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Lloyds have refused my claim for a refund what next

I have just had a letter back from lloyds refusing to refund my bank account charges...
I was told Back in 2007 that up grading to a silver account with a charge was the only way that I could have the chip and pin facility on my account.
I did question this at the time as I didn't really need any of the insurances on the account.
But as I have used the mobile insurance once and have my current phone registered with them, and also as I had a review in October last year (that I didn't want or have time for) I'm happy....?
Also it's the customers responsibly to read the terms and conditions etc....
What can I do next? As I'm not just jumping on the band waggon I really did feel wronged but felt I had no choice about it....

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