Bank account explanation for non entitlement of compensation

shellk

I have had an ultimate reward current account with halifax bank for past 9yrs aporox.It costs £15pm it includes RAC cover,travel insurance,mobile phone insurance etc.i do not need any if these benefits and only obtained the account as I was told it would improve my credit score as it had an overdraft facility.i have only ever previously had a standard bank account and no credit anywhere.on learning of being able to reclaim fees I used the MSE template and wrote to my bank.a couple of days after they rang and said I was not entitled to anything atall as there was nothing on file about the reason it was sold to me and also that I had claimed on one of the insurance benefits.i did register for the mobile phone insurance but on trying to make a claim I was very frustrated so I didn't proceed and instead reverted bk to my mobile phone provider insurance.
is this a valid reason for my non entitlement?
has anybody else experienced similar reasons?
should I contact the financial ombudsman?

dunstonh

and only obtained the account as I was told it would improve my credit score as it had an overdraft facility.

A current account does improve the chances of a successful pass on a credit score. I can verify that from my past banking days. The addons that are available have nothing to do with credit score.

i have only ever previously had a standard bank account and no credit anywhere.

What do you mean by standard bank account? A current account or a deposit/savings account? A current account is a credit facility even if you dont use it or dont have an approved facility.

on learning of being able to reclaim fees I used the MSE template and wrote to my bank.a couple of days after they rang and said I was not entitled to anything atall as there was nothing on file about the reason it was sold to me and also that I had claimed on one of the insurance benefits.

It is very hard to claim mis-sale that you didnt need it when you have actually used (or tried to use) one of the features available.

.i did register for the mobile phone insurance but on trying to make a claim I was very frustrated so I didn't proceed and instead reverted bk to my mobile phone provider insurance.
is this a valid reason for my non entitlement?

The fact you registered the insurance confirms you knew about it and the fact you decided not to continue a claim does not indicate you were mis-sold.

should I contact the financial ombudsman?

The successful ones tend to be people that would never use the features. i.e. mobile phone insurance for those without mobile phones. Or travel insurance for those that never travel or have health issues that would make the insurance worthless. RAC cover for those without a car. Those that have used the services tend to be less successful on complaint.

You can refer it to the FOS but your case is weakened compared to most that succeed.

Atidi

shellk wrote: »

I have had an ultimate reward current account with halifax bank for past 9yrs aporox.It costs £15pm it includes RAC cover,travel insurance,mobile phone insurance etc.i do not need any if these benefits and only obtained the account as I was told it would improve my credit score as it had an overdraft facility.i have only ever previously had a standard bank account and no credit anywhere.on learning of being able to reclaim fees I used the MSE template and wrote to my bank.a couple of days after they rang and said I was not entitled to anything atall as there was nothing on file about the reason it was sold to me and also that I had claimed on one of the insurance benefits.i did register for the mobile phone insurance but on trying to make a claim I was very frustrated so I didn't proceed and instead reverted bk to my mobile phone provider insurance.
is this a valid reason for my non entitlement?
has anybody else experienced similar reasons?
should I contact the financial ombudsman?

Step 2. Have I been mis-sold?
If you were flogged insurance, the rules mean banks need to check the cover is suitable. It's this that has often failed to happen. The key is what you were told (or often NOT told) at the point of sale or upgrade.
Banks have a responsibility to ensure the insurance was right for you at the point they sold it.
Here are the key mis-selling categories. If you fit one or more of these, you're likely to have a case (if any apply, go to the how to reclaim section):
The mis-selling checklist
1. I was told I had to get it, eg, to get a mortgage
Customers were often told they had to sign up to a packaged account to get a loan, mortgage or other product. Or that their other application would be declined if they didn't get a packaged account. This is blatant mis-selling.
Sometimes it'll be a straightforward lie that you had to get the account, but on other occasions, sales staff wouldn't have told you about a free alternative.
...
8. You were told having one would improve your credit score
Good financial management will help your credit score, not a packaged account specifically. If you were told this, and took one out as a result, head to step three for what to do next. And if you're after ways to boost your credit score, see our Credit Rating guide for tips to making yourself more financially attractive.

http://www.moneysavingexpert.com/reclaim/reclaim-packaged-bank-accounts

However, as the bank said, you took (or started to take) advantage of one of the included insurance products.

You say you had alternative cover for the mobile phone at the time of the claim and you eventually claimed on that. Did you, knowing you had two different insurances for the same peril, advise the insurance company you did eventually claim off that you had this alternative cover?
If so, they may have shared the costs of your claim. If not, you could be opening a huge can of worms.

On the other hand, if you already had the mobile insurance cover in place at the time the bank account was sold to you, and the bank did not make proper enquiries of you at the time, then perhaps you could argue you were mis-sold on this basis.

I sometimes find this hard to understand, as I know in the past when bank staff used to try and sell me the virtues of these packaged accounts, they would tell me it offered the likes of breakdown cover and travel insurance and I would just say I already have these so why would I want to pay the bank again for such cover. They then tried price, but at £180 a year (£15 a month) I told them that was more expensive than the cover I already had in place (and was unlikley to get any rebate even if I did cancel the existing cover)

You can take any claim to the ombudsman if 8 weeks have passed since your original complaint, or if the bank have provided you with a final letter stating you may take the matter to the ombudsman. Only you can decide if you think this would be worthwhile.