The financial watchdog has seen a “substantial” rise in the number of complaints about packaged bank accounts, making it the second biggest problem financial product behind payment protection insurance (PPI).
Packaged bank accounts offer extra benefits, such as insurance and cheaper overdrafts, but charge a fee in return. The Financial Ombudsman Service (FOS) said complaints about packaged bank accounts came in at around 1,000 a week in the six months to the end of June, according to figures released yesterday.
Around 25,500 people complained about the issue in the first half of this year – which is more than during the whole of 2014.
The FOS added that complaints about financial products other than PPI jumped 45 per cent to 79,550 in the period, as a result of an increase in complaints about packaged bank account complaints brought by claims management companies.