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Bank Account fees are "next PPI scandal"

13th January 2013

Millions of bank customers could be entitled to thousands of pounds each in compensation for allegedly being mis-sold fee-charging current accounts.

Around a third of customers with a packaged account, which cost up to £300 a year, fails to use benefits such as travel insurance, mobile phone cover and breakdown policies that come as part of the deal.

A fifth of current account holders have these packaged or perk accounts. Many were lured into opening them by branch staff who receive large commissions for meeting monthly targets that tie customers to a lucrative monthly banking fee.

The deals are often sold as upgrades to basic free accounts. Frequently, though, the perks are useless. 

Pensioners discover they are excluded from the travel cover and drivers find they have simply duplicated insurance they already have.

Charities have complained that cancer sufferers have been unable to claim on insurance sold with the accounts because key exclusions that rule out people with health problems had not been explained.

Source: Mail Online

Posted in Mis-selling Scandal, PPI, Payment Protection Insurance, UK, Banking

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