Mis-sold a Packaged Bank Account? How to Claim Your Money Back

Packaged (or "premium") bank accounts charge a monthly fee — often £10 to £30 — in return for extras like travel insurance, breakdown cover, or mobile-phone insurance. They are perfectly legal. But they were frequently mis-sold, and if yours was, you can reclaim the fees plus interest.

How to tell if yours was mis-sold

Your account may have been mis-sold if any of these apply:

• You were told you had to take the packaged account to get a product you wanted (an overdraft, a mortgage, a better rate).
• You were signed up without being asked, or an existing account was "upgraded" without your clear agreement.
• You could never have used the benefits — e.g. travel insurance with an age limit you exceeded, or phone insurance for a phone you do not own.
• The exclusions were not explained, so the insurance was worthless for your circumstances.
• You were already covered elsewhere and this was not checked.

What you can claim back

If the account was mis-sold, you can reclaim all the monthly fees you paid, usually with 8% interest on top. There is no time limit on complaining, although very old accounts can be harder to evidence — bank statements showing the monthly fee are the key proof.

How to claim

1. Gather evidence: statements showing the fee, and anything about how you were sold the account.
2. Complain to your bank in writing, explaining clearly why you believe it was mis-sold (use the points above that apply to you).
3. Give them eight weeks to respond with a final answer.
4. Escalate free to the Financial Ombudsman Service if they reject you or miss the deadline — you have six months from their final response.

A complaint letter template

Dear [Bank name],

Re: Packaged bank account [account number] — complaint of mis-selling

I am complaining that the packaged account I was charged a monthly fee for was
mis-sold to me. [State which apply: I was led to believe I had to take it to get
[product]; the benefits were unsuitable because [reason]; I was already covered;
the exclusions were not explained.]

I ask you to refund all monthly account fees I have paid, plus 8% statutory
interest. Please send me your final response within eight weeks, after which I
may refer this complaint to the Financial Ombudsman Service.

Yours faithfully,
[Your name and contact details]

These complaints succeed often because the test is simple: were you sold something useful and clearly explained, or a fee you never needed? If it is the latter, the money is yours to reclaim.