Did Barclays mis-sell your packaged bank account?

Barclays sold packaged bank accounts — most commonly the Additions range (Additions Active, Additions Plus) and Premier accounts — charging monthly fees between £8.50 and £25 for bundled benefits including travel insurance, breakdown cover, and phone insurance.

The FCA required Barclays, under BCOBS 5.1.6R, to communicate with customers in a way that was clear, fair and not misleading. In practice, many Barclays customers were not properly informed that they were agreeing to a recurring monthly fee, were not told about free alternatives, or were sold insurance they could not claim on.

Grounds for complaint against Barclays

You may have a valid complaint if any of the following apply:

  • You were not clearly informed you were paying a monthly fee when the account was opened or upgraded
  • Your account was upgraded from a free account without your explicit consent
  • You were not told Barclays offered free current accounts as an alternative
  • You were told you did not qualify for a standard account when you did
  • The bundled travel or breakdown insurance excluded you due to age, health conditions, or other eligibility restrictions
  • You were pressured to keep the account when you tried to downgrade or cancel

Barclays Additions accounts. The Additions range was one of the most widely sold packaged account products in the UK. If you held an Additions account at any point and were not clearly told about the fee or the free alternative, you likely have grounds to complain.

The FCA rules Barclays was required to follow

BCOBS 5.1.6R — Required Barclays to communicate clearly and fairly about fees, the nature of the account, and the availability of free alternatives. Failure to disclose the monthly fee clearly is a direct breach of this rule.

ICOBS 2.5.1R — Required Barclays to ensure any bundled insurance was suitable for your demands and needs. If you were ineligible to claim on the travel or breakdown cover — due to age, pre-existing medical conditions, or vehicle type — the product should not have been sold to you.

Consumer Duty (PS22/9) — Barclays is required from July 2023 to deliver good outcomes and avoid foreseeable harm. Continuing to charge fees for accounts originally sold without proper disclosure is inconsistent with this duty.

What redress can you claim?

  • Full refund of all monthly fees paid since the account was opened
  • Statutory interest at 8% per annum on each fee from the date it was deducted
  • Compensation for distress and inconvenience as a separate, standalone head of redress

How to make a formal complaint to Barclays

Your complaint must be made in writing to trigger Barclays' FCA complaint handling obligations under DISP 1.

Send your complaint letter by post to:
Barclays Bank UK PLC
Leicester
LE87 2BB

No postcode is needed — this is Barclays' Freepost address. Send by recorded delivery and keep your proof of postage.

Subject line:
Formal Complaint — Mis-sold Packaged Bank Account

Your letter should state the account name, the period held, the grounds for complaint citing BCOBS 5.1.6R, all three heads of redress claimed, and your intention to refer to the FOS if not resolved within 8 weeks.

Keep records. Save a copy of everything you send and receive. You will need this if you escalate to the Financial Ombudsman Service.

What happens after you complain?

Barclays must send a final response within 8 weeks of receiving your complaint. If they do not respond within 8 weeks, or if their response is unsatisfactory, you can refer immediately to the Financial Ombudsman Service.

If Barclays rejects your complaint

Refer to the Financial Ombudsman Service within 6 months of Barclays' final response. The FOS is free, independent, and upholds around 37% of packaged bank account complaints brought directly by consumers.

financial-ombudsman.org.uk
0800 023 4567

Before you accept any offer from Barclays

Verify any settlement offer includes all three heads of redress — fees, 8% interest, and distress compensation. If any element is missing, push back in writing before accepting. You are not required to accept a partial offer.