Basically a packaged bank account is a fee paying current account that often comes bundled with a range of insurance policies such as mobile phone and travel insurance, vehicle breakdown cover and other features ranging from music downloads and film rental subscriptions to access to VIP airport lounges. So, a packaged bank account offers customers money saving options and insurance benefits.
These accounts have been heavily marketed to consumers in the UK by high street banks and it is estimated that around 10 million people in the UK has one with monthly fees ranging from £6.50 to £25 per month (£78 – £300 per year). However, they are generally sold rather than bought, whereas the consumers may be upgraded by their existing bank or a new customer may be offered a packaged bank account rather than a fee-free account. But according to a survey by consumer group which? Only 30% of customers use any of the benefits. This means that up to £320 million is being wasted in bank account fee’s every year.
But packaged accounts are not really the problem, at least not on their own. The benefits do appear to be good, but in so many cases consumers have found that they’ve been paying for something that they’ll never be able to claim or use.
Many problems have arisen from insurance policies bundled with these accounts and customers have found that their bank has refused to pay out in certain circumstances. For example, customers have found that they weren’t covered by their bundled insurance policy in the first place because of non-advertised limitations such as a medical condition, age or type of holiday they took.
Other problems have occurred where customers have never used these added features or they have never even been aware of what they have available to them.
This has given rise to many complaints and successful claims for refunds from customers who have been mis-sold a packaged bank account. However, there still a great many people who are unaware of how to submit an application to claim. In those cases it would certainly make sense to use experienced professionals who can walk you through the entire process.