iSmart Consumer Solutions

Package Bank Account Complaints on the Rise

Numbers double in the last year

 

Northampton, England -- (SBWIRE) -- 07/22/2016 -- Complaints regarding Package Bank Accounts have risen dramatically and doubled in the last year alone, which is alarming.

Package Bank Accounts quite simply are those where consumers are charged a monthly fee to get benefits like travel insurance and breakdown cover. However they have been prone to mis-selling, which is observed by the experts. The Financial Ombudsman Service (FOS) looked at over 40,000 new instances between March 2015 and 2016 alone. It shows that they have more than doubled in the last year.

According to FOS most of the issues arose from the fact that the customers believed they were mis-sold accounts. In several other cases they were signed up without prior knowledge or consent. Overall, there was a complete lack of awareness and information for customers, which was intentional on the part of the sellers. Customers even stated that they weren't even aware of the alternative free accounts, which they should have been in the first place.

The same customers also complained of not being able to use the "benefits", and when they tried to close their accounts because of it, they found it very difficult. While the banks don't have to make sure that the customers are going to use the extras, it is their responsibility to ensure that they are eligible for it. It's unfortunate that they haven't done that in a bid to add new names to the package bank accounts.

Of course there are a few package bank accounts that have been above board and fair. That's probably why they have been referred to as Marmite of Banking. Nationwide's FlexPlus is an account that costs consumers £10 a month for which they get UK and European breakdown cover, worldwide family travel insurance and family mobile phone insurance. While it's true that it can cut certain costs for consumers, the question is whether £120 every year is worth it.

Like Martin Lewis, MoneySavingExpert recently said, "If you are one of the millions who have, or had, a fee dripping from their account each month, check now if you're being diddled. If you're on a fee-free deal, check now whether you'd be better off paying." While an increasing number of complaints about Package Bank Account have been noticed it's still not been seen as the PPI Scandal of today.

About iSmart Consumer Solutions
Established in 2007, the professional company specializes in getting compensation for consumers who have been mis-sold PPI. The company has already helped hundreds of clients recover more than millions of pounds.

Media Contacts:
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