Paid-for currents accounts could become the next bank mis-selling scandal as increasing numbers of customers complain that they cannot use the advertised perks, the financial watchdog warns.

The Financial Ombudsman Service (FOS) has received a record number of complaints from people unhappy with the accounts offered by major high street banks after discovering that the included insurance deals were unsuitable. Banks are also switching current account customers to paid-for accounts without their knowledge, the watchdog warned, with many only noticing when they see the charge debited from their account. Paid-for accounts can cost from £6.50 up to as much as £40. In exchange for this monthly fee they offer benefits, such as holiday and mobile phone insurance.

However the watchdog said today that many customers say that when they have tried to make a claim on one of the insurance policies, they have found that they do not qualify due to their age or the type of product they have. With a fifth of adults in the UK paying for their current accounts, experts warn it could become the next big mis-selling scandal.....Read more here

Other AAD Blog news:

Banks forced to make packaged account policies clearer - allaboutFORUMS

Basic bank account concern from Consumer Focus - allaboutFORUMS

End of free banking? Free current accounts 'should go' so High Street banks stop mis-selling, warns - allaboutFORUMS