The Co-op Bank lauched a new packaged bank account in April 2017 called the Everyday Extra current account. It has been promoted as a simple and transparent packaged current account and achieved a five star rating from Moneyfacts.
Customers can benefit from high quality insurance policies covering travel, breakdown cover and mobile phones, with no excesses to pay when making a claim. The insurance policies provide cover as soon as the account is opened without the need for any registration.
Joint account holders will benefit from the cover without having to pay any extra. Therefore, allowing for independent travelling or driving and separate mobile phone cover for the same price.
What are the benefits of Co-op Everyday Extra Account?
This account provides the following benefits which could prove useful for some customers:
- Worldwide travel insurance - Travel insurance is provided by AXA which covers the family, including dependent children up to 22 years old. Cover is not provided for the spouse or partner of joint account holders.
- Mobile phone insurance - Covers loss, theft, accidental damage, water damage and electrical or mechanical breakdown, anywhere in the world. However, customers can’t make a claim if they have knowingly put the device at risk or didn’t take proper care of it.
- UK and European breakdown cover - Provided by the RAC and includes all assistance at the roadside both in the UK and in Europe. Also, the account holder is covered in any vehicle they are using. The breakdown cover isn’t available until 24 hours after the policy is commenced. It also excludes replacing tyres or windows, missing or broken keys, ferry crossings, road toll and congestion charges.
What is the cost of the Everyday Extra Account?
The account had a monthly fee of £15.
How was The Co-op Everyday Extra 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 The Co-op 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 The Co-op have mis-sold you your Everyday Extra packaged 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.