What is a paid for Bank Account?
A paid for bank account or as they are commonly known a package bank account or PBA entered the financial scene in the late 1990s and have been the main stay of current account income for the leading banks since the early 2000’s. They generate considerable amount of revenue for the banks as fees are charged monthly for the operation of current accounts which were until the mid-90s largely fee free for personal account holders. Business account holders of course had previously been the bearers of these for operating accounts.
Is my PBA Platinum, Gold, Silver or Club account mis-sold?
The package bank account is normally dressed up in a nice positive sounding names such as silver Platinum, black or club depending on which bank you with. They like to use aspirational titles in order to encourage bank customers to feel comfortable or indeed proud to take on a fee based current account facility.
Attached to the packaged bank account is normally a list of financial benefits due to the banks requiring the justification to charge a monthly fee for the operation of a current account. Some of these benefits are applicable such as breakdown cover or reduced interest rates on borrowing. However, mis-sales have taken place when borrowing isn’t necessarily needed and therefore a reduced rate is relevant. Or if the consumer already has breakdown cover in place in which case again this product is relevant.
If I Believe my Lloyds Account was Mis-sold what are my Options?
If you believe your Lloyds bank account was mis-sold you have a number of options. You can either just cancel the account and move to a fee free based account or as many people are choosing to do, and quite rightly, challenge the sale of the account in the first place and look at reclaiming the various fees that have taken. If you do decide to challenge the account sale any refund would include the account fees, interest and compensatory interest. You have the opportunity to either address this direct with the bank yourself or through a claims firm should you not wish the aggravation. If this option is taken it is vital to make sure that their fees are no win no fee and no hidden charges are in their agreement.
Am I right to Complain about a Mis-sold Platinum, Gold, Silver or Club account?
If you had a platinum, gold, silver or club account with Lloyds bank or you still do so then it is worth checking the relevance of the account that you have and that the cost being charged to you each month is applicable for the financial benefits attached. It is important that these financial benefits are viewed in line with other areas of your finance to make sure that the products do not duplicate. This can lead not only to unnecessary financial products cost but also a misguided belief as to the level of cover you have if the various exclusions if applicable have not been explained properly.
In many cases travel insurance which is attached to a package bank account excludes foreign travel on skiing holidays as an example. Therefore you could be going on holiday believing you are covered but in effect you are not. The last thing you therefore want to find out is when you need the insurance to kicking it is not there to protect you.
What can I do If my PBA was Mis-sold?
If your PBA or package bank account is mis-sold then there are a few basic areas you need to address. If the bank has confirmed that the product was mis-sold then you must make sure that they have taken into account all the fees attached to the product. That the interest from the first charge was applied is calculated and that compensatory interest is also calculated on the two parts, namely the fees and interest for the duration of the mis-sale.
What can I claim for a Mis-sold Lloyds Bank Account?
Any mis-sold Lloyds bank account needs to be looked at and addressed correctly with the refund of any charges at the heart of any redress. Claiming against a high street bank can be daunting but of course you can do this although it can take some time to follow the standard process of making a complaint not only to the bank but then to the financial ombudsman should they not wish to address your concerns positively.
An alternative is to use a claims firm to represent you, in order to do this it is important that you make sure that they work on a no win no fee basis. In addition to the no win no fee you must also check whether there are any charges for cancellation or failure to conclude the claim positively. As a firm we do not believe in any additional charges as we believe in our abilities to achieve a positive result. If one cannot be achieved then there should be no fee.