Bank of Scotland, founded in 1695, is Scotland’s oldest bank and part of Lloyds Banking Group. Many of its current account customers have an arranged overdraft, and some relied on it month after month.
Bank of Scotland merged with Halifax in 2001 to form HBOS, which Lloyds took over in 2009. The same company, Bank of Scotland plc, also trades as Halifax. Since 2020 Bank of Scotland has charged overdraft interest at a rate that depends on how you manage your accounts and your credit record, rather than one rate for everyone.
This isn’t the old “bank charges” claim, which closed after a Supreme Court ruling in 2009. Today’s overdraft complaints are about whether Bank of Scotland kept letting you use, or raised, an overdraft you were relying on and struggling with, without stepping in to help.
Could you have a claim?
Banks are expected to spot customers who use their overdraft heavily and repeatedly, and to contact them and offer help. Bank of Scotland may not have done enough if:
- You were in your overdraft most of every month, often for years
- Your wages only just cleared it, or never did
- Your overdraft limit was raised while you were struggling
- You had returned payments, unpaid direct debits or charges stacking up
- You were also using payday loans or other high-cost credit
What you could get back
If a complaint is upheld, the usual outcome is a refund of the overdraft interest, fees and charges from the point the bank should have stepped in. If you still owe money, the refund normally comes off the balance first. Where you’ve paid it off, 8% simple interest a year is usually added. Negative marks about that lending may also be removed from your credit file.
In one published decision (DRN-3842920) the Ombudsman found Bank of Scotland should have realised by May 2020 that a customer couldn’t repay her overdraft sustainably, and told it to remove all interest, fees and charges from then. Every case depends on its own facts.
How to complain to Bank of Scotland
- Write to Bank of Scotland saying you were relying on your overdraft and struggling, that they didn’t step in, and asking for a refund of interest, fees and charges. Our free complaint letter has the wording.
- Bank of Scotland has 8 weeks to send a final response.
- If you’re unhappy with it, or 8 weeks pass with no answer, you can take it to the Financial Ombudsman Service for free. You usually have 6 months from the final response.
You don’t have to use a claims company. If you’d rather a regulated firm did it for you, do our free check.
More about bank overdraft claims.
Questions people ask
Can I complain if I still bank with Bank of Scotland?
Yes. You can complain about an overdraft you still have. A refund may be used to reduce what you owe first.
How far back can I complain?
Usually up to 6 years, or longer if you complain within 3 years of realising you had reason to. The Ombudsman will tell you if your complaint is too late.