Natwest, Lloyds and other UK banking customers could be owed as much as thousands of pounds from their current or previous providers. According to Money Saving Expert (MSE), the refunds could be owed to some who pay, or who have paid, monthly bank account fees.
Packaged accounts, as they are known, usually have a monthly fee, and if used right they can actually save people money, for example on things like breakdown cover or travel insurance. But MSE says many of these accounts were “systemically mis-sold”.
According to MSE, rules mean that banks need to have checked any extras, such as insurance, were suitable for you. And other forms of mis-selling “include being told you needed a packaged bank account” to qualify for another service, or being “‘upgraded’ without your consent”.
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!” The MSE article goes on to say that those who were mis-sold should get their feeds paid back in full – as well as 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
