Barclays launched the First Additions current packaged bank account in 1996. The fee-charging account came with mobile phone insurance and gadget insurance, card secure protection with a tax and legal help advice line.
In 2015 Barclays moved a number of customers who had its old package accounts to its newer free current accounts with fee-charging insurance "packs" added-on. The First Additions Account is one of the accounts that was moved over to the free account with the option of having a Tech Pack added on, at a cost of £9.50 per month. Some of the benefits that originally came with the account were enhanced (mobile phone cover for two phones and a £200 free overdraft) but some were lost (card secure protection and the tax & legal helpline) when the account was moved.
What were the benefits of Barclays First Additions account?
This basic account PBA came with the following benefits:
- Mobile phone insurance - Worldwide cover for mobile phones and smartphones which includes loss, theft breakdown and accidental damage.
- Gadget Cover - Tablets, laptops, cameras, video cameras, MP3 players are included in this policy, offering protection against theft, breakdown, accidental and malicious damage.
- Fee-free overdraft.
What was Barclays First Additions account monthly Fee?
The account had a monthly fee of £6.50, which went up to £9.50 with the Tech Pack added on.
How was the Barclays First Additions Account 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.
How could Barclays have mis-sold you the First Additions 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 First Additions account.