If you had or still have a Lloyds Bank Select account, that account may have been mis-sold and you may be entitled to compensation plus interest.
What is a Paid for Bank Account?
Paid bank accounts (Packaged Bank Accounts, PBAs) were first introduced to the UK market in 1999 by Lloyds TSB Bank Plc. They quickly became popular as they offered an easy way to open your own savings account without having to go through lengthy application procedures. They generate considerable revenue for banks, as monthly fees are charged for maintaining current accounts, which were largely free of charge for personal account holders until the mid-1990s.
Was my Lloyds Bank Select Account Mis-sold?
The packaged account is usually given a nice, positive-sounding name, such as Lloyds Bank Select account. The bank likes to use aspirational titles to encourage bank customers to feel comfortable or even proud about opening a fee-based account.
Since banks need reasons to charge a monthly fee for managing a checking account, a list of financial benefits is included with the account package. Some of these benefits, such as roadside assistance insurance or lower loan interest rates, are applicable. However, mis-selling has occurred when borrowing is not essential and therefore a lower interest rate applies. Or if the buyer already has breakdown cover.
What are my Options if I Believe my Lloyds Select account was Mis-sold?
You have many options if you believe your Lloyds Bank Select account has been mis-sold. You can either cancel the account and switch to a fee-free account, or you can do what many others do, which is to dispute the sale of the account in the first place and see if you can reclaim the various fees that were charged. If you choose to challenge the sale of the account, the refund will include the account fees, interest and compensatory interest. You have the option of handling this directly with the bank or contacting a claims company, if you want to save yourself the hassle. If you choose this alternative, be sure to check that the company’s fees are “no win no fee” and that there are no hidden costs in the agreement.
Should I Complain about a Mis-sold Lloyds Select Account?
If you have or currently have a Select account with Lloyds Bank, it is important to check the relevance of the account and ensure that the monthly fee you are charged is reasonable given the financial incentives involved. To ensure that items do not overlap, it is critical that these financial benefits are evaluated in conjunction with other aspects of your finances. Not only could this lead to overcharging for financial products, but it could also lead to a misunderstanding of the scope of your coverage if the various exclusions, if any, are not appropriately stated.
In many cases, travel insurance tied to a packaged account excludes foreign travel, such as ski vacations. So you may go on vacation thinking you are covered, but you are not. The last thing you want is for your insurance to not kick in when you need it.
What Can I do if I was Mis-sold?
If you believe your Lloyds Select account was mis-sold, you need to address some basic questions. If the bank has determined that the product was mis-sold, you need to make sure that all fees associated with the product have been accounted for. Interest from the original fee will be calculated, as well as compensatory interest for the two parts, namely the fees and the interest for the duration of the mis-sale.
What can I Claim for a Mis-sold Select Account?
The Lloyds bank account must be audited and properly settled, with repayment of fees at the heart of any refund. Making claims against a major bank can seem intimidating, but it is possible, although it may take some time, to go through the regular process of filing a complaint not only with the bank, but also with the Financial Ombudsman if they do not intend to deal sympathetically with your problems.
Another option is to hire a claims company to represent you. However, you must make sure that you use one that works on a no-win, no-fee basis. In addition to guaranteeing the no win no fee, you should check to see if there are any fees for cancelling or failing the claim. We do not believe in additional fees because we are confident in our ability to achieve a good result. If a claim cannot be satisfied, there should be no charge.