Reclaim packaged bank account fees

1. You were wrongly told you had to get it – for example, to get a mortgage

Customers were often told that they had to sign up to a packaged account to get a loan, mortgage or other product. Or that their other application would be declined if they didn't get a packaged account. This is blatant mis-selling.

Sometimes it was a straightforward lie that you had to get the account, but on other occasions, it's a bit less clear cut. If you could legitimately have benefitted from a cheaper rate on a mortgage or loan as a result of having a packaged bank account, it's likely you weren't mis-sold, unless there was a free, or cheaper alternative that would have offered you the same benefit. 

2. You were ineligible for the insurance – for example, you were too old to qualify, or had a medical condition

One of the big problems with these accounts was people signing up thinking the insurance protected them, but when they claimed they were told they were ineligible. If the bank didn't check you were eligible for the insurance each year, you could have a claim. 

A classic case was people too old to claim on travel insurance, as these policies often have upper age limits, but also if you weren't asked if you had any issues that may have stopped you from claiming, such as a medical condition that may invalidate travel cover. 

Important: If one person was ineligible for insurance on a joint account and one eligible, you can claim for HALF the total fees and interest back. 

3. You were misled into taking out the account

The regulator has said packaged accounts were "generally sold rather than bought". We've heard from bank staff under incredible pressure to sell these accounts. Examples include:

• You were told it was a privilege to get the account, but the product wasn't fully explained to you.
• A pushy salesperson wouldn't take no for an answer.
• You were told you'd be eligible to claim when you weren't.
• You were wrongly told you'd get big discounts on other insurance if you took a packaged account.
• You weren't told the full cost.

Note: Rules came into force in March 2013 to stop these high-pressure tactics, but that doesn't stop you reclaiming if you bought under duress.

4. The fee was added without your knowledge

We've heard from plenty who didn't realise they even had a paid-for account until scouring their statement – possibly the result of a bank error, an overzealous salesperson, or being added by deceit without their permission.

This can happen when getting an account for the first time with a bank or for existing customers 'upgraded' without their consent. Dig out old statements to check you're not paying out £10 to £25 a month for an account you didn't sign up for.