Packaged bank account

eskbanker

Anthorn wrote: »

When you don't ask for it you don't have the option to evaluate it. That's why in that case it can be missold. Pretty much obvious really

Strange logic - just because a customer doesn't say "can I have a package including (say) mobile phone insurance", it doesn't make it misselling if that's what they end up buying. Granted, if there's absolutely no product literature made available to clarify what the customer gets for their £x per month then that would be sharp practice (but still not necessarily misselling as such).

Edit: if you're genuinely interested in what's considered misselling, have a look at http://www.financial-ombudsman.org.uk/publications/technical_notes/packaged-bank-accounts-case-studies.html where the FOS clearly distinguish between misselling and misbuying, e.g.

We’ll check whether the bank gave their customer clear information about the account’s features. If they have, we’ll usually say that it’s for the customer to weigh things up and decide whether it’s better for them than their existing arrangements

mchllwlkns

Omg didn't think it would cause such a debate! I was missold the account as they knew at the time I was in financial difficulty if I wasn't missold why do you think they refunded me four years of payments plus interest! Anyone who says it's the customers fault is talking rubbish!

PeacefulWaters

mchllwlkns wrote: »

Omg didn't think it would cause such a debate! I was missold the account as they knew at the time I was in financial difficulty

if the cost of the packaged account saves you money that you'll usually spend on breakdown cover, holiday insurance, overdraft etc then it's not mis sold.

if I wasn't missold why do you think they refunded me four years of payments plus interest!

Because they couldn't prove the suitability of the sale on way or another. So they either pay up or risk you going to the FOS and it costing them twice as much.

Anyone who says it's the customers fault is talking rubbish!

Genuine question. You were in financial difficulty. Why did you agree to take on an account with a fee?

eskbanker

mchllwlkns wrote: »

Anyone who says it's the customers fault is talking rubbish!

And likewise if you were to suggest that it's always the bank's fault then you'd be talking rubbish too. It's sometimes the bank's fault and sometimes the customer's - in your particular case you were able to demonstrate misselling but you can't extrapolate that to mean that everyone else claiming misselling is justified in doing so, because circumstances will of course differ. See the links I posted previously for more details....

Ballard

I've looked at packaged bank accounts in the past but they've never interested me because I don't drive and I think that every account that I look at has breakdown cover as it's main selling point.

Surely everyone goes through the same process when deciding whether or not the account would work for them? As long as all the information is accurately and clearly given before the account is opened I also don't see how they can be mis-sold.

EssexExile

Ballard wrote: »

As long as all the information is accurately and clearly given before the account is opened I also don't see how they can be mis-sold.

Lots of people are not as bright as us. My late father-in-law had two current accounts with Natwest. One cost him, from memory, about £15 a month. He didn't know about the AA cover included so he was also paying the AA £200 a year, he didn't need any of the other perks. He considered his bank manager a friend, obviously his bank manager considered him a mug.

colsten

EssexExile wrote: »

He considered his bank manager a friend, obviously his bank manager considered him a mug.

That's truly tragic.

yoshiyella

I have two packaged accounts. One with RBS and I pay £16 a month, for this I get world travel insurance for my family and as spend at least 4 weeks a year abroad, break down cover, mobile insurance, a taste card all of which comes out individually at just over the £16 I would pay but that is just fortunate for me. The second is the Natwest reward account and I make about £11 a month from it. So personally I am happy with it - however, when I took it out I looked at all the benefits and weighed up what I would need and would it save me money. Too many people these day just say "yes" or "gimme, gimme, gimme" without looking at things properly (not aimed at OP, just in general).

cheesetoast

anoncol wrote: »

I dont understand how someone can claim packaged bank account misselling.

What about the guy on Martin's show a while back who had epilepsy, was told the travel insurance would cover him if for example he lost his meds on holiday, then it turned out later that he wasn't covered? Surely thats mis-selling?

bigadaj

yoshiyella wrote: »

I have two packaged accounts. One with RBS and I pay £16 a month, for this I get world travel insurance for my family and as spend at least 4 weeks a year abroad, break down cover, mobile insurance, a taste card all of which comes out individually at just over the £16 I would pay but that is just fortunate for me. The second is the Natwest reward account and I make about £11 a month from it. So personally I am happy with it - however, when I took it out I looked at all the benefits and weighed up what I would need and would it save me money. Too many people these day just say "yes" or "gimme, gimme, gimme" without looking at things properly (not aimed at OP, just in general).

Nationwide flex plus would save you about a tenner a month, doesn't include the taste card but you can get a gourmet card for free from lloyds with their club account as well as getting 4% on £5k.