Lloyds Bank has been mis-selling Package Bank Accounts (PBA) both for its Silver and Platinum facilities for a number of years. The cost of operating one of these accounts ranges from between £15 and £30 per month, with the Bank selling the particular account to customers suggesting it will benefit them as (for the fee) it will include items such as travel insurance, mobile phone protection, as well as other benefits that justify the price for this particular account.

Unfortunately, whilst some people may well benefit from this particular product and account, on the majority of occasions the Bank has mis-sold the particular facility. This is because they do not promote any free alternatives which are available, insisting that both their Platinum and Silver accounts are the only facilities available to the client. In addition, the clients are not fully appraised as to the particular product elements, which means that the majority do not apply because the correct procedure has not taken place. For instance, if mobile phone cover is made available, then the bank customer has to contact the particular department that provides this cover to register their phones for the cover to be applicable, and if they change their phones in the future, these need to be updated. In addition, and using the mobile phone cover as an example, if the client (through their home insurance) has this same particular type of cover in place, then the additional cover on the account is worthless.

Unfortunately, the Banks have taken what potentially could be a useful product to some clients, and mis-sold it in order to enhance their income – which has taken a battering in recent years through the other mis-selling scandals (mainly that of mis-sold Payment Protection Insurance). Unfortunately their greed has got the better of them in the way that they promote the products, and staff are forced to sell the particular accounts to clients, who unwittingly are given no option but to purchase them in order to protect their current account status with the Bank.

The Package Bank Account (PBA) facilities are now being challenged following a ruling by the Bank’s regulators, the Financial Conduct Authority (FCA). Whilst it is unlikely to reach the scale of the mis-sold Payment Protection Insurance (PPI) scandal, Banks are at present dealing with thousands of complaints each month and have set aside several hundred million pounds in order to cover refunds that they are at present addressing.

If a claim is successful then any refund would include the monthly fees that have been charged, as well as accumulated interest. Where we represent clients, our fee is only charged if this is the case and not if a refund is not forthcoming.

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