Some Natwest, Lloyds and other UK banking customers have received payouts from their financial providers, with some being issued thousands of pounds. Money Saving Expert (MSE) has highlighted that many people may be owed similar payments, and it’s all due to rules around bank accounts with a monthly fee.
MSE says, many of these accounts were “systemically mis-sold”. Packaged accounts, as they are known, usually have a monthly fee, however if used right they can actually save people money – on things like breakdown cover or travel insurance.
An MSE article goes on to explain that there are rules which mean banks need to have checked any extras, such as insurance, were suitable for you. And other forms of mis-selling include being “‘upgraded’ without your consent” or being told you needed a packaged bank account to qualify for another service.
One MSE fan, Olivier, got in touch to say he had opened a free NatWest Current Plus account in 2000, but it was converted to a fee-paying Advantage Gold Account. MSE said: “This account was not appropriate and after seeing our site and using our tool he got a refund of fees and interest of £4,542”.
Lauren, who contacted MSE via email, said: “I took out a Silver Account with Lloyds when I got my mortgage nine years ago and was told it would need to be maintained to keep my mortgage rate. After a little bit of work, a few emails and phone calls, I got a full refund plus interest – approximately £1,400.
“Persistence is key as originally they only offered £400!” MSE says that those who were mis-sold should get the fees paid back, plus 8% annual interest on any claim.
You can check if you’ve been mis-sold a packaged account by using the free MSE tool here