Packaged Account Fees

[natweststaffmember]

What is a Packaged account?


You will pay a monthly fee for an account with extras attached to it from anything from £3.00 to as high as £25.00 a month.


Why should this article be of interest to me?
A recent FSA publication stated this:


“• Packaged accounts may offer value for money for some consumers, but they may not benefit all;
consumers could be better off purchasing products individually or not at all. And some may find that where the add-ons are insurance products, they do not provide the expected level of cover.
The potential for consumer detriment, although not likely to impact any individual consumer
significantly, could occur across a large population; around 15% of UK adults have some form of
packaged account.”


Can I reclaim all the fees incurred?


In many cases the answer is no as you will have benefited from it. However, there will be cases in which the bank have failed to explain that the account may cover you for travel insurance and you may have purchased insurance unnecessarily. You may not have a car so Roadside Recovery cover is completely irrelevant to you. You need to spend a whole evening looking over what the benefits are and what you are eligible for and whether you have paid for other cover because the account was not explained properly to you or you believed you had to have the account.


What do I need to do?


You need to write to the bank alleging misselling of the account and the basis for it. You need to explain the reasons why you either benefitted partially or did not benefit at all. You should ask for evidence that the person who sold the account to you did make sure that it was the right product for you otherwise they should refund fees. Make sure you cancel the “extras” on the account because why pay for something you do not benefit from?


Successful reclaims example:


It is important that you view this thread because the person on this thread went through the account with a fine tooth comb and in a sense is the template for how you should approach the bank.

I reclaimed LTSB account FEE's and GOT THEM - MoneySavingExpert.com Forums

[natweststaffmember]

Re: Accounts with extras: do you have a case to reclaim some of the fees?

Below are a list of packaged accounts





BARCLAYS
First Additions



First Additions (Option A)



Additions



Additions (Option A)



Additions Plus (option A)



CO-OPERATIVE BANK
Privilege



Privilege Premier



FIRST TRUST BANK (NI)
Packaged Account



Bonus



HSBC
Bank Account Plus



LLOYDS TSB
Select Plus



Select



Gold Service Plus



Gold Service



Platinum Plus



Platinum Current



NATWEST
Advantage Gold



Advantage Private



NORTHERN BANK (NI)
Northern Choice Plus



ROYAL BANK OF SCOTLAND
Royalties



Royalties Gold



Royalties Premier



SMILE
Smilemore



ULSTER BANK (NI)
ufirst Current



ufirst Gold



YORKSHIRE BANK
C/A Plus Private Offset

[natweststaffmember]

Re: Accounts with extras: do you have a case to reclaim some of the fees?

http://www.fsa.gov.uk/pubs/plan/fina...tlook_2010.pdf
Page 62 for reference but from page 57

[leclerc]

Re: Accounts with extras: do you have a case to reclaim some of the fees?

MSE finally jumped onto the wagon with me :o

Packaged account mis-selling victims can claim compensation

[leclerc]

Re: Accounts with extras: do you have a case to reclaim some of the fees?

I want to add to this thread that it is unlikely that the WHOLE of those fees will be refunded but from evidence I have seen the likelihood is 12/24 months worth of fees.

[FlySi]

Re: Packaged Account Fees

Hi all


I'm hoping that some of the people around here may be able to help on this. I'm after details of the packaged bank accounts that Lloyds (and Lloyds TSB) has sold. I know that in the past these have included Select, Silver, Gold, Platinum and Premier but I would like more information:


Does anybody know when Lloyds introduced packaged bank accounts?
Does anybody have any details (such as what they offered, etc.) of these packaged accounts from when they were first introduced, etc. or after?
Is there anywhere to obtain this information that anybody knows of (other than from Lloyds!)


Any help appreciated!
Thanks.

[Bill-K]

Re: Packaged Account Fees

I want to add to this thread that it is unlikely that the WHOLE of those fees will be refunded but from evidence I have seen the likelihood is 12/24 months worth of fees.

I was aware that you had flagged up Packaged Accounts as another mis-selling scandal some time back, Monsieur L, yet it doesn't seem to have 'hit the headlines' in the same way that PPI did. Well done for getting MSE finally interested in the scam - it does need a bit more public awareness, it seems, and MSE are good at that kinda thing, bless them.

I note your observation that banks are unlikely to offer a full refund of ALL fees - and that is of course the likelihood - but I would like to think that the FOS's pronouncement (according to Mr Anker) can be relied upon, and we can push for the whole lot.

From the Ombudsman's limited experience — it only handled 100 cases last year as the issue only recently came onto the radar — it says some banks only agree to refund a year's worth of payments, but they should refund everything paid.

If we take the FSA PPI Redress Rules as a 'template,' then we may well find ourselves looking into 'Consequential Losses' as well, where accounts have been overdrawn, and interest and penalties have been applied.

Grist to the mill, as they say.

Flysi - I can't answer your questions, but I think the history of Packaged Accounts is well worth documenting. Hopefully, M. Leclerc can give you an idea of NatWest's involvement - and I daresay the other big banks will have jumped on that gravy train at around the same time.

[FlySi]

Re: Packaged Account Fees

@Bill-K Thanks for the feedback. I am in agreement that the history of packaged accounts needs to be documented somehow. I've read that Lloyds were one of the first to introduce packaged accounts around 1997 (which would make sense - Labour entered office and the process of deregulation accelerated).

I also agree that given the Ombudsman's reported comments on the issue all fees should be repaid (if using the PPI rules as a template). One reason why I'm interested is that I had a Select account by 2001 (£4 per month, then £5 per month) and I don't know why - I didn't have driver's licence, let alone a car so breakdown cover wasn't necessary, and I didn't have a mobile phone.

Hopefully enough people in the country will have kept forms, booklets and statements etc. and may be in a position to share.

[leclerc]

Re: Packaged Account Fees

Hi all


I'm hoping that some of the people around here may be able to help on this. I'm after details of the packaged bank accounts that Lloyds (and Lloyds TSB) has sold. I know that in the past these have included Select, Silver, Gold, Platinum and Premier but I would like more information
Silver account was April 2007.

Does anybody know when Lloyds introduced packaged bank accounts?
http://www.telegraph.co.uk/finance/p...mmigrants.html

I would add that they would have had a version of Premier account without a doubt before then but that would take a bit of searching for me to find that info out.

Does anybody have any details (such as what they offered, etc.) of these packaged accounts from when they were first introduced, etc. or after?
Is there anywhere to obtain this information that anybody knows of (other than from Lloyds!)


Any help appreciated!
Thanks.

See above . Who need Moneysavingexpert when you can ask someone who digs around for stuff

[Ruby]

Re: Packaged Account Fees

Basic benefits that Lloyds offered on their 'packaged' accounts were:

AA/Rac breakdown cover
mobile phone insurance
sentinel card protection
travel insurance

Their Platinum/Premier Accounts offer:-

Top grade AA breakdown cover
Full family travel insurance
Insuring family mobile phones (as long as they lived in the same house as you).

The above list is the most popular reason why customers were encouraged to upgrade their accounts but is not the complete list of benefits.

The range of benefits has altered in times gone eg. previously you were offered circa 5% discount on your holidays and airport lounge access which is now not available with these accounts.

When you decided to upgrade you were given a cooling off period of 30 days (in which you didn't pay for the benefits (unless you had used them already) and went through a detailed 'talk' as to why you had chosen to upgrade and why.

Yes, staff were paid commission to upgrade accounts however there was a lot of strict protocol too.

Hope this helps. I cannot see how this would fall under the 'mis selling umbrella' like PPI, but that is just my opinion.

[leclerc]

Re: Packaged Account Fees

Basic benefits that Lloyds offered on their 'packaged' accounts were:

AA/Rac breakdown cover
mobile phone insurance
sentinel card protection
travel insurance

Their Platinum/Premier Accounts offer:-

Top grade AA breakdown cover
Full family travel insurance
Insuring family mobile phones (as long as they lived in the same house as you).

The above list is the most popular reason why customers were encouraged to upgrade their accounts but is not the complete list of benefits.

The range of benefits has altered in times gone eg. previously you were offered circa 5% discount on your holidays and airport lounge access which is now not available with these accounts.

When you decided to upgrade you were given a cooling off period of 30 days (in which you didn't pay for the benefits (unless you had used them already) and went through a detailed 'talk' as to why you had chosen to upgrade and why.

Yes, staff were paid commission to upgrade accounts however there was a lot of strict protocol too.

Hope this helps. I cannot see how this would fall under the 'mis selling umbrella' like PPI, but that is just my opinion.

Ruby, I can, if the total "benefit" to you is simply sold under the one single benefit then it is missold and not fit for purpose. Basic roadside coverage can cost from as little as £30 so the overall cost sold to me was that it benefitted me by over £70 yet I am short £40.00 and I might have paid for holiday insurance despite already being covered because no one told me about the benefit.

I would not get me started on the paperwork side of things either. "please sign here sir"(and then fill in the savings after the customer has left.

Currently, yes, they have controls in place such as something called Clawback which means the benefit of the sale is taken back if the account is changed before the 3 month period but then you have the retention team over the phone that may well offer "free" packaged accounts for 2 months if you keep them. Before you ask yep i definitely do know about the above things happening.

[leclerc]

Re: Packaged Account Fees

To remind you what link 3 pointed to you way back when I started this thread:

"Packaged accounts may offer value for money for some consumers, but they may not benefit all;
consumers could be better off purchasing products individually or not at all. And some may find
that where the add-ons are insurance products, they do not provide the expected level of cover.
The potential for consumer detriment, although not likely to impact any individual consumer
significantly, could occur across a large population; around 15% of UK adults have some form of
packaged account."

[dogtired]

Re: Packaged Account Fees

When we changed to Nat West they tried to sell us a packaged account, and in fact for three months it was, I went into branch twice to discuss it and went through the so called benifits. Travel insurance, cannot afford holidays!
Mobile Phone insurance only have a small "dumb" phone! Breakdown insurance, already included on a basic level with our car insurance think the other was something to do with films. They eventually refunded the fees but its not stopped them trying to sell us a packaged account on a regular basis

[Ruby]

Re: Packaged Account Fees

Staff are pressured by management to sell these accounts and are given a target to reach on a daily and monthly basis. It is up to the intelligent public to say yes or no when we are offered these 'upgrades'. For some these accounts will be cost effective and for others not.

[leclerc]

Re: Packaged Account Fees

Staff are pressured by management to sell these accounts and are given a target to reach on a daily and monthly basis. It is up to the intelligent public to say yes or no when we are offered these 'upgrades'. For some these accounts will be cost effective and for others not.

And when I worked for the bank, it was cost effective because I paid £0.00 as a result of it being part of the benefits package.

Have a look at the benefits of staff banking(this one is RBS Group ).

http://www.rbsyourbank.com/home.ashx