A savvy saver has revealed how she recovered nearly £3,500 from her bank using a simple money-saving trick.
Elaine, who was featured in Martin Lewis‘s newest MoneySavingExpert newsletterrevealed how a quick check saved her thousands of dollars.
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Elaine discovered that her elderly mother had mistakenly paid for a… packed bank account for years.
These are a kind bank account that offer certain benefits but charge a monthly fee.
Although they can be useful if you use the benefits and have verified that they are cost effective – many people end up paying for the bills without using the benefits.
Martin Lewis has urged it before everyone to check they are unknowingly shelling out every month for a package account they don’t need or use.
If so, you could owe thousands of pounds, which you can recover from your bank.
Elaine said, “I have a power of attorney for my 93-year-old mother who has Alzheimer’s disease.
“I discovered that she had only used this account for a monthly fee to make one monthly payment to charity.
“I have returned my mother £3,456.23.”
Did you sell a packaged bank account incorrectly?
you could have been a packed bank account sold incorrectly if you have been upgraded to an account that is being charged without your consent.
You may also have been incorrectly told that the account was a “privilege” or that it would improve your credit score.
If you’ve tried to close an account, but your bank hasn’t allowed it, or if the monthly rate has been increased without your knowledge, these could also be signs that you’ve sold incorrectly.
Of course, not all packaged accounts are bad – if you take advantage of the benefits and can afford the monthly fees, they can save you money.
rural‘s FlexPlus account charges £13 a month but offers mobile phone cover and travel insurance for the whole family, as well as breakdown cover.
You also get a switching bonus up to € 125 if you are currently opening an account.
The Halifax Ultimate Reward account offers the same benefits plus home emergency cover for £17 per month.
It also currently offers a £150 switching bonus, and according to MoneySavingExpert you could get a fiver a month back if you meet certain conditions.
How to recover money for a packaged bank account?
The first step to take if you believe you owe a fee is to contact your bank to file a claim.
You will need to provide some basic information, such as the account number and when it was opened, and explain why you think you were mis-sold.
If your complaint is rejected or if you do not hear back after eight weeks, you can go to the Financial Ombudsman.
It takes into account factors such as the terms of your account, how the account was sold to you, and whether the features and costs have been clearly explained.
If the Ombudsman considers that you have been treated unfairly, he will ask the bank to rectify the situation.
This may include refunding account fees, or refunding overdraft charges incurred as a result of having the account.
Elsewhere we have looked at why you could owe up to £520? to compensate for travel problems.
And an expert explains how to get €1,100 back in order to compensate.