Qualifying for a packaged bank account is an important issue. Does anyone qualify for a packaged bank account? With the way things are going, many believe that no one will qualify for this type of bank service. The reason is obvious. Since the bank product is not adequately explained there is no reason why anyone can qualify. Only when the product is explained and the customer understands can you say that anyone can qualify for the product. It is important that there is full disclosure about the product.
Consumers Do not Want It
If you ask consumers if they want a packaged bank account, they may initially say yes. But when they know what the product is all about and the charges that accompany it, consumers may say we do not want it. There are several features that accompany packaged products. If you investigate if the features are being used by customers you will discover that only a small percentage use the features. The features are nothing but a marketing ploy to get consumers to open an account.
Consumers Do not Realize the Cost
This is very common with packaged bank accounts. When consumers open the account, most of them have no idea how much the bank account will cost them. The charges are not clearly stated and you only discover them when you check your month-end bank statement. A monthly fee of a few pounds will be substantial in a year’s time. Unless you do not mind such waste of money, you will not lodge a complaint with the bank that you are unaware of the charges and bank personnel never explained details to you.
Add-on Services may not be Applicable
Add-on services and features are there for marketing purposes. They encourage consumers to open a packaged account, even if they already have an existing bank account. The most popular are roadside assistance and travel insurance. If you think about it, you can only use the travel insurance add-on if you travel. A very small percentage of consumers travel, so the add-on service may not be applicable at all. The same thing holds true to roadside assistance. If you own a brand-new vehicle this may never be applicable to you.
Suitability must be Priority
Does anyone really qualify for a packaged bank account? The answer is yes, if the product is suitable to the consumer. Suitability can only come when certain factors fall into place. For instance, you need to ascertain that the consumer really needs the product and the product can deliver what it promised. In packaged bank accounts, what happens is that the product features are not needed by the consumer, hence there is no suitability.
The question may be difficult to answer fully. The answer will depend on whose perspective you view. From the perspective of the bank who conceptualized the product, the answer is yes there are those who qualify for the product. However, from the perspective of the consumer it is a resounding no.
Mis-sold packaged bank accounts are now causing a problem for the banks, as this will cost them millions but don’t feel sorry for the banks as this money wasn’t there’s in the first place it was the consumers, meaning people are only getting there money back as the package they thought covered them if something happened wont cover them.
if you have been missold then you need to make a claim and make it soon or you may find it becomes to late.