Barclays Bank packaged bank account, Additions, was launched in 1996 with a great range of benefits to attract customers.
The fee-charging account came with mobile phone insurance, breakdown cover and extended warranty cover. However, between 2008 & 2012 Barclays stopped selling packaged bank accounts and moved customers over to free accounts with the option of adding an insurance "pack" for a montly cost.
What were the benefits of Barclays Additions account?
This account included the following provisions:
- Extended Warranty - An additional one year’s cover on domestic appliances, on top of the standard one-year manufacturer’s warranty and covers breakdown caused by accidental damage.
- Breakdown cover in the UK and Europe – Provided by the RAC, this policy covers breakdowns at the roadside and at home whilst also offering recovery, onward travel and European cover.
- Mobile Phone Insurance – Worldwide cover for mobile phones and smartphones which includes loss, theft breakdown and accidental damage.
What was the cost of the Barclays Additions Account?
The account had a monthly fee of £13.50, regardless of whether the account was in credit or not.
How was Barclays Additions PBA mis-sold?
Like payment protection insurance (PPI), PBAs were often mis-sold by banks because the suitability of the product wasn't adequately assessed against the consumers’ needs and what the account offered was not properly explained to them.
When Barclays sold customers a Packaged Bank Account, it was their responsibility to outline all the benefits to the customer to ensure that the decision to take out a PBA was right for them.
What ways could Barclays have mis-sold you your packaged bank account?
Many consumers did not want or realise they actually had a packaged bank account after the bank upgraded their account without telling them.
Before considering a packaged bank account, consumers should be made aware of alternative, free accounts that could also work for them.
Many consumers found that there were too many limitations on the policy that they would not have had if they had taken the insurance as a standalone policy. Additionally, consumers may have tried to make a claim on the policy only to find out that they were not covered.
Many consumers did not fully understand how much a packaged bank account was going to cost them per month.
If you are unlikely to use certain packaged bank account benefits, you could lose out. For example, if you don’t drive then breakdown insurance will not be suitable or applicable to your needs.
Please Note: Barclays no longer sell the Additions account.