Mis-sold a packaged bank account? How to claim back the fees

You can complain if your bank sold you a packaged bank account that you did not choose, did not need or could not use. If the complaint is upheld, the bank usually pays back the monthly fees, with 8% simple interest a year. Complaining to the bank is free, and so is the Financial Ombudsman Service.

This guide explains what counts as a mis-sale, what the ombudsman checks, what you can ask for, and how to write the complaint. It ends with a letter you can adapt.

Key takeaways

• A packaged bank account is a current account with a monthly fee for extras, such as travel insurance, breakdown cover or phone insurance.
• A complaint is strong when the bank gave you no fee-free choice, did not explain the cost, or sold you insurance you were not eligible to claim on.
• Not using the extras is not enough on its own. The ombudsman judges the sale by what was fair at the time.
• If the complaint is upheld, the usual remedy is a refund of the fees with 8% simple interest a year.
• You do not need a claims company. The bank complaint and the Financial Ombudsman Service are free.

What is a packaged bank account?

A packaged bank account is a current account that charges a monthly fee. Banks often call them "gold", "platinum", "rewards" or "added-value" accounts. The fee pays for a bundle of extras, for example:

• travel insurance
• car breakdown cover
• mobile phone or gadget insurance
• a fee-free or cheaper overdraft
• discounts or cashback

The bundle can be good value if you use the extras. It is poor value if you cannot use them, already have the same cover, or did not know you were paying for them.

When was a packaged account mis-sold?

The Financial Ombudsman Service lists the problems it sees most. A complaint is stronger if one or more of these is true:

• The bank did not tell you that a fee-free account was available.
• The bank did not explain the monthly cost, or what the extras were.
• You could not use a benefit. For example, your age or a medical condition meant the travel insurance did not cover you.
• You already had the same cover, such as breakdown cover with your car insurance.
• You did not know you had opened or upgraded to a packaged account.
• The bank said you had to take the account to get an overdraft, a loan or a credit card.

What the ombudsman checks

The ombudsman uses the rules that applied when the bank sold you the account. It looks at:

• Choice. Did you have a fair choice, and did the bank offer a fee-free account?
• Information. Did the bank explain the features and the cost clearly?
• Eligibility. For sales from 31 March 2013, banks must check if you are eligible to claim on each insurance policy in the package, tell you the result, and send you an eligibility statement every year.
• Advice. If the bank recommended the account, was it right for your circumstances at the time? The bank must show this.
• Your situation at the time of sale. A change in your life after the sale does not make the sale wrong.

If you simply did not use the extras, that does not prove the bank did something wrong. The ombudsman says this in its own guidance: not using the features does not, on its own, mean the sale was unfair.

How often these complaints succeed

Most packaged account complaints that reach an ombudsman's final decision are not upheld. We read 6,488 published ombudsman decisions about packaged bank accounts, from April 2013 to April 2026. The ombudsman upheld 631 of them, about 1 in 10.

When the ombudsman said no, the most common reason (3,889 decisions) was that the sale was fair: the customer had a choice, the cost was clear, or the benefits suited them. The second most common reason was that there was no evidence the bank did something wrong.

Published decisions are the hardest cases. Many complaints are settled before an ombudsman decides. These numbers describe past decisions only. They do not predict the result of your complaint. The detail of your sale is what matters, so collect evidence before you write. See who wins against the banks for the wider picture, and the decision records of Barclays, Lloyds Bank, NatWest and HSBC.

What you can ask for

If the ombudsman decides that the account was mis-sold, it usually tells the bank to:

1. Refund the monthly fees that you paid for the packaged account.
2. Pay 8% simple interest a year on each fee, from the date you paid it to the date of the refund. The bank can take off tax on the interest.
3. Pay compensation for distress or inconvenience, in some cases.

In a 2025 decision about a NatWest Select Platinum account, the ombudsman told the bank to refund all of the account fees since November 2021, with 8% simple interest on each fee. In all 524 upheld packaged account decisions where we found an interest rate, the rate was 8%.

If you used a benefit, the result can be different. For example, if the insurance paid out on a claim, the ombudsman may decide that you were not worse off, or that only part of the fees should come back.

How to claim back packaged bank account fees

1. Find the account details. Note the account name, when you opened or upgraded it, and the monthly fee. Your statements show the fee as a separate line.
2. Get the fee history. If you do not have old statements, ask the bank for them. You can also make a subject access request for the data that the bank holds about you. It usually must reply within one month.
3. Write down how the sale happened. Was it in a branch, by phone or online? What did the bank say? Did it offer a free account? Did it ask about your health, age or car?
4. Check each benefit. For each extra, write if you could use it, if you already had it, and if you ever claimed.
5. Send the complaint to the bank. Use the bank's complaint form, its secure message service or a letter. Keep a copy and the date.
6. Wait up to eight weeks for the final response.
7. Escalate if you disagree. Send the complaint to the Financial Ombudsman Service. It is free.

A complaint letter you can adapt

Replace the text in square brackets with your own facts. Delete anything that is not true for you.

Subject: Complaint about the sale of my packaged bank account [account name, sort code, last four digits]

I am complaining that you mis-sold me a packaged bank account. I opened [or upgraded to] the [account name] in [month and year]. I paid a monthly fee of £[amount].

I think the sale was unfair because:

• you did not tell me that a fee-free account was available
• you did not explain the monthly cost or what the benefits were
• I could not use the [travel / phone / breakdown] cover because [reason]
• I already had [cover] through [provider]

Please refund all of the monthly fees that I paid for this account, with 8% simple interest a year on each fee, and move me to a fee-free account. Please also send me copies of the records of the sale and any eligibility statements that you sent me.

I look forward to your final response within eight weeks.

Time limits

Complaints usually must be made within six years of the problem, or within three years of when you knew, or should have known, that you had a reason to complain. After the bank's final response, you have six months to go to the ombudsman. An account opened many years ago can still be in time, because the three-year rule can start later. The ombudsman decides this, so do not reject your own complaint because it is old.

Do you need a claims company?

No. Claims companies advertise packaged account claims a lot. They do the same thing that you can do yourself for free, and they take a share of the money. If you still want to use one, read our guide on how to complain about a bank or insurer, which explains the fee cap.

If the account came with a fee-free overdraft and you had problems with overdraft charges, see how to reclaim overdraft charges. If the account's insurance refused a claim, see travel insurance claim rejected.

When and how to escalate

If the bank rejects your complaint, or does not reply within eight weeks, you can take it to the Financial Ombudsman Service. The Financial Ombudsman Service is free and independent, and you keep all of any money it awards. Send the bank's final response with your complaint, and explain in your own words why you disagree.

Sources: Financial Ombudsman Service, Packaged bank accounts (for consumers) and Packaged bank accounts (for businesses); the ombudsman's 2025 NatWest decision; FCA, Packaged bank accounts thematic review TR16/8 and the FSA policy statement PS12/22 on eligibility checks and annual eligibility statements from 31 March 2013; Financial Ombudsman Service, Time limits. Decision counts come from published Financial Ombudsman decisions, April 2013 to April 2026. Last checked: 31.10.2026.

How HeyRefund can help

HeyRefund is a free tool. It checks your packaged account complaint against published ombudsman decisions and drafts a complaint in your own words for you to send yourself. It does not contact the bank for you, and it is not a claims company. You can also write the letter above without us.