Complaints About Packaged Bank Accounts Going Up

The Financial Ombudsman has revealed that the number of complaints about “packaged” bank accounts has risen steeply in the first half of this year.  In the first half of 2015, the amount of complaints was 25,500 which was more than the amount in the entirety of 2014.  

These packaged accounts offer customers a series of benefits in the form of insurance and lower cost overdrafts, in exchange for a payment.  However many customers have said that they never wanted the benefits and were misled about their need for the insurance.

This news comes just as complaints about PPI have started to subside. The Ombudsman is now reporting around
one thousand complaints a week regarding packaged accounts.

In July, Barclays were reported to have put by £250 million just to pay for compensation for customers who had been mis-sold accounts.

The accounts are often sold as either “gold” or “premium” and people normally pay around £5-£25 per month. These accounts have been offered by every major bank at some point over the past years.

The Financial Ombudsman however, believes that this is not the beginning of a new PPI scandal because in this case there have been many people who have actually reaped the reward of taking out such accounts.

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