💼 Reclaim Packaged Bank Accounts: Are You Owed £100s?

Packaged bank accounts were once sold as the “premium” way to bank. With perks like travel insurance, breakdown cover, and mobile phone protection, it sounded like a good deal — until many customers discovered they’d been paying for things they didn’t need, couldn’t use, or never agreed to.

If that sounds familiar, you might be due a refund — possibly worth hundreds, or even thousands, of pounds.

🤔 What Is a Packaged Bank Account?

A packaged bank account is a current account that comes with a bundle of extras, usually in return for a monthly fee ranging from £10 to £30.

Typical perks include:

• Worldwide travel insurance

• Mobile phone insurance

• Breakdown cover (UK & Europe)

• Preferential overdraft rates

• Discounts or cashback offers

UK examples include:

• Barclays: Tech Pack and Travel Pack

• Lloyds Bank: Club Lloyds Platinum

• NatWest: Reward Silver/Platinum

• Halifax: Ultimate Reward Current Account

• Santander: 123 Lite with add-ons

While these features sound useful, many people were mis-sold these accounts — meaning they never needed or were never eligible for the benefits, yet paid fees anyway.

⚠️ Signs You May Have Been Mis-Sold

If any of the following apply to you, you could have a valid complaint:

1. You Didn’t Realise You Were Paying

Many customers only realised after spotting fees buried in monthly bank statements.

2. The Account Wasn’t Properly Explained

You were “upgraded” without being told what the account included or how much it cost.

3. You Couldn’t Use the Insurance

You might have:

• Already had similar cover elsewhere

• Been over the age limit for travel insurance (usually 65 or 70)

• Had a pre-existing medical condition that invalidated cover

4. You Were Told It Was a Requirement

Some were incorrectly told they had to open a packaged account to get a mortgage or overdraft.

💷 Real Example: Lloyds Bank Customer Reclaims £1,200

James, from Manchester, discovered he’d been paying £17/month for the Club Lloyds Platinum account for over 5 years. He’d never used the travel insurance and already had phone cover through his employer.

After submitting a complaint and escalating to the Financial Ombudsman, Lloyds refunded £1,200 — including interest.

🧾 How Much Could You Reclaim?

If successful, you could get:

• A full refund of fees paid during the mis-selling period

• Statutory interest (typically 8% annually)

• Possible compensation for any related losses or inconvenience

Even if you used the account benefits, if the bank sold it to you unfairly, you’re still entitled to reclaim some or all of the fees.

📋 Step-by-Step: How to Reclaim Your Packaged Account Fees

1. Gather Your Details

Find out:

• Which account you had

• When you opened it

• How long you paid fees

• Why you believe it was mis-sold

You don’t need receipts or perfect records — bank statements and your memory are usually enough.

2. Complain Directly to the Bank

Use the bank’s formal complaints process. Explain why you think the account was mis-sold and what you’d like refunded.

💡 Tip: Keep your tone polite but firm. Attach copies of any evidence (statements, documents, or policy terms).

3. Wait for a Response

Banks must respond within 8 weeks. They may:

• Offer a full refund

• Offer a partial settlement

• Reject your claim

If they don’t respond or you’re unhappy with the outcome…

4. Escalate to the Financial Ombudsman

You can take your case to the Financial Ombudsman Service (FOS), which is free and impartial.

Submit your complaint here:
👉 https://www.financial-ombudsman.org.uk

🏦 Which Banks Have a History of Mis-Selling?

Although most UK high-street banks offered packaged accounts, the following were most frequently complained about according to FOS data:

Even if you’ve since closed the account, you can still make a claim, provided it was within the last 6 years or you only recently discovered the mis-sale.

📌 Do I Need a Claims Company?

No. You do not need to use a claims management firm — and doing so will typically cost you 20%–30% of your refund.

These services use the same complaint channels you can access for free.

The Financial Ombudsman even warns against unnecessary claims firms. It’s usually better (and faster) to go direct.

⏳ Is There a Deadline to Reclaim?

You typically have:

• 6 years from the date the account was opened or mis-sold

• Or 3 years from when you became aware you had a cause for complaint

That said, the earlier you act, the better — especially if you no longer have the account or paperwork.

🔍 Sample Complaint Letter Template

Here’s a quick example you can adapt and send:

Subject: Complaint – Mis-Sold Packaged Bank Account

Dear [Bank Name],

I believe I was mis-sold a packaged bank account — [account name, e.g. Club Lloyds Platinum] — which I held from [start date] to [end date].

I was either unaware of the monthly fee, not eligible for the insurance benefits (e.g. age restrictions), or told it was mandatory to get access to banking services.

Please investigate this complaint and refund any fees plus interest.

Sincerely,
[Your Full Name]
[Account Number]
[Contact Details]

✅ Summary: What You Need to Know

🔗 Official Help: Free Complaint Resources

To submit your claim or escalate to the Ombudsman, visit:
👉 https://www.financial-ombudsman.org.uk/consumers/how-to-complain