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 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.
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.
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 2020 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 2021 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 2021 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
Read through these and think about which apply to your case.
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 (the regulator’s word is forbearance) for example by stopping adding charges.
How high is too high?
There is no set figure, it 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.
The bank should have seen you were in difficulty
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 tgerms 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 financial distress. For example if you are in the overdraft for all (or almost all) of the month for a prolonged period. Or if you were exceeding your arranged overdraft limit regularly for a significant amount.
I would say over a year is prolonged.
Other points that help your complaint
You don’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, work out if any of these 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;
- 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, defaults etc;
- using payday loans;
- increasing mortgage arrears;
- making payment arrangements with other creditors;
- a reduction in the income going into your account.
Any of these suggests you are reliant on the overdraft to pay everyday bills and you will find it hard or impossible to repay the overdraft and not use it the next month.
If you can think of another reason your bank should have known you were in trouble.
Making your complaint
What you need at the start
You don’t need to know the exact dates your limit was increased before complaining.
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 2018 when the bank increased your limit. But your current credit record shows what was happening in 2017 and 2018. 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.
Most banks now have an email address that you can use if you prefer or if the account is closed so you can’t use the app. But banks don’t make these easy to find, so 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 are now going to 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] 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 2014 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 2017 I had a large unauthorised overdraft for many days each month.
some other points that you can include if relavent- see the list above – these are just a few examples
You should knew I was in financial difficulty because you had rejected my loan application in 2016.
You should have noticed that the income going into my account decreased from 2018.
From 2018-20 there was a lot of gambling showing on my account.
In 2017 you should have seen from my credit record that I had made payment arrangements with other debts.
ALSO Was the limit to high when it was set?
(It may have been ok then and things only got difficult later – in that case miss this out.)
You should never have given me an account with such a large overdraft. When I applied in 2015, you should have checked my credit record and you would have 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 2014. 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 these 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.
The Financial Ombudsman says that 8% simple interest should be added to any cash refund paid to me.
I would also like any late payment and default markers to be removed from my credit records.
Points to note
Personal accounts, not business accounts
The complaints covered here relate to personal accounts. For business accounts, talk to Business Debtline about your options.
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 to your complaint that 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 you have only just found out you can complain.
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 harder to win. The bank may no longer have much information about the old account. If you still have copies of your old bank statements for these old closed accounts this is worth a try.
If you feel you have a good older case take it to the Financial Ombudsman and let them decide!
Packaged bank accounts
These affordability complaints are nothing to do with packaged bank accounts. MSE has a good page about how to complain about packaged bank account charges. I suggest you don’t try to combine this with an affordability complaint – make two separate complaints to the bank and leave a gap of at least a month between them.
Student overdrafts
You are unlikely to win a complaint about a student overdraft saying you were a student and it was unaffordable – they are at 0% interest and nothing is charged until you are in work. So you need to argue it was unaffordable at the later date when they started to charge interest.
The Bank replies
They want to talk to me on the phone!
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. Also say you would like to see this in writing before you decide whether to accept it.
If they want to 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.
Rejection or a poor offer – go to the Ombudsman
The bank should reply in 8 weeks. You can’t go straight to the Ombudsman, you have to wait for the bank to reply.
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.
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 twive about accepting a low offer – you won’t put this offer at risk by going to the Ombudsman. If you aren’t sure, post in the comments below.
In particular, if the bank says you could have declined the increase to your overdraft limit or you never let the bank know you were in difficulty, FOS may not think that is a good reason. And ignore any statements by the bank that FOS will not look into things that happened more than 6 years ago.
Santander has been rejecting some cases then giving a full refund only a few weeks later if the case is sent to the Ombudsman – before the Ombudsman has even looked at it! Santander obviously knows it has been sending out misleading rejection letters.
The easy way to complain to FOS is by completing 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.
If your credit record shows that you had other debt problems send it to FOS. You don’t need to send your bank statements – the bank will send those to FOS.
Do these complaints work?
Yes! In early 2023, some banks are making more offers directly.
A Guardian article featured a case where someone used the template letter here. Barclays denied it has done anything but made an £8,000 “good will” payment to the customer.
And if yours doesn’t, people are winning cases at the ombudsman. FOS is a friendly service although it isn’t speedy. It isn’t any faster if you 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.
If you have priority debts such as utility bills, rent, council tax and benefit overpayments, these can’t wait until your overdraft complaint is settled. Start the overdraft complaint now, but you need debt help as well. So phone National Debtline on 0808 808 4000, tell them you have made an affordability complaint but you would like to know what your debt options are.
John says
Can’t Thank you enough Sara
With your template I’ve written off my £1000 overdraft something I’ve been in for ove 9 years. What a fresh start!
Can’t thank you enough.
Becky says
I made a complaint to TSB about an overdraft I’ve had since at least 2012. It is £2000 and when I was first given it I was a student. Since then I’ve not managed to clear it, making many attempts. I made a complaint to them using the template although they said they have not done anything wrong. They pointed to debt consolidation loans I’ve had in the past where the funds were paid into the account and point to inflows that were about 3k. Do I have a case to take to the ombudsman? The overdraft is not affordable regardless on my incomings. Every month I’m so close to my o/d limit I constantly get messages that I’m over the limit and need to transfer funds in by 2.30pm. It is not short term borrowing even though their response claims so. I’ve been in this overdraft for years and in my current circumstances paying it off is not possible.
Sara (Debt Camel) says
If it is only consolidation loans that got you back into the black, then that wasn’t income , it was more debt. Send this to the Ombudsman
Becky says
They also said that it’s more than 6 years – overdraft was first set up in 2006 – and they said I missed the 3 year mark (I only became aware very recently when I discovered your page and read the Guardian article.
Thanks – I will send to FOS – are there any key things to flag. I will mention that loans are not income and multiple consolidation loans evidence of my struggles. My income is now pretty healthy but doesn’t go into this account and I have £0 left over at the end of the month
Sara (Debt Camel) says
Did they say when they feel the three year point started and why?
Becky says
They said I have received monthly statements which include notification of the overdraft and charges you have incurred
Sara (Debt Camel) says
That doesn’t count. All of the thousands of people who have had overdraft refunds were also sent those! Send this to the ombudsman.
John says
Hi Sara.
I have received a response in my overdraft complaint (used your template) the response didn’t even match my complaint and didn’t make much sense. In a nut shell they said I’ve had the overdraft for more than 6 years so they can’t look at it. Nothing to do with the on going debt of 3k that my wage doesn’t even cover. Nothing about the limit increases that have continued to be granted which as now got me to this point.
I’ve now sent it to the ombudsman. Just wondered if you had any word of encouragement or advice on this.
Honestly the letter in response as me confused.
Thanks
Sara (Debt Camel) says
which bank is this?
John says
It’s the halifax Sara.
Thanks
Sara (Debt Camel) says
when was the last limit increase?
John says
Around august last year.
Sara (Debt Camel) says
So either they didn’t read your complaint properly or you have been sent a reply to someone else’s complaint!
However long ago your overdraft started:
1) the Ombudsman can always look at the bank’s failure to review the overdraft in each of the last 6 years
2) the Ombudsman can look at any limit increases in the last 6 years
3) the Ombudsman can choose to go back further than 6 years if you have only recently found out that that the bank should have checked the overdraws suitable for you each year
Let me know how this one goes!
John says
Should I contact the bank again and question the reply. Or do I not waste my time and just wait for ombudsman.
Thanks
Sara (Debt Camel) says
straight to the ombudsman I suggest
John says
Thanks. I’ll let you know the outcome
Dominic says
I emailed Barclays 2 months ago and have had no reply. I presume the next step is contacting the ombudsman?
Sara (Debt Camel) says
no acknowledgement? I suggest you phone up and ask why.
DN says
Hi Sara, I complained to my bank regarding unauthorised overdraft charges.
I had multiple payday loans, a terrible credit score and lots of gambling. Each month I slipped into unauthorised overdraft with the bank and this incurred charges for the following month, this was a cycle going on every month for some 2 years.
I applied for both a credit card and a loan direct with the bank, both rejected.
Sometimes the pre notified charges would actually put me back in the red, therefore making me incur more charges.
I finally broke the cycle after some time.
I complained to the bank evidencing all this, and asked for a refund of all charges. I thought this was a cut and dry case.
The bank rejected.
The charges alone were over £1k accumulated.
Took it to the ombudsman and they sided with the bank.
Deflated.
Sara (Debt Camel) says
How many days of the month were you in the overdraft?
DN says
Most cases at least half the month.
Some months (2 or 3 out of 25) HSBC wiped the charges but I used to call them up every month and ask for it, (help essentially).
The ombudsman actually said “having multiple loans and going into unauthorised overdraft every month isn’t an automatic sign of financial difficulty”.
Sara (Debt Camel) says
I assume the bank didn’t increase your ovedraft limit during this period.
Here the problem sounds like it was quite short – overdrafts are meant for short term borrowing and only reviewed once a year. So a two year period where you weren’t in your overdraft all or almost all of every month isn’t being seen as severe enough to warrant more action from the bank.
have you looked at complaints about the loans you took during this time?
Rebecca says
Hi, just wanted to share that my husband managed to get a refund for over £5,000 from HSBC for his bank charges & interest on a £5k overdraft. The refund has paid off the overdraft & meant the length his debt plan has been shortened. This is all thanks to the advice on your Instagram page & website, so thank you 🙏🏼
Sara (Debt Camel) says
Great result!
KS says
Hi Sara. Thanks to your advice and letter template we had over £2600 paid back to us in overdraft interest, which cleared our overdraft. I cannot thank you enough for this, as its been life changing to get out of our overdraft after using it to the maximum for many years.
KB says
Hi Sara
The FOS have upheld my complaint and requested Santander to refund all interest charges along with the 8%. The only thing I’m unsure of is I consolidated my overdraft into a loan with the bank after their guidance at considering this option when rejecting my forebearance requests on the overdraft. The FOS have advised I need to raise a separate complaint for the loan although it links with the overdraft it is seperate. Can you advise what might be best for me to do
Sara (Debt Camel) says
make a complaint about the loan, if that too was unaffordable.
thomas says
HiSara, FOS re overdraft complaint have said. “You would have been aware of your financial struggles and being trapped in your overdraft as it happened. And you would have been aware of all late fees and overlimit charges you received from NatWest as they happened. It would have been reasonable for you to understand that the charges from NatWest further contributed to your indebtedness during the difficult financial periods and this would have put you on the path to discovery that NatWest’s actions were at least partially responsible for worsening your situation. So you should have then been aware that you had a cause to complain.” ” I do know you received charges and fees over the lifetime of the account – from as early as 2003. So you should have known at these points that there was a problem that NatWest were potentially partially responsible for and so should have raised the complaint at that time.” any advice would be great!
Sara (Debt Camel) says
You have had complaints upheld at FOS for loans and credit cards that went back further than 6 years?
Do you still have this account with an overdraft?
Thomas says
Hi. Still have this account but nit in my overdraft anymore (paid it off in 2022) so they are looking at last 6 years but not before as saying I should have been aware Natwest were in the wrong. I did win a 20k loan complaint where they have taken off all the interest. Loan taken out in 2019 so basically saved 10k in interest.
Sara (Debt Camel) says
ok so you haven’t won any cases against NatWest for debts that started more than 6 years ago?
Thomas says
No… but I am replying stating I didn’t know and only found out when I saw your instagram post in June 23. Should I add anything else in?
Sara (Debt Camel) says
yes it would help to say more than that.
can you say some more about your financial history from the start of this overdraft problem up to the point 6 years ago ?
Darren says
Hi Sara
I put in a complaint to HSBC that they came back straight away and rejected it, so I sent to FOS the investigator have just emailed me with a letter that he have sent to HSBC. He have gone in my favour and ask HSBC to refund all interest and charges including 8% simple interest from September 2020.
OR if they disagree he will have to send it to the ombudsman to look at.
My question is do companies listen to the investor or send the ombudsman?
Sara (Debt Camel) says
Many claims are settled at the investigator level.
Darren says
This is how the letter ends
Next steps
I think this is a fair outcome in the circumstances, for the reasons I’ve explained. Please let me know by 8 March 2024 whether you agree to my recommendations so the case can be resolved.
But if you don’t accept what I’ve said – and want an Ombudsman to make a final decision on the complaint – you must provide any further evidence or representations by 8 March 2024. Requests for more time must also be made by that date. If I don’t hear from you by
8 March 2024 I’ll arrange for an Ombudsman to determine the complaint.
My Question is if they don’t come back to us what happens next?
Sara (Debt Camel) says
If HSBC don’t reply, normally the investigator will give them a couple more weeks! It’s frustrating but often gets things sorted faster than putting everything into a queue for an Ombudsman as soon as the first “deadline” passes.
Darren says
Hi Sara
HSBC have came back today asking for another 2 weeks as they need to speak to there stake holders about my complaint
What do u think that means? they now have till the 22nd march
Sara (Debt Camel) says
Not heard that one before!
Emma says
Complained to TSB on 23/02/24 regarding a £2500 overdraft since Feb 2018. Received a response today:
“I have now completed my investigation and I’m unable to agree with all aspects of your complaint. However, I do feel there are some areas where we have made mistakes.”
The resolution they suggested was as follows:
“We will be removing your Planned Overdraft limit on your account on 28 March 2024. At this time, I’ll be arranging to refund all charges applied from February 2018 and it may be likely that an outstanding balance will remain on the account. This will mean your account will be passed to our Financial Services team (FS) who will try and contact you to discuss what repayment options are available to you.”
Does this mean that I will be refunded all charges applied from Feb 2018 to the present? Or only from Feb 2018? Sorry if this is stupid of me. However, if it is from Feb 2018 to the present, then that will cover my entire overdraft with around £300 credit to me. If it is only Feb 2018 then it will not cover anything as the first O/D charge was August 2018, so I will get nothing and then I will have to set up a repayment plan to pay off the £2500!
Please help. I am not sure what to do and not sure when to get FOS involved. Might be worth adding that TSB emailed the response to me, but there is no way to respond by email. Only a contact number and an extension for the case handler. TIA :-)
Sara (Debt Camel) says
Does this mean that I will be refunded all charges applied from Feb 2018 to the present?
yes, that is what they are offering.
Darina Nedeva says
Hi Sara, it’s me again, Darina :) after you suggested me to complain for overdraft, I complained to Lloyd’s bank for my overdraft also my partner complained to Halifax on 31st Jan 2024. I’m still waiting for decision but he has already received a reponse from Halifax. (Very quick) He is been in overdraft 12 years now, £5000 and Halifax said that: we’re paying you £4611.20, I’m sorry we didn’t give you better service by not supporting you sooner with your arrange overdraft when it was no longer suitable. After looking at the transactions on yout account, it wasn’t suitable for us to renew your arrange overdraft in July 2021. We should’ve reviewed your account and put steps in place to support you to remove the overdraft. I’m sorry we didn’t do this. To put things right, we’ll refund all fees and charges from 26 July 2021. I’ll remove your overdraft facility 30days from the date of this letter. Once the arranged overdraft facility has been removed, we’ll process your refund into your account. Please note any outstanding overdraft amounts will still need to be settled. I’LL APPLY A RESTRICTION TO YOUR ACCOUNT, WHICH WILL STOP ANY LENDING WITHING LLOYDS GROUP FOR 12 MONTHS.”
Sara (Debt Camel) says
He has paid £4611 in overdraft charges in less than 3 years?
When did his overdraft problems begin?
Darina Nedeva says
He has been I overdraft last 12 years but they said that “as you took out your initial overdraft on January 2012, you needed to let us know about your concerns by January 2018.because you didn’t get in touch with us by this date we’re not taking your complaint any further. Based on what we know, we believe you’d have been aware about the affordability of your overdraft by September 2018 because you applied for a new overdraft limit on this day, so three year limit ended on Sept 21.”
It looks like he paid £4611 in 2.5 years because he was always -5k overdraft. Because whatever comes it goes to bills and shopping, the bank charge was more than £5 every day. What do you think about this decision, Sara?
Sara (Debt Camel) says
did they increase the overdraft limit in Sept 2018?
Darina Nedeva says
Hi Sara, they increased his limit 1500 to 3500 on July 2017 and just 1 month later they increased the limit to £5000 on August 2017, but he said maybe he tried to increased the overdraft limit in 2018 too.
Sara (Debt Camel) says
So there are three important points here.
1) FOS will ALWAYS be able to go back 6 years on an overdraft complaint as Halifax should have reviewed it every year. So they made “a bad decision” in 2018, 2019, 2020 etc all the way up to now. And he should therefore be able to get a refund from 2018 by going to FOS. the 3 year rule is irrelevant here – FOS can always go back 6 years.
2) FOS make the decision about when your husband should have known to complain. They may decide that was 2018. Or they may decide it is in the last three years if he argues that although he knew he was in financial difficulty in 2018 and before, he only blamed himself for spending too much so his overdraft balance had got too high. As he had no idea that Halifax should have checked it was manageable for him, he did not have a reason to complain. Say he doesnt recall asking for a limit increase in 2018, but if he did and it was refused, he doesn’t think Halifax explained that a higher limit would have been unaffordable for him – if Halifax had made that clear to him he may have complained at that point.
3) obviously if he is happy with £4,611 he can just accept and do nothing. It may be a good idea to add up how much he was charged in interest and fees from 2018 to July 2021 as that is extra bit it should be easier to get back from FOS.
Darina Nedeva says
Hi Sara,
Thank you sp much your your response, I’m just wondering if he goes to FOS, and if FOS reject it, will he lose his chance to get £4611 payment from Halifax? Or will he get this money, no matter what, because this’ll already been confirmed by Halifax. If he is not losing this, of course it’s a good idea to go to FOS.
Sara (Debt Camel) says
In theory FOS can decide anything at all. However in this sort of situation they would normally accept what the lender has said as being accurate – so the post 21 years were unaffordable – and look to see if the refund should have started earlier.
The typical case where someone can lose what has been offered is where there is a small “we are soory you complained, we don’t agree it was unaffordable but here is £100 as a good will” offer.
This is a large refund being offered and your husband seems to have a very strong case. I would be astonished if he doesnt get what Halifax have offered as a minimum.
Darina Nedeva says
Can’t thank you enough Sara, thank you so much for your time. Definitely going to FOS then :)
Awo says
Good morning Sara,
Me again. I was awaiting a response from Santander on my overdraft complaint filed on the 29th Dec. They wrote back to me on the 22nd Feb and said that they are sorry its taking longer than the 8 weeks they were due to get back to me by. They said they are still investigating my case and they will let me know as soon as this is completed. They have said to contact the ombudsman if I do not want to wait. Should I wait for them to conclude or follow the ombudsman route. If the latter do I use the online form link you have provided us or do I forward my original letter of complaint to the bank. Thank you
Sara (Debt Camel) says
I would send it to the Ombudsman now. Santander often reject or make poor offers to good complaints so it’s best to get in the Ombudsman queue straightaway. Santander will still come back with a decision which you can then accept if you want.
Dawn says
Hi Sara,
I was given a Platinum account back in 2009 with NatWest & an overdraft of £250. At the time I was going thru a messy divorce and not working and a single parent to 6 young children. They knew my circumstances and could see I was only getting DWP into my account. My circumstances over the years haven’t changed too much, minus having a few jobs here and there but sadly due to MH decline from PTSD my income is mainly DWP to this very day.
I made a complaint back at the end of Dec 2023 after seeing your site about both the platinum account and my overdraft ( I live daily & have done in my overdraft for the last 14 years other than the day my benefits are paid but once bills etc are paid I am back to living in my OD for the rest of the month ) .
NatWest wrote to me regarding my complaint 2nd week of January to apologise etc & that they would call me to discuss my complaint, I’ve yet to have had no phone or any more response from them. Is this a good sign or should I follow up with them to see what is going ? I’d prefer all my correspondence done in writing as it easier for me to understand rather than a phone call & also would they if they accept they are in they are in the wrong would I be looking at refunds of my platinum account from the day they opened this? Thank you
Sara (Debt Camel) says
Has your overdraft limit been increased over the years?
Do you have other debts as well? or arrears on any important bills?
Dawn says
Not sure if the replies have come thru as kept saying error.
No increase on the overdraft, yes I have other debts & arrears on main bills. Main bill arrears are being taken at a small amount from my benefits each month so it will be years before they are paid off.
Sara (Debt Camel) says
It is not a good sign that you haven’t heard anything.
The simple thing is to phone up and ask why you have not had a response to your complaint. Say they have not phoned you as they said they would do and anyway you would prefer a response in writing.
Alternatively you could send that as a message within the app?
A £250 overdraft is often regarded as a sensible safety net. I don’t know what the ombudsman would decide about such a small overdraft.
I think you should talk to a good debt adviser about your options for all of your debts – I suggest you call National Debtline on 0808 808 4000.
Dee says
Hello Sara
I have been in a cycle of overdrafts, credit cards and bank loans. I have cleared my overdraft at times but only through credit card transfers/bank loans… but have then ended up getting the over draft back again over numerous times. I was given my overdraft back after also taking out a loan with the same bank. I don’t miss payments but it I do struggle and have to rely on further credit card so it’s a constant cycle. I did submit a complaint earlier this week which is being looked into but do you think this stands a chance or not with me clearing it in the past (but only through further credit) if so, do you think it’s worth putting one through for my bank loan as well?
Sara (Debt Camel) says
I think if this has goner on for a long wheile – years – yopu should send this to the Ombudsman if the bank rejects it. make the point that you have only been able to clear the overdraft by more borrowing – that does not mean it was affordable.
the bank loan – how large was it? Were the payments one of the reasons you ended up back in the overdraft?
Dee says
Thank you for your reply!
Yes it’s been an impossible cycle to get out of for around 6 years (maybe longer) but the last few years have made it worse with the amount of charges per month.
I took out 7.5k with Santander to consolidate a portion of credit cards/overdraft around April 2020, but March 2022 took out another 10k to clear remaining balance on the 7.5k and overdraft/credit cards again.
Yes I took the loans out cleared the overdraft but due to payments I couldn’t manage everything so I ended up applying for it it again, overdraft was at around 2k at first but I’ve been trying to reduce it with anything spare so it’s £1850 currently
Sara (Debt Camel) says
Then I think you should also make a separate complaint about the loan. Use the template here https://debtcamel.co.uk/refunds-large-high-cost-loans/. In the overdraft compl;aint complaint say you are also making a separate complaint about the loans. And vice versa.
The credit cards – did any of those lenders increase your credit limit when you were on;t making minimum payments?
Stephen says
Why do they only go back 6 years, I have a large overdraft for20 years
Sara (Debt Camel) says
The Financial Ombudsman rules provide that it can investigate anything in the last 6 years and it can choose to go back further if the customer has only found out in the last 3 years that they have a reason to complain.
Has a bank turned down your complaint?
Stephen says
They have finally accepted my complaint and made an offer but only going back 6 years, but the overdraft was for over 20 years
Sara (Debt Camel) says
so you can send the case to the Ombudsman who can decide to go back further. The decisions on this are a bit erratic but some people do get refunds from further back.
I don’t know anyone who has had refunds going back 20 years. I don’t even know if the bank will keep information going back that far.
Gregory says
I have now completed my investigation and I’m unable to agree with all aspects of your complaint. However, I do we made mistakes in increasing your Overdraft Facility. I’m sorry for any inconvenience this may have caused you. I have reviewed your account since the Overdraft facility was applied and can see the overdraft has been used for short term use as the account goes into credit on a regular basis. I can see over each 12-month period you account has gone into credit, therefore I can not agree this is hardcore borrowing.The interest paid each month is in line with the terms and conditions you agreed to when you applied for the overdraft facility. I have reviewed your overdraft increases and can see you applied for several increases in September and October 2019 which increased your overdraft significantly. At this point we should have looked to see if we could have offered further support. Due to this I will be refunding overdraft interest charged from October 2019 to date on 2 April 2024, this totals around £1800.00. At the same time, I will be removing your Overdraft facility.
is that normal that they haven’t confirmed exact amount they will be refunding, only mentioning “around 1800”?
And is there 8% interest should be applied?
Sara (Debt Camel) says
I can see over each 12-month period you account has gone into credit
ok, but was that only for a couple of days each month? of for a couple of weeks each month?
is that normal that they haven’t confirmed exact amount they will be refunding, only mentioning “around 1800”?
if the exact amount matters, you can ask them
And is there 8% interest should be applied?
8% is normally only added if the refund takes you back into the black – does it?
Gregory says
It was for couple of days each month, sometimes even 1 day, and then going into minus again.
Well, when they say approximately 1800, it won’t get me into black, but I’ve done a bit of rough calculations and it actually should be around 2000 with all the fees and interest, then it will get me to the black.
I really find them unhelpful, as their letter is a bit confusing for me and I couldn’t speak to my complaint handler directly, also letter never arrived I had to chase outcome letter twice over telephone and then they emailed it eventually. Should I refer to FOS straight away? Or it’s worth speaking to TSB first?
Sara (Debt Camel) says
It was for couple of days each month, sometimes even 1 day, and then going into minus again.
then although that doesn’t meet the definition of “hardcore borrowing” it sounds like a prolonged significant overdraft usage to me, not using an overdraft as a temporary help.
On that basis I suggest you send the case to the Ombudsman.
If you speak to TSB you may be able to get the 1800/2000 sorted out, but if this is going to have to go to FOS anyway to go back further, then that is just wasting time and you may as well go to FOS now.
Mark says
Following a complaint to Santander where they refunded me the last two years which reduced my overdraft from £1250 to £450 ,they have now sent me letters warning that my overdraft will be taken away on a certain date.It seems very unfair that they don’t admit full fault offering me an overdraft yet are taking it away which will leave me £450 short next month.This is a closed case with the FOS and apart from arranging a payplan or writing a letter of complaint to the bank,I don’t know if any other options.
Sara (Debt Camel) says
are you still using the account? have they been charging any interest?
Mark says
Yes I still have an account and go into the overdraft every month but during the complaint process which is closed,they haven’t charged any interest .
Sara (Debt Camel) says
I suggest you switch to a new bank and propose a payment arrangement to Santader that will clear the overdraft – ask for this to continue to be interest-free.
Nick says
Hi, I am looking at making a complaint to my bank as been stuck in my overdraft (£2100) for past 7 years and also in that time been accepted for a £4000 credit card and £8000 loan (now £3800). I have been not been out of my overdraft for the vast majority of this time and pay around £60 in overdraft interest rates each month and £95 interest on my credit card that is constantly maxed out. If I make this complaint will I be made to leave my bank? Ideally I would prefer to stay with them as been with bofs since a kid. I would appreciate any feedback.
Sara (Debt Camel) says
also in that time been accepted for a £4000 credit card and £8000 loan
were these from BoS or a different lender?
Nick says
Hi Sara
Yes they are both with BOFS. So my overdraft, loan and credit card are all Bank of Scotland.
Sara (Debt Camel) says
I think you should be looking at a complaint about each of the overdraft, the loan and the credit card.
Banks rarel;y actual;ly close accounts because of complaints, but honestly why would you not want to switch to another bank? BofS seems to have made a great deal of money out of you – time to change to a better bank?
Thomas says
Hi Sara, Great news – as well as having the £10 interest on my £20k loan removed I heard back from the ombudsman today and Natwest have agreed to remove all interest and fees and charges removed since June 2017 (6 years form complaint) totalling £6k and go back to 2013 and remove all fees and charges and rework the interest so that it is only on the first £1100 of my original overdraft before the irresponsible overdraft increases – this totals a further £1200. Thank you very very much!!!
Kieran says
I banked with Monzo and had a £1550 overdraft. Last night they closed my account and have asked me to pay back the money owed.
I’ve had the overdraft for 2 years. I was on £1500 a month, so the overdraft was used in full every month. With the interest charges it got too high and I ended up depressed and attempted to end my life.
I reached out to Monzo but received no support. They did stop my interest for 3 months but then continued charging them.
Do you think I’d have a strong enough case to get it written off?
Sara (Debt Camel) says
“Received no support” they didn’t talk to you about a payment arrangement? They were aware of your situation?
What are the rest of your finances like at the moment?
Daisy says
Hi I have an overdraft with halifax and been hard-core borrowing for atleast the last 4 years at least) its never ending I have only been out of od once when I took a consolidation loan and was back in it after a month 🫣 they have recently written to me (last week) so say they are going to reduce by £80 a month starting May for the next 6 months and halving the interest from 49.9% to 19.9% but this is the first time they have done anything. Would I be able to claim for the hard-core borrowing I have calculated my fees and paid £4850 in charges 🤔 my od would have been clear sooner if it wasn’t for the high charges I have opened a separate account for my wages to go in and bills to come out so I can get my od cleared but even with 80 reduction that will be swolled in charges every month so is not really going to help ?
Sara (Debt Camel) says
“they are going to reduce by £80 a month starting May for the next 6 months “
what exactly are they going to reduce – your overdraft limit? or the overdraft balance?
how large is the limit at the moment and what is your balance?
the consolidation loan – who was that from?
Daisy says
They are reducing my od limit by £80 a month, the limit is 4k and bring honest it’s maxed out each month.
I went in to an unauthorised overdraft this month of £20 (over the limit)
The consolidation loan was with someone else.
Sara (Debt Camel) says
I suggest you send in a complaint about the overdraft then. What they have just done isn’t a help at all.
The consolidation loan – who was the lender? what interest rate? Because you may have a good affordability complaint about that too
Daisy says
OK thank you will see what halifax say the loan was secured so didn’t want to do anything that will affect my mortgage to be honest. I wanted to pay the overdraft off and I did but then unfortunately the boiler broke and had to be replaced as it couldn’t be fixed I cancelled all my credit cards after I paid them off with the loan so I could only use the overdraft.