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Packaged Bank Account Claims

Packaged Bank Accounts

A packaged bank account is a current account that comes with other services and goods. Commonly, these include insurance products such as travel or mobile phone insurance, but it may also include a range of other non-insurance goods or services.

It is estimated that around 10 million people – around one in five adults in the UK has a packaged bank account.

The issue is whether the overall package is the right choice for the individual customer and that they understand any limitations or restrictions. If they don’t, it is likely that the packaged bank account will not meet their reasonable expectations.

Do any of the following apply to you?

If your answer is YES you may have a potential claim

The following are common reasons why people have been able to successfully claim a refund on the basis that the packaged bank was mis-sold.

  • You were not even aware that there was a fee associated with the account that you opened or transferred over into.
  • The bank told you that this was the only account suitable for you or that free accounts were not an option.
  • Nobody told you that travel insurance may not be right for you i.e. other factors such as age, destination, activity or pre-existing medical condition mean you might not be eligible to claim.
  • You were informed that you needed this account or that having it made it easier to apply for a mortgage, loan or similar.
  • You didn’t know that your mobile phone needed to be registered and that there was an excess to be paid prior to any claim.
  • You tried to cancel the account but were told you had to keep it.
  • You were informed that your packaged bank account could improve your credit rating.
  • You already had cover in place for the bundled insurance products.

No prejudice against you if you make a claim

Your bank will not prejudice against you or remove banking facilities if you make a claim. Bank account holders worry that if they make a financial claim against a that it could affect their existing relationship with them in the future.

For those concerned, it may be reassuring to know that banking practices are monitored by the Financial Conduct Authority (FCA). The FCA will act to ensure that customers are treated fairly irrespective of their situation regarding financial claims and complaints. The FCA has operate a "treating customers fairly" initiative which is designed to work alongside the Banking Code to ensure all customers receive fair treatment.

Frequently Asked Questions

A packaged bank account is a current account that comes with additional goods and services such as travel insurance, breakdown cover and mobile phone insurance. This type of account will have a monthly fee.

If you are paying a monthly fee for your bank account and the limitations and options of the account were not explained clearly  when the account was either opened or upgraded there is a possibility that the account may have been mis-sold to you. If this is the case you will be able to make a claim.


Banks will charge a monthly packaged bank account fee to cover costs for maintaining the account. Most of the services included in the packaged account deal, will cost the bank money, this is the banks way of  covering those costs..


The mis-selling takes place in relation to bank account charges when the Bank sells and promotes the product in such a way that it does not comply with the rules and regulations laid down by the FCA.