Help regarding reclaiming packaged account

glb84

Hi everybody

I am looking for a little bit of advice regarding reclaiming packaged account charges. I'm acting on behalf of my parents who had an Advantage Gold Account with Natwest twice. The first instance was from April 2003 to April 2008 and the second instance was from June 2011 to last week when they approached the bank regarding this complaint.

They have approached the bank with a complaint regarding the fact that in both instances none of the benefits were ever used. The bank have now responded rejecting the claim for both instances.

The first instance they explained that when they downgraded the account, a complaint should've been raised within 6 months, or 3 years from the date which they first became aware they had cause to complain which was 2011 at the latest.

In the second instance, my parents upgraded their account to an Advantage Gold account whilst applying for a loan as they were told by the advisor that they had to. Natwest have confirmed that my parents haven't used any of the additional benefits. Apparently they have signed documentation and believe they 'agreed' to the upgrade of the account on an informed basis, therefore they don't believe the account was mis-sold. The loan was taken out on the same day as the account upgrade.

They state that they have benefited from the AG account as they received a preferential rate of interest on two loans by having an AG account, though I'm struggling with how paying £15 a month would decrease a loan payment by £15?

Do I have grounds to contact the Financial Ombudsman regarding this complaint?

Nasqueron

You can refer a rejection within 6 months to the FOS however, the firm can timebar the first complaint under the 3 year rule on the first complaint -

The guidelines states:

The Ombudsman cannot consider a complaint if the complainant refers it to the Financial Ombudsman Service:

(2) more than:

(b) three years from the date on which the complainant became aware (or ought reasonably to have become aware) that he had cause for complaint;

Your parents knew about the account in 2008 and downgraded it, if they were unhappy they needed to complain in the 3 years following the account closure.

The second period - the loan might well have been at better rates with that account - a benefit of that account. If the bank can show the rate was better with the paid for account then that complaint reason is sunk - they could have gone with higher rate loan and no paid for account (paying more over the course of the loan)

Your complaint is hearsay (he said she said) but it is not to say the firm won't rollover and auto-pay at the FOS - just refer it inside 6 months to avoid another time bar - your first one you would have to get lucky with the firm allowing the time bar to be overturned

dunstonh

They state that they have benefited from the AG account as they received a preferential rate of interest on two loans by having an AG account, though I'm struggling with how paying £15 a month would decrease a loan payment by £15?

Have they received any benefit from being on the packaged account? Yes, by having two loans on preferential terms. That is not a grey area. Its black and white. yes or no.

Do I have grounds to contact the Financial Ombudsman regarding this complaint?

The complaint has been rejected and the right exists to refer the complaint to the FOS. We cant give you any indication really as we dont have access to the information. However, we can point out issues.

1 - The timebar of 6 years from the start of the policy or 3 years from being reasonably aware of an is a timebar allowed by the regulator. it is in their guidelines. 6 years from the start is 2009. 3 years from reasonably aware is 2011. So, the timebar seems valid and fair.

2 - Whilst using features does not make it impossible to have a successful complaint it certainly reduces the chances of success and the reasons for the complaint. You havent actually said what the complaint reasons are. Rememer that there is nothing wrong with having packaged accounts. Your Parents have used preferential rates twice. So, even if the complaint is upheld, the bit they gained in the loan can be taken into account and deducted from any redress.

glb84

Many thanks to you both for your quick replies, I appreciate this greatly

Regarding the first instance, it was actually the bank which informed them of this period which they had an AG account and therefore they completely accept the reasoning behind this decision.

I think it is best that the next step would be to approach Natwest to see whether they can provide evidence of the preferential rate saving my parents more than £15 a month on a loan repayment which would explain why they were told to upgrade the account when taking the loan out.

Nasqueron

You'd have to post the loan details, APR etc to work out that and don't delay beyond 6 months if you want to refer it - FOS will ask them to provide details to support their case anyway as you are doing.

The issue with the loan rates is just what the saving would be - and it's quite possible they could have got a lower rate away from the bank anyway - if they got a reduced rate on the loan that would count against them.

From what I could see, for loans of £7500-14950 the AG accounts would get 4.9% fixed for the loan life and they seem to be offering 6.9% currently so it may be a 2% saving which might equate to more than 15 a month fee