Many NatWest and Lloyds customers may be sitting on thousands of pounds in mis-sold packaged bank account fees. If you’ve been paying monthly charges for an account you didn’t need, you could be entitled to a refund – but what’s the best way to reclaim that money? In this article, we’ll show you how Money Saving Expert’s easy-to-use tools are helping people uncover significant refunds, plus interest, for mis-sold accounts. With real customer stories revealing how persistence paid off, find out how you could be next to claim what’s rightfully yours.
Thousands of NatWest and Lloyds Customers Stunned as Unexpected Payments Land in Accounts
By Lydia Amazouz
Published on 4 December 2024 17:46
As many people have discovered, mis-sold packaged bank accounts can result in hefty refunds, and now NatWest and Lloyds customers are being given the opportunity to reclaim the fees they were wrongfully charged for accounts they didn’t need or fully understand. For those who may have been sold these premium accounts, it’s important to know how to recover the fees and interest that could add up to thousands of pounds.
These packaged accounts, often sold with benefits like insurance, travel perks, and mobile cover, have now come under scrutiny. Many customers were unaware of the monthly fees attached to these accounts or didn’t use the services offered. Thankfully, the process to reclaim these overpaid fees has become much easier, thanks to the help of platforms like Money Saving Expert (MSE). Let’s dive into how these refunds work, and how customers can take advantage of this opportunity.
What Is a Packaged Bank Account and Why Are They Mis-Sold?
A packaged bank account is essentially a current account that comes with a variety of extras, such as travel insurance, breakdown cover, and mobile phone insurance. These benefits may sound appealing, but they’re only useful if the customer actually uses them. Many people have found themselves paying monthly fees for these accounts without using the services attached or even being fully aware that they were paying for them.
The issue arises when banks mis-sell these accounts to customers by either upgrading them without their knowledge, or convincing them that they must have a premium account to qualify for other banking services, like loans or mortgages. In some cases, customers were never fully informed about the costs of these accounts or the services they would receive.
MSE has been instrumental in helping customers identify whether they’ve been mis-sold a packaged account and how to reclaim fees. The online tool provided by MSE allows users to check if they’ve been sold an account they didn’t need and, if so, guides them through the claims process.
How Can Customers Reclaim Their Money?
The good news is that NatWest and Lloyds customers who have been affected by mis-sold packaged accounts are eligible for refunds, plus 8% interest on the fees they paid. This can add up to significant sums, depending on how long the fees were charged.
The Money Saving Expert tool simplifies the process by helping customers identify whether they’ve been sold a packaged account, and assists with filing claims. Customers who are successful in their claims can expect to receive the full fees they’ve paid over the years, as well as interest on those sums.
One MSE fan, Olivier, shared his experience of reclaiming a substantial refund after discovering that his NatWest Current Plus account had been converted to a fee-paying Advantage Gold Account without his full understanding. He explained, "This account was not appropriate, and after seeing our site and using our tool, he got a refund of fees and interest of £4,542."
Olivier's story shows that customers can get back large sums, especially when they were misled into paying for services they never used or didn’t need.
Persistence Pays Off: Another Success Story
Another customer, Lauren, took to email to share her story of being mis-sold a Lloyds Silver Account when she took out her mortgage nine years ago. According to Lauren, she was told that she needed to maintain the account to keep her mortgage rate. After a few phone calls and emails, Lauren was able to secure a full refund plus interest. She shared her journey, saying, "Persistence is key as originally they only offered £400!" After some persistence, Lauren successfully received approximately £1,400 in total, which included the original fees and the interest.
Lauren’s story highlights how crucial it can be to follow through with claims, even if the initial offer is far less than what you are owed. By remaining persistent, customers can often get back far more than the bank’s initial offer.
How To Claim: A Step-by-Step Guide
If you suspect that you’ve been mis-sold a packaged bank account, the first step is to review your bank statements and check whether you’ve paid monthly fees for any premium accounts. These fees might have been charged for travel insurance, breakdown cover, or mobile insurance that you didn’t use or even need.
Once you’ve identified the fees, you can use Money Saving Expert’s free refund tool to check if you are eligible for a refund. The tool will guide you through the steps of filing a claim, and help you gather the necessary documentation to support your case.
It’s important to note that, according to MSE, banks are required to pay back the full fees you’ve been charged, along with 8% annual interest. This interest is designed to compensate you for the time that your money was tied up in the bank’s accounts.