FSA tightens packaged bank account rules

17 December 2012

British banks are set to face more stringent rules relating to their packaged accounts, it has emerged.

The Financial Services Authority (FSA) has decided to implement new regulations that initially came about following a consultation in July, which will require financiers to send holders of such products a statement regarding their eligibility for insurance on a yearly basis.

Over the last few years, many banks have incurred penalties after it was established they had mis-sold payment protection insurance to consumers and it is hoped the FSA's ruling on these statements will prevent any repeat of this scandal occurring in the future.

Packaged accounts usually include products such as mobile phone insurance as added bonuses for customers and the FSA is determined to make sure the terms and conditions relating to such extras are clear.

Speaking to the Guardian, Moneycomms.co.uk expert Andrew Hagger noted this action represents a "positive step".

"[This] will help consumers to make up their own mind whether the product remains suitable and represents value for money," he added.

By Tony Aynsley

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