Mis-sold Mortgage Claims > Mortgage News
Would End of Free Banking mean Fewer Mis Sold Products
Thu, 08 Dec 2011
There is evidence to suggest that many more of us are paying for our bank accounts than we realise.

This is due to the increase in the number of packaged accounts being opened, without customers totally understanding what they are paying for.

Independent financial research company Defaqto discovered that more packaged accounts are now available than free in- credit accounts, that is, 69 now in contrast to 33 in 2006.

Defaqto has found that the average monthly fee for such packaged accounts has gone up over this five year period from £11.59 to £15.44 which means that the average packaged account customer is paying £185 annually.

The problem these accounts present is, that unless you are using the benefits available with these accounts you pay the bank for the pleasure of just having a bank account.

A Which? investigation uncovered that a third of us do not use the benefits we pay for in our packaged accounts which means we are wasting between £240 million and £320 million in bank fees per annum.

Banks ought to make packaged accounts more transparent by clarifying what each individual element is worth, so customers are able to compare bank accounts.

Consumer Focus has in fact gone as far as to disclose its concerns to the Financial Services Authority that many consumers may have been mis-sold packaged accounts and are paying for extras which they do not use nor need.

Its director has stated that the last thing the market needs is another scandal to sit alongside the mis-sold mortgages and mis-sold PPI scandals.

Consumers ought to be in a situation where they can trust banks to sell them products tailored for them. Consumers need sound advice and assistance.
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