Co-operative Bank offer Packaged Bank accounts, the Privilege account being one of them, launched in 2008.
The Privilege account is packed with many benefits that will save you money and fits in with your lifestyle needs.
Make use of the free £200 overdraft facility, worldwide travel insurance and mobile phone insurance that come as standard with the account. Additionally, there are preferential rates on savings accounts and personal loans. Account holders can also take advantage of an extra benefit free of charge. There is a choice from gadget cover, credit report monitoring or airport lounge passes.
This account, however, is no longer available to new or existing customers.
What were the benefits of Co-op Privilege account?
The following benefits were included in this account:
- Worldwide travel insurance - Personal belongings, scuba diving, golf and winter sports are covered under this policy, which is serviced by AXA. Cover is not available if the account holder is 80 years of age or over. Holidays involving winter sports activities will not be covered if the account holder is 65 years of age or over.
- Mobile phone insurance - Up to four mobile phones and SIM cards will be covered. This must include the account holder and can be extended to their partner and family members provided they live at the same address. Phones can be replaced or repaired up to the maximum value of £1,500 (including VAT) per claim. Cover is included in the event of loss, theft, damage and breakdown anywhere in the world.
- An automatic £200 interest-free and fee-free draft overdraft.
Extra benefits include:
- Airport lounge passes - Account holders will receive 12 months DragonPass membership. This includes four free airport lounge visits per bank account. Additional lounge visits for the account holder and guests can be purchased at £15 per person, per visit.
- Gadgets - Worldwide cover for digital cameras, portable DVD players, digital camcorders, MP3 players, sat navs, games consoles and laptops. Repair and replacement is arranged upon return to the UK. Maximum individual item limit of £1,200.
Cover for theft, damage, breakdown and faults occurs anywhere in the world. Any accessories that are stolen or damaged at the same time as the main gadget are covered up to the value of £50 (including VAT).
What was Co-op Privilege account monthly Fee?
The account had a monthly fee of £11, regardless of whether the account was in credit or not.
How was The Co-op Privilege 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 the Privilege 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.