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Million switch bank accounts – The good and the bad

With the new introduction of a fast-track bank account switching service, allowing customers to switch bank accounts within 7 days, one million have taken advantage of the service and changed banks.

Whilst this is good news on the face of things, could the banks be taking advantage of those who are choosing to switch by mis-selling them a Packaged Bank Account?

Banks fighting for customers

Banks are having to start to fight for customers like never before. Whereas in the past when people chose who to bank with, that was generally who they stuck with throughout life, people are starting to pick and choose and move their money where they’re going to receive the best terms at any given time.

It’s true that banks are still not really delivering what we as a nation should be expecting, so much so that the banks are facing a full scale competition enquiry due to suspicions that our banks are liaising with each other to ensure real competition and offers do not enter the market.

However, we are starting to see small signs, very small signs, that a new generation of banks may be about to shake up the market and offer long term attractive incentives for customers to move their accounts.

Only time will tell whether the UK finally sees some real competition in what is clearly a failing market.

Packaged Bank Accounts

With banks previously having to reduce the amount it was charging customers for going into an unauthorised overdraft, banks needed to come up with a new way of replacing that revenue that was being lost. Whilst bank charges remain higher than payday loan charges, banks did find a way of making more money out of it’s every day customers.

The introduction of Packaged Bank Accounts has generated the banks BILLIONS in profits. A monthly fee in exchanged for ‘perks’ such as mobile phone insurance, travel insurance and vehicle breakdown cover to name a few, has proven to be a real money spinner for the banks at the expense of the customer. Now where have we heard that before? The PPI scandal perhaps?!

We’ve researched the figures that are available and we believe compensating customers for the mis-sale of these Packaged Bank Accounts could cost the banks £BILLIONS. With 10 MILLION of these accounts still active, and being sold on a daily basis, it’s thought to affect 1 in 5 UK adults.

Good news, bad news

So, whilst we welcome the fact that people are starting to shop around where they place their bank account, we urge caution that you don’t fall foul to the new mis-selling scandal.

With millions of these accounts being sold historically you could make a claim, even if the account is no longer active.

Your Money Claim are the industry experts in mis-sold PPI and mis-sold Packaged Bank Accounts. Dealing with your case from first to last, carrying out the checks and dealing with the banks, you can sit back safe in the knowledge that your claim is being handled by the experts.

So, why delay, let Your Money Claim look after your case.

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About the author

Daniel Lee

Company Director

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