Gold Account after getting a letter from NATWEST telling me I was going to be put onto it, without asking.
Told them I didn't want it in advance of the start date - no car, pre existing medical conditions, cheap mobile worth less than the cover etc.
They still set it up, took the money out so I ended up overdrawn. Only on DLA and Incapacity so they were taking £25 per D/D and S/O they bounced, adding unauthorised O/D fees and interest each month. Some months more was going out to them that I was getting in for food, medical costs etc.
It took months to get anywhere with them before they agreed to put me back - told me once it was upgrade it couldn't be reversed.
Gave me an impossibly high O/D limit (equal to 4 months benefits) which was being used to cover the bank charges only, then chased me to repay it without stopping interest or freezing debt even though I was going through CAB to assist.

Could I recover the extra costs they chased me for by putting me on the fee paying account I had refused?

arcoiris81

money_maker wrote: »

I never understand how so many people can be "mis-sold" a product.

Unless someone holds a gun to your head and makes you sign up for something its 50/50 blame wise. You have to take a little bit of responsibility for your own actions.

Yes misleading does happen but then its up to the individual to use some common sense and think.... does this suit my needs? Do I need this? What am I signing up for? Can I actually read? Should I be left unattended?

It must be so confusing when you sit with a sales person for x amount of time, sign lots of paperwork, then 3 days later all this information comes through the post addressed to you with yet more details about what you signed up for the other day. Then fees start appearing on your statements each month,yet it takes years and years for people to stop and think... what the heck is this I'm paying for? (or a news article for possible mis-selling at banks forpeople to think "could I have a chance to claim back some cash?".

For those who actually have a real case for a mis-sale get some solid evidence together (not just feel your entitled to a refund because everyone else is) and give yourself a kick up the bum for letting yourself get into the situation.

I wonder how many people who were "mis-sold" ppi also claim for "mis-sold" current account packages?

There are many reasons why people can be befuddled by the selling of these products. It could be that somebody is going through a vulnerable time - often financial difficulties (like the need for a loan or overdraft) are the point at which these products are pushed, and often financial difficulties are associated with other stresses such as loss of a loved one, change in employment, moving home, etc. When a nice lady in the branch says "this is the best option for you" then it's very easy to follow the line of least resistance and sign up.

There is an inherent power dynamic when you go to an institution to obtain/maintain credit! I consider myself an assertive, educated and financially aware individual, however I too was led to sign up for a product I did not want or need because I thought it was my only option to retain my overdraft when I left University. And although I was aware there was a fee, this became part of the furniture on my statement, and yes it took several years after paying off my overdraft to realise that actually I could probably downgrade the account! Funnily enough, when I did stop having to pay the fees they didn't take away my overdraft facility, hmmm.

What concerns me the most here is the people buying a second insurance policy because they don't realise what cover they already have. Double cover could lead to both insurers claiming they don't have to pay in the case of a claim, with potentially disasterous consequences...

spiritjester

Does this count?

I took out a personal loan with RBS and the lovely lady (who drove all the way from the branch to my office for me to sign the papers - great service or approaching end of the month target?) advised me that If I took out the Royalties package I would get a 1% reduction in interest on the loan and this would save me money overall. She also made me believe I would have to have the Royalties package for the duration of the loan.
Last summer I asked for a final amount to pay the loan off early and was advised by the helpful chap in the branch that I should have cancelled the Royalties account when the 1% reduction was less than the cost of the Royalties package. I was clearly very unhappy with this and was told to contact the complaints team which I did.

Stupidly I had completely forgotten about this as I didn't hear back from them and this article jogged my memory. I didn't use any of the 'benefits' of the package so do you think I have a case for requesting the difference between the 1% saving and the royalties monthly payment?

_Andy_

I like turtles

bipper

Posted this in the other thread but this seems to be the more popular/longer running one so will post again.


Having dealt with many current account mis-sale complaints in a previous job role, this is not a new 'phenomenon' at all and third party companies have been trying it on for a while already.

To put a bit of perspective from a banks side of any dispute of this type you need to ask yourself these questions:

Why have you only just brought this issue up in the x years of holding the account?

The fee has been showing on every statement sent to you since the account was upgraded, did you not think to query this?

Did you read the 'demands and needs' letters sent to you on a yearly basis that specify what your account is and what the features and benefits are and/or the welcome pack that will most likely have been sent to you?

Have you used the interest free aspect of any overdraft (a feature of many packaged accounts) you may have?


If you answer honestly you could come to the conclusion that even if the account was mis-sold in 1998 (for example) you haven't indicated any dissatisfaction, so how would anyone know it wasn't suitable for you?

If, on the other hand, you are unable to claim or use any of the features and benefits, for example - due to being too old for travel insurance, you have a case.

Saying 'I didn't know' or 'I don't read my statements' isn't really going to cut it so don't expect £100s in compensation, possibly a gesture of 6 months of fees if you are lucky. If you are advised signed documents are held then you have no chance.

Also, there is a cancellation period if you felt intimidated to upgrade.