Packaged Bank Account Claims
Packaged Bank Account claims
A Packaged Bank Account (PBA) is a bank account where customers are required to pay a monthly fee in exchange for benefits.
This monthly fee is typically between £5 and £30. In return, the customer will get certain products like mobile phone insurance, travel insurance or breakdown cover.
Another name for this type of bank account is an Added Value Accounts. This is where you receive beneficial products in return for your fee.
Unfortunately, the Financial Conduct Authority found that banks had mis-sold a large number of these types of accounts. In the same way that PPI was mis-sold, there are a variety of reasons as to why a PBA may have been mis-sold to you.
The next big mis-selling scandal!
Do you have a bank account for which you pay a monthly fee?
If you do, or you have within the last 3 years, you may be one of the MILLIONS who have had a mis-sold ‘Packaged Bank Account’.
Figures show the majority of the estimated 10 million Packaged Bank Accounts have been mis-sold.
This is likely to see the banks facing a compensation bill running into the BILLIONS.
What is a PBA?
A PBA requires customers to pay a monthly fee, generally between £5 – £30, in return for a range of ‘inclusive’ products, such as mobile phone insurance, travel insurance or breakdown to name a few.
You are not alone
If you are the victim of packaged bank account mis-selling, you are not alone.
Knowing if your PBA was ‘mis-sold’
There are various reasons why a packaged bank account may be deemed as having been mis-sold, so why not have a look and see whether you may have a case.
Why were PBA’s mis-sold?
Much as with the mis-selling of PPI, greed got the better of the banks due to the obscene profits in selling such products.
In September 2012 the FCA published evidence of banks poor practice and found that sales staff were driven to sell products through targeted incentive schemes, bonuses and rewards.
The review uncovered a range of serious failings, such as:
- Most incentive schemes were likely to drive people to mis-sell and these risks were not being properly managed;
- Banks failing to identify how incentive schemes might encourage staff to mis-sell, suggesting they had not properly thought about the risks or simply turned a blind eye to them;
- Banks failing to understand their own incentive schemes because they were so complex, therefore making it harder to control them;
- Banks relying too much on routine monitoring of staff rather than taking account of the specific features of their incentive schemes;
- Sales managers with clear conflicts of interests, such as a responsibility to manage the conduct of sales staff whilst themselves able to earn a bonus if their team made more sales;
- Banks not doing enough to control the risk of mis-selling in face to face situations.
Want a little more PBA info?
Below are some handy links so that you can find out more about PBA, who sold it, what exactly a packaged bank account is, and the latest facts and figures on PBAs. Want to know exactly what a PBA is, what it may have been sold with and how it was sold? Well, we’ve got you covered.
Am I eligible for a PBA Claim refund?
You may be eligible for a PBA claim refund if your bank has mis-sold you PBA. If you currently have a bank account for which you pay a monthly fee, (or if you’ve had one within the last 3 years), then you may be entitled for several reasons. Find out more in our PBA Claim Refund video.
How do I claim packaged bank account charges?
The first step to claiming packaged bank account charges is to find out if you are eligible. You can do that by starting your claim and filling out the simple form to receive one of our claim packages. Alternatively, you can download our claim pack to print and post the form to us. Check out more information about how to claim PBA charges in our video.
How much will a PBA cost me?
The claim process depends on certain factors, but generally the process and timeframes are as follows:
- Step 1 – Obtaining information (1-6 weeks)
- Step 2 – Awaiting decision after launching claim (4-12 weeks)
- Step 3 – Offer of compensation (1-4 weeks)
- Step 4 – Financial Ombudsman Service (12-24 months)
Find out more information in our Claims Process.
What’s the difference between PPI and PBA?
The difference between PPI and PBA is that they were designed to cover different things. PPI covered your monthly repayments like loans, mortgages or credit cards in the event of accident, sickness or redundancy. PBA, on the other hand, is a bank account that charges a monthly fee in exchange for inclusive products such as travel insurance or mobile phone insurance. Find out more information in our video.