Banks promoted Packaged Bank Accounts (PBAs) with perks that would help you in certain situations. As this statement is descriptive for insurance — indeed, travel insurance, PPI and even other miscellaneous discounts with merchants upon using your bank account are included with the bank account.
Promoted and sold almost the same time as PPI, PBAs have risen in complaint numbers the past year because several perks were useless or redundant for consumers. Similar to PPI, consumers did not need them or were ineligible for the insurance policy, making their repayments useless.
The Financial Ombudsman acknowledges complaints for PBAs. They stress most of the products work for different individuals.
But you should be worried about it because:
PPI is In There
Payment protection insurance costs about £3000 per single premium policy. Consumers with compound interest on their PPI could have bigger refunds.
A consumer paying thousands of pounds for something useless or something they were initially ineligible for is not worth paying but is worth refunding.
Travel A Lot?
Do you travel a lot?
Most PBA complainants said they did not travel much but had use for other perks, such as merchant discounts or freebies. Signing up for these travel insurance policies which are useless may have been rushed in the process. Consumers can get their travel insurance repayments refunded if they prove it to be useless on their end.
Not Financially Beneficial and Not Good To You
Consumers driven to debt consolidation or bankruptcy repaying some perks included with their PBAs have the right to refund their repayments for PBA as soon as possible.
It is possible you didn’t need gadget insurance, extended warranties, loyalty rewards or even a breakdown cover for your car because you already have one.
If the product or perk is not financially beneficial and good to you, then you have to refund your PBA perks immediately.