It’s been reported that more than 400 people a day are filing complaints about paid-for bank accounts which may have been widely mis-sold (official figures indicate.)
These “packaged” current accounts, which cost up to £300 a year for perks such as car and travel insurance policies, are attracting almost triple the number of complaints recorded a year ago.
In many cases customers were signed up for deals they didn’t need or couldn’t use due to hidden catches in the terms and conditions and often by branch staff who were under pressure to meet sales targets.
The Financial Ombudsman, which settles disputes between banks and their customers, has this morning published figures showing a 155pc rise in the numbers of people unhappy with a packaged current account in just nine months.
It said around 20 people a day now seek arbitration, having been rejected by their bank. The ombudsman said it finds in favour of the customer in eight in ten cases, with many winning compensation for mis-selling.
However, the true level of complaints being sent to banks is believed to be nearer 400. This is because complaints referred to the ombudsman typically represent just 5pc of the total received by banks.
An estimated one in five adults, or 11 million people, pay for their everyday banking following a major sales push on the high street. All the major names, from Barclays to HSBC, Lloyds and RBS, have sold packaged current accounts in the past.
Customers pay between £5 and £25 a month for a raft of benefits. This usually includes worldwide travel insurance and motor breakdown cover.
Banks are understood to make large profits from such “deals”, as a £12 package can cost just £3 to put together.
As such, banks incentivised staff for each sale, which consumer experts believe contributed to mis-selling. The ombudsman said the majority of the complaints it receives relate to the sale of the account.
Martin Lewis, founder of MoneySavingExpert.com, has said bank account mis-selling is “ramping up to be one of the next big reclaims” after the payment protection insurance mis-selling scandal, which has seen banks hand back more than £13bn taken incorrectly from customers.
Read the full article published by the Telegraph here: http://www.telegraph.co.uk/finance/personalfinance/consumertips/banking/10601361/Complaints-about-paid-for-bank-accounts-reach-400-a-day.html
At Abacus Solicitors, we have an experienced litigation team who can help you reclaim the costs of a mis-sold financial product, such as PPI, a packaged bank account or an interest rate swap.
When selling this type of product, the bank or financial institution has an obligation to ensure that:
- The product is suitable for the client
- The customer fully understands the product that is being sold
- The customer fully understands the costs and the risks
If you think you have been mis-sold a product which meets the above criteria, contact Gareth and he will advise you further on how to make a claim.
Call 0161 833 0044 or email email@example.com