Have you had big overdraft problems for a long period?
You can make an affordability complaint and ask for a refund of overdraft charges if:
- your overdraft limit was set too high at the start or increased to a level you are unable to clear; or
- your overdraft usage showed you were in long-term financial distress. For example, being in the overdraft all the time, or using an unauthorised overdraft a lot
- your overdraft was originally a student account with no charges, but now interest is being added and you are in the account all or almost all of every month.
This article shows how to make an affordability complaint to your bank, with a free template letter to use.
These complaints do not hurt your credit record. And if the bank doesn’t make a you a good offer, it is free to take your case to the Ombudsman.
Contents
Overdraft affordability complaints
Overdrafts are supposed to be for short-term borrowing
Overdrafts are intended to be used for short-term problems, not as long-term borrowing. A bank should review a customer’s repayment record and overdraft limit and if there are signs of financial difficulty, offer help.
One sign of financial difficulty is hardcore borrowing for a long period. The Lending Code defined hardcore borrowings as “the position where a customer’s current account overdraft remains persistently overdrawn for more than a month without returning to credit during that period”.
Some Ombudsman decisions
All cases are very individual. But these examples give you an indication of what the Ombudsman thinks is important.
In this NatWest decision, the Ombudsman decided:
NatWest did have an obligation to monitor Miss K’s use of her overdraft facility.
Any fair and reasonable monitoring of Miss K’s overdraft facility would have resulted in NatWest being aware Miss K was in financial difficulty … by October 2014 at the absolute latest. So NatWest ought to have exercised forbearance from this point onwards.
In this Santander case, the bank didn’t notice hardcore borrowing:
By this point, Miss C was hardcore borrowing. In other, words she hadn’t seen or maintained a credit balance for an extended period of time. Santander’s own literature suggests that overdrafts are for unforeseen emergency borrowing not prolonged day-to-day expenditure. So I think that Miss C’s overdraft usage should have prompted Santander to have realised that Miss C wasn’t using her overdraft as intended and shouldn’t have continued offering it on the same terms.
A similar decision was reached in this Lloyds case:
Mr and Mrs C’s statements leading up to the renewal shows they hadn’t really had a credit balance on their account for a prolonged period. Indeed, they’d had regular returned payments and had also exceeded their limit. In these circumstances, it ought to have been apparent Mr and Mrs C were unlikely to be able to repay what they owed within a reasonable period with overdraft interest, fees and associated charges continuously being added.
Decide which reasons apply to your overdraft complaint
You are in the overdraft all or almost of the month for a long while
This is the most common reason for winning a complaint
Overdrafts are meant to be used when you have a problem. Using the overdraft a lot for a few months is fine. Or for a few days at the end of a month before you are paid.
Banks should review your overdraft annually. This is in most overdraft terms and conditions. And even if it isn’t, the Ombudsman says this is good industry practice.
So at one of these reviews, your bank should have seen if you were in difficulty with the overdraft. For example if you are in the overdraft for all (or almost all) of the month for a prolonged period. Or if you were often exceeding your arranged overdraft limit.
I would say over a year is prolonged.
The bank set your limit too high
This may have been from the start when you were first given an overdraft. Or the initial low limit may have been fine, then the bank increased it to a level which it was impossible for you to repay.
If the bank saw signs of financial difficulty, it should not have increased your credit limit, even if you asked for it. And it should have considered offering your help instead (the regulator’s word is forbearance), for example by stopping charges.
But what is too high?
This depends on your income and expenses. An overdraft of £2,000 for someone whose income is £1,800 a month is a lot – but if you earn £5,000 a month, then a £2,000 overdraft may be reasonable.
Other points that help a complaint
You won’t win an affordability complaint by saying the charges were too high.
Instead, you say the bank should have known they were unaffordable for you because of all the financial problems it could see on your statements and your credit record.
Here is a checklist, do any apply to you?
- often having direct debits or standing orders not being paid;
- a lot of gambling showing on your statements;
- significantly increasing other debts with the same bank (you may also be able to complain about those loans or credit card);
- being recently rejected for a loan or a credit card by the bank;
- significantly increasing debts with other lenders showing on your credit record;
- a worsening credit record – maxed out credit cards, new missed payments, payment arrangements, defaults etc;
- using payday loans;
- mortgage arrears;
- a reduction in the income going into your account.
Making your complaint
What you need at the start
You don’t need to know the dates your limit was increased before complaining, my template asks for them.
If you have paper statements or you can download them from the app, that may be useful for you. But you don’t need to send these statements to the bank with your complaint – the bank already has them!
You can’t go back and see exactly what your credit score was in say 2021 when the bank increased your limit. But your current credit record shows what was happening back six years, so download your credit report now and keep it. The sooner you get the report, the further back it goes. I suggest you get your free TransUnion statutory credit report.
Send a complaint in the app or by email
I don’t recommend phoning to start off a complaint. It’s too complicated and you will be talking to someone that doesn’t specialise in these complaints.
When the account is still open, you can send your complaint by secure message in the app or on the bank’s website. Take a copy of what you put in the message – you could email it to yourself so it won’t get lost and the date is recorded.
If you prefer to send this by email, here is my list of bank email addresses for complaints.
A template you can adapt
The section above looked at the reasons to complain and the other good points that apply to your case – you can turn those into a complaint.
In the template below, I’ve invented some examples and dates so you can see how a complaint email could read. The bits in italics should be changed or deleted to tell your story.
The bit about other points is important – what should your bank have noticed that showed you were in difficulty?
I am making an affordability complaint about the overdraft on my current account number 98765432.
Your identity details (these are needed if you complain by email, not if you use secure message):
My name is xxxxx xxxxxxxx. My date of birth is dd/mm/yy. The email address I use/used for this account was myaddress@whatever.com.
START BY SAYING they should have noticed when your overdraft usage got worse
Overdrafts are meant for short-term borrowing but that was not what I was using the account for. The fees and charges you were adding were making my position worse.
I am complaining that [every year since [20xx] OR for many years] you have failed to notice my difficulty during the annual reviews of my overdraft. You should have offered forbearance eg by stopping interest and charges being added.
By 2017 I had been in my overdraft constantly for many months, not getting back into the black even when I was paid. This “hardcore borrowing” is a clear sign of financial difficulty. My income was only £1,850 a month – after I had paid bills, there was no way I could hope to clear an overdraft of £3500 in a reasonable length of time.
OR
By 2020, although my salary took my account briefly into credit, within a few days, I was back in the overdraft.
other points that you can include if relevant- see the longer list above – these are just a few examples
You should have seen I was in financial difficulty because you rejected my loan application in 2019.
You should have noticed that the income going into my account decreased from 2017.
From 2020-22 there was a lot of gambling showing on my account.
In 2021 you should have seen from my credit record that I had made payment arrangements with other debts.
You should never have given me an account with such a large overdraft. When I applied in 2016, you should have checked my credit record and income and seen I had recently missed payments to a credit card and had taken several payday loans.
OR
You should not have increased my overdraft limit in about 2016. When you increased the limit, you should have seen that my debts to other lenders on my credit record had increased a lot.
I do not know the exact months of the overdraft limit increases. In your reply to this complaint, please tell me when the increases were and how much the limit went up on each occasion.
END BY asking for a refund of charges and interest:
I would like you to refund all the interest and charges that were added to my account from 2016 when you increased my overdraft limit.
OR
I would like you to refund all the interest and charges that were added to my account from 2018 when you should have realised that my finances had got worse to the point that I was no longer able to clear the overdraft.
Please remove any late payment and default markers from my credit records.
Points to note
Student overdrafts
You won’t win a complaint about a student overdraft saying you were a student and it was unaffordable at that point.
But when the bank has started charging interest, it should start doing reviews and check if you are in difficulty. So from then on, you can win affordability complaints.
You can complain if the account is still being used or if it is closed
These complaints can be made in a lot of different situations. For example:
- you are still using the account or you have stopped using it and are paying it off;
- the account has been closed;
- the bank defaulted it and sold it to a debt collector (here you still complain to the bank, not the debt collector). If the debt collector has gone to court and got a CCJ, add a sentence to the template saying you want the CCJ removed as part of the settlement of your complaint.
But if you have had an IVA or bankruptcy after these problems, or if you are still in a DRO, then you shouldn’t complain – ask in the comments below for details.
Old accounts
Banks may say FOS won’t look at an old complaint, but this isn’t right. FOS will often look at a complaint if it has been open in the last six years. How far back FOS will go seems rather random, but it should be possible to go back at least 6 years.
Open and recently closed accounts aren’t a problem – the bank will still have your statements.
If your complaint is about an account that was closed more than 6 years ago, it’s going to be very hard to win.
Packaged bank accounts
These affordability complaints are not about the fees on packaged bank accounts. MSE has a page about packaged bank account charge complaints.
Personal accounts, not business accounts
The complaints covered here relate to personal accounts. For business accounts, talk to Business Debtline about your options.
The Bank replies
They want to phone me!
People are often scared if they get this message. But it may be good news!
You can just ignore it or say you would like a reply in writing.
If you decide to take the call, it helps to be prepared:
- have a pen and paper handy so you can write down anything
- if they say they are partially upholding the complaint, ask them the date they are refunding the fees from, and how much. And say you would like to see this in writing before you decide whether to accept it.
- if they ask you questions that sound complicated or worrying (this is unusual), ask them to put the questions in writing as you find the phone difficult
- if they say they are rejecting the complaint, ask for this in writing as you will be going to the Ombudsman.
Rejection/poor offer – go to the Ombudsman , it’s free
You can’t go straight to the Financial Ombudsman(FOS), you have to wait for the bank to reply, or for them to have not replied within 8 weeks.
Banks reject many good complaints, hoping you will give up. So don’t! You know if the overdraft has caused you a lot of problems.
Here are some things banks may say to try to put you off:
- you could have declined the increase to your overdraft limit – FOS probably won’t think that is a good reason
- you never let the bank know you were in difficulty – FOS probably won’t think that is a good reason
- your salary was enough to return you to credit each month – this is misleading if bills meant you very soon went into the overdraft;
- FOS will not look into things that happened more than 6 years ago – if your account was still open in the last 6 years FOS may well look at it.
And the bank may offer to refund fees for the last 15 months say, even though your problems have been large for many years. Think twice about accepting a low offer – you won’t put this offer at risk by going to the Ombudsman.
If you are offered a refund for the last 6 years but not any further back, have a think if this is a good enough offer. It is a bit unpredictable whether the ombudsman will be prepared to go back further than 6 years.
If you aren’t sure, post in the comments below.
To send the case to FOS, complete this online form:
- you can use what you put in your complaint to the bank;
- if the bank rejected your complaint or made a low offer, say why you think this is unfair;
- use normal English, not legal terms.
You don’t need to send your bank statements – the bank will send those to FOS. And you don’t need the policy documents for your bank account, the lender will supply those to FOS if they are needed.
Do these complaints work?
Yes! From 2024, some banks are making more offers directly.
A Guardian article featured a case where someone used the template letter here. Barclays denied it had done anything but made an £8,000 “goodwill” payment to the customer.
And if your bank rejects your case, people are winning cases at the ombudsman. FOS is a friendly service although it isn’t speedy. It isn’t faster to use a solicitor or a claims firm,
The comments below this article are from other people who have made this sort of complaint. That is a good place to ask for help if you aren’t sure what to do.
Is your credit card limit too high?
Get a refunds from large loans
Unaffordable car finance – your options
Polly says
Hi Sara, I have a Smile (Co-Op) bank account that I’ve had for over 20 years. It was in my name only, but I converted it to a joint account with my partner about 10 years ago and we both pay money in to pay household bills/mortgage from it. We did manage to get it out of the overdraft (has had an £800 limit for as long as I can remember) for a while about 5 years ago, but for the majority of the time it’s significantly overdrawn. Every year Smile’s OD review approves the £800 OD limit (most recently, they renewed it from March 2025 to March 2026). They do of course put all the usual text on the approval email about overdrafts being short-term etc One of our mortgage direct debit payments didn’t go out last September because it would have taken us over our OD limit. I called our mortgage provider (Nationwide) as soon as I realised and paid it over the phone – Nationwide assured me it wouldn’t affect my credit record. Do you think it would be worth putting in an affordability complaint? I’m worried it might not go anywhere as it’s a joint account and they include all the usual ‘warning’ info in their renewal messages.
Sara (Debt Camel) says
you can still complain about a joint account – it is a joint complaint with your partner.
All the warning info on their renewal messages is largely meaningless – they should not have a renewed a mortgage that was unaffordable.
What other debts do you have at the moment? Often an overdraft is just a symptom of bigger financial problems
Michael says
Just want to say a massive thank you 😊
I raised a Halifax overdraft complaint back in Jan 24.
Went to OMB who ruled in my favour and just been refunded £7400.
If I hadn’t come across your page I would never have raised a complaint.
Keep up the great work 👍
Sharon campbell says
Hi where do u get the template to complain please x
Sara (Debt Camel) says
it’s in the article above these comments
Tom says
So I put in my affordability complaint in mid January with Lloyd’s . I was then told it would be resolved by the 13th of March. This was then pushed back until 11th of April. Today I have received a text saying “ we’re sorry we haven’t resolved your complaint. We’re doing everything we can to fix this” but no new date or anything. Does this mean I’ll have it resolved by the 11th or not?
Sara (Debt Camel) says
So far they haven’t missed one of their extended dates… you may be one of the first, I don’t know
Jess says
The same happened with me, submitted complaint with Lloyds on the 15th January, my 8 week date was the 12th March. On the 11th March they extended it until the 9th April. I received a text on Monday (7th April) that they are doing everything they can to fix it. The deadline is today so I’m hoping to hear back, interested to see if anyone else has had any communication following the ‘everything we can to fix it’ text!
Amy says
I’m jn exactly the same position with Halifax. Should have been resolved by 12th march, then pushed back to 10th April , had the same text as you yesterday and I spoke to an agent on the app and they had no information just said it’s still being looked into so I’m not hopeful that it’s going to be resolved by tomorrow!
Amy says
Did you hear anything back today? My 12 weeks are up tomorrow and still haven’t heard anything!
Jess says
Hey!
So I rang them this morning and the man on the phone said there is no update, it’s just a case of waiting and there’s no extension to the deadline, it will just ‘be resolved when it’s resolved’. He also said that he’s ’seen an influx of these kind of complaints’ and that they’re taking the banks a long time to get through. A little disheartening as it’s weighing on my mind a lot now, even if it’s a no I’d just like to know. He said that it’s up to me whether I’d like to go to the ombudsman now and I’m free to do so. I hope yours gets resolved soon!
Sara (Debt Camel) says
I think at this point you should send the complaint to the ombudsman. It is getting silly if they cant even say when they will reply by and stick to it.
Use the Ombudsman’s online form https://help.financial-ombudsman.org.uk/help
In the section that says “Why do you disagree with how the business has handled your complaint so far, and how would you like them to put things right for you?” say Lloyds told you at 8 weeks that you could go to the Ombudsman but they hoped to have a reply by 10 April. But they still haven’t replied so you have lost patience.
And attach a screen shot of the text/message at 8 weeks saying you could go to the Ombudsman
Jess says
Thank you Sara. If I send it to the ombudsman and Lloyds reply with an offer/resolution that I am happy with would I be able to withdraw from the ombudsman? Or would it be removed from the Lloyd’s pile due to being with the ombudsman?
Sorry if these are silly questions!
Sara (Debt Camel) says
Very sensible question! Lloyds will carry on working on your complaint. If they reject: they just send this to the Ombudsman and the Ombudsman looks at you complaint. If the uphold or partially uphold, they usually tell the Ombudsman who tells you what Lloyds have said and asks if you want to accept, in which case the Ombudsman case closes, or you don’t think it’s adequate so the case continues
Amy says
Yeah the same has just happened with me! I spoke to someone in the chat earlier who said a complaints manager is reviewing my case and will be in touch shortly. It went to 5pm and I thought this isn’t being resolved today so I rang them and they said it hasn’t been picked up by a complaints manager yet , it hasn’t been looked at and they can’t advise me a timeframe of when it will get looked at! It’s very frustrating
Laura says
Any update from Lloyds? I am also waiting!
Chloe says
Thank you so so so much! At first I was skeptical whether I would get anything back but couldn’t believe it when my whole overdraft had been refunded plus all the charges! Made such a difference to my life. Thinking I would never be able to get out of it or be able to pay it all back. I’m so glad I came across debtcamel Instagram and appreciate everything she has done to help me!
Abbie says
Hi Sara, I had a reply from TSB today. They have offered me £995 refund of interest on my overdrafts for the last 6 years. They have admitted that I should never have been allowed to take 2 overdrafts out. I feel this is too low – I have had these overdrafts since 2014 and 2016, I have been in and out of them but have mostly been using them. I will be taking this to the ombudsman.
They have have also rejected my credit card complaint so I will take this to them too.
How long does the ombudsman take? Compensation would be nice but I am really looking to get my credit card and overdraft defaults removed from my credit record.
Sara (Debt Camel) says
did you ask if TSB would remove the default on the overdraft?
Amy says
Just got my Monzo final response back and they’ve fully rejected it :( They’ve stated that they used my credit score and deemed that it was affordable, and that they sent notifications about my overdraft use. I’ve gone to the FOS saying that I don’t agree with this and that it’s clear from my statements that I couldn’t afford to repay this overdraft. Further to this, they’ve stated that they reached out to me, but then also let me increase my limit…? They never sent me any emails or post about my overdraft use, only app notifications which I feel doesn’t really suffice… Pretty disheartening but we’ll see what the FOS say
Sara (Debt Camel) says
“Reaching out to you” and “letting you increase your limit” aren’t really compatible. Point this out to FOS
Tom says
Hi Sara
So haven’t been given a deadline of the 13th of March originally it’s was pushed back today I had heard nothing so was given a complaints numbers by Lloyd’s. I rang them and they said they don’t deal with this type of complaint so would try and speak to their manager today to see if it can be allocated to a complaints manager to be sorted as their words “it’s been going on a while now since January” They said they can’t give me a time frame or any other information. Do I hold on or go to the FOS ?
Sara (Debt Camel) says
So haven’t been given a deadline of the 13th of March originally it’s was pushed back today
Do you mean the 8 weeks was up on 13 March and lloyds then said they would reply by today/yesterday?
Tom says
Hi Sara yes so 8 weeks was up in March so was pushed back until today and still they don’t have a timeframe or verdict
Sara (Debt Camel) says
see my answer to Jasmine below, who has the same situation
Jasmine says
I just thought I’d update on here as I know a lot of people are waiting for Halifax. Halifax missed the original 8 week deadline for me and then extended it to the 8th April, which they’ve now missed again. As of today (the 11th) there is still no update and still no decision. Also no indication of when there will be a decision unfortunately.
Sara (Debt Camel) says
I think you should now send this to the ombudsman. Halifax will still consider your case and you can accept an offer from them and end the FOS case if the offer looks good.
Jasmine says
Thank you for your reply. Would doing this slow down my Halifax complaint even more do you think?
Sara (Debt Camel) says
I don’t think so.
Kurtis says
Currently 2 years into an IVA of which a £3000 overdraft with charges on top is part of – in the above it states if you’ve had an IVA not to apply – if the IVA is still on going should I leave this or proceed?
Sara (Debt Camel) says
How large are the total debts in the IVA? How much are you paying a month?
Kurtis says
£17,000 total, £184 per month with the view of the final year going to £450 after car finance (which is not in the IVA) ends!
Sara (Debt Camel) says
this is a 5 year IVA?
is £184 an OK payment at the moment
E says
Some positive news on my affordability complaints – thank you so so much Sara for all of your help and advice on this page, I couldn’t have done it without you!
My complaints started in January last year – Monzo Loan, Monzo Overdraft, RBS Loan, RBS Overdraft. All banks rejected the complaints so I took these to the FOS. Monzo agreed with the initial outcomes, however both RBS complaints went to the final Ombudsman stage. With a lot of patience and perseverance, I kept going with these. In total I received: £1537 back from Monzo, and £1499 back from RBS. The £3036 has gone towards paying off overdrafts and clearing some loan debt and has been a massive step forward in my debt free journey.
My advice – even if it feels like a lot of rejections, please keep going! I promise it’s all worth it in the end. The advice on Sara’s page is really helpful and I really can’t thank you enough!
Maria says
What if you currently don’t have any interest fee’s but you will in the next year or so?
I have a santander student edge current account now and have two years interest fees but i’m still struggling to make any sort of payment.
how would i adjust the email template to show this?
Sara (Debt Camel) says
There is no point in making an affordability complaint at the moment as there is nothing to be refunded.
Alex says
Do you think because a large amount of people are doing this because of seeing it on Tik Tok, your website and Martin lewis etc that the chances of being refunded are getting slimmer?
Full disclosure I was refunded nearly £700 from Monzo and £250 compensation for an overdraft but I have a complaint open with Halifax for nearly £1000 of OD and constant interest and received today
“We’re sorry we haven’t resolved your complaint, We’re doing everything we can to fix this”
it sounds like they’re now inundated with complaints?
Sara (Debt Camel) says
I don’t think the chance of a refund has got slimmer, but the timescale has got longer. Halifax are still giving reasonable responses to quite a few complaints (not all – some good cases have to go to the ombudsman) so it seems worth waiting for that rather than going straight to the ombudsman when it gets to 8 weeks.
Alex says
That’s fab. Thank you for your response and for replying to all the other comments too.
I did just ring them as they’ve text me the same message Sunday, Monday and twice today.
My case hasn’t been escalated to a case manager yet even though I sent it in on the 21st January and today was the cut off date, debating FOS but want to give them the benefit of the doubt for another couple of days.
Chris says
Hi Sara,
Many thanks for the work you’re doing. I made a complaint to Lloyds in January, about the overdraft on my account. I’d been overdrawn for many years, never managing to get out of it, which was made a lot worse when the fees shot up. In 2018 Lloyds told me they were stopping my overdraft, and basically forced me to convert it to a loan of £5300, which I finally paid off this month. I’m still using the account now.
I had a call today from a Lloyds rep, saying they wouldn’t look into my complaint, because the overdraft was converted into the loan in 2018, and therefore it was outside the timescale. They say that ‘they felt I should have known’ that I could have made an affordability complaint in 2018. I assured him that I had no idea then that I could complain, and if I had known, I would certainly have complained. He said that was their final response and that I could take it to the FOS if I chose. Do you think the FOS will consider it?
Sara (Debt Camel) says
was the loan affordable?
Chris says
Yes, it was, £84 a month.
Sara (Debt Camel) says
In this case I doubt FOS will look at this because the overdraft problem stopped more than 6 years ago. You can try, But I would be surprised if FOS uphold this, sorry.
Chris says
OK, thanks Sara.
Louise Spiers says
Can you still make a claim if you have historic debt you then paid off? I have this for Halifax and a number of CCs when it was clear I was maxed out on the mall and they just kept upping the limits. Same with Halifax.
Sara (Debt Camel) says
How long ago were they cleared?
Sophie says
Hi my wife has had a credit card for over 12 months and has struggled to pay this off. I have just found out Christmas 2024 she applied for a £800 over draft whilst also having an £800 credit card maxed out. Is it worth speaking to her bank provider to about this overdraft. It was originally £200 and she has been upping it all the way up to this month being £800. We can’t afford this or are there any solutions to get this debt resolved before she spirals even more. I am helping her financially but there’s only so much we can afford to clear it
Sara (Debt Camel) says
is the credit card from the same bank as the overdraft?
Tom says
Hi Sara
Following up on my previous message so the original date was 14th March then was pushed back to 11th of April. I then contacted Lloyd’s on the 12th who then said someone would be in contact by yesterday they didn’t so I rang up today and was told no one has even started looking at my case yet. Should I go to the FOS now ?
Sara (Debt Camel) says
yes I think you should
Jess says
Hi Tom,
Just to let you know – i responded to your earlier message regarding a response from Lloyds.
I have heard from them today – I put my initial complaint in on the 15th January. 8 weeks was 12th March and the extension was 9th April.
Annoyingly I couldn’t make it to the phone and due to their office being closed on a Sunday I wasn’t able to call back. I have been told to expect a response by email within 24 hours. Just letting you know incase you’re still awaiting a response!
Robyn says
If I have a loan out with said bank, could this negatively impact that? I don’t want them to then default me or penalise my credit score for anything to do with my loan and credit card with them by complaining about affordability (I pay these back and haven’t ever missed one).
Sara (Debt Camel) says
They cannot default your loan or credit card if you are making the usual monthly payments.
BUT are you sure the loan is affordable if it was given when the bank could see you were in difficulty because of heavy overdraft usage?
Are you able to pay more than the minimum to the credit card?
You may also have good affordability complaints against both of those.
Emma says
Refund updates
• Llyods upheld overdraft complaint straight away, refund of £2,369.
• Vanquis taken to FOS, upheld, refund of £2,000.
• Newday Aqua taken to FOS, upheld, refund of £2,684.
• Newday Marbles taken to FOS, upheld, refund of £3,335.
All after financial abuse, I am now finally back on my feet thanks to you and your templates ❤️
Robyn says
Was this for credit cards/loans as well as overdraft f you don’t mind me asking ?
Tom says
Hi Emma
How long did you have to wait to be given a final decision by Lloyd’s ? As I’m currently at the 13 week mark
Robyn says
I struggle with the loan, it’s a lot to pay back (600 pm) but I’m worried they’ll default me or something if I complain or do something that shows negative on credit score. Could I raise a complaint against this also? I was in my overdraft when they gave me it. I’ve never missed a payment though, but they’ve been taken when in my overdraft.
Sara (Debt Camel) says
They will only default you if you stop paying. The template for loan complaints is here; https://debtcamel.co.uk/refunds-large-high-cost-loans/
Kerry says
Hello, does anyone know whether Halifax usually just send you money once they’ve made a decision on a complaint, or do they contact you first to get you to accept the offer? Only wondering as I’ve received a random amount of money from them into my account today, but have heard nothing from them. I assumed they’d contact me first to discuss! (Will obviously call them when I’m home later)
A says
Hi,
I previously accepted a payment from my bank as an interim with interest, whilst my other complaint going back more than 6 years was sent to FOS to review.
I have now received confirmation that the bank has accepted the FOS outcome and have gone back further.
Will the 8% interest start from the beginning to the day of settlement or only until the day the interim payment was paid.
Sara (Debt Camel) says
That’s good news – which bank and how far back does the refund go?
8% interest is only paid for the time your account would have been in credit if the bank hadn’t charged the amounts that are being refunded. This can be hard to work out. It isn’t taking the refund amount and saying you get 8 years interest on that as the refund only built up gradually and for much of the 8 years you may still have had some overdraft.
But it should be paid up to the settlement date, the date of the interim payment is irrelevant
A says
Hi,
HSBC and from 2012-2018 (previously accepted 2018-2024).
It took nearly 18 months but after going through the first hurdle of whether fos could look further than 6 years by providing relevant evidence, it’s just a waiting game after that.
S says
Hi
My bank are advising there is less chance of a refund if they even agree any fault because i only paid monthly fees for 2 year so they wouldnt consider this long term borrowing
For reference i had a student account for 6 years, paid fees for last 2 , so i was fully in the overdraft for 8 years in total
Sara (Debt Camel) says
so you had stopped being a student and were earning for a couple of years before they started adding interest?
S says
I did a 5 year degree (including masters) so this was student account then 1 year graduate account then 2 year fee charging whilst employed
Sara (Debt Camel) says
well if you have been paying interest for only teo years, its possible you would only get a refund for the last years. But still helpful?
if you have other debts as well and are fiinding this too difficult to manage, I suggest talking to StepChange about a debt management plan to freeze interest and stop your debts getting worse. https://www.stepchange.org/how-we-help/debt-management-plan.aspx
S says
Absolutely better than nothing, the issue is they are saying because it shows a 2 year even though it was longer, they dont consider this long term borrowing so may not pay at all
Sara (Debt Camel) says
so how long do you think you were in real difficulty, in the overdraft all or almost all of the month?
have they actually rejected this or are they saying they may?
Natalie says
Hi
I have complained about my Natwest overdraft which was £2250 and I basically lived fully overdrawn for many years with my wages not even covering that amount. They have replied and said they have no record of the increase (assume it was over 10 years ago) and that it must have been an automatic one. It says regular credits were paid into the account and I never went over my overdraft limit. They said I never told them I was struggling. Is it worth taking this to the FOS as I don’t have a date they gave me the overdraft and it is definitely over 6 years?
Sara (Debt Camel) says
yes send this to the ombudsman, you may get 6 years back as they should have checked every year that it was manageable
Jodie says
Hi Sara,
I am looking to make a complaint due to my student overdraft which is 1900 they haven’t charged interest yet but they will soon. Do I wait until they start or not.
Sara (Debt Camel) says
You won’t get anything back if you complain too soon here. Until they are charging you interest, they don’t have to check for affordability, even then you probably won’t win an affordability complaint for well over a year.
How long ago did you degree end? Do you have other problem debts?
jodie says
My degree ended two years ago (when the overdraft was maxed out) and then i did a masters. I think they (natwest) will start charging interest this year. I also have to pay back a small advance from universal credit but im just paying that off bit by bit.
Sara (Debt Camel) says
Well there is no point in complaining now. Will your income be increasing?
Jodie says
Not at the moment, I am out of work and struggling to get a job.
Reana says
Thank you so much for your help! I was literally scrolling through Facebook one evening and found your page! I made my complaint via the online tool and literally copied and pasted quotes from the template letter. After making my complaint and waiting over 8 weeks, I rang Santander and asked them where I should send a subject access request to for information surrounding my overdraft increases so that I could present it to the ombudsman and I got a call the following day and Santander have instantly refunded me £2842, which is for all charges going back to exactly 6 years from the date of my complaint. Thank you so much!
Lucy says
Hi
I am in the process of applying to the police and one of the eligibility criteria is as follows:
Police officers and police staff are in a privileged position with regard to access of information and are potentially vulnerable to corruption. Most of us have debts such as mortgages, student or other loans, and credit/store card debts. Applicants to the police service should not be under pressure from undischarged debts or liabilities and should be able to manage their debt sensibly.
Dependent upon your circumstances, it’s unlikely that you will pass our vetting process if you have an existing county court judgment outstanding.
If you have been registered as bankrupt, and your bankruptcy debts have been discharged, you are unlikely to receive clearance until three years after the discharge of the debt. Debt relief orders (DROs) are treated in the same way as a bankruptcy.
If you are the subject of a current Individual Voluntary Arrangement you will be required to provide supporting documentation and proof of regular payments over a number of months.
You can run a free credit report before completing your application to view any defaulted accounts or County Court Judgements that may be resolved or managed before you submit your vetting application.
If I were to put in complaints to my bank and another lender, would this count as anything like an IVA or anything which could flag negatively for my application?
Thanks in advance!
Sara (Debt Camel) says
No, an IVA is a form of insolvency that is registered on the insolvency register. A CCJ requires a lender to have taken you to court. A complaint is nothing like them.
How large is your overdraft? How many days of the month are you in it? What is the other debt you are thinking of complaining about? What is your credit record like at the moment?
Lucy says
My overdraft started at £2000 while at uni, then they dropped it to £1500, then £1000 and then down to £240. I had to get loans out to clear the overdraft each time. I have never got out of the £240 overdraft, and each month I have to move money in to get it so it’s arranged as sometimes it goes into unarranged. I had to take two loans out with Lloyds to cover this and other debt and actually contacted them last year about my struggles.
I had an account with very and they continually upped my limit despite seeing I was only paying minimum payments. I took out loans last year to clear off my very account, Lloyds credit card and Lloyds loans as the payments became unmanageable. I am doing a little better but my knowledge around loans and lending is limited and I think I have made decisions naively which are going to impact me for a long time.
On Experian at the moment it says it is pretty good, it’s went up a little.
Thanks!
Sara (Debt Camel) says
This sounds as though you are only actually using the overdraft for the last part of the month, not nearly as soon as you ar paid – is that right?
How long ago were the reductions in the overdraft? Were the loans you got to clear chunks expensive?
J says
Hi
Just wanted to say thank you
I am receiving 12 months worth of fees back – this was a student overdraft so only fee paying for 2 years from santander
This has taken around 10 weeks to be resolved so i did send it to FOS – i will be contacting them tomorrow and advising of this as i am happy with santanders response
Thank you!
Anon says
I recently received a £1926 refund for my Monzo overdraft. I started out with a £250 overdraft in 2021 and this very quickly increased to £2000, I have very rarely spent a day in the green on my Monzo account so decided I’d give an affordability complaint a shot. A couple days ago I got a notification from Monzo “+£1926 added to your account” I was a bit gobsmacked, a couple hours later a full response from them agreeing that the overdraft wasn’t affordable once I had passed £500 limit and that they would be refunding all charges from that point. I’ve also submitted one about my rbs student overdraft, although I’ve not paid much charges on that who in their right mind gives an 18 year old with no steady income other than a student loan a £2000 overdraft???!! They declined that it was unaffordable but it’s currently being investigated with the ombudsman. They must think I have a case as they don’t usually take on cases that they feel they have no place being involved with. I have also submitted an affordability complaint for my NewDay credit card, let’s see how that one goes. I was lucky that last year I was able to pay off £1000 of my Monzo overdraft with a backdated wage rise. I did it in a panic with no thought before hand, I knew that if I paid it off they wouldn’t accept an increase on my account again so there was no going back- thankfully now due to the refund the overdraft is gone and I’ve used the extra money to settle some other debts and vet bills.
Sara (Debt Camel) says
Well done on the Monzo!
P-J says
If I have two overdrafts from two accounts (one was a student overdraft) with one bank, will I have to raise 2 separate accounts?
The accounts have been closed however, within the last 6 years.
Sara (Debt Camel) says
no, raise one complaint. But make it clear you are complaining about both accounts
N says
Monzo have decided to close my current account today and given me two months to find a new bank.
I am currently overdrawn £1200, Monzo Flex- £1500 and Monzo Loan £2000 outstanding. No chance I can pay these off in two months, what is likely to happen to these debts once my account closes?
Also, tried applying for First Direct & Starling Bank today and got rejected. Any advice on what to do bank wise? Thanks
Sara (Debt Camel) says
Closing a bank account doesn’t affect a loan. I would be surprised if it affects a flex account either as they are much the same as credit cards. Just carry on making the minimum payments – if they are affordable?
Do you have other debts as well as these?
Were you applying for a bank account with an overdraft?
Sara (Debt Camel) says
Also look at making an affordability complaint against Monzo for the overdraft – see the article above and use that template
N says
Hi Sara. Yes I have other debts that are manageable at the moment, got a few refunds after using your templates! Had a few credit card companies reject my complaints so they’re currently with the ombudsman. I did receive about £300 refund from Monzo for an overdraft complaint, they must have had enough of me after that complaint! I believe the banks I was applying to had an overdraft of £250. I might have to just apply for a basic current account with HSBC to get back on my feet
Sara (Debt Camel) says
yes apply for basic bank accounts. Try nationwide
L says
Hi just had response from financial ombudsman and wondering if the questions they’re asking are trying to catch me out…
1. When did you realise that the National Westminster Bank Plc might have done something wrong when giving you this overdraft. Please be as specific as possible with the dates you first realised.
2. What prompted you to realise that National Westminster Bank Plc may have done something wrong?
3. Why did you complain when you did, and were there any exceptional circumstances that prevented you from complaining earlier than you did?
What do you think?
Sara (Debt Camel) says
can you tell me some of the history of this account and when it got more difficult? is it still open? how many days of the month were you in it?
And during this time did you also have a loan or credit card from natwest? or increasing debts with other lenders?
L says
Hi I’ve had an overdraft since it was student account in 2002 and it’s increased from £850 originally to £4500. I’ve been in it since that time but since 2018 I’ve been a stay at home mum and obviously I’m not earning and so always end up to the limit. I’m always in it. I’ve had a loan to pay it off with NatWest and ended up back in it and also had credit card which I managed to pay off as well as other credit cards with others.
Sara (Debt Camel) says
Do you know roughly when the last overdraft limit increase was? When was the loan and have you also complained about that?
Was the overdraft ok before 2018 or was it more than you were earning because of that?
L says
It was before 2018 but can’t see further back and have no other records of it. I have t complained about the loan as wasn’t aware I could that was prior to 2018 as well. It’s always been more than I was earning hence why I took out the loan to pay it off. Natwest denied any of my complaint but the ombudsman is currently investigating and has asked the original questions in my post.
Sara (Debt Camel) says
OK so typical responses are often along these lines.
“1. When did you realise that the National Westminster Bank Plc might have done something wrong when giving you this overdraft. Please be as specific as possible with the dates you first realised.”
I have always used a lot of my overdraft, but this just felt like something every student had and later what most graduates were having to repay, so I didn’t blame NatWest so much as myself for borrowing more than was sensible. There were so many limit increases and at the time each seemed helpful! but the limit ended at way more than I was earning and then this got a lot worse after 2018 when I had my first child and after that it wasn’t worth going back to work because the childcare costs would have been impossible. So I had no income except some child benefit going into the account. This felt like my problem though and I didnt blame Natwest until [month/year] when I found out that a bank should have reviewed overdraft usage to make sure it was affordable and clearly they can never have done that!
“2. What prompted you to realise that National Westminster Bank Plc may have done something wrong?”
I found out about affordability complaints when [just explain hoe – on social media by seeing accounts on TikTok That signposted you to Debt Camel? coming across my Instagram account? seeing my website mentioned in a newspaper or on an internet form, seeing adverts on Facebook for refunds and then googling to find out more? give details. There are no wrong answers here, just say what happened in detail]
“3. Why did you complain when you did, and were there any exceptional circumstances that prevented you from complaining earlier than you did?”
I complained very soon after finding out the NatWest had done something wrong. I couldn’t complain earlier as I had no concept that NatWest had done anything wrong, so no reason to complain. There were no exceptional circumstances.
TJ says
Hi,
Once a bank (Lloyds) accepts the FOS recommendations, how long does it usually to take to receive settlement payment.
Sara (Debt Camel) says
a lender is supposed to settle this in 28 days. But it can take longer if the account defaulted and was sold to a debt collector.
KT says
Hi :) glad I found this and thank you for all the good work you are doing! Before I found you, I sent a complaint to TSB via a complaint link given by the AI bot on the app, it’s been 6 weeks and no acknowledgement I have now sent an email to the address you have given for TSB. Context – was upping my overdraft weekly/ sometimes daily from 2023, during this I took out a loan which was nearly £4000 which was obviously accepted. Carried on upping my overdraft and reached a limit of £3000 before they starting declining. Still £3000 overdrawn, monthly salary is £1800 so struggling to pay loan and never in credit on my account. Hoping I get a good outcome! I also owe £1900 on PayPal credit but feel I would struggle with this as it’s mostly internet purchases
Sara (Debt Camel) says
Are you also complaining about the loan?
KT says
Yes, from reading other comments I realise I should have sent two separate complaints but I sent them together. Loan taken out in Jan 2024, my overdraft was already £1500 by then and I upped it 17 times after taking out the loan to the max of £3000. The loan and overdraft were all done on the app I’ve never spoke to an actual person at TSB other than a few months ago I called to ask for support and all they offered was £30 good will gesture
Sara (Debt Camel) says
OK, send this straight to the Ombudsman if they reject either the loan or the overdraft part (or both)
KT says
Thank you, will let you know how I get on :)
KT says
Hi! I have had a response from TSB, they admitted they made mistakes with borrowing and said they are going to refund interest dating back to Jan 2024 total £700. Which will leave £2200 overdraft and the loan still to pay. They said I will be contacted by another team to discuss payment plan – what would you suggest please?
Sara (Debt Camel) says
I don’t think a refund of the overdraft from Jan last year sounds good enough from what you have said.
So I suggest you send the and the rejected loan complaint to the ombudsman now.
J says
Hi,
Just looking for either advice or if anyone’s experienced similar.
I’ve have an ongoing complaint with Halifax, which started in January, it response date extended twice with the last date being the 21st April. I then received a call from a case handler on the 24th April, who dove deep into my financial situation of year 2019 (when the overdraft started and increased). There has been no follow on or closure from this conversation. Today I receive an email- stating that they’re pausing overdraft fees and are not reducing my plan to help me. What does this mean? Has anybody else had an outcome in your favour from this?
Thanks!
Sara (Debt Camel) says
Do you have a payment plan in place??? If not could you copy in here what the email said as it seems unusual.
Also do you have any other debts with the Halifax, loans or cards? Other major debt problems?
J says
Hi Sara,
Thankyou for the reply.
“We’ve temporarily paused your arranged overdraft interest charges to support you. To give you some extra breathing space we’ve also stopped the monthly limit reductions under your nine month Plan.
There’ll be no further limit reductions, including the one that was due to happen today, and your current limit at the end of your Plan is £1150.”
I wasn’t aware there was a payment plan to reduce the overdraft but upon looking into further they started this in February (in the midst of a complaint being made). But it hadn’t actually taken any action. It wasn’t something I’ve agreed to.
I have no other debts with Halifax and but have struggled with other debts.
The conversation with the case handler was intense so to speak with the level of interest of my debts in 2019. One particular comment that stands out “you are aware you can reduce your overdraft and seek help yourself within the app” it’s not that I wasn’t aware- I’m not in a position to do so.
I have no other debts with Halifax but do have other debts.
Sara (Debt Camel) says
So I suggest you reply to this email saying thank you for stopping charging interest but I would like to point out that I have no knowledge of any payments plan on this account and I am still waiting for a response to my complaint. If I do not get a response within two weeks (15 May) I will be sending this to the ombudsman.
Lloyds/Halifax have only recently started missing the extra dates they give, until now they have always replied within the extra month. So there is no real track record of whether people in your situation do end up with a satisfactory result.
Are you also making affordability complaints about your other debts? If every month is struggle at the moment it would be sensible to look at a debt management plan with StepChange (https://www.stepchange.org/how-we-help/debt-management-plan.aspx) to get you into a safe financial space. Winning any affordability complaints will then mean the DMp ends sooner.
Kevin says
Hi Sarah, I commented about a month ago regarding my Halifax overdraft complaint…
I made my complaint on 7th February and as of this morning (per my call with Halifax) it has still not been allocated a complaint manager.
Would you suggest escalating this to the FOS at this point or would you still advise to wait for Halifax. On the phone she would give me zero indication of when I might expect to receive an update on this or when it may even be allocated.
Sara (Debt Camel) says
I think you should now send this to the ombudsman. They have had 12 weeks to reply and should have replied in 8
Lucia says
Hiya, I have a £550 overdraft! I’ve had it for years, I can’t find when I first got it. It was around £200 then upped to £550. I’m a carer for my son and I’m always using the full overdraft as I’m not working currently to be able to pay this off. I’m 34 and I’ve had it most of my adult years. Do you think they would refund me the fees and clear it? I know it’s not much compared to others.
Sara (Debt Camel) says
How many days of the month are you in this overdraft typically?
Do you have other debts, loans or credit cards?
H says
I’ve had the following response from Monzo “we have no record of you reaching out for financial support prior to any of the applications mentioned above. We did not find any signs of irresponsible lending during our review. I have attached a PDF document along with this final response to show the data received from your credit file at the times of these checks, which explains in a little more detail how these decisions are made.”
I’m really disappointed and I wonder if I’ll win if I take it to the ombudsman.
Sara (Debt Camel) says
Tell me about this overdraft – how large is it? how many days a month have you been in it? And how long has it been like this?
Leanne says
Hi Debt Camel! I emailed my complaint for my unaffordable lending regarding my overdraft in January. Halifax have text me a couple of times saying they know it’s taking longer than it should, but I still haven’t recieved a response.
Should I go to to ombudsman, or wait a bit longer? Thank you xx
Sara (Debt Camel) says
I suggest going to the ombudsman now. They have got very slow and I feel they are now making fewer good offers, so not worth waiting any longer for
Alex says
Hi Sara,
I’m in a similar position, just spoken to Halifax, 15th April was the deadline but just rang and they still haven’t found me a complaints manager. The lady said that a company has sent through a large amount of cases at once which has put everyone elses on the back burner so to speak. Should I also go to the FOS?
Thanks for all you’re doing.
Sara (Debt Camel) says
yes I think so.
Fm says
Hey,
I won my complaint nearly 2 years ago, as the £1100 overdraft was deemed unaffordable by the ombudsman. The interest and charges basically just paid the overdraft off, which I was happy about. But NatWest didn’t reduce or take away the overdraft. Since then my wife’s become disabled and I had lost my job, so bam. Using the whole of the overdraft again.
If it was unaffordable when I won my complaint, why didn’t they take the overdraft away. Yes I know I should have been more careful but it happened. Bills needed paying.
Should I complain again, maybe I need to just change banks as they know I’ll be back in the overdraft every month.
Sara (Debt Camel) says
Do you have other debts as well?
Fm says
We have credit cards , a car on finance but that will be finished in September, a little behind on council tax and rent but have plans in place to get these back upto date over the next few months. I’m sure the interest and charges are around 28/30 pound a month on the overdraft again since the end of 2023.NatWest knew we were struggling before we did the affordability complaint in 2023, I’m just more upset I didn’t open another account when the complaint was upheld, or that NatWest didn’t remove or even lower the overdraft at the time.
Sara (Debt Camel) says
I think you should look at a debt management plan for all of your debts except car finance, see https://www.stepchange.org/how-we-help/debt-management-plan.aspx. So the credit cards and this overdraft, that will get interest stopped on them. This will involve you changing banks.
You can try and complain again, but you may not get much back
Kerry says
Hi ! I used your template for an overdraft I have had and been in for years. Barclays have just got back to me today and even though they wouldn’t admit liability they did offer me a gesture of goodwill of £1154 , my overdraft is £750 so this will clear it completely and also leave some left over to pay towards other debts ! Thanks so much for the advice and help . The template was really easy to use and made the process really easy ! Xx
Marianne Russell says
Hi,
I complained back in January and it’s now gone to the financial ombudsman. Today I have received a payment from Lloyds of £150. Not near enough I was expecting. Do I need to do anything as I haven’t accepted this payment?
Sara (Debt Camel) says
Have you had a decision offering this?
Marianne Russell says
Hi,
No they just put it in my bank without saying anything?
Marianne Russell says
I’m also making a payment of £150.00 to you, this is for the inconvenience you’ve experienced. You’ll see this in your account ending 1060 within the next 48 hours.
We’re removing the overdraft facility from your account As we agree that our lending decision wasn’t suitable for you, we’re going to remove the overdraft facility from your account. As you’re currently using the overdraft facility and to give you time to plan, I’ll do this in 30 days, on 06 June 2025. We won’t charge you any daily overdraft interest during this time. If you’d like me to make these changes sooner, please get in touch. If your account is in credit, or the refund payment is more than the balance outstanding when we remove the overdraft facility, there’s no impact to you. Your account will stay open, and you’ll be able to continue using it without an overdraft facility. If the refund payment is less than the outstanding balance of your account when we remove your overdraft limit, your account will go into an unarranged overdraft. It’s important you understand what this could mean; ● If you don’t have enough money in your account, payments you’ve set up on your account won’t be paid. ● We’ll notify the credit reference agencies each month your account is in an unarranged overdraft.
Sara (Debt Camel) says
what does the rest of that email say? It sounds like a decision.