Banks facing claims over packaged accounts

A COMPANY seeking redress for businesses who claim they were mis-sold complex financial products by banks, is now taking on lenders over packaged bank accounts.

Since May 2014, Bank Account Claim, part of Bolton-based Seneca Banking Consultants, has has secured more than £1m for 800 individuals who were sold products like mobile phones insurance without being told.

Bank Account Claims  alleges banks offered packaged accounts – which typically come at a standard fee of £15 per month for add-ons such as phone insurance – without checking if they were needed by customers or pressuring customers to having them. It says the major lenders have set aside more than £800m for compensation payments relating to the mis-selling of these accounts.

Director Daniel Fallows claims customers were left with “little or no option” to pay from £15 to £35 per month for standard current accounts as bank staff did not make it clear they were optional.

He added: “We are confident the cases we have settled so far are merely the tip of the iceberg.  We believe this is another banking scandal in which the victims were ordinary customers.

“With add-ons like travel insurance and breakdown cover, these accounts were an easy sell for staff, but they didn’t make it clear they were an optional extra. Banks have once again been taking advantage of customers to make some easy money and our caseload reflects this.”