Current accounts sold with additional product packages are to be reviewed after the Financial Services Authority became concerned that some were being mis-sold.
Currently the Financial Ombudsman receives more than 100 complaints annually about these accounts.
Bonus current account attract a fee, normally around £10-£15 per month, and the customer received a benefits package in return. This normally includes insurance for travel or for electronic devices such as mobile phones, plus more attractive rates on other financial products.
The Financial Services Authority says customers are being sold these packages without proper advice and guidance. Some people who purchase them are not eligible to claim when the worst happens.
Experts believe that people who find they cannot claim may launch challenges against banks to recover their money, in the same way that Payment Protection Insurance has been subject to a huge backlash and millions of pounds in refunds.
Sheila Nicoll of the Financial Services Authority added: “For some people, packaged accounts represent good value and convenience. But in other cases, customers may find that the insurance cover they have paid for is useless.”
The new proposals from the Financial Services Authority would force banks to check customer eligibility for the products in the package before the customer signed up. Banks would also have to review each customer’s entitlement annually and provide the information in writing.
The rules around notifying customers of ineligibility to claim would also apply to salespeople who aim to sign customers up over the phone.
New rules governing the sale of packaged accounts could affect up to 20% of Britons who currently pay a monthly fee for a set of benefits as part of their current account. There are more than double the amount of packaged accounts on offer this year compared to five years ago.
However, the final proposals are not due until July next year and would probably not be adopted for some time thereafter.