Lloyds Bank has a number of different packaged bank accounts to choose from. The entry level packaged account was the Select Account costing £8.95 per month.
The Select Account offers much more than a regular bank account, as it comes with higher credit interest rates, £50 free planned overdraft, card loss assistance, travel insurance, mobile phone and breakdown insurance as well as taking care of all your daily banking needs.
This account is no longer available to new customers.
What were the benefits of Lloyds Bank Select account?
This account included the following benefits:
- Breakdown cover - Customers will be provided with roadside assistance and accident management following an incident where they are claiming under their motor insurance.
- Mobile phone insurance - Worldwide mobile phone insurance is included, which includes replacement after loss, theft and the cost of repair.
- Card loss assistance.
- Fee free overdraft up to £50 (subject to application and approval).
What was the Lloyds Bank Select Account monthly Fee?
The account had a monthly fee of £8.95, regardless of whether the account was in credit or not.
How was Lloyds Bank Select Packaged Bank 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 Lloyds Bank 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.
Did Lloyds Bank do any of the following to mis-sell you your PBA?
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: Lloyds Bank no longer sell the Select Account.