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 twice 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. 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! In 2024, 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.
Is your credit card limit too high?
Get a refunds from large loans
Unaffordable car finance – your options
Kye says
I have very recently (a couple of weeks ago) been made redundant. I have had a £1,800 overdraft that I’ve been increasing in line 1/200 increments over the last couple of years, this started at around £500 three years ago. It started as a student account which my mum helped me get out of, and I only started it again because I kept being promoted by the app that it was a good financial decision and a safety net. It’s obviously been more like quick sand, and my credit score has recently decreased significantly, I also in the last year opened an overdraft with Monzo to the sum of £350. I also opened a credit card with them to get my credit score back on track and find this a much more manageable approach to spending. My pay before redundancy was only £1800, I do have £1700 that it’s taken me years to save in a cash ISA at £50 per month. I’ll also say that my career was stunted due to Covid and some issues that I raised as a grievance, and as a result my pay increases never matched inflation and I was overlooked for promotion. In 5 years my pay went from £1450 I think to £1850. Lloyds is my main bank account that my pay goes in to. I also recently started using tools like Klarna and I would be right at the end of my overdraft limit during the middle of the month, right through to being paid. Now that I’m about to be unemployed I won’t be able to come back out, at least until my settlement amount comes through.
Sara (Debt Camel) says
Your problems sound very recent so any refund would be likely to be very small. And it may be hard to win an affordabilty complaint where you have been making regular savings into an ISA.
i think you should be concentrating on finding another job.
Kye says
So I opened it in May 22. In that time I’ve paid £550 in charges. My credit limits worsened. I am jobless and looking, but until I land one surely I’m just going to accrue debt by avoiding paying it back. I thought that by applying for a refund they’d close the overdraft and waive the amount it’s for (currently £1850) and then refund the fees during that time? Which would be £550. I know it’s a small amount regarding the refund, but to not have to struggle paying the £1850 back whilst jobless would be a life saver? Unless I’ve misunderstood what the outcome of this is.
Sara (Debt Camel) says
So three points.
– unless the £500 overdraft was clearly unaffordable at the start, you won’t get a refund of all the interest. The Ombudsman will look at when it got too large and you may get a refund from that point.
– you only get a refund of interest. Not of the whole balance. the Ombudsman says its fair that you should have to repay what you borrowed but a lender shouldn’t be able to make a profit from it by charging interest if it was unaffordable and should not have been lent
– the fact you have been saving £50 a month means you may not win this. because if you hadn’t saved that money you not be so deep in your overdraft
But you do have an immediate problem, it’s just that it doesn’t sound as though an affordability complaint is the answer to it. I suggest you talk to National debtline on 0808 808 4000 about this or go to your local Citizens Advice.
Kerrin says
Hi,
I started uni in 2006 and within less than 6months Halifax had continually increased my student overdraft until it was £3750. It was fine for the four years I was at uni and it was interest free but I was unable to pay it off until around 2015 when my husband inherited some money and gifted me the balance to get rid of this never ending debt (I was only paying the interest off every month). Is it too late to request a refund of some sort of action?
Thanks
Sara (Debt Camel) says
Halifax will reject this complaint as being too old.
in theory the ombudsman can decide to go back further, but Halifax may no longer have any records/ So you have old statements?
Megan says
Hi Sara
I recently used your website for an affordability complaint with NatWest. In short, I began an orange overdraft of Nov 2020 at £250, I upgraded this another 4 times, the last being an overdraft of £3000 by May 2021. Since then, I have continued to stay in my overdraft, and have been charged £2,601.84 in interest fees. In 2020, my annual income was £2,622.. 2021 – £9,484.. 2022 – £3722.. 2023 – £3610.
Unfortunately the response wasn’t great from NatWest.. I had unintentionally lied on the overdraft application, putting mine and my partners income combined rather than just mine. Something they say was validated by the system average credit turnover (as my partner sends me money for household bills, payments etc). They also state because I’ve stayed within my arranged overdraft and not gone over I’ve been able to ‘run with the agreed overdraft facility’. They also contacted me 2/3 via email times a year to book discussions with a staff member regarding my overdraft. But my disability and anxiety caused me to ignore these, as the thought of discussing my situation with a stranger, either on the phone or face to face was horrifying. For those reasons they are unable to agree with me and have given me details for FOS. I now feel like the above reasons will go against me and I’m now uncertain whether my anxiety can cope with the idea of FOS and what comes with it.
Is there any real chance that I have a case?
Sara (Debt Camel) says
whatever you said on your original application, for the subsequent overdraft limit increases, NatWest could see how the account was being used. I think you should send this to the Ombudsman.
Holly Yates says
I’ve recently had Zopa come back rejecting my complaint but have taken it further with the ombudsman. Santander contacted me today via phone at work so I haven’t had chance to speak to them, does anyone have experience with them and if they are kind or not on the phone when dealing with these things I have severe anxiety to talking on the phone is a big fear for me. But I have been in my overdraft with them since 2014 till now where o have just got out of it due to some money I was given.
Sara (Debt Camel) says
If you find it stressful or confusing on the phone, tell them this at the start. And if they are asking you questions, or make you an offer, ask them to put these in writing so you can think about them.
let us know what they say!
Han says
Hi. I have a £1200 overdraft with Natwest that has been at that amount for over 20 years! I am always in my overdraft and feel it is impossible for me to clear it. Before payday I am extremely close to the limit. Within that time I have been on mat leave, been a student, and now work as a nurse and get universal credit top up. In more recent times, when the bank have contacted me for a review, I have declined as didn’t want to be offered a loan and effectively take on more debt. At the point I was given the overdraft, there was no way it was affordable…and still isn’t. I rarely go over my overdraft to avoid extra charges but my lending with other companies has increased. Is it worth me applying with it being such a longterm issue?
Sara (Debt Camel) says
so you are in this every day or almost every day of the month?
Katie T says
I am looking at my TSB account which holds my main bank account, with £1000 overdraft and my credit card.
In Feb 2022 my credit card had a £3275 limit and I hardly used it.
By January 2023 it was almost at max due to maternity leave.
I had minimum payments of around £50 but I would pay say £200 and then rely on the card all month again. (More than the minimums but obviously not clearing the debt anytime soon!)
Jan 23- late payment
Feb 23 -they INCREASED my limit to £5250.
March- another late payment
April- I did a balance transfer
May, another late payment
By June the balance was run straight back up.
I have since been around the 5k mark on this credit card since then.
The overdraft, I would be out of and back in again on the same day.
I’d be paid 2k, I’d pay £1250 to my husband for my part of the bills. which put me straight back in the overdraft. Paying multiple credit cards (even the one WITH TSB) using the overdraft.
During the time I had also taken out multiple other credit cards, a small personal loan and my income wasn’t increasing. I was just slowly drowning (alongside an ADHD diagnosis and postnatal depression, I just really couldn’t see the wood for the trees).
So I suppose my questions are:
– do you think I have a grounds to complain? Or should I put it down to a stupid tax and live and learn?
– If I do complain, do I put them in the same complaint, or separate complaints?
Sara (Debt Camel) says
I think you should complain.
Two separate complaints about the overdraft (template in article above) and credit card (template here https://debtcamel.co.uk/refunds-catalogue-credit-card/)
In the overdraft complaint, say you are making a separate complaint about the way they increased your credit limit.
In the credit card complaint, say they should never have increased your limit in Feb 23 as they could see from your overdraft and the missed card payment the month before that you were in major difficulty. Say that at that point they should have contacted you and offered to freeze interest on the card to help, so you would like a refund of all interest after that point.
Also look at affordability complaints against all the other cards you took out and that small personal loan (who was the lender? what was the interest rate?)
But I also think you should talk to StepChange NOW about a debt management plan that will get interest stopped on the the cards and the overdraft. Winning any affordability complaints will then really speed up the DMP, but these complaints can take many months to go through (a lot will have to go to the Ombudsman) and you need help right now.
L says
Hi,
It’s been 5 weeks since I submitted by complaint to NatWest. Please can you confirm how much longer I need to wait for a reply?
NatWest have acknowledged my complaint and I received an email a couple of weeks ago saying to allow them more time as they’re still looking into it. I’m not feeling hopeful mainly because the account is closed so I’d have liked to have gone through it myself to familiarise myself with it all. Still keen for a reply nonetheless!
Sara (Debt Camel) says
8 weeks from when you complained
Megan says
My complaint took 3 days, I think it depends on who you get and the nature of the complaint
L says
Ok thank you! Was your complaint successful?
L says
NatWest have since responded and don’t agree with my complaint. It was a student overdraft in 2015 which then became a graduate account that I had for years. The overdraft increased from £200 to £2,000 and I was constantly in it but managed to close this earlier this year. They feel that my account was managed and they’d also sent letters and emails advising me of interest, charges and support contacts for continued overdraft usage. So to them they have covered themselves. However, I feel that more could have been done about this rather than just routine emails that are automatically triggered for any customer who falls within this category? They’ve said to get back in touch if there’s anything further or take it to the FO. I’m not sure whether to go back to them or just leave it now as I don’t think I can go much further?
Sara (Debt Camel) says
Send this straight to the Ombudsman. NatWest had a regulatory duty to make sure your overdraft was affordable – sending generic communications is not good enough. Everyone gets those – and yet a lot of people win these complaints at FOS!
David says
Hello,
Im reviewing my Santander overdraft history for complaint. as someone who has been stuck in a continuous loop of being stuck in my overdraft i would say from 2011 onwards where is started as a student account at £1500 limit
2014 – graduate account – increase to £2000 (2 years to pay it back interest fee. Dont recall this)
2017 – expired to a Everyday Account (Still £2000 limit)
2019 – Offered to Santander Switch account. limit decreased to £1700 on the premise that the account has a fixed rate of £30 per month fee)
I dont recall a time where im not at very best a couple days out of the overdraft becuase i had a “very decent” pay month but ultimately i have just gone by with accepting that being in my overdraft is my normal and that its actually my money. Worth noting that my credit score for most of the 2010s was terrible due to a family members inabiity to pay a for 2 mail order catalogue accounts in my name and ive had to wait till 2021 to see them get removed which has made me resistent to even attempt any form of credit card applications. quite a few different. jobs over time aswell to get by, even periods of low pay and some difficult periods where i was incurring charges but never looking like me getting out .This willingness to hold onto every penny i got meant i didnt want to save anything as you get a visual reminder that you are deeper into the overdraft.
welcome any thoughts Sara,
David
Sara (Debt Camel) says
so on the lower overdraft limit you are still in the overdraft all or almost all of the month?
what else do you get for the £30 a month charge?
“worth noting” much of the stuff in there is not very relevant to this sort of complaint – Santander should have seen that the overdraft was unaffordable from looking just at you bank statements, simple.
David Setters says
Yes I was still in it all the time and have been since almost all the time. I’m not sure what else you get for the current £30 fixed rate but would you say this is worth a shot? Thank you Sara
Sara (Debt Camel) says
ask Santander what else you get for this £30 a month.
You do have a good claim before that, but these monthly charges can be complicated.
David Setters says
I believe it’s just the OD fee but thanks for the assurance of it being worth a shot.
Sara (Debt Camel) says
if it is (check, don’t guess) then change the template to also ask for a refund of that
Awa says
Hello Sara,
Ombudsman have come back again after I asked them to look further into my case for the last 6years after I rejected an offer from the bank to refund last 4 years. The investigator has said that they are now considering cases that go further than 6yrs. To support this they would like to know. When did I realise the account was unaffordable and did I raise the issue with the bank. And what prompted me to complain recently about the overdraft.
I knew that my overdraft was unmanageable for the last 10 years as soon as my salary went in I had nothing left to live on or be able to reduce my overdraft incrementally. I honestly cannot remember reaching out to the bank as I did not think they could do anything. The reason I started my complaint now is that my financial situation has been worsened by the bank charges. More often than not the bank take my last 50-60 pounds leaving me unable to buy food items or top up my children’s lunch cards. Is it OK to say this Sara.
Sara (Debt Camel) says
what many people feel is that they didn;t complain before as they though it was their fault for borrowing too much, not the bank’s fault, so they didn’t think there was anything the bank had done wrong so the bank wouldn’t help. And that you found out that the bank should have made sure the account was affordable in [earlier this year?], and at that point you realised that the bank was partly responsible for your situation so you made a complaint.
Natalie says
I was wondering if anyone has had any recent responses/progress from the ombudsman in regards to overdraft complaints over the 6 year mark? I argued 6 months ago that they should go back further, since then I’m getting the same generic email off my handler each month saying they are reviewing it but they won’t tell me what exactly is going on?
R says
I am in the same position.
Tracy sibley says
Santander have gone back to 2015 so over the 6 year mark, they did this in error though. My investigator said that even if they go back more than 6 years the payout is capped at the last 6 years? I did feel under pressure to accept, so I have but I have a 22 year massive overdraft that I’ve been in constantly for 22 year all bar a few months. I did ask what the review was that’s being undertaken and that is the response I received, that it’s capped at 6 years even if 22 years amounts to ££££ more. I think I may have been misled.
Sara (Debt Camel) says
That is not what is happening. Did you get that response in writing?
Tracy sibley says
Hi Sarah no he told me in a phone call, he positioned it that in error Santander had gone back to 2015 and had agreed to pay from then. When I said that I had been in the OD since 2002, to the tune of 5k, never once reviewed he said he had checked with his manager and even if they went back to 2002 which Santander refused, I would only be refunded for 6 years worth. He has sent the final decision to me and Santander. I’ve emailed him to ask for this in writing and I’m awaiting a response. I feel really stupid because I did challenge him about it but he was very sure of himself
Sara (Debt Camel) says
the “final decision” is from the adjudicator or an Ombudsman?
Tracy sibley says
From the investigator. Santander accepted and I did because he told me it was pointless going back further because any payout would be capped. They’ve refunded me 2.5k today which has reduced OD to 2.5k left, I worked out if they’d agreed or looked at longer then the refund would have been closer to 10k. I feel the investigator misled me, he said Santander may also refuse altogether if I pushed it
Sara (Debt Camel) says
how long ago was the phone call when you feel you were misled?
Tracy sibley says
3 September, I’ve been waiting to hear from Santander and they refunded the 2.5 today, taking OD to 2.5, but yesterday I really thought about what had been said from previous post on here I was replying to, so I messaged adjudicator yesterday and received out of office
Sara (Debt Camel) says
OK I suggest you try again on Monday and if if you cant get hold of them, phone and say you want to make a complaint as you were mislded by the investigator in a phone call on that day.The calls should be recorded.
Tracy sibley says
Thank you Sarah I will do
Claire says
Ive been getting a monthly generic messge too,.but no idead when this will be looked at. The message says
You may be aware that the Supreme Court issued some clarification around consumer credit agreements. Our Ombudsman are still considering this clarification so that we can ensure fair decisions are reached on complaints that have been referred to us.
AB says
My complaint goes back to 2006. It has been waiting to be passed to an ombudsman since 1st December 2023. I occasionally hear something from the handler every few months to say I’m still in the queue, but nothing concrete. It’s very frustrating.
JD says
I have had something similar with an aged case since around august 2023. Sara, would you happen to have any update on these cases yet?
Sara (Debt Camel) says
There seems to be some movement but it’s slow.
Richard says
Hi I’ve posted about my overdraft claim before. Bank paid out in august 2023 for the 6 years prior. But my overdraft was a problem long before this. So in September 23 I sent it to the ombudsman. I’ve had many pointless updates from the investigator. Nearly as soon as I sent it to the FOS the investigator rejected due to time restrictions so on your advice I asked for an ombudsman to take a look.
About 4 months ago I asked for an update and she replied with in a nutshell that that are looking at the rules and how the consider claims outside the six years rules.
Now last week I’ve had a response saying the way the FOS look at these claims regarding the 6 years as changed. So she as now been past back my claim from the ombudsman. And she will be looking at it again.
But she did not elaborate on how these rules have changed. So I’m just wondering if you know or have any information on what’s changed. Thanks in advance
Sara (Debt Camel) says
The changes are being brought in because of a case (Canada Square v Potter) last year which looked at when the “limitations period” to bring a court case ended.
I haven’t yet seen a new decision about overdrafts, but it is possible that it may now be easier to go back more than 6 years where the account was still open in the last 6 years, as yours was.
DO says
If you were previously rejected, due to being over 6 years, could you recomplain?
Sara (Debt Camel) says
I don’t think so :(
Richard says
Yes still open now. She told me the way they look at it as now changed. And as I said been passed back to her. She also says it should be a week of so. This was on the 24th September. So hopefully very soon. I’ll put an update in here when I hear.
Pete says
Hi Sara,
I found your website through an article and was impressed by the help you’ve provided. I believe my case might be one of the more extreme ones you’ve encountered.
I’ve been banking with NatWest since 2011, starting with an interest-free overdraft as a student. After university, I cleared the overdraft but fell back into using it. In 2018, I received an email suggesting I increase my overdraft limit. I applied for a £15,000 limit on 25/10/2018, which was approved, despite my only employment income only being around £1,300 per month. At the time, my statements showed frequent gambling transactions and over the years spiralled out of control with large deposits to Forex brokers.
Since December 2018, I’ve been constantly in my overdraft and have paid over £19,000 in interest, with another £413.55 due soon. NatWest has only contacted me once, proposing a loan to settle the overdraft, but the repayment amount was similar to my current fees and my anxiety prevented me from pursuing it. I’ve since received generic emails about support options, but no direct help or fee freezes.
Despite everything, I’ve never missed a payment or exceeded my overdraft limit.
I’d like to know:
* Do I have grounds for a formal complaint?
* Can I request a freeze on interest payments during the investigation, and will it affect my credit score?
* Could the bank remove my overdraft limit if I complain? I rely on it to manage my bills.
Thank you for your advice.
Sara (Debt Camel) says
Yes you have grounds for complaint.They should not have offered an increased limit if there was a lot of gambling on your account. Let alone one that was so much larger than you income.
You can ask but it will hurt your credit record.
In theory yes. This is very rare, but so are cases with such a large limit. One serious option is for you to get a different bank account and move your income and bills there. Natwest is not your friend, they have been making a fortune out of you for many years, leave them behind.
Pete says
Hi Sara,
Thank you for your quick reply. I completely agree—it feels like I’ve been robbed over the years, and it’s time to take action. I will start looking into switching banks. However, my concern is that if I stop paying into the account, I may go over my arranged overdraft, which could negatively impact my credit.
If I request a freeze and win the complaint, either through NatWest or the Financial Ombudsman, do you know if any negative markers placed on my credit report would be overturned?
Thanks again for your help.
Sara (Debt Camel) says
If the refund clears your overdraft it is very likely the Ombudsman will say that any negative marks should be removed. On the numbers you have mentioned, that is possible.
If the refund doesn’t clear the overdraft, sometimes FOS say the negative marks should be removed because your limit should have been moch lower. Sometimes they say should be removed when the overdraft is cleared by you later,
The problem is there are no total guarantees here.
One option is to get a new account opened and ready and move the DDs over. Then you pay into that account the amount needed for the DDs and carry on using the old account. If the worst happens and Natwest close it (which is unlikely) then you just switch your income and all spending to the new account and just transfer the fees being charged each month to the old one.
Another variation is to move everything over to a new account and not spend at all from the Natwest one and just pay in the overdraft charges every month.
These two options help with the practical hassle. But there remains some residual risk to your credit record, that could either not occur or could only be temorary.
What you can’t do is nothing. You cant spend the rest of your life with a massive very expensive overdraft because you are worried about your credit record. Not least because this overdraft means you would fail many affordability checks, so a good credit score doesnt actually do you much good.
Pete says
Cheers Sara, I am going to put together a complaint and send it over this week.
I will update you on any progress, as I may need your guidance along the way.
Thanks for everything that you do!
Pete says
Hi Sara,
Just a quick one. I’ve written out my complaint and I’m ready to send – would it be best to send this via Resolver so that it can escalated to the FO if required, or to send it to the e-mail address that you have listed on this article?
It probably doesn’t matter, but just thought I’d get your opinion first.
Thank you
Sara (Debt Camel) says
Use the email address. Resolver doesn’t make things easier, it just gets in the way of Ombudsman communications.
Peter says
Thanks for getting back to me so quickly. I’ve sent it over, so fingers crossed things go smoothly! I’ve got a feeling that they may make this a tricky one due to the amount of interest I have paid over the years..
I’ll keep you in the loop. Appreciate your help!
Jennifer says
Hi Sara,
I got an offer from TSB to refund fees on my overdraft from Jan 2023 to now and that my overdraft would be closed on 30th sept and their team would be in touch as there may be an outstanding balance.
I decided to take my complaint to FOC as TSB never replied to me asking how much exactly I was being refunded and another couple questions.
I am awaiting to be assigned to an investigator but this morning I had an email from TSB saying I was in an unarranged overdraft by over £200, they have refunded fees and taken away the overdraft (that im not bothered about) but I had to borrow money to get out the unarranged one as I presumed that now my complaint was with FOC that it would stop this.
My issue is the lack of information and clarity I also presumed they would make my balance £0 and I would pay the balance in instalments, is this normal? I have email FOC today with my ref number also for advice.
Thank you
Sara (Debt Camel) says
Well you didn’t have to borrow to pay it, you could just have made a pay arrangement with TSB. But you can Reasonably complain that TSB told you want was being refunded and their team never got in touch about the outstanding balance.