As with Payment Protection Insurance, consumers will not always know if they have been mis sold.
Manchester, UK (PRWEB UK) 29 March 2013
From March 2013 victims of mis sold packaged bank accounts will be able to seek compensation thanks to new rules being introduced by the Financial Services Authority (FSA).
The new rules are the result of discussions at the FSA over the sale of packaged insurance products beginning back In October 2011. Throughout the talks the proposal has been to introduce new eligibility and suitability rules to make sure that customer interests are put before Company profits.
The aim of the new rules is to ensure that banks and lenders are fully informing consumers about the insurance products before they sign up to the packaged bank account. Consumers will then stand a better chance of avoiding a situation where they rely on one or more of the packaged policies, only to find out that they are unable to claim due to ineligibility or unsuitability.
Discussing the new rules, the FSA wrote in a recent Policy Statement:
"Eligibility to claim benefits: policies arranged as part of a packaged bank account...
Throughout the term of a policy included in a packaged bank account, a firm must provide the customer with an eligibility statement, in writing, on an annual basis. This statement must set out any qualifying requirements to claim each of the benefits under the policy and recommend that the customer reviews his circumstances and whether he meets these requirements.
Where a customer has reached an age limit on claiming benefits under a travel insurance policy
included in a packaged bank account (or will reach an age limit before the next annual statement is due), a firm must state this clearly and prominently in the statement and on an annual basis thereafter.
(a) Include any information other than that required under this rule; or
(b) Form part of another document provided to the customer by
the firm; or
(c) Be included in the same mailing as any other document provided to the customer by the firm."
The Policy Statement is likely to affect the sales process at all firms selling insurance as part of a packaged bank account and will no doubt be reviewed in detail by insurers themselves. For many consumer rights campaigners; the most important effect of the new rules will be the knowledge that future financial consumers will be better protected from mis sold packaged bank accounts.
For those who have already been mis sold a bank account; the new regulations allow for the claiming of compensation. As with Payment Protection Insurance claims, consumers will not always know if they have a mis sold bank account, so to help potential victims get their claim started PPIClaimCo.com have put together a Packaged Bank Account FAQ.
The FAQ is designed to help financial consumers discover if they've been paying for a packaged bank account and explains common ways it may have been mis sold as well as how to work out a refund amount. PPIClaimCo.com's mis sold packaged bank account FAQ is available here.
For the banks; mis sold packaged bank account compensation is just the latest in a long line of scandals that - combined with the infamous bail outs - have made customer service a real hot topic in the City.