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You can find the current article at its original source at http://www.guardian.co.uk/money/2012/dec/14/banks-packaged-account-policies-clearer
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| Version 1 | Version 2 |
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| Banks forced to make packaged account policies clearer | Banks forced to make packaged account policies clearer |
| (8 days later) | |
| Banks and building societies will be forced to send annual statements to customers with packaged bank accounts, detailing whether they are still eligible for the insurance they are paying for, under rules to be introduced in March 2013. | Banks and building societies will be forced to send annual statements to customers with packaged bank accounts, detailing whether they are still eligible for the insurance they are paying for, under rules to be introduced in March 2013. |
| Packaged accounts are current accounts bundled up with a range of insurance policies and other features, such as overdraft facilities or even music downloads. The monthly fee can be as high as £25, depending on the account. | Packaged accounts are current accounts bundled up with a range of insurance policies and other features, such as overdraft facilities or even music downloads. The monthly fee can be as high as £25, depending on the account. |
| The city watchdog, the Financial Services Authority (FSA), has already pledged to force providers to check whether customers are eligible for the insurance component of the product when they initially apply for an account. | The city watchdog, the Financial Services Authority (FSA), has already pledged to force providers to check whether customers are eligible for the insurance component of the product when they initially apply for an account. |
| Now the FSA says providers must also send annual eligibility statements – in a separate mailing – and issue alerts to customers who have reached the age limit for their travel insurance or who will reach the age limit before the next annual eligibility statement is due. | Now the FSA says providers must also send annual eligibility statements – in a separate mailing – and issue alerts to customers who have reached the age limit for their travel insurance or who will reach the age limit before the next annual eligibility statement is due. |
| One in five of the UK adult population has a packaged account and banks are increasingly encouraging people to take them out, rather than opt for fee-free current accounts. | One in five of the UK adult population has a packaged account and banks are increasingly encouraging people to take them out, rather than opt for fee-free current accounts. |
| But in October 2011 the FSA began a review of the packaged accounts market to ensure consumers could make an informed decision about the insurance policies in the packages and to limit any potential risk of mis-selling. | But in October 2011 the FSA began a review of the packaged accounts market to ensure consumers could make an informed decision about the insurance policies in the packages and to limit any potential risk of mis-selling. |
| It feared that some customers may try to claim on a bundled insurance policy only to find that they are ineligible. It was also concerned that some customers were having their accounts upgraded without fully understanding what they were paying for. | It feared that some customers may try to claim on a bundled insurance policy only to find that they are ineligible. It was also concerned that some customers were having their accounts upgraded without fully understanding what they were paying for. |
| Andrew Hagger of Moneycomms.co.uk said: "This is a positive step and will help consumers to make up their own mind whether the product remains suitable and represents value for money. With some packaged accounts costing £300 per annum such transparency is vital to ensure consumers aren't getting a raw deal." | Andrew Hagger of Moneycomms.co.uk said: "This is a positive step and will help consumers to make up their own mind whether the product remains suitable and represents value for money. With some packaged accounts costing £300 per annum such transparency is vital to ensure consumers aren't getting a raw deal." |
| The FSA said that after March 2013, it "will continue to work with firms to improve the way in which packaged bank accounts are advertised to consumers". | The FSA said that after March 2013, it "will continue to work with firms to improve the way in which packaged bank accounts are advertised to consumers". |
| • Read our guide to packaged accounts online and in print on Saturday 15 December 2012. | • Read our guide to packaged accounts online and in print on Saturday 15 December 2012. |
| Top savings accounts | Top savings accounts |
| Powered by MoneySupermarket for the Guardian | Powered by MoneySupermarket for the Guardian |