Packaged bank account complaints on the up

25 August 2015

angryman1 According to the Financial Ombudsman, packaged bank accounts - those that offer additional things like cheaper overdrafts and insurance for a subscription or fee - are being complained about more and more, with official complaints shooting up lately.

Around 25,500 people complained about these in the first six months of the year, which is more than 2014 as a whole.

Many customers have complained that they were sold these accounts unwittingly, or that they didn't need the insurance in the first place. Looks like we might have another PPI-esque scandal on our hands here.

These accounts are usually sold as 'premium' accounts or something to do with the word 'gold', with customers paying somewhere between £5 and £25 every month. Of course, these are nice little earners for banks, so they've been pushing them hard.

The complaints that the ombudsman has been receiving concern three categories - those who say they never wanted the accounts in the first place and were signed up to one without permission; those who asked their bank to cancel these accounts, but the banks didn't; people who opened these accounts and found them to be absolutely useless and worthless.

The figures show that, regarding new cases received, NatWest, RBS, Santander, Lloyds, HSBC, Bank of Scotland, Barclays and MBNA are swimming in new complaints.

Seeing as people are paying, on average, £150 per year for these accounts, the compensation bill for banks could be massive. If you want to see all the data regarding these complaints, click here.

TOPICS:   Banking   Complaints

What do you think?

Connect with Facebook, Twitter, or just enter your email to sign in and comment.

Your comment