How long does it take to get a Mis-sold Packaged Bank Account (PBA) refund?
If you were mis-sold a PBA, you could be in line for a Mis-sold Packaged bank Account Refund compensation.
But how long does it take to get a refund, and is there any time limit for making a claim?
What’s the time limit on Packaged Bank Account refund claims?
At present, PBA claims are time-limit-free, so there’s no deadline by which you need to submit your claim to the bank.
However, there are a few time limits that apply to all types of financial claims, including Packaged Bank Account claims, which you should be aware of.
First of all, once the bank has received an instruction from you or from a claims management company that’s acting on your behalf, they have approximately eight weeks to look into the complaint. It’s essential that you allow the bank this time to give them a chance to research your claim and respond to it in full. However, you should be aware that in old cases, the banks sometimes exceed this eight-week timescale, merely because they are unable to find the information they need.
So, in theory you should receive a resolution in the form of a Packaged Bank Account refund letter or a rejection of the claim within eight weeks of you making the complaint of mis-selling to the bank.
What if the claim is rejected?
If your claim is rejected, you can opt to pass your case for adjudication by the Financial Ombudsman. Following receipt of your conclusion letter from the Ombudsman, you have a period of six months within which to submit a further claim to the bank. Any claims submitted after this six-month time-bar will not be considered.
What about the six-year limit?
In theory, all complaints should be submitted to the banks no later than six years after the date of the transaction, i.e., the date the PBA was sold to you. However, because many customers don’t realise that they were mis-sold, this time limit is pretty much redundant.
And the three-year rule …?
The three-year rule applies to complaints of mis-selling that are made within three years from the date when you first became aware, or should reasonably have known that you might be able to complain. However, the banks are very aware of the adverse publicity that trying to dodge complaints of mis-selling because of this rule would bring, and such a tactic has not thus far rendered a customer complaint void.
How much can I expect to receive in a refund?
You should receive a full refund of the account fees you paid, plus 8% interest on any claim, as it’s assumed you’d have earned money on that amount if it hadn’t been taken from you by the bank. The interest that’s used to work out your monthly bank charges refund is calculated at a flat rate per year, rather than compounded. That means you don’t get paid interest on the interest.
A claims management company will use a Packaged Bank Account refund calculator to work out exactly how much you should receive.
You should receive a response from your bank within eight weeks of submitting a Packaged Bank Account mis-selling claim. If the claim is rejected and you decide to pursue it through the Financial Ombudsman, you have a further six months in which to do so.
A claims management company will be able to find out if you have a valid claim for a mis-sold PBA. They will also pursue the claim for you, saving you the time and hassle. Contact a reputable claims management company today to see if your bank owes you money!
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