Can I Reclaim Packaged Bank Account (PBA) Charges from HSBC?

Packaged Bank Accounts (PBA’s) are starting to take over from claims against Banks that were the domain of the Payment Protection Insurance (PPI claim).

Over the last 10 to 15 years the Banks have shown warrant disregard for clients and their needs in relation to the current accounts that they have been provided.  The Packaged Bank Account (PBA) in the case of the HSBC includes the Advance and the Premier account.  These accounts have a variety of attachments to them which, as a client, you are paying for.  Those payments range from anywhere between £10 and £30 per month.

Unfortunately, when the Banks began promoting these forms of accounts, they also began mis-selling them.  Bearing in mind a huge amount of income was being taken from them (as they were unable to mis-sell Payment Protection Insurance (PPI) anymore, they had to find a gap and fill their profit and loss account.  They did so by starting to charge for bank accounts.  In order to justify the fee that they were charging, the account itself would have a package of alleged benefits which would include items such as; mobile phone cover, travel insurance, card protection and discounts for certain days out.

However whilst these benefits did, in some situations benefit clients and still do, many of the products were mis-sold, in that the client was not given an opportunity to choose to have a free bank account, or indeed was not offered a free bank account.  They were also not questioned as to whether the cover, or elements of the cover provided by the account, would benefit them, or whether the client would be excluded from cover for any reason.

As such, the Banks found themselves yet again in a position where they have been investigated by the financial regulator – The Financial Conduct Authority (FCA), who have found that on the majority of Packaged Bank Accounts (PBA) that have been sold, they were in fact sold incorrectly.  Therefore, as we found ourselves in relation to PPI clients, we can make claims in order to obtain a refund.

The refunds in cases of Packaged Bank Accounts (PBA’s) relate to the fees that have been charged, as well as the associated interest and penalty interest over the period of time that the account has been run.  We are now representing many clients in relation to these PBA claims where the refunds fall between £1,000 and £2,500 as an average.  Whilst the PBA claims will never match that of the Payment Protection Insurance (PPI) claims, it is estimated that approximately £11million Packaged Bank Accounts (PBA’s) were sold, and with a majority of these being mis-sold, the number of potential claims certainly runs into the many millions.

Recently, the Banks have announced large sums of money (into the hundreds of millions of pounds) being set aside to deal with claims against these particular accounts.

As a firm we have always worked on a “No Win No Fee” basis and will do so in relation to Packaged Bank Account (PBA) fees.  If for some reason we are unsuccessful, there is no fee to pay.



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