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 not interest is being added and you are in the account all 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.
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
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 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.
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.
It was originally a student overdraft
You won’t win a complaint about a student overdraft saying you were a student and it was unaffordable at that point.
But after the bank has started charging interest, from that point it should do reviews and check if you are in difficulty. So from here on you can win affordability complaints.
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 aren’t sure, post in the comments below.
To send the case to FOS, 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.
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
Em says
A massive thank you to Debt Camel for this template! It has helped me receive over a £900 refund from HSBC which was applied to my account on Christmas Eve. This now means that I will be out of my overdraft within a couple of months!! Thanks again!
EP says
Dear Sara
As the year is coming to a close I just wanted to give you a massive thank you. Using your templates and advice I have received refunds totalling almost 20,000. A complete life changer for me and has me out of debt for the first time in mad long as I can remember! Wishing you a fantastic new year!
Claire says
Hi Sara, I have an ongoing complaint with the ombudsman, they seem to be accepting to look at my complaint going back further than 6 years today I received an email looking for the following information. I’m not sure how to respond, any advice would be helpful.
I can see from your bank statements that around 2014 you were regularly using your overdraft. Please could you let me know:
Did you contact RBS at that time to discuss concerns about managing your financial situation
If so how was this completed with the bank
And if you did what measures or proposals were discussed with the bank
If not can you recall when you first became aware that RBS may have done something wrong.
Sara (Debt Camel) says
FOS is asking a lot of people these sorts of questions.
Did you ever talk to RBS at that time or the next few years?
The answer may simply be that you didn’t because you thought it was your problem for spending too much on the account, and as you didn’t realise RBS should have checked for affordability, it didn’t occur to you that there was anything to complain about.
But if you did contact them, in a branch, or on the phone or by message, what did they say and what happened?
When did you become aware RBS didn’t make proper checks – was this when you heard about affordability complaints?
Claire says
Thankyou for responding so quickly, I’ll reply to the FOS with a response.
Ross says
Hi Sara, I have recently put in a complaint to Lloyds due to being constantly in my overdraft, I had previously had contact with them back in 2018 that they should not be offering me an overdraft due to me being a compulsive gambler, I am in recovery and have been seen 2019. Do you think I have a case here? They have gone against my word and in my eyes been irresponsible with their lending. Thanks
Sara (Debt Camel) says
what happened in 2018, did they agree not to offer you an overdraft?
how long have you recently been in your overdraft constantly? this is very day of the month?
Ross Gunn says
Yes they agreed but since then I have been on various dmp yet they’ve still given me an overdraft. I am awaiting a call from them today to talk about my claim so fingers crossed they uphold my complaint
Lauren says
I just wanted to say a big thank you and share my success story for my overdraft complaint. I was refunded a total of £2322 for 2 of my accounts with an overdraft (one £500 and another £750) with Halifax acknowledging that they let me extend my overdraft irresponsibly and far too easily! With this money I have been able to pay off and close both overdrafts and still have an amazing amount of money leftover for savings. They are also writing off the unarranged overdraft impact on my credit record. I’m so pleased with this outcome and was beyond anything I ever expected! Without your advice and template for the form I never would have thought to do this, so thank you so much 😊
Ellie says
Hello, I’m with Halifax also and have used the template to make a complaint, out of interest how long did it take for you to hear back? I received a text message 24 hours after my email was sent with them acknowledging they’d received my complaint but just wondered how long it took for you?
Sara (Debt Camel) says
they will often take all 8 weeks to reply.
Linda says
Hi,
Just wanted to share my affordability complaint success story with Halifax. I had an overdraft of £1600 and for the past 4.5 years I was constantly overdrawn and it wasn’t affordable at all. I just couldn’t get out of it. So I followed Sara’s advice and sent a complaint to Halifax. They did delay the final decision till the very last day and called me to ask for some questions regarding my financial situation and some of my cash withdrawals but they did came back with the answer the next day and were happy to refund me the full amount of the interest I paid and extra £75 compensation. I am truly happy and very thankful for this page and information available. I now have a hope that I will be debt free next year!
Thank you Sara!
Holly says
Hi,
I have two loans with Halifax (my main bank account) and an overdraft with this same account.
My overdraft is £3500.
Loan 1 was a total of £13,500.
Loan 2 was a total of £25,000.
For loan 1, I pay £647.98 per month and loan 2, I pay £599.54 per month as well as having a regular mortgage payment leave my current account of £546 per month.
This is totally unaffordable for me.
I earn around £1900 per month.
I am still currently paying back both loans and loan 2 feels impossible to pay back as the interest is almost as high as the amount I pay.
Would I be in a good position to make an affordability complaint and ask that interest is repaid for both the over draft and loans and any further interest is for the loans is cancelled and therefore only pay back what I have borrowed?
Thank you in advance. I have ready through your pages but just wanted to clarify if this will be a sensible thing for me to do!
Sara (Debt Camel) says
That sounds very difficult for you.
The overdraft – how many days of the month are you in it on average? And how long has it been like this?
What dates were the two loans taken?
was either of them for consolidation?
Do you have any other debts at the moment?
Are you struggling to make the payments at the moment, how are you getting through the months?
Holly says
Thank you for your response.
I am always in my overdraft as I don’t earn enough money to cover it – so 31 days. This is interest if over £90 per month. I have had an over draft of at least £1500 for many years, however, increased it to £3500 help me manage in 2024. This increase was done after I had the loans I believe.
Loan 1 – July 2023 – £2845 remaining.
Loan 2 – April 2024 – £24,488.39 remaining – high interest.
I cannot remember the exact reasons that I put on the loan applications, however, each time I did try to pay off my overdraft with some of this money.
I have smaller debts such as a very account (£1500), next account (£600) and a few little bits on Klarna.
I always make the payments on the loans as I am very conscious that if I do not then this will negatively impact me in the long term however, this is of course a huge struggle. I have borrowed money from family members ect but this of course is not a long term fix.
Each month is very stressful and I worry about this almost all of the time. I work hard in my job but my salary can only stretch as far as it can stretch.
What are your thoughts?
Thank you for your time!
Sara (Debt Camel) says
can i ask if you are renting or buying? If buying, who is your mortgage lender?
Holly says
Buying – mortgage with Barclays.
Sara (Debt Camel) says
I think you should look at a debt management plan with StepChange – this will freeze new interest and let you make a lower affordable payment so the stress goes. This harms your credit score, but you will still be able to get a new fix from Barclays when the current fix ends (assuming you don’t have mortgage arrears) as they have signed the Mortgage Charter. .
Affordability complaints are then a great way to speed up the DMP as winning any of them reduces the balance being repaid in a DMP. These complaints may take a long while to go through as they often have to go to the Ombudsman, so a DMP gets you into a safe space.
Holly says
Thank you so much for your advice.
Mandy says
Hi I’ve just received this text from the Halifax regarding my complaint about an unaffordable overdraft. I just wanted to ask if if should go to the ombudsman now or wait like they suggest?
Cheers
Mand
Dear Mrs xxxxxxxxx, we’re still looking into your complaint. We know it’s taken us longer than it should have to resolve this and we’re sorry for the delay. Because it’s been eight weeks since you told us about your issue, you can refer your case to the Financial Ombudsman Service. You don’t need to do this now as you’ll still have time after you receive our final response. You can find more details at https://www.financial-ombudsman.org.uk/businesses/resolving-complaint/ordering-leaflet/leaflet. Your reference number is xxxxxx. If you need to speak to us, please call 0800 096 1279. We’ll be back in touch by 12 February 2025 if we still haven’t resolved your complaint.
Sara (Debt Camel) says
I would send this to FOS now. it takes time to get things sorted at FOS so get yourself in the queue now.
(Although at least Halifax isn’t going to go bust. If you aren’t in any financial difficulty and want to wait, that’s up to you.)
Mandy says
Hi update. I decided to wait and give them a little more time. So today I’ve got a missed call and then an email saying it was them saying can I call them as they need further information regarding my complaint. I know this seems like a simple and reasonable request but I think I have already provided them with all relevant details already so just wondering what kind of thing they might want to ask so I can be prepared. I’m also worried that they may try and trick me into saying the wrong thing. Anyone else had this or be provide me with advice.
Thanks
Mandy
Sara (Debt Camel) says
you don’t have to take the call if you don’t want. But people who have taken it haven’t said they felt they were being tricked.
Mandy says
Hi sorry me again.
An update and a request for some advice.
So I’ve received my letter from Halifax and they are going to refund £1625 which they say is the interest from 1st January 2022 and I need to contact them to pay off the rest of my £2000 overdraft. They admitted they shouldn’t have set it so high but say they’re not looking further back than that because they reckon they haven’t made an error but no other explanation. I had requested that they refund the interest from jun/July 2018 when they upped my overdraft to 2000 (which incidentally is almost double my monthly income).
Do you think it’s worth taking this to the ombudsman and if so is all I need to do is send my original letter of complaint and their reply? If not what do I need to do. Also do I need to contact Halifax and tell them that I’m taking it to the ombudsman. I’m also worried that if I do this I might lose the money they say they’re going to refund?
Sorry this is so long but any help is so appreciated as I’m really nervous dealing with all this!
Sara (Debt Camel) says
did your situation get worse in late 2021?
If you think back to jan 202, were you in the overdraft all or almost all of the month at that point?
Same question for 2020?
Mandy says
No my finances have been consistently poor since as long as I can remember around about a period of unemployment in 2009/2010.I have also been on a debt management plan since around 2010. The overdraft has been maxed out since was raised as it was before it was raised to £2000. I only asked for the refund since the limit was raised to 2000 in 2018, it was probably too high beforehand as well, but the £2000 seemed a good point to ask from. I also asked them for a list of charges from that point but they said they were unable to do so.
Sara (Debt Camel) says
Well if you are unhappy with the decision, then yes, send it to the Ombudsman. The article above has the link to the Ombudsman’s online form which you should use.
It is very unlikely you would lose the money already offered.
Mandy says
Thank you for the info. I probably will go down the ombudsman route. Can I just ask you one final question? Should I let the Halifax know that I’m taking it to the ombudsman?
Sara (Debt Camel) says
No, the Ombudsman will tell them
Amy says
This is very helpful thank you. I have a question regarding Vanquis.
I started a £1000 credit card with them August 2023. Since then, I was able to pay this off twice, working additional freelance jobs. My employment situation has since changed and I am now unemployed and this account has been maxed out since October 2024, with charges/interest. Do I have any leverage in seeking refund on these interest/charges?
Appreciate the help!
Sara (Debt Camel) says
Not an affordability complaint, but I suggest you immediately contact them and say you are out of work, offer a token £1 a month and ask them to freeze interest and charges, see https://debtcamel.co.uk/token-payment-debt/. And do the same with other debts you can’t afford until you are back in work. Talk to National debtline on 0808 808 4000 about this if you need advice on your situation.
JD says
Hi Sara,
Have you any more information or heard that the ombudsman is doing another review? I received the following correspondence about my complaint which is asking to go back to 2012 and was submitted to the ombudsman in June 2023.
‘Your complaint is awaiting the ombudsman’s final decision. There is a judicial review going on for s140 impacted uphold cases so it may be a while before a final decisions can be issued on your cases, but once final decisions can be sent your case will be prioritised due to the length of time they’ve been with us.’
Very disheartening for there to be another delay after already being delayed for a year.
Sara (Debt Camel) says
The Ombudsman completed its review, this is a lender challenging the FOS decision in court.
JD says
Would you have an estimate as to how long this may potentially delay a decision?
Sara (Debt Camel) says
I don’t know
But it shows the Ombudsman shift in approach is good news for borrowers as the lenders hate it!
Shanice says
Hi, I’ve just followed this article in regards to a £500 overdraft I was allowed to open with only £800 p/m income. Would this be sufficient that it was unaffordable?
I also could never reduce my overdraft when I could pay it off bit by bit, causing me to stay at max limit. Santander would say it was an issue on their end that I could not reduce my overdraft.
I was also offered to switch to an account with lower fees, I did so, but the fees were practically the same.
Is it likely that this’ll succeed?
Sara (Debt Camel) says
Being unable to clear an overdraft so you are in it all the time for a long period is a good reason to complain
Laura harvey says
Hi, I’ve had my overdraft with Santander for at least 10 years, my overdraft is 1200 and I get paid £2080, once I’ve paid my half of the bills I’m straight back in my overdraft. Usually within 2-3 days. Is this enough to make a complaint?
Sara (Debt Camel) says
That sounds good to me.
Melissa says
I’ve had an overdraft with Santander since 2019 when I started university. I believe it was a very small amount at the beginning and this increased every year automatically and in my finally year it was upped to £2000 and I maxed it out. I have in the last year started paying interest and fees, my account states I’ve paid nearly £200 in fees. I get paid £1,700 a month. But I do not use the Santander account for anything other than to pay off my overdraft. I have 1,800 left to pay. Do you think I have a chance at a complaint?
Sara (Debt Camel) says
So you are using a different bank account as your real account? Does that have n overdraft too? Do you have credit cards or other debts?
James says
Hi,
I’ve had a £1500 overdraft for around 4 and a half years now and every pay day I’m straight back into overdraft via direct debit bills, I also applied for a credit card with a limit of £1000 which has been maxed out for around 2 years I try to pay into it but with no money in current account I can’t help dipping back into the credit card! I’ve called multiple times for help or consolidation loans to make it easier to pay off but was declined. Just the option to freeze interest for a month. Is it worth doing an overdraft complaint?
Sara (Debt Camel) says
Is the credit card from the same bank?
Hayley says
Hi ! I was looking at putting in a complaint to my bank. I got my overdraft about 7 years ago with Natwest. I can’t remember the 1st overdraft but it was upped to £2500 and I get paid £1815 a month. I’m never out of the overdraft. I’ve been told to get a new bank account for my wage before I make the complaint is this correct?
Sara (Debt Camel) says
Earning less than your overdraft means you can never get out of it, so you have to do something!
Switching to a different bank account can be a good approach – if in the end winning your complaint doesn’t clear the overdraft you can just chip away at the remining amount a but each month.
And although it’s rare for a bank to close an account, you may feel more comfortable if you have already got another bank account open.
But is your overdraft your only problem? Do you also have loans or credit cards that are making your life difficult? Look at affordability complaints about them too – those lenders should have notice from your credit record that you were overdrawn a lot and so unlikely to be able to afford a lot of new credit
Chloe says
Hello,
I have a £2000 overdraft with NatWest, I originally got this as a student 6 years ago. They give me 1500 and then increased to 2000 within the year. I have been unable to get out of this since and have now been getting charged interest rates as I am not a student anymore. I earn £1700 a month which is not enough for bills etc and to pay to get out of it. Do you know if I have any base for a complaint please and any advice?
Sara (Debt Camel) says
yes this sounds like a good complaint. You can never get out of an overdraft when your wages are less than it and NatWest should have noticed this after they started charging interest.
Also see my response to Hayley above.
THW says
After doing a bit of research digging, I found Debt Camel and thankfully I did. I put in an affordability complaint and Halifax offered £3300 refund which has cleared my £800 overdraft. Thank you Debt Camel. 🐪 Regrettably, NatWest, whom I banked with longer – since 1999, have been less accommodating, and as such, I have referred my matter to the financial ombudsman. Lets hope for a favourable result.
Thanks again for providing valuable information on this site.
Amy says
Hi, hope you don’t mind me commenting but how long did Halifax take to get back to you? I know it says allow up to 8 weeks , I only submitted a complaint a couple of days ago. Glad you got some
Back!
Sam says
Morning Sara!
I have had my current account with Barclays for many years, I have always had a large over draft, it’s currently £1000 ( I’m not sure when it was increased) but I am in this every month for a few years, they have recently emailed me to say they have noticed this and want to lower it but won’t because they don’t want to put me in more of a financial problem , can i still send a complaint email to them?
Thank you!
Sara (Debt Camel) says
This sounds like a very good time to make a complaint!
Do you also have a Barclaycard or a loan from them?
Sam says
Yeah I have a Barclay card with them too, this has always had something on it and if it’s been paid off it’s been due to another card that I’ve transferred over too for consolidating ( I’ve complained to these already )
HS says
Hi,
HSBC offered me a £300 overdraft in October 2024 but within a month let me increase this to £3,300.
My take home pay is only £1,700 a month- even though this is relatively recent would I have a leg to stand on? It is worth noting since I’ve had the overdraft I’ve not been positive once.
I also had another £1,000 overdraft with Lloyds at the time of application which had been maxed out for months.
Many thanks
Sara (Debt Camel) says
Had your income very recently fallen?
What other debts do you have at the moment?
HS says
Hi,
My income has not fallen it is the same as when they first offered me the overdraft -may be worth noting I’m only 21.
I have no other debts currently.
Emily says
Hi Sara have sent and affordability complaint email via the email you supplied for TSB, but I haven’t had any response to acknowledge the email is this normal?
Sara (Debt Camel) says
how long ago did you send it?
Emily says
On Wednesday morning
Sara (Debt Camel) says
oh thats not long. If you haven’t had any form of acknowledgement in a few weeks, phone them up and ask. Don’t just send another email.
lo says
will this work for paypal credit ?
Sara (Debt Camel) says
That is more like a credit card than an overdraft, see https://debtcamel.co.uk/refunds-catalogue-credit-card/. It may work if the account was opened, or the limit increase you are complaining about, was post Brexit in January 2021
TW says
If anyone is thinking about making a complaint on overdraft affordability, I’d deffo recommend. I’d been in an arranged maxed out overdraft of 2K with Santander for 5+ years after uni, paying interest each month. I had recently paid the overdraft off but came across this account in December and used the overdraft template to complain about the years I’d been overdrawn by max balance, paying interest I couldn’t afford each month when it was clear I could not repay. Santander have now refunded all interest charges in the period my overdraft was active, which is just over 2K! Great page, really useful.
Carly says
Hi,
I have an overdraft with Barclays which I have been in maxed at £1000 for over 4 years, I haven’t ever been able to get out of it, however I am worried that if I email an affordability complaint they will cancel my other account which is now my main account with all of my direct debits etc with my husband.
Will it also affect my credit rating and if I ever need future credit will it be impacted?
Thanks
Sara (Debt Camel) says
what are the fees each month on this?
do you have an overdraft on your joint account? do you have other debts as well? what is your credit score like at the moment?
Meggie says
Hi Sara & fellow debt camels!
Thanks to Sara and her amazing template I popped my email over to Lloyds on Sunday night, I got a text Tuesday morning to say that ‘Dear Miss X , we’ve received your complaint and we’ll be in touch soon. To resolve this for you, we’ll look at the information we have and ask for more details if we need them. If we need to contact you, we’ll do so by telephone. We’ll then give you our final response, which we may send by email. Please check your junk folders in case it ends up there. If you prefer that we do not send our response by email, please let us know. If you don’t accept our final response, you can ask the Financial Ombudsman Service to look at your concerns’ I haven’t had a phone call from them yet or an email, and I was just wondering whether anyone else got the same text, and roughly how long it then took them to reach out to you? I took out the overdraft in 2010 and they didn’t start charging interest till 2012- 2013, so I have asked them to look at refunding me starting 2013 (wishful thinking I know) would love to hear anyone else’s story who have had a complaint with Lloyds and will keep you updated on mine :)
Lee says
Hello Sara,
Thank you for hosting such a fantastic resource—it’s greatly appreciated.
I have reviewed the article but couldn’t find specific information on refund periods. Could you clarify the timeframes in which we can request refunds? For instance, are claims limited to the past six years, or is it possible to go beyond this period?
In 2020, I raised an affordability claim with TSB regarding both an overdraft and a credit card. I was in and over my overdraft for many many years.
Unfortunately, both claims were declined. At the time, I was already working with the Ombudsman on multiple affordability claims related to payday loans and short-term loans (all won thanks to this website). With the added challenges of the COVID-19 pandemic and some personal matters, I simply didn’t have the energy to pursue TSB further.
Could you advise whether it would still be possible to raise a new affordability claim, or would it be better to approach the Ombudsman regarding my 2020 claims?
Thank you in advance for your guidance.
Sara (Debt Camel) says
You can’t take a 2020 rejection to FOS now, that is a long way outside the 6 month window you had.
And you cannot make the same complaint twice. It would simply be rejected as already answered before and the ombudsman would not take this.
How much have you used your overdraft since 2020? How many days of the month are you in it on average?
Have TSB increased your credit card limit since the 2020 complaint?
LR says
How long would you say they usually take to respond? I submitted my Lloyds complaint on 22/12. Contacted them for an update 2 weeks ago and was told it’s been assigned but no response on there yet. Contacted them for another update yesterday and was told the same.
Sara (Debt Camel) says
You often won’t get a reply before 8 weeks.
Are you in financial difficulty at the moment as you cannot reply on these complaints providing a quick solution, many have to go to the Ombudsman after a rejection or a poor offer.
LR says
Yes and no, I can manage. They are upping my OD fees to 49.9% APR on 31/01, so I would’ve liked a response prior to that. As if this gets rejected I plan to utilise a 0% money transfer I have on one of my cards.
From the following do you think it’s likely I have a case? Took out OD in 2021 when I was a student but had a lot of money coming in (sfe, part time work, money from parents). Upped the limit myself from 500-2500 a few months after taking it out. Instantly was overdrawn roughly -1800 every month for the next 3 years. Take home has ranged from 2.3-2.6 per month so only just getting out of it for a few days/a week before paying bills. Only issue I think they may have is I pay my rent via PayPal on my Amex to collect points via my partner. So quite big payments to them every month.
I have had creditors interfere prior when irresponsibly using credit (reducing limit etc) and it doesn’t feel like Lloyds followed those protocols at all. Especially now they are raising the APR.
Sara (Debt Camel) says
You can explain the large & regular Amex payments as being your rent. Are you being charged interest by Amex?
Leah says
No interest on Amex as I pay it off in full then use the PayPal f&f option to transfer (I only use it to pay rent)
Jamie says
Hi Sara
I am going to write a letter of complaint to the BOS about unmanageable overdrafts. I also have a credit card with the same bank which I have been struggling to pay back also. Should I write a letter of complaint for the credit card also. And should this be a separate complaint or part of the same email.
Sara (Debt Camel) says
How many days a month are you in the overdraft and how long has it been like this?
How long ago was your credit card opened and has the limit been increased? Have you mainly paid the minimum?
Jamie says
In the overdraft most of the month and often go into un arranged. It’s been like this for a number of years. The credit card was about 2019 which has been up and down but for about 2 years now been only paying the minimum and paying lots of interest.
Sara (Debt Camel) says
It’s best to send these as two separate complaints. You can cross refer “I have also complained about my overdraft in a separate complaint”
WR says
Hi Sara,
I have a £2000 overdraft & a £1000 credit card both with RBS that have been maxed since I got them whilst at university (6 years ago). I pay off £100 a month on the CC but always end up having to use it & with the overdraft, I’m paying around £60 a month in charges.
I am also paying off an old Barclays CC to PRA group which has around £600 left on the balance.
I am currently unemployed so my financial position doesn’t look to change any time soon unfortunately, would I be in a good position to make an affordability complaint & if so, does this impact my credit score? Am I also at risk of them closing my accounts if I complain?
Thank you!
Sara (Debt Camel) says
If you are currently unemployed I suggest you should ask to reduce your payments to PRA and the RBS card to £1 a month and ask RBS to halt charges on the overdraft until you get a job. This hurts your credit score but it stops you getting deeper into debt each month. This harms your credit score but it must already be poor with a default and a maxed out card on it. Talk to National Debtline on 0808 808 4000 about this and any other options.
You can’t rely on affordability complaints resolving this sort of problem as you may not win them and many are slow, having to go to the ombudsman.
If you are constantly in your overdraft, your best option may be to get a new bank account with someone else now and move over your benefits and essential direct debits.
Samantha says
Hi Sara,
I have been in a 2k overdraft since I was at university roughly 2018. I have lived in that overdraft ever since and rarely have ever been able to get out. I miss direct debits every month and always have. Do you think I have a claim? I pay £30 a month for my overdraft like today where they’ve left me over my overdraft by taking the £30.
Sara (Debt Camel) says
How long ago did they start charging interest?
Do you have other debt problems?
Is your income enough to cover the bills and living expenses if there was no overdraft?
Liberty says
Hi Sara, I’ve been in a 2350 overdraft for about 5 years I applied in Covid when I lived on my own and panicked to cover the bills. Since that time I’ve been constantly in my overdraft I earned about £1400 at the time of getting the overdraft. They have sent me a letter about discussing my overdraft fees as I paid £864 in interest last year. I am going to call to discuss my options Monday however would this still give me grounds to make a complaint.
Thank you ☺️
Sara (Debt Camel) says
which bank is this?
do you have other debts as well?
you can still make a complaint whatever they say on Monday – come back and chat when you know?
Owlbird says
Dear Sara,
My husband put in an affordability complaint as we are always maxed out on our overdraft and have been for 5 years. They rejected it! We were shocked and annoyed. We didn’t take to the Ombudsman as husband thought we would lose. My question is as its a joint account can I complain in my name and then if they reject it take it to the ombudsman? Wondered if the complaint is per person not per account. We have tried to talk to them about how much we need to get out of it but they don’t care.
Thank you
Sara (Debt Camel) says
How long ago was the rejection?
Tell me about your other debts
Owlbird says
It was around 8 months ago the complaint. Have other credit cards to. Our mortgage is due to renew this year and I’m feeling very overwhelmed.
Sara (Debt Camel) says
It is a shame you didnt take this is to the Ombudsman.
I haven’t see anyone try again with the other person of the joint account. i would expect the bank to reject this and I don’t know what the ombudsman would say.
What are your and his other debts?
Who is your mortgage with?
Owlbird says
I know I’m so annoyed now. I found the letter and it was dated the 22nd May and we only had 6 months to go to the ombudsman.
We have a fair few debts with credit cards. Mortgage is with Pepper Money.
I mean is it worth going to the ombudsman any way or is it a total waste of time?
Sara (Debt Camel) says
Not unless there was some big factor that meant you couldnt go before.
Look at affordability complaints against the cards
Lucy B says
Hi Sara
I took an overdraft in 2022 while I was a student in university and my only income was student finance. I was approved an over draft of £1500 and since then I haven’t been out of it. I’m now working full time but every month results being back in overdraft. Would this be a worthy complaint?
I’m charged interest every month of around £50
Thanks
Sara (Debt Camel) says
So this wasn’t a “student overdraft” with no charges. In that case, you will get a refund if you win an affordability complaint
how many days of the month are you in the overdraft?
Lucy B says
From approx june 2022
Roughly about middle of every month I would go into my overdraft
Sara (Debt Camel) says
That seems a lot of interest to be charge on a 1500 overdraft for just two weeks a month? When you get paid, you are back into credit again and don’t need the overdraft for two weeks?
do you have other debts as well?
Lucy B says
It would be every month really. Yes I’ve around £100 left to pay on next catalogue. It is not worrying me however the overdraft is
Sara (Debt Camel) says
OK, I am still not clear on your situation but it’s obviously causing you difficulty, so make a complaint and come back here with what the response is?
JS says
Hi Sara,
I complained to Lloyds about my overdraft in end of November, explaining how they kept increasing my limit without checking affordability. My overdraft use spiraled from £100 in 2018 to a £1,500 limit in 2022, which I maxed out immediately. Despite clear financial difficulties—including other debts like a Nationwide overdraft and PayPal credit—they didn’t offer meaningful support, only short-term interest holidays I had to apply for myself.
It’s now been 8 weeks, and they still haven’t assigned my complaint to a complaints manager. When I called, they discouraged me from going to the Ombudsman, saying it would ‘delay things.’ and that they have a ‘very high level of complaints’ they are dealing with at the moment, but ‘hope it will be picked up soon’ due to the age of the complaint.
Has anyone else experienced this? Should I escalate?
Sara (Debt Camel) says
I would be inclined to say it goes to the Ombudsman if you haven’t received a suitable offer within two weeks
JS says
Hi Sara
Great news! Just had my complaint reviewed, and they upheld it from October 2017 my overdraft actually began in 2017. They admitted they should have stepped in sooner and refunded me £2,534.12.
For anyone still waiting—stay persistent! It took time, but it was worth it in the end. Thank you Sara, without coming across this I would have been none the wiser!!
Charlotte says
Dear Sara,
I would like to inquire about the eligibility of my situation for an affordability claim. I applied for an overdraft of £2000 with Halifax thirteen years ago while in college. Now, in my mid-thirties, I remain consistently overdrawn each month. Last year, Halifax expressed concern about the limit, and we met; however, no resolution was reached, and I continue to pay interest without reducing the overdraft. I received another call later in the year to consider a loan, but I explained that it would further increase my debt. Unfortunately, they seemed unconcerned. Do you believe this claim is eligible? Thank you for your time.
Sara (Debt Camel) says
sorry i wasn’t clear. I was asking on average how many days of the month are you in the overdraft – very soon after you are paid? half way through the month, the last week?
Charlotte says
No worries, I’m overdrawn every single day.
Sara (Debt Camel) says
then that sounds like good claim. If Halifax reject it, send it to the Ombudsman
J says
Hi! I was wondering on my eligibility – 2017 I had a student overdraft opened (£1500). Stopped being a student in 2020. Since 2021/2022 I have been unemployed, receiving benefits and in the bottom end of my overdraft. I have been paying interest of about £40 a month – it says it is an “arranged overdraft interest” but I am not a student any longer.
I believe them to be irresponsible with charges so I will ask them to stop. Can I ask for a refund of said charges? I’ve been paying for years. Thank you
Sara (Debt Camel) says
so you are in this overdraft the whole of the month?
do you have heath problems or is there some reason you can’t get a job (knowing this may help with a complaint)?
do you have any other debts, as overdrafts are often the symptom of a bigger debt problem?
J says
Yes I am. I haven’t been out of it for years. I have mental health problems- the benefits are LCRWA (£800 a month). I have no other debts other than PayPal Credit I am paying off and a klarna debt. Thank you
Sara (Debt Camel) says
This sounds like a good complaint. Send it to the Ombudsman if the bank rejects it. Don’t be fobbed off!
thistle says
Hi, my husband and I have been fully in an £2,200 overdraft every month since about 2004 when our income decreased. They put it up to £2,400 at some point after that. The account is with RBS, we now come about £200-£400 into the black after getting paid but use the whole thing every month still. Should I say that this has been going on 20+ years in the letter and say we want the fees etc back for the past 20 years? Or should I just ask for the past 5 or 6 years? Anything back that would help us finally clear this would help. I am in Scotland. Thank you for your help.
Sara (Debt Camel) says
So you are using the overdraft very soon after payday each month?
I suggest you ask for a full refund. In practice they may not have bank statements going back that far, so unless yours have kept yours, there will be a limit. But just make the complaint now and see what they say. Come back and discuss?
thistle says
Yes we get paid on the 28th and are in credit by a few hundred but only until bills come out on the 1st. Then we use up the overdraft and are at or near the limit the rest of the month.
I will try to write to them using your template. Thank you!
Georgia says
Hi, I recently started a debt allocation order with a company to help me get back on track. Is this the same as an IVA? Can I still apply to get the charges back from my bank and store cards? My debt is not being written off, I am paying it all back over 3.5 years at a more manageable monthly amount.
It hasn’t been finalised, it is still in the process of going through.
Thank you
Sara (Debt Camel) says
Can you tell me more about this – which company is this? what sort of debts are going into the order and how large are they? is interest going to be frozen on the debts?
G says
3 x credit cards plus 3 x store cards = £13k. It is a company called J3 solutions that has sorted it for me.
Sara (Debt Camel) says
They are an insolvency practitioner. They don’t list “a debt allocation order” as a possible debt solution… Have they explained how this will be recorded on your credit record? Are the monthly payments flexible if your situation changes? What fees are they chargingm- if they say “non” they what fees are they taking out of the payments you make so the creditors get less?
For so little debt I strongly suggest you talk to StepChange immediately about a debt management plan – and then cancel the arrangement with J3 are planning. That is fee free and flexible and will not show as insolvency on your credit record. And you will be able to make affordability complaints in a DMP which will speed it up and help to clean up your credit record a bit.
Sara (Debt Camel) says
Are you in Scotland?
Connor says
Hi Sara,
Im thinking of making a complaint. I have been in my overdraft for many years now with Santander and although I receive emails mentioning that overdrafts are for short term borrowing they have never actively reached out to put a stop to charges or anything. I did change my account type to one where there are no unwarranted overdraft fees and a set monthly overdraft fee but still haven’t been able to get out of my overdraft. I pay money in from my other account (not Santander) then end up pulling money out before charges hit and am back to square one.
Do I have a case to complain? Super embarrassed by this which has caused me so much mental health issues that even reaching out is causing me anxiety.
Sara (Debt Camel) says
So santander isnt your main bank account?
Connor says
Santander was my main account (i have had it open for probably 20 years in total) however I have a Barclays account where I get paid into and use for bills and a Revolut account which I use for day to day spending
Sara (Debt Camel) says
I think this is well worth a complaint
Connor says
Thank you Sara,
I have finally gotten over the anxiety to contact yourself and have sent off an email to Santander to complain. I will let you knwo every step of the way what they respond with.
Thank you so much for your help, I hope i can finally pout this behind me.
Kevin says
Hi Sara, I’ve been with Halifax since I was 18 (24 now) and have been essentially living in my now £1800 overdraft since I was about 19/20, I earn £1900 a month after tax so get out of my overdraft on payday but usually go straight back in as soon as I start paying bills. Do you think I have a good case? They not long ago let me go up from £1550 to £1900 despite me always living in my overdraft.
Also, if I do complain will they just cancel the overdraft and pay back the fees and then I’d be left with nothing to spend?
Sara (Debt Camel) says
This sounds like a good complaint to me. It sounds like they should have offered you help not an increased overdraft limit.
Legally a bank can withdraw an overdraft or indeed close an account whenever they want. I don’t recall this being a problem with Lloyds/Halifax who usually given notice of any changes, but you may feel happier if you have already opened a new bank account to switch to, so it’s their in the unlikely case that you need it.
Richard says
Hi Sara. You asked me to let you know out come on my long standing Ombudsman case against royal bank of Scotland. (Halifax). They have finally replied and got bank to ombudsman. The investigator herself wasn’t fulling ne with confidence regarding the years prior to the last 6 years. I was paid out nearly 2 years ago for 2017-2023 totalling £8.5k
The Halifax have finally agreed that the overdraft should never been raised. And now paying out from 2008 to 2017 another £7k plus 8%.
So people should not give in or give up hope.
I’m happy to copy and paste the response in here redacted of personal information if course. If you think it will give others hope.
Thanks for all your previous advice.
Richard
Sara (Debt Camel) says
I would love to see the decision. You may have to post it in bits, and can miss out the boring stuff!
Richard says
We have re-reviewed the complaint and assessed all the overdraft applications and completed a review of the statements from the initial overdraft limit provided of £50 in October 2002. This later increased to £100 in August 2005 and increased further to £300 on 28 August 2008.
We’ve concluded the overdraft limit provided up until 28 August 2008 was affordable for Mr …. However, we shouldn’t have allowed Mr … £300 overdraft limit to be provided on 28 August 2008. This is because it was evident the account was being used for gambling. The gambling transactions increased further into 2008 following the increase of Mr …. overdraft limit on 28 August 2008.
To put things right we’ll refund all overdraft interest and charges applied since 28 August 2008 up until 12 March 2018 minus any previous refunds Mr … may have already had during this period. This totals £6953.88. All overdraft interest and charges since 12 March 2018 onwards have already previously been refunded as part of the original decision to Mr …. complaint.
We’ll also look to make an 8% compensatory interest payment if required. Both the refund amount and the 8% compensatory interest payment, if this is required will be paid into account ending 2790 once we receive acceptance from your service and Mr … that this resolves this complaint in full.
PL says
Thanks Richard,
This fills me with a bit of confidence. I was assigned an investigator on the 2nd of December. I followed up a month later because I hadn’t received an update, the said they’ll start looking at my case in greater detail the next week, so far it’s been just over 2 weeks, so hopefully I get a decision soon.
It was the same case for me, I had a load of gambling transactions on my account. My overdraft was raised from 2k to 15k within the one application.
It’s worth noting that I have been paying 3-400 a month for 6 years. I’ve consistently been in my overdraft since December 2018, except for 2 periods in May and June 2019 where it was cleared, but I was back in it within days.
Richard says
I first started my claim around 18 months ago. It was dealt with pretty quickly by the Halifax and paid out the last 6 years straight away. I know now though they have stopped doing this in most cases and now just rejecting. So the ombudsman will be clearly busier now.
I wasn’t happy with only the six years. So I asked the ombudsman to assist. This as took 1 year 4 months. Now I know there was a court case which as been good for us that are claiming. I’m sure Sara will as as quoted it.
I assume you have claimed through bank and sent it do ombudsman because of rejection.
My advice would be to keep at it. If the investigator doesn’t agree with you. Send it to ombudsman. Just keep at them and don’t let it go. But I would expect it to all take 9-12 months.
PL says
I complained to my bank at the beginning of October, 8 weeks later the bank rejected my complaint, so I raised it with the FOS shortly after. I was assigned an investigator within a couple of months. Probably due to the complexity of the case, who knows.
In total I’ve paid over 20k in interest! Which makes me feel sick, but hopefully I get the result I’m hoping for via the FOS investigator and the bank accepts it, otherwise it’ll mean a longer wait via the Ombudsman.
Congratulations on getting such a large refund back, seems like it was worth the wait.
Richard says
Feels like our situation is very similar so hopefully that gives you some reassurance. Wish you luck
JAY says
Hey Richard,
Great result with your complaint!!
Can I ask, did the ombudsman mention anything about a judicial review? Can I ask when the ombudsman at the final stage issued a decision? I have a very similar aged case that has been going on since June 2023 detailing a complaint back to 2012. FOS paused it while they were reviewing their approach, confirmed that this internal review was now complete but then in the middle of January have said that they are pausing decisions on these complaints due to judicial review and they didn’t know how long this would last.
Richard says
No they didn’t mate. I’m just waiting on Halifax now paying out. Maybe sara can help you more with what this might be.
Jo says
Hi,
I want to complain regarding my £1700 Santander overdraft as after a few days of being paid and bills coming out, I’m in it again and have been since 2014.
I have a Santander mortgage too but I am worried that if I make a complaint, they will withdraw my overdraft altogether and leave me in a worse
position – has this ever happened?
Sara (Debt Camel) says
Nothing that happens to this overdraft will affect your mortgage. When you need a new mortgage fix, Santander won’t check your affordability or credit record.
What is your current credit score like? Do you have a lot of other debts as well?
A bank can withdraw the overdraft – that just leaves you with an unarranged overdraft. You can obviously send the complaint to the Ombudsman who will always be able to go back at least 6 years and can decide to go back further. If you win the case at the ombudsman, Santander would normally have to remove negative marks on your credit record. So you have had some temporary damage to your credit score that is then corrected.
if you don’t complain, what other way out of this trap do you have?
Evan says
Hi Sarah. I have had a £2000 student overdraft which I was increasing by £100 pretty much every day with NatWest and I ended up leaving university and when I started working and my account changed to a graduate account, my overdraft was always more than my monthly pay and when I had a graduate account I was really struggling as I was constantly getting further credit and gambling to try and get rid of my debts. Would I have a case with NatWest? There has never been a time when I wasn’t in my full overdraft
Sara (Debt Camel) says
How long has interest been charged on this?
Have you managed to stop gambling?
Do you have other problem debts as well?
Evan says
The interest has been charged for at least 2 years and I still have my problems with gambling it’s something that I’ve struggled for years. I do have other problem debts and I’ve resorted to going on a debt management plan because of it. I was constantly trying to place bets to reduce my debts. Usually putting me in more of a debt
Sara (Debt Camel) says
is the overdraft in the DMP? Who is the DMP with?
Evan says
The DMP is with money wellness and they have taken into account my NatWest overdraft yes
It’s with money wellness
Sara (Debt Camel) says
OK so you need help to stop gambling. If you don’t then getting any refunds isnt really going to help you as you will probably just gamble away the money :(
If your gambling is online, sign up to Gamban. It is effective. Gamstop is too easy to get around.
But yes you can complain about this overdraft. And also about most of the other debts in your DMP probably! Can you list them?
Evan says
Hi Sara. Thank you for your response about this. I want to mention that although I wasn’t a problem gambler at the time I got my £2000, overdraft.. do you think I still have grounds to complain? Like I said I’ve never had a wage bigger than my overdraft amount so if that holds weight I’ll certainly look at complaining.. I definitely was at the time it changed to a graduate account and I was being charged interest. I’ll try gamban but GamStop unfortunately doesn’t ban every single betting site.
I have intrum, aqua,lowell, and a few others. But yes with alot of them I was given credit while I was a problem gambler.
Sara (Debt Camel) says
Like I said I’ve never had a wage bigger than my overdraft amount so if that holds weight I’ll certainly look at complaining..
That is the main reason to complain. The gambling makes their decision to carry on giving you an overdraft worst
I’ll try gamban but GamStop unfortunately doesn’t ban every single betting site.
Gamban has a reputation for being much more effective. If online gambling is your weakness, it’s worth the money
intrum, aqua,lowell, and a few others
go back and find out who the original lenders were – they are who you should be complaining to, not intrum, lowell. even if they couldn’t see the gambling, they should have seen your heavy overdraft usage which should have suggested you couldn’t afford the repayments
Evan says
Hi Sara,
Thank you for your response. The original lenders are places like very and studio. I’ll have a look through them tonight. I just want to mention that when I kept getting allowed to increase my overdraft I was still a student and during that time I was not gambling at all. when it became a graduate account is when I really had an issue with gambling. Thank you so much for your help with this Sara
Anthony Brown says
Hi Sara,
I have a overdraft with HSBC of £750 which was originally at £250, then £500… these increases we’re granted whilst my overdraft was maxed out and taking loans, paying off credit card debt and only having an income at the time of £1500 a month. The overdraft facility does not charge me any interest; however I have been reliant on my overdraft for over 7 years now and struggle to pay it off alongside the other debts i’m paying off (I have taken a look at your other links to support these). I have been in my overdraft so long now It is effectively considered my spending money as I cannot afford £750 to be immediately wiped off my monthly wage. Is there any grounds for Irresponsible lending here? Is it worth my time contacting them as the template requests a refund of interest as well as charges, which my account is not affected by?
Sara (Debt Camel) says
There isn’t any interest to be refunded, is there? Do you often get charges?
What other debts do you have at the moment?
l J says
I just wanted to leave a comment firstly thanking you Sara for your help, it is truly invaluable.
Secondly, to acknowledge a successful affordability complaint against HSBC for my overdraft. I started with a student overdraft in 2015 and since then have continually been in it for most of the month (minus a few occasions when it was paid off and cleared, but then subsequently increased).
I complained to HSBC that I was continually at my overdraft limit, only coming into credit when I was paid but then quickly back into the overdraft. They allowed me to increase it, even with additional lending on my credit file, CC’s, loan, mortgage etc., as well as exceeding my overdraft limits on occasions.
The current limit is £2000. HSBC rejected my complaint and said that it was affordable as I was able to bring it back into credit each month – Sara helped me in suggesting I escalate to the Ombudsman and highlighted why HSBC’s response was inadequate. 2 weeks later the ombudsman have informed me that HSBC have offered over £1800 in returned interest and charges going back to 2019, they are also going to close my overdraft. I am so happy with the outcome. I strongly advise that even if your bank rejects your complaint, it is worth escalating to the ombudsman.
Thanks again so much Sara. If I agreed with the idea of an MBE, you would certainly deserve one for the wonderful work that you do!!
Kirsty Bradley says
I had had a problem overdraft with Satander since around 2018, that had been sitting at around the £2k mark for a long time. It was left over from an interest-free student account that since turning into a graduate account I had been just about paying off the fees monthly. I’d reached out to Santander about 2 years ago about support, but I was given very little back by way of clearing it, so I just stuck with it hoping for a miracle. I submitted an affordability complaint with Sara’s help in September 2024, and received back acceptance from Santander that they should have provided support and I was being granted a refund of around £100 with the note that they couldn’t refund more as I had stopped using that account as my main- a switch I had made so that I could try to start budgeting properly without just living in my overdraft. I then handed this over the the Financial Ombudsman, who said that whether that was my main account or not was irrelevant, and Santander were ordered to pay back all fees plus interest, resulting in a £2.4k refund- clearing my overdraft and leaving me with a little bit extra!
Sara, thankyou so so so much for all your help through this process and I can’t tell you enough how this has changed my situation. I would never have known about this, or how easy it is to do without your support and endless resources.
Thankyou!
Sara (Debt Camel) says
Very pleased to hear this good result!
John says
I have an overdraft of £3400 with NatWest that I haven’t been able to get out of since 2019-20, I have contacted them to set up a overdraft reduction each month, but I keep getting refused. I also have a credit card with a limit of £8500 with them that was frozen (interest still being added) around 2021 and I have paid around £3000. I also have credit card debt with PayPal and Newday of around £5000 each that I have payment plans set up with debt collection agencies £2000 payed off on each. My finances haven’t changed since around 2012 as I am disabled and have full time care. When I was given the overdraft I had direct payments from the council which I paid towards, which was sent to the care agency, I think that NatWest counted that as income when they decided to give the overdraft and credit card. Should I make a claim for both NatWest in the same complaint or claim separately? Thanks You for your help.
Sara (Debt Camel) says
That sounds very difficult for you.
Can I ask if you are renting or if you own the house?
When were the Payplan and Newday limits set that high?
Amy says
I sent an affordability complaint to Halifax on 14/01/25 to Halifax , I know we have to give them 8 weeks. I got a text from Halifax today apologising for the delay it’s taking longer than expected and advising if they haven’t made a decision by 13/03/25 then they will call me and tell
Me why , has anyone had this?
Sara (Debt Camel) says
You are the third person this week that has mentioned this “Sorry, delay”, email from Lloyds/Halifax.
If your finances are now pretty safe eg your life has turned around or you are in a DMP, you may be happy to wait.
But going to the ombudsman now gets you into the queue so your case may be picked up sooner. Lloyds/Halifax will still respond to your complaint if you go to FOS, and if the offer is suitable you can just tell FOS this.
Laura says
Hi Sara,
My investigator has got back to me RE my NatWest complaint.
They have said NatWest should have been reviewing my account from Feb 2015 and would have been able to see that the overdraft was unaffordable. However they say they should only have to refund me from March 2018 (6 years from when I complained) as I should have known I could have complained earlier. Even though I explained I had no idea I could complain about this.
“If it’s clear that a relationship is unfair, and Ms X was aware of that, I think it’s reasonable to have expected her to have brought that to NatWest’s attention to give it the chance to put things right. I’ve seen no evidence that Ms X did that, and I’ve not seen that there was anything that would have prevented her from doing so.
Even if Ms X wasn’t aware of the specific reasons that I’ve upheld this complaint she would’ve known the facts relevant to her claim because it was clear she had financially struggled and should’ve known the financial position she found herself in was aided by NatWest’s continuance of the overdraft. I can’t see Ms X did anything further until she complained in 2024. This was eight years after I think she was aware of the relevant facts to make this complaint.”
I know that I can, and will, ask for an Ombudsman to look at this but is there anything else I should say? Thank you!
Sara (Debt Camel) says
Did you tell the ombudsman that in 2016 you thought natwest has set the overdraft too high?
did Natwest’s rejection of your complaint list any specific reasons why they think you should have complained before?
did you take any actions such as consolidation loans or 0% balance transfers to try improve your situation at any point before or after 2016?
Laura says
Hi Sara,
Thanks so much for responding.
Did you tell the ombudsman that in 2016 you thought natwest has set the overdraft too high?
I didn’t – the overdraft was at £2,000 from 2010 as it was a graduate acount back then and that was the highest available OD amount you could have. I didn’t think of it as being too high, I just thought it was normal.
did Natwest’s rejection of your complaint list any specific reasons why they think you should have complained before?
No – they gave me a flat-out rejection of my entire complaint arguing that I hadn’t made them aware I was in any financial difficulty.
did you take any actions such as consolidation loans or 0% balance transfers to try improve your situation at any point before or after 2016?
No – at first I maxed out credit cards (for day-to-day living), then when I couldn’t get any more I turned to payday loans and large high-interest loans – I wasn’t eligible for any mainstream loans or 0% balance transfers then.
Sara (Debt Camel) says
did you identify the overdraft as one of your major financial problems in about 2016? or did it feel more like a fact of life as you had always had it and your other debts which were growing seemed more pressing?
Laura says
It definitely felt like a fact of life! Most people I knew were always in their overdrafts (or so they said), plus the interest I was being charged, seemed less of a problem in light of the high-interest payday loans and overall level of borrowing I also had.
Sara (Debt Camel) says
So piecing together some of these things you have said, I suggest you reply saying you think it is unreasonable to say you were aware of the facts and should have complained earlier. Point out that your overdraft limit didn’t change and after being a student, it just felt normal to be constantly in the overdraft, and your financial worries centered on the credit cards and later high interest loans you took to try to keep afloat, and that these seemed your active problems rather than the overdraft which was there in the background all the time, just a fact of life. Say that it wasn’t until you found out about overdraft affordability complaints last year that you focussed specifically on the overdraft and the fact that it was larger than your income so it was impossible to get out of.
Laura says
Thank you Sara, I have replied with this and will see what they say.
LR says
I just want to say thank you so much for such wonderful advice. I submitted my complaint with Lloyds on 22/12 using your template, after having my overdraft since 2021. I received a text from them today saying they were going to call me, which they did at 11am. They asked a few basic questions and said they’ll get back to me. Roll on 4pm, they’ve called and upheld my complaint, they’re removing my overdraft and refunding circa 2k in interest. Whilst I have other debts this one always had such a mental weight over me, couldn’t be happier!
Sara (Debt Camel) says
great news!
Have you considered if any of the other debts are unaffordable?
Ellie says
I have a £1600 student overdraft with NatWest that I have been overdrawn in constantly since 2009. At first there were no chargers but for the last 5 years there have been interest charges of around £450 per year. The limit has never changed but I’ve made no progress on paying it back. Is this situation a case to apply?
Sara (Debt Camel) says
How much is your income now? How many days of the month are you in the overdraft?
Richard says
Sara can you help me with something. I’m waiting for my claim and I’m just trying to work out the 8% interest. Do you know if this interest is added from the date of last charge to the settlement date. Or is it each charge individually from when each charge was applied. I ask before my claim is from 2008-2018.
Thanks in advance
Sara (Debt Camel) says
8% interest won’t normally be added unless your account is in credit.
Was the account closed in 2018?
When did you make a claim about this?
Pete says
Hey Sara,
It looks like my complaint with the FOS is approaching its final stage. The investigator reached out to let me know they’ve requested additional information from the bank before making a decision. The bank has now under two weeks to respond.
Would you say it’s a positive sign when the investigator asks the bank for more information?
Sara (Debt Camel) says
No idea
Tara says
Hello, I made a complaint to Lloyds about my overdraft, credit card and 2 loans.
Today I had the outcome, the loans and credit cards are not being upheld by Lloyds because they think they lent responsibly.
The overdraft is being upheld and they are refunding the interest from June 2023 to now which amounts to £1,163.14, and they’ve put a hold on my interest for 30 days.
My total overdraft is £2,800 so I’ll have £1,636 to pay but they said they are closing my overdraft in 30 days and I either have to pay the remaining amount in full or I have to set up a repayment plan with them for the outstanding amount. They said if they can’t agree a suitable monthly repayment with me they will close my Lloyds account all together and pass the outstanding amount to a debt recovery agency and it’ll go on my credit file.
Is this normal? I feel like I might end up in a worse situation after this, do you have any advice?
Sara (Debt Camel) says
Did they say why they have picked June 2023? Do you think this is a fair point to begin the refund from?
And the loans and credit cards, tell me about those complaints as they may be good ones to send to the Ombudsman.
What is your credit score like?
Sarah Jones says
Hi,
Having stumbled across this website i have now out an affordability claim in with my bank.
I have been in constant overdraft usage since 2016. The overdraft was increased in 2020. Lost my job in 2021 and more or less since 2016 have been struggling financially.
I have received a response from the bank today saying that they will not be upholding my complaint as having checked through my account i could afford the overdraft?
They said after looking at all my essential spending i would have still been to afford this. My essential spending on rent, bills etc is sasily overr £1500. My wage is the similar as i work part time.
She also mentioned that i had expenses for holidays and takeaways stating people in financial difficulty do not do thoses things. I was taken aback slightly when she said that. I have a disabled child and the holiday was primarily for them.
I am thinking to take them to the FOS, but rather unsure based on what the bank has said.
Sara (Debt Camel) says
Send this to the Ombudsman. You know that is not a fair assessment of your circumstances
Adam says
Hi Sara,
Firstly thank you for the great platform, you have truely helped hundreds(+) of people with advise so thank you for that.
I have submitted a complaint with TSB due to a £100 OD in 2016, which over time has been upped (By my request) to £950. They have offfered me a £600 refund and that the rest of my debt would be passed to a financial service team. My main concerns are as follows:
-They have refused to remove this from my credit file as “it is a true reflection of the way I have managed my account”
-The above would likely impact my credit score
-They can only see my statements from 2019 onwards, however my bigger point in the complaint as I dealt with a gambling addiction and spent £10,000+ on Sky bet around 2017, so that may have not been taken into account.
Is this a fair offer? I think it will definitely be beneficial, however I don’t think all the facts have been taken into account so I am hesitant if i should contact the Ombudsman regarding it.
Sara (Debt Camel) says
Do you have any old statements?
£600 – what period refund does this cover?
How many days of the month are you in the overdraft at the moment in an average month? How long has it been like this?
Was you income good back in 2016? Where did the 10k on betting come from, it can’t have been this overdraft?
What other debts do you have at the moment, have you made affordability complaints about any of them?
Rosie says
Hi thank you for highlighting this I think I may have a case if you have any advice? I originally got my 2k overdraft with NatWest when I was a student in 2012 as they offered 5 years interest free. I finished and found employment in 2015. Since then I except for one year I have been maxing it, getting paid and then using it for all my regular payments maxing it again until my payday to clear it. I’ve never had any contact from them about affordability etc or had any help to try and break the cycle! Do you have any advice before I submit using the cover letter? Many thanks
Sara (Debt Camel) says
How many days a month on average are you in the overdraft?
Rosie says
Hi Sarah, I am in my overdraft everyday as my wages don’t cover the 2000 so when I am paid it doesn’t go to 0 always in the minus. Only for around 1 year since 2015 I have not been in my overdraft that’s all, otherwise it’s everyday
Rachel says
Hi Sara,
I submitted my complaint to NatWest around 5 weeks ago, I have had a response to say they have rejected my claim as they feel they have lent responsibly. An overview of my complaint is I was offered an overdraft around 19/20 years ago when I was a student and only working part time. I believe it started as £1000 which was then increased to £2000
I ended up using the overdraft on non-essential things, leaving me living in my overdraft for many many years. My most recent salary was just allowing me to have actual funds in my account for one day then it would be back to being overdrawn once bills and direct debits came out. I was at the £2000 maximum every month, spending a minimum of 25 days in a month in my overdraft.
During this time I was lending large sums of money from payday loans and using my overdraft to make payments for all of these loans each month.
I was spending large amounts each month on gambling, this went on for many years during which I was using my overdraft to make deposits.
I had many missed direct debits over these years for which I was charged fees for, again showing that I was struggling.
Do you think it would be worth going to the FOS with this?
Sara (Debt Camel) says
Yes definitely.
Not the part about the student overdraft being too – you won’t win on that. And unless you have retained your bank statements there will probably be very little evidence either back such a long way either.
But the continued usage when there was gambling, payday loans and missed direct debits are a strong case.
Do you have other debts now? When did the payday loan usage stop?
Rachel says
I do have other debts that I am in a DMP with now through StepChange, mainly rent arrears, council tax, water and some credit cards.
I no longer have access to any of my statements now NatWest have closed my account. I did get refunds off wonga and quick quid after I followed your advice (massive thanks!!) in about 2018/2019 ish
Sara (Debt Camel) says
So yes this is worth going to the Ombudsman for
You can’t normally put council tax arrears and rent arrears into a DMP?
I think you should look at affordability complaints about the credit cards too https://debtcamel.co.uk/refunds-catalogue-credit-card/
Rachel says
StepChange put my credit ones in to the DMP but I am paying extra each month for my rent arrears and StepChange are managing this for me too as an extra. The council tax one had to be done separate because I had a CCJ for it but I’ve managed to pay it off over the last 12 month thankfully.
I will refer it to the ombudsman, it baffles me that NatWest are claiming I didn’t make them aware of struggling financially when on 2 occasions I got them to refund me interest/charges for the month when it was added on and put me over my overdraft limit
Sara (Debt Camel) says
Definitely mention that last point too!
Gail says
Hi Sara,
I had an overdraft which started at £100 in 2011 and went upto £4200 by 2017 with BOS. My income was originally £900, reaching £1400 per month. I had gambling and pay day loans during this time and was being charged into £75 a month in interest. I lived in my overdraft and never got out until I got a payday loan refund through the ombudsman in 2017. I’m hoping I will be successful in my claim.
On this note, I am now financially stable and have my mortgage with the same bank. Will making this claim affect this anyway?
Sara (Debt Camel) says
There should be no effect on your mortgage
Richard says
Quick question. The tax that is deducted from the 8% interest that is added to claims. Is there any avenue in where this can be claim back from the HMRC.
Thanks in advance
Sara (Debt Camel) says
See https://debtcamel.co.uk/ppi-payday-refund-get-back-tax/