Packaged Account

sonally

Hi there ... I was wondering if someone more au fair with this stuff might be able to help me.
I recently filled out a resolver form to reclaim money on a rather expensive packaged account from NatWest. 

Turns out I’d had it YEARS and tbh I didn’t realise it was costing me so much until 2016 when I switched. The bank is saying it sent me a letter saying I’d been switched and because I hadn’t complained within three years they don’t have owe me anything. But the truth of it is I didn’t realise I was paying so much for the account - so much so I NEVER used any of the things I was paying for. 

Should I go to the Financial Ombudsman or is it a waste of time. The reason I’m claiming now is because I didn’t realise I could claim!
Any help is much appreciated x

dunstonh

The bank is saying it sent me a letter saying I’d been switched and because I hadn’t complained within three years they don’t have owe me anything.

This indicates they are invoking the 3 & 6 year rule.   i.e. your complaint is barred if it is more than 6 years from purchase and more than 3 years from being reasonably aware of an issue (both bits need to apply).

. But the truth of it is I didn’t realise I was paying so much for the account - so much so I NEVER used any of the things I was paying for. 

But the truth is that they sent you a monthly statement with the charge clearly showing on it.   I suspect what you mean is that you didn't read your statements and you were not aware because of that.  Not that they didn't tell you.

Should I go to the Financial Ombudsman or is it a waste of time. The reason I’m claiming now is because I didn’t realise I could claim!

The FOS cannot overturn a valid timebar and this appears to be valid (as both timescales met).   Saying you did not know you could complain about something won't wash.    Its game over.

[Deleted User]

The 3 year rule can be applied when you close the account, as it can be argued you could reasonably have known you had cause for complaint by closing the account, hence they invoked that and the 6 years rule. FOS will at best ask them nicely to ignore the time bar and if they don't, the complaint is over.

sonally

 

Of course you’re right - it was on a monthly statement but to be honest I didn’t realise I was paying for a packaged account. 

Obviously I should read my statement but I’m also an idiot when it comes to finance - I think what aggrieves me is that I didn’t realise I had a choice. I cannot recall a time someone from the bank asked me if I wanted a very high fee paying account - which in all honesty I’d never have taken out because I didn’t have that spare cash.
The thing is, not all of us are as good with knowing our rights of where we stand with certain things. Admittedly it may seem cretinous to some but it’s surely the responsibility of the bank not to just apply changes without explanation?
Thanks for the advice though - genuinely appreciate it 

dunstonh

I think what aggrieves me is that I didn’t realise I had a choice.

When you closed the account, did you open a new account elsewhere?  Was that a PBA or a conventional account? (most mainstream banks offer both)

Admittedly it may seem cretinous to some but it’s surely the responsibility of the bank not to just apply changes without explanation?

They generally did which is why the PBA complaints issue hasn't been a big one.    Part of that is down to luck and part of it down to the banks acting quickly to allow them to trigger the time bars.

For example, since around 2012, Natwest were sending out annual PBA benefit letters outlining what you have on your account and that you can change to a conventional account if you feel a PBA is not suitable.    So, they would have been writing to you each year saying you can move to a non PBA.  Originally, you would have agreed to it.  it was not automatic.   You probably had some sales pressure put on you and caved. 

sonally

Deleted_User said:

The 3 year rule can be applied when you close the account, as it can be argued you could reasonably have known you had cause for complaint by closing the account, hence they invoked that and the 6 years rule. FOS will at best ask them nicely to ignore the time bar and if they don't, the complaint is over.

I see ... so utterly pointless. Tbh it’s not just about the money - but it irritates me that I wasn’t really aware of my rights when it comes to changes like this. 

I’ve only become more aware and less blithely accepting recently. I’m really not an expert on finance - and I think there are a lot of people like me about who are being bamboozled into accepting things they may not have to.

sonally

dunstonh said:

I think what aggrieves me is that I didn’t realise I had a choice.

When you closed the account, did you open a new account elsewhere?  Was that a PBA or a conventional account? (most mainstream banks offer both)

Admittedly it may seem cretinous to some but it’s surely the responsibility of the bank not to just apply changes without explanation?

They generally did which is why the PBA complaints issue hasn't been a big one.    Part of that is down to luck and part of it down to the banks acting quickly to allow them to trigger the time bars.

For example, since around 2012, Natwest were sending out annual PBA benefit letters outlining what you have on your account and that you can change to a conventional account if you feel a PBA is not suitable.    So, they would have been writing to you each year saying you can move to a non PBA.  Originally, you would have agreed to it.  it was not automatic.   You probably had some sales pressure put on you and caved. 

Writing it out loud it sounds ridiculous but I didn’t realise until 2016 I was paying 20 plus pounds for crap I didn’t ever use. Which is when I phoned up and asked whether I had to have this account. I then swapped it to one that was less because it gave me my agreed overdraft option. Which obviously is pointless now! 

sonally

I think the problem is - and you’ll no doubt think it’s my responsibility - but half the crap they send you look like circulars, so I never check. I also don’t remember ever seeing a letter asking me if I wanted to swap accounts. I just assumed the name of the account had changed because I’ve been with NatWest from uni days, so years and years 

[Deleted User]

sonally said:

I think the problem is - and you’ll no doubt think it’s my responsibility - but half the crap they send you look like circulars, so I never check. I also don’t remember ever seeing a letter asking me if I wanted to swap accounts. I just assumed the name of the account had changed because I’ve been with NatWest from uni days, so years and years 

The annual statements of benefits were called that, they had a cover letter and a booklet and the letter would mention the alternative. It's not a perfect system for sure but they have to be allowed to draw a line in the sand somewhere unfortunately