Bank overdraft refunds

This isn’t the old “bank charges” claim: that route closed after a Supreme Court ruling in 2009. Overdraft complaints today are about whether the bank kept giving you an overdraft, or increased it, when it was clear you were relying on it and struggling.

Banks are expected to spot customers who use their overdraft heavily and repeatedly, and to contact them and offer help.

Signs the lending was unaffordable

• You were in your overdraft most of every month
• Your wages only just cleared it, or never did
• The overdraft limit was increased while you were struggling
• You had returned payments or unpaid direct debits
• You were also using payday loans

What could you get back?

If a complaint is upheld, the usual outcome is a refund of the interest and charges you paid on the lending that shouldn’t have been given, plus 8% simple interest a year on top, and any negative marks about that lending removed from your credit file. If you still owe money, the refund may be taken off the balance first.

How a claim works

1. Complain to the lender. You, or a firm acting for you, write to the lender explaining why the lending was unaffordable.
2. The lender has 8 weeks to send a final response.
3. If you’re not happy with their final response, you usually have 6 months to take it to the Financial Ombudsman Service. If 8 weeks pass with no final response, you can go to the Ombudsman straight away. It’s free.

You can do all of this yourself: our free complaint letters show you how. Or, if you’d rather not, we can introduce you to a regulated firm that will handle it for you, for a fee.

Is there a time limit?

Usually you need to complain within six years of the lending, or within three years of when you realised (or should have realised) you had reason to complain, whichever is later. Lenders sometimes look at older complaints anyway, and the Ombudsman can decide whether a complaint is in time. If you’re not sure, it’s worth checking.

Check my lending claim

Questions people ask