Am I owed a packaged bank account refund?

A packaged bank account is one you pay a monthly fee for, usually around 10 to 20 pounds, in return for extras like travel insurance, breakdown cover or mobile phone protection. They are fine when the perks suit you. The problem is how many were sold to people who could never use them, were never told about exclusions, or were pressured into upgrading. If that sounds like your account, the fees may have been mis-sold and you can reclaim them, with interest added on top.

Reviewed by Corey Musa, Founder·Last reviewed June 2026·LinkedIn

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Your rights

Banks must sell packaged accounts in a way that is clear, fair and not misleading. If you were sold insurance you could not claim on, for example travel cover with an age limit you were already over or a pre-existing condition that excluded you, or if you were told you had to take the account to get a loan, mortgage or overdraft, or you were never told you could get a free account instead, that points to mis-selling. A successful complaint usually returns all the monthly fees you paid plus 8 percent simple interest. You generally have six years to complain, or three years from when you realised there was a problem. If the bank rejects you, the Financial Ombudsman Service will review it for free, and you do not need a claims company to do any of this.

Step by step

1Add up what you paid. Work out the monthly fee and roughly how long you held the account, so you have a figure for the fees you want back. Statements help, but the bank can confirm the history if you no longer have them.
2Pin down why it was mis-sold. Common reasons include insurance you could never claim on, being told the account was compulsory for another product, not being offered a free alternative, or perks duplicating cover you already had. Write down the ones that apply to you.
3Complain to your bank in writing. Set out why you believe the account was mis-sold and ask for a refund of all fees plus 8 percent interest. The bank has eight weeks to give you a final response.
4If they say no or offer too little, refer your complaint to the Financial Ombudsman Service for free within six months of their final response. Include your reasons and any evidence of the perks you could not use.

What they'll say, and your comeback

“You agreed to the account and the fees, so they are not refundable.”

Comeback, Agreeing to pay is not the issue. The question is whether the account was sold to you fairly, with the perks and exclusions properly explained and a free alternative offered. If it was not, the fees can still be reclaimed.

“You used some of the benefits, so there is nothing to refund.”

Comeback, Using one perk does not make the sale fair if the account was still mis-sold, for instance if you were never told a key insurance exclusion applied to you or were pushed into it to get another product. Ask them to assess the sale itself, not just whether you ever touched a benefit.

“This account is too old to complain about.”

Comeback, The six-year limit can run from three years after you realised there was a problem rather than from the sale date. If you have only recently understood the account was mis-sold, say so and ask them to consider it on that basis.

FAQ

What if I genuinely used the perks and was happy with the account?

Then it probably was not mis-sold and you would not be owed a refund. This is for people who were sold cover they could not use, were not told about exclusions, were pressured into it, or never knew a free account was an option.

Will I get interest on top of the fees?

Usually yes. A successful packaged account complaint typically refunds the monthly fees you paid plus 8 percent simple interest per year, to reflect being out of pocket for that time.

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A self-serve tool, not a law firm. General information, not legal advice.