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13 Dec 2021

'I think Lloyds mis-sold a packaged bank account. Can I claim the money back?'

What to do if you've been paying for perks you can't use or didn't need
Lloyds Bank mis-sold my parents a packaged bank ac

Do you have an issue you need put right? Which? is here to help get your consumer problems sorted.

Dear Which?

My parents held a Lloyds Gold bank account for many years.

When dealing with their estate after their death, I noticed that they had been paying £14.95 a month for the account, which offered travel insurance and breakdown cover.

Yet the travel insurance wouldn't have paid out due to my father being over 80, and he already held breakdown cover, through a separate insurer, which I set up.

Lloyds no longer offers this account - can I claim for what my father was mis-sold?

Mrs W Le Cheminant

Put to Rights

Debbie Carter, Which? Money Helpline adviser, says:

Yes, you can.

Packaged bank accounts can include travel insurance, car breakdown cover and mobile cover for a monthly or annual cost. They can work out cheaper than buying these items individually - but are only good value if you actually use all the perks.

Most banks sell packaged bank accounts on a 'non-advised' basis, but they must still provide clear, fair and unambiguous information so that you are able to make an informed decision.

Mis-selling occurs when a bank fails to do this, such as signing you up without you realising, offering perks you're no longer eligible to claim and offering benefits that you have to activate before you can use them.

In your parents' case, their inability to use the travel cover and lack of need for the breakdown cover suggest Lloyds may not have checked if the Gold account was really suitable for them.

The bank is also meant to send customers annual eligibility statements prompting them to check if the policies still fit your needs.

If you feel you (or in this case, the estate you're administrating) have been mis-sold, you should first complain to Lloyds in writing. We can help you make a complaint about a mis-sold packaged bank account using our free complaints tool.

If Lloyds takes longer than eight weeks to resolve your complaint, or sends you a letter of deadlock, you can go to the Financial Ombudsman Service.

Lloyds ended up offering you £1,915, but it maintains that the account was not mis-sold.

Need to know

  • Packaged bank accounts can provide good value, but only if you use the perks
  • Providers should check whether you're eligible to claim under each policy and establish whether each policy is suitable for you
  • Complain to your provider in writing if you believe you were mis-sold
  • You can claim for an estate you're administering

Get in touch. If you've got a consumer rights problem you need put right, email us at yourstory@which.co.uk.

Please be aware that we can't help with, or respond to, every email that we receive. The inbox is monitored periodically during office hours, Monday to Friday 9am to 5pm.

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