Banks urged to reform packaged accounts to stop mis-selling

In October 2011, the Financial Services Authority (FSA) proposed a new set of rules for bank advisers to follow when recommending packaged accounts to customers following an investigation. The FSA found that millions of consumers had been mis-sold packaged accounts, some costing £300 per year. In many cases the consumers were not even eligible for the benefits attached to the accounts. In a white paper published today, Defaqto said banks could better comply with the FSA's proposed rules on sales of the products by creating menu-style accounts where consumers select the benefits they w...