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Fears over 'packaged' current accounts

BY VICKY SHAW

One in five people with paid-for 'packaged' current accounts believes they were the victim of mis-selling, a study has found.

Some 22% of consumers with these accounts, which bundle up a range of perks such as mobile phone and travel insurance in return for a monthly fee, said they either came across pushy sales practices or the deal later turned out to be unsuitable, according to the YouGov SixthSense research.

A regulatory clampdown to prevent banks and building societies pushing accounts which are not right for people came into force earlier this year following fears that people were being sold add-ons which turn out to be useless to them, for example travel insurance which the customer is too old to qualify for.

These accounts are held by around one-fifth of UK adults and financial institutions must now check whether a customer is eligible to claim under each policy as well as sending annual statements to see whether the accounts are still suitable.

The Financial Ombudsman Service, which resolves disputes between consumers and financial institutions, recently reported seeing an upturn in complaints about current accounts.

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