FSA probed fee-charging accounts

[EXC]

''Fee-charging bank accounts have come under scrutiny from the City regulator, over concerns about a widespread rip-off.

For six months, the Financial Services Authority (FSA) has secretly been forcing banks to come clean over the way so-called packaged accounts are being sold. .......''


http://www.thisismoney.co.uk/savings...0&in_page_id=7

[enaid]

Re: FSA probed fee-charging accounts

"It is understood one bank has been forced to offer refunds to customers who should never have been sold packaged account"

Wonder which one?


And why must there be thousands of people ripped off before these things come to light and are supposedly dealt with?

Read more: http://www.thisismoney.co.uk/savings...#ixzz1DX3NGIDp

[leclerc]

Re: FSA probed fee-charging accounts

I have said it privately and I'll say it again. In fact, I'll challenge anyone who has a fee paying account to to see how much I can save you by the alternatives.
Anyone want to take the packaged account challenge?


I've seen many reasons why I believe accounts were missold:

1) You'll get a better card on your account after three months. (that means that even though the likelihood is zero, I get the points{which lead to bonuses} and you can't get the fees refunded due to clauses within the account)
2) Dual multiple packaged accounts on a joint account and sole account(that means you are paying twice for the same thing).
3) This is the only current account we offer for International Students
4) This is the only account we offer(to overseas workers)
5) Just sign here and here(we know that one don't we?).

In fact from the article itself an old age pensioner was given a packaged account in spite of not having a car, mobile or travelling abroad(the main aspects of the accounts).

[Amethyst]

Re: FSA probed fee-charging accounts

They are soooooooooooooo slow sometimes, but good news that something is finally being done.

Nats didn't you do an advantage gold thread somewhere?, might be worth linking to that from here.

[leclerc]

Re: FSA probed fee-charging accounts

They are soooooooooooooo slow sometimes, but good news that something is finally being done.

Nats didn't you do an advantage gold thread somewhere?, might be worth linking to that from here.

I think it's in VIP

[leclerc]

Re: FSA probed fee-charging accounts

Just adding some links
BBC News - FSA warns on mis-selling of packaged bank accounts
------------------------------- merged -------------------------------
From 2004
Don't bank on a packaged account - Telegraph

[pompeyfaith]

Re: FSA probed fee-charging accounts

One point I'm not sure about, lets say someone was sold a package account and with that account came a free overdraft and other perks now if it was proved mis-sold and they got a refund of the fees paid what happens about that overdraft are the banks able to go and charge an interest rate for that overdraft.

Because the consumers has had that money and would of had to paid interest and as the package account has effectively been wiped and the customer put back as was before the package account.

thoughts please

[leclerc]

Re: FSA probed fee-charging accounts

One point I'm not sure about, lets say someone was sold a package account and with that account came a free overdraft and other perks now if it was proved mis-sold and they got a refund of the fees paid what happens about that overdraft are the banks able to go and charge an interest rate for that overdraft.

Because the consumers has had that money and would of had to paid interest and as the package account has effectively been wiped and the customer put back as was before the package account.

thoughts please

Find me an account with benefits that you pay a monthly fee for that has any such clause?
There aren't any AFAIK

[pompeyfaith]

Re: FSA probed fee-charging accounts

Leclerc,

So what you saying for a bank to refund the packaged account fees and then to charge interest for the overdraft they had there would need to be a clause right ?

Sorry for the questions but it is a point I'm sure you will agree needs clarification

[leclerc]

Re: FSA probed fee-charging accounts

What accounts have such a deal? I don't of any bank which has a free overdraft as a result of the upgrading/opening of such an account.

[pompeyfaith]

Re: FSA probed fee-charging accounts

My bank gave an interest free overdraft upto £125 then the following yr that went upto £250 but the fee increased from £7.50 to £12.00 although fees where still charged like bounced cheque etc.

It is the interest free the question related too

[leclerc]

Re: FSA probed fee-charging accounts

My bank gave an interest free overdraft upto £125 then the following yr that went upto £250 but the fee increased from £7.50 to £12.00 although fees where still charged like bounced cheque etc.

It is the interest free the question related too

In the case on Moneysavingexpert, the guy got back all fees minus the benefit they received. The benefit is minimal to say the least so unless you didn't accept their redress then the FOS might indicate 8% on top which might cancel out any benefit that you received so to speak.

[leclerc]

Re: FSA probed fee-charging accounts

Do we have any statistics about the packaged account market ie breakdown of percentage of customer base to packaged account?
Am kinda gonna do some research for the consultation coming up later in the year but need some stats.
------------------------------- merged -------------------------------
"According to financial research company Defaqto, there are now 64 different packaged bank accounts on the market, compared with 33 in June 2006. In fact, there are more of them available than there are normal current accounts. They typically charge a monthly fee ranging from £5 (Barclays Current Account Plus) to £25 (Lloyds TSB Premier), though you can shell out as much as £40 a month – or £480 a year – if you go upmarket (for example, Lloyds TSB's Mayfair Banking Service, aimed at the wealthy). Most of the accounts offer some form of travel insurance, though the cheaper ones sometimes exclude this perk or limit it to Europe only. Other freebies that may be thrown in include mobile phone insurance, card protection and breakdown cover"

Ditch that packaged current account | Money | The Guardian

[EXC]

Re: FSA probed fee-charging accounts

''7.5 million of us pay for accounts with perks''

EXCLUSIVE: Proof banks treat customers with contempt | Mail Online

There are roughly 60m current accounts in total.

I did read somewhere that there are now more fee paying current account products on offer than free-if-in-credit ones.

[leclerc]

Re: FSA probed fee-charging accounts

At the moment, banks are floggin them like they are going out of fashion cos all the rest of the stuff they missold is coming back to haunt them