You are here: Home - Saving-Banking - News -

Banks ignore 70% of complaints about mis-sold paid-for current accounts

Written by:
Figures from the Financial Ombudsman reveal how Britain's banking giants are wrongly throwing out 70 % of complaints about so-called packaged accounts - which cost customers up to £300 a year.

Over the past year, the watchdog has seen a 75% surge in the number of complaints about these accounts, which include extras such as mobile phone, travel and identity insurance, the Daily Mail reports.

A fifth of current account holders are signed up to these deals. Many customers were lured into opening them by commission-hungry branch staff.

But for many the perks have proved to be useless. Others were secretly switched from free accounts – only realising once they had forked out hundreds of pounds.

The Financial Ombudsman says it is receiving around 70 complaints a week about the accounts, compared with 40 the previous year.

Common complaints include those from customers whose accounts were automatically switched to paid-for deals without realising. Others were not clearly told how much the account would cost or were simply unable to claim on any of the perks.

Under rules introduced earlier this year by the Financial Conduct Authority, banks are now forced to check whether customers are eligible to claim under the accounts.


Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Big flu jab price hikes this winter: Where’s cheapest if you can’t get a free vaccine?

Pharmacies, supermarkets and health retailers are starting to offer flu jabs ahead of the winter season, but t...

Is now the time to fix your energy deal?

Fixed energy tariffs all but disappeared during the energy crisis. But now they are back with an increasing nu...

Everything you need to know about the pension triple lock

Retirees are braced to receive another bumper state pension pay rise next year due to the triple lock mechanis...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

The best student bank accounts in 2023: Cash offers, tastecards and 0% overdrafts

A number of banks are luring in new student customers with cold hard cash this year – while others are compe...

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Money Tips of the Week