Banks are to be banned from charging for perks that appear useless to its account-holders, under new Financial Services Authority (FSA) advice. New rules to ensure that customers are eligible to claim for perks like mobile phone and travel insurance are to be laid from the start for upgraded account-holders.
Sheila Nicoll, FSA Director of Policy said: “These products are often referred to as upgraded accounts, but if you end up paying for an element you cannot claim on, it is money down the drain.”
“We are closely monitoring the promotion of packaged bank accounts and the new rules will make sure customers know what they are buying and that they can rely on the product or have the limitations explained before buying.”
