Packaged account refund - is it worth Ombudsman?

trueblue66

Hi,

Just a bit of advice please!

I have received a cheque from Lloyds for £270 as a partial refund for packaged charges.
I paid approx £900 in charges over 7 years but they will only refund the difference between a `select' and a `platinum; account. This decision is based on the fact that I registered mobile phones to the select account which `proves' I needed this account.

I only registered the phones because facility was provided and did not accept a package accopunt in order to get phone insurance. I had to take a package in order to get an overdraft facility approved.

Do you think this is worth pursuing with the ombudsman?

Thanks for your help

dunstonh

The FOS is an independent arbiter of complaints where you become deadlocked in opinion with the firm. Worth noting that before we look at the next bit.

I paid approx £900 in charges over 7 years but they will only refund the difference between a `select' and a `platinum; account. This decision is based on the fact that I registered mobile phones to the select account which `proves' I needed this account.

The use of services is an indication that you were aware of the benefits and used them. This seriously erodes the validity of your complaint.

I only registered the phones because facility was provided and did not accept a package accopunt in order to get phone insurance. I had to take a package in order to get an overdraft facility approved.

What evidence do you have to support your allegation that you "had to take" the package?

Do you think this is worth pursuing with the ombudsman?

We have no access to your documentation or audit trails. Just what you have said. We know the FOS don't uphold many complaints on packaged bank accounts. Just 13% between April and December 2015.

There is nothing wrong with having a packaged bank account and the evidence works against you as you registered the phone. So, based on very limited info, I would say the odds are against you.

good-samaritan

I totally agree with Dunstonh and there is little support at FOS for overturning bank PBA rejections.

However, there is one aspect that has not been covered so I would like to raise this please. The majority of PBA sales were Non Advised meaning that all teh bank had to do was give you enough information that was clear, fair and not misleading so you could make up your own mind. They also had to point out any significant exclusions to eligibility that may affect you like restrictions to travel cover. So in the main, it is quite hard to prove that the banks did not meet this obligation unless there is an over-riding factor around Optionality/Compulsion lack of Consent.

However, some PBA sales were Advised which opens up a whole different kettle of fish. Advised means that the bank had to check Suitability and Affordability and make sure that the product was right for your needs i.e. they made a formal recommendation.

Can you remember the circumstances at Point of Sale - did you have a meeting with an advisor who recommended the PBA or did you decide to have it after being given a leaflet or see an advert. Your Final Response should also tell you on what basis teh complaint was assessed. If Advised, you have a far higher chance of success at FOS or even going back to the bank with an appeal. When they hear you using the buzz words of Advised/Non Advised, they may realise that you have more knowledge than the average Joe and wish to avoid the FOS fee should you escalate.

good-samaritan

Sorry forgot to add that to win with the argument of compulsion to get the overdraft, you will have to demonstrate that the benefit of the overdraft was less than you paid in monthly fees. Otherwise you will not be upheld.

Mersey_2

trueblue66 wrote: »

Hi,

I have received a cheque from Lloyds for £270 as a partial refund for packaged charges.
I paid approx £900 in charges over 7 years but they will only refund the difference between a `select' and a `platinum; account. This decision is based on the fact that I registered mobile phones to the select account which `proves' I needed this account.

I only registered the phones because facility was provided and did not accept a package accopunt in order to get phone insurance. I had to take a package in order to get an overdraft facility approved.

Do you think this is worth pursuing with the ombudsman?

Thanks for your help

It's always worth appealing ("to the nth degree" to quote Martin Lewis) and that's what the FOS is there for.

If you used a benefit that will always be deducted from any refund of packaged account fees.

Just check - ask for a breakdown if one wasn't provided - as that seems a hefty deduction.

I assume you have yet to receive the 8% pa interest on top? Sometimes they send this as a separate payment; but the norm is one cheque, but with a breakdown in a separate letter to follow.

Mersey_2

The OP has already succeeded on his complaint re PBA fees.


The query is over the level of refund.

trueblue66

Thankyou All for your responses.

Just to confirm, the product was `sold' in a face to face meeting when I needed an overdraft facility. If I remember correctly the overdraft facility was included as part of the `package'.
Also despite registering my personal phone on the package this benefit was also of no use 2 years into the package as my phone was provided by work.

Thanks again

dunstonh

Also despite registering my personal phone on the package this benefit was also of no use 2 years into the package as my phone was provided by work.

That does not make it missold as that occurred 2 years later and unknown at the time of sale.

carriemybags

Definitely worth taking to the ombudsman. My partner was told the only way he could get an overdraft was to take out a packaged account.

He was initially rejected by the bank but succeeded through the ombudsman, even though he registered his mobile for the insurance.

trueblue66

Thanks Everyone,

I am going for it with the Ombudsman. Its only a form filling exercise after all. When checking the history I found I had only activated the phone insurance 4 years into the account, more an afterthought than a benefit.

I'll let you know how I get on,

Thanks

dunstonh

Please do keep us updated. Remember we only know what you tell us and have no access to the documents. So, we can only comment on rough odds. With the FOS currently upholding 13% of complaints, the odds are low but 13% did succeed. You may well fall in that bit.