Nationwide is the UK’s biggest building society, owned by its members. Its FlexAccount and other current accounts come with arranged overdrafts, and some customers relied on theirs month after month.
In November 2019 Nationwide scrapped unarranged overdrafts and moved to one rate of 39.9% a year on arranged overdrafts, with no daily fees. At the time of writing its overdraft page shows the first £50 interest-free, then 39.9% a year (variable). Nationwide also took over Virgin Money in October 2024.
This isn’t the old “bank charges” claim, which closed after a Supreme Court ruling in 2009. Today’s overdraft complaints are about whether Nationwide 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. Nationwide 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-5104414) the Ombudsman found a customer’s Nationwide overdraft had become unsustainable by January 2020, and that Nationwide should have offered help instead of adding more charges. Every case depends on its own facts.
How to complain to Nationwide
- Write to Nationwide 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.
- Nationwide 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 Nationwide?
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.