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Packaged Bank Account Claims

Paid monthly fees for a bank account you didn't need?

#At a Glance
Difficulty ā­ā­ Medium
Time to DIY 1ā€“2 hours
Average Payout Ā£1,000ā€“Ā£3,000
Time Limit 6 years
Escalation Financial Ombudsman Service

#What Is It?

Packaged bank accounts (PBAs) charge monthly fees (Ā£10ā€“Ā£25) in exchange for bundled benefits like:

  • Travel insurance
  • Mobile phone insurance
  • Breakdown cover
  • ID theft protection

Banks made billions selling these accounts ā€“ often to people who couldn't use the benefits.

#Am I Eligible?

#āœ… You were likely mis-sold if:

  • You didn't understand you'd be paying fees
  • You were told you needed a PBA for a loan/mortgage (you didn't)
  • You couldn't use the benefits (e.g., too old for travel insurance, no car for breakdown cover)
  • You already had the same cover elsewhere
  • The benefits were never explained to you
  • You were upgraded without consent
  • You didn't realise it wasn't a free account
  • Pre-existing medical conditions meant travel insurance wouldn't pay out

#āŒ You're less likely to succeed if:

  • You actively chose the account knowing the costs and benefits
  • You regularly used and claimed on the included insurance
  • You upgraded yourself after researching options

#How Much Could I Get?

  • Monthly fees refunded: All fees paid (potentially years' worth)
  • 8% simple interest: Added to the refund
  • Typical payout: Ā£1,000ā€“Ā£3,000 depending on how long you had the account

Example:

  • Ā£15/month Ɨ 10 years = Ā£1,800
  • Plus 8% interest = Ā£2,500+

#Step-by-Step Process

#Step 1: Calculate Your Fees

  • How long have you had the PBA?
  • What's the monthly fee?
  • Multiply to get total fees paid

#Step 2: Identify Why It Was Mis-Sold

Common reasons:

  • Told you needed it for another product
  • Couldn't use the benefits
  • Wasn't explained properly
  • Upgraded without asking

#Step 3: Submit Your Complaint

Write to your bank explaining:

  • When you opened/upgraded to the PBA
  • Why you believe it was mis-sold
  • What refund you're claiming

#Step 4: Escalate If Needed

  • Bank has 8 weeks to respond
  • If rejected, escalate to Financial Ombudsman
  • FOS upholds many PBA complaints

#Evidence That Supports Your Claim

  • Bank statements showing monthly fees
  • Your age when you opened the account (if relevant to insurance)
  • Medical conditions that would void travel insurance
  • Evidence you didn't have a car (breakdown cover useless)
  • Evidence you already had insurance elsewhere
  • Letters or documents from when you opened the account

#Common PBAs by Bank

Bank Packaged Accounts
Lloyds Gold, Platinum, Premier
Halifax Ultimate Reward, Reward
Barclays Tech Pack, Blue Rewards
NatWest/RBS Reward, Black, Select
Santander 123 Current Account
HSBC Bank Account Pay Monthly
Nationwide FlexPlus

#Common Questions

Q: I did use some of the benefits ā€“ can I still claim?

Possibly. If the account was mis-sold (e.g., you were told you needed it for a loan), you can still claim even if you used some benefits. The bank may offset claim payouts.

Q: I still have the account ā€“ should I close it first?

Not necessarily. Complain first, then decide. But consider switching to a free account if you don't use the benefits.

Q: My account was years ago ā€“ is it too late?

The limit is 6 years, or 3 years from when you became aware you could complain.

Q: The bank says I agreed to the terms ā€“ doesn't that matter?

Agreeing to terms doesn't mean it was suitable for you. Mis-selling is about whether the account met your needs and was properly explained.