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 would be 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.
Banks are rejecting many good complaints, so I also explain how to send a rejected complaint to the Financial Ombudsman (FOS).
Contents
Overdraft affordability complaints
Overdrafts are supposed to be for short term borrowing
Banks are regulated by the Financial Conduct Authority which puts treating customers fairly at the heart of its approach.
For overdrafts, The Standards of Lending Practice, which used to be known as The Lending Code, is important. This is a set of voluntary standards that all major UK banks subscribe to.
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 this 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 recent 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 did review the customer’s overdraft but failed to act:
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:
Lloyds acted unfairly when it continued charging overdraft interest and associated fees after it renewed Mr and Mrs C’s overdraft in March 2013. By this point, it ought to have been clear that Mr and Mrs C were in no position to sustainably repay what they owed within a reasonable period of time.
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.
And another one, this time against the Co-op:
Ms A’s statements show that she was regularly relying on payday lenders or other high cost … [and] for much of the previous year Ms A was ‘hardcore borrowing’. In other, words she often didn’t see or maintain a credit balance for an extended period of time… I think Co-op should have… treated Ms A with forbearance rather than charge even more interest, fees and charges on the overdraft.
First, 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.
It doesn’t matter if you asked for your limit to be increased or the bank just offered you an increase. In either case, the bank should have reviewed your situation before increasing the limit.
If the bank saw signs of financial difficulty, it should not have increased your credit limit. And it should have considered offering your help (the regulator’s word is forbearance) for example by stopping adding charges.
How high a limit is too high?
There is no set figure, it depends on your income and expenses. An overdraft of £3,000 for someone whose income is £1,800 a month is a lot – but if you earn £5,000 a month, then a £3,000 overdraft may be reasonable.
The bank should have seen you were in difficulty
Banks should review your overdraft:
- most banks have a clause in the overdraft conditions saying they will review it annually. You may not have known this – it isn’t clear that many banks did the reviews they should have;
- the Ombudsman decided in the case of a NatWest customer (see above) that the bank should have reviewed the customer’s overdraft even though its conditions didn’t say it would.
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.
But the bank should notice at a review 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. Either of these suggests you are reliant on the overdraft to pay everyday bills and you will find it hard or impossible to stop using the overdraft.
There isn’t a set definition of what a “prolonged period” is – I would say over a year is prolonged. Or of what unauthorised overdraft usage is “significant” – that depends on the level of your income.
Other points that help your 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, 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.
If you can think of another reason your bank should have known you were in trouble, from its own records or your credit record, then add that to your list. You will list all these points in your complaint.
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.
How to send your complaint
I don’t recommend phoning. And banks make it hard to complain by email.
When the account is still open, send your complaint by secured 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 the account is closed, you can write a letter or use Resolver to complain. Resolver is an odd sort of claims company that never charges anything- it is just a forwarding system. To start an overdraft complaint through Resolver, there isn’t a special category for these affordability complaints so choose Other.
What to say in your complaint – a template
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 it should read. The bits in italics should be changed or deleted to to tell your story. And add any other points.
I am making an affordability complaint about the overdraft on my current account number 98765432.
Your identity details (not needed if you complain by secure message):
My name is xxxxx xxxxxxxx. My date of birth is dd/mm/yy. The email address I use(d) for this account was myaddress@whatever.com.
If you are complaining your limit was too high:
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 I had significant gambling transactions showing on my account and 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.
AND/OR say they should have noticed when your overdraft usage got worse
By 2012 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 2016 I had a large unauthorised overdraft for many days each month.
Overdrafts are meant for short-term borrowing but that was not what I was using the account for. The overdrafts fees and charges you were adding were making my position worse.
Add any other points
You should also have realised that I was in financial difficulty because you had rejected my loan application in 2016 and you should have noticed that the income going into my account had decreased. In 2017 you should have seen from my credit record that I had made payment arrangements with other debts.
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.
Bank says No – go to the Ombudsman
You can’t go straight to the Ombudsman, you have to wait for the bank to reply. The bank should reply in 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.
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.
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 supply those to FOS.
Do these complaints work?
Yes! Banks may turn you down but people winning cases at the ombudsman. FOS is a friendly service but it isn’t speedy. It isn’t faster if you use a solicitor or a claims firm, and you are not more likely to win your complaint.
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. Still 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 other debt options are.
Is your credit card limit too high?
Get a refunds from large loans
Unaffordable car finance – your options
Cocodog411 says
HI Sara,
Just after some advice please. I have 2 current accounts with RBS. One has a small overdraft facility (£250) and one has none. Between 2016 and 2018 I was really struggling financially. Over this period RBS charged me over £2,000 in charges over both accounts. I submitted a refund claim to them last week, using your template and they have come back to me basically rejected the claim. They state this is because I applied for the overdraft in 2016 and stating the overdraft is automatically agreed and no one actually looks at the application and going on to say ” the onus is on the customer when agreeing to an overdraft that the lending as affordable”. They also say if I was struggling financially I should have contacted them to remove the overdraft but I contacted them loads when they were charging me £90 at a time to tell them they were making matters worse and they even took money from my savings account without my knowledge to cover the amount I was over my overdraft limit following the charges. They also say the will not uphold my complaint as I fully utilised the overdraft!! I am today still always at the top of the overdraft as they will not reduce as it is such a low amount I only have the option to pay it off and then remove it.
Can this go to FOS?
many thanks
Sara (Debt Camel) says
How much money was in your savings account? was it there for a particular reason?
Cocodog411 says
I can’t remember exactly but probably about £50 as I remember it was all I had . I move my money into my savings account all the time as I don’t like leaving it in current account. It’s just habit.
Sara (Debt Camel) says
ok that is fine – if you had had a couple of thousand sitting there, then RBS could reasonably have expected you to use that money to clear your overdraft.
I think this sounds alike a good complaint. Send it to FOS and point out that you had told RBS you were stuggling and they ignored you.
Cocodog411 says
Thank you Sara. I have not sent anything to FOS before. Do you have contact details and do I send my original complaint letter and RBS’ reply with my complaint?
Sara (Debt Camel) says
the article above these comments has a section on sending a claim to the Ombudsman
Calum says
Sorry to be a massive pain Sara, I know you go above and beyond, but what is the best email address to send to RBS?
Thanks
Sara (Debt Camel) says
If you have an open account, the best option is to use the secure messaging in the app.
If you don’t, try customer.relations@natwest.com with COMPLAINT as the subject
expect them to reject thew complaint and send it to the Ombudsman, don’t be fobbed off.
Mark says
i used the app in my complaint to RBS..
Looks like they respond to complaints via a template rejection letter as the reply
mentioned me complaining about loans, when i complained solely about my overdraft at the time.
I have already passed on to FOS and i fully expect to win.
Lee says
Hi Sara, I am currently constructing a letter to Santander based on your template above relating to Overdraft fees. I have been living in my overdraft effectively for over 7 years, and have paid over £1,500 in fees in this time. Literally as soon as im paid, im back in the red by a substantial amount once the mortgage payments, bills etc come out. Across the years, I have been unfortunately had a bad gambling addiction and although i have limited recently it still sits in the statements to this day. So will utilise the template, regarding the annual reviews. A couple of questions regarding the template if you dont mind me asking…… You mention a specifc date to when they increase the limit, however i want them to review the last 7 years in total (as the limit fluctuated by my request between the 7 years), therefore is that possible to articulate in the letter, further more i have calculated through the statement the exact amount i have paid since 2015 , therefore would you advise to put this in the letter and ask for a refund alongside the 8 ….. sorry if these are silly questions
Sara (Debt Camel) says
I would just change the template to say that although your limit has changed over the last 7 years it has never been affordable so you would like a refund of all the charges from the last 7 years. You don’t need to quote the amount. Point out they could see your gambling problem from your account.
Expect them to reject this as the problem started over 6 years ago – ignore this and send it to the ombudsman.
Lee says
Had my response today from santander . Rejected due to below reasons in general :
They complete affordability checks as per FCA regs , and upon reviewing their records are happy the lending facility has been provided correctly
Advised that it’s a self managed and its customers responsibility to regularly monitor their accounts as well as notify santander of any financial hardship that they are experiencing .
Advised fees charged correctly and no unarranged charges have been applied recently…
I will take to FOS but is there anything further to add after this response from santander on my appeal
Sara (Debt Camel) says
Have they said when your limits were changed?
Lee says
Thank you so much for your prompt response. I will send off tomorrow and hope for the best. Will keep you updated with any progress (Good or bad)
Adele says
Hello,
I raised my complaint with Ombudsman on 1st July last year (9 months ago) regarding overdraft charges.
Every time I call them they tell me it is waiting allocation.
I’ve raised complaints since and all been dealt with and resolved.
I’m running out of patience now with this. 9 months is an awfully long time for me to be waiting.
Is there anything I can do to get this looked into quicker. I don’t mean to sound like I’m moaning so apologies if I do.
Thanks
Gareth says
Hi Sara
I first want to thank you for advice on affordability on your website. After getting my self in mountains of debt (I am now almost clear after a couple of hard years) i took your advice and complained to loan companies, credit card companies and also payday loan companies and have since had numerous payouts as they accepted responsibility. Unfortunately several companies went bust before the pay out.
This leads me to the above article and a request for more help. As a student I opened the Natwest account in 2004 and got the £2000 overdraft, through all of uni I never came out of that overdraft. In 2011 I opened a new account with another bank. Since then no money was paid in to the Natwest account on a regular basis, the overdraft stayed at £2000 and i only ever paid in enough to cover the interest to keep the wolves at bay. This was all while I was managing crippling debt from payday loans, bank loans and credit card debt. Natwest in the 11 years since ( i cleared the overdraft in december with a lump sum payment) have never once contacted me to say they can see im struggling or offered help. They have only carried on charging interest and fees when the account went over the agreed overdraft limit.
Have I got a case to claim and unaffordable overdraft and if so how do I go about it. As ive tried to contact Natwest and its impossible.
Thanks in advance
Sara (Debt Camel) says
Its pretty normal to be in a stident overdraft all the time, you can’t complaint about that period.
But from 2011 I think it should have been clear to NatWest that there was a problem with the account as no money was being paid in on a regular basis. And if they had looked at your credit record they would have seen all the other problems.
You could ask for a refund of all charges from 2011.
expect NatWest to reject this, they may say it is too old. if they do, send the case straight to the Ombudsman who can look at cases where someone has complained within 3 years of finding they had a reason to complain. Yoou can point out you knew the charges were causing you problems but you did not know that a bank should have reviewed overdrafts to check they were affordable, so it was only when you came across hhis page this year that you realised you had a cause to complain.
Ernest says
Good afternoon Sara… any advice for this pls… about irresponsible lending for my overdraft and loans… l just received this email from adjudicator by regent my complaint.
understand that you applied for your overdraft and limit increases online. There wasn’t anything in the information you provided or your account history with the business which suggested you wouldn’t be able to repay the overdraft within a reasonable period of time, without undue difficulty. Your salary and other incomings into the account were high and the account was in general well maintained. I appreciate you’ve said that you had a gambling addiction at the time of applying for the overdraft and subsequent increases, however whilst there were a lot of outgoings related to gambling, there were also a lot of incomings from gambling winnings. At the time the overdraft was approved and subsequent increases, I can’t see that the gambling on the account was causing you financial difficulties. As such, I don’t think it was wrong for Halifax to have approved the applications.
Sara (Debt Camel) says
do you think that is a fair summary?
Ernest says
No because some cash came to my account which l borrow from my friends and family that is not my income from work .. and they count as my income…
Sara (Debt Camel) says
so give some rough numbers. On a typical month (take a few months and average the numbers) what was your income? How much did you spend on gambling? how much did you win? how much extra income was coming in from other borrowing eg from friends and family. what was the overdraft at the start of the moneth? and at the end?
E says
My monthly income between £1500 t £1600.. gambling in a month between £400 and £600 monthly .. my house bill with mortgage credit cards overdraft payday loans car finance about £1600 monthly.. borrowing from friends and family about £500 monthly.. also l received pay out for my car accident of £9210.69
Because my car was written off. They count that as my Income because l have transferred the money from savings and current account.. which l used the money to buy another car to drive to work…. insurance payout for your car that is written off is that an income pls???
Sara (Debt Camel) says
and how large was your overdraft?
E says
The overdraft is £2000 from £500 increases to £2000 and aslo £1500 personal loan to clear proportion of my overdraft to £500 am still pay the loan and still still paying the interest on the overdraft.
Halifax offered you a personal loan for £1,500 to clear the proportion of your overdraft on which you were paying 49.9% interest and the interest rate on the personal loan would be 19.9%. Halifax also offered to reduce your overdraft limit to £500, as the first £500 was interest free. I can see that you took this personal loan on 21 September 2020.
Sara (Debt Camel) says
Then I suggest you reply that your income was £1500-£1600, you mortgage and other bills came to about £1600 , you were gambling £600 or so a mo0nth and you were only being kept afloat by money from family and friends. And that you had a large cay insuarance pay out whoch was spend on another car. [assuming all that is correct????]
This is worth a try but you have to accept that this doesn’t sound like a simple case and that you may not win it.
Vince says
Hi Sara
Today I have received a reply from Halifax saying ‘We agree with your complaint’ and offered only £281, they state, ”As your last overdraft was in 2012, you needed to let us know about your concerns by 2018. Because you didn’t get in touch with us by this date, we’re not taking this part of your complaint further,’ is this correct?. They have accepted liability, so surely it should go all the way back, to 2012?.
This is there final decision they state by the way.
The account was opened in 2008 and was struggling as soon as an overdraft was used, I believe the account had already got the overdraft it was not asked for.
Sara (Debt Camel) says
the account was closed in 2012?
Vince says
Apologies, no the accounts were alive up until the beginning of this week. I put the complaint approximately 1 month ago, they have closed them due to the complaint. They stated on letters received this week about the closures that I asked them to do this, but I never did. The accounts have been open since 2008 as stated before. As mentioned they stated on the letter today in bold writing ‘ We agree with your complaint’.
I forgot to also mention that Halifax made changes to the way they were charging customers and it doubled in price, they went from a standard fixed amount to a daily charge. I could not afford it and even though my credit was incredibly poor and the state of the Halifax accounts , they allowed (or forced my hand) me to get a loan out from them to pay off the overdraft.
Sara (Debt Camel) says
Then I suggest you send this straight to the Ombudsman. The Ombudsman can look at complaints about things over 6 years old where someone has only found out recentley they “had a cause to complain”. now you knew the overdraft was giving you problems but you probably didn’t think you could do anything about it and it was your fault for being bad with money. you only found out in the last year that a bank should have reviewed your overdraft to see if it was still manageable, and until you knew that you didn’t realise you had a reason to make a complaint.
Vince Le Whadher says
Thank you Sara,
I wanted to also tell you in that letter received they wrote: I am unable to offer you 8% interest payment as the refund of charges wouldn’t have taken your account balance into credit. Not sure what that meant, but the accounts were closed with no debt, I cleared the account with a different loan and did not bother using the account again. Also I thought the 8% was an interest payment for the money they are giving back, in return for having it for so long?.
Sara (Debt Camel) says
ignore the 8%, that doesn’t matter, what does matter is getting the basic refund sorted.
H says
Hello,
Just after some advice please, I had account with Bank of Scotland from around 2007/2008 which I was continuously increasing the overdraft due to debt, payday loans etc. I entered into an IVA around 2013 and this account was on it, IVA failed after a couple of years, and I have never paid any more towards overdraft etc.
would it be possible to open complaint regarding spiralling overdraft after it’s been in an IVA even though the IVA failed? Thank you
Sara (Debt Camel) says
They carried on adding charges to an overdraft after a failed IVA? What is the current balance?
Aaron says
Where do you stand with possible refunds on charges refunds on unarranged overdrafts, HSBC literally charged my month after month pushing my account further into an unarranged overdraft that I didn’t have. No overdraft was given to me prior to this there fore I was being charged for an overdraft they were putting me into further with charges
Sara (Debt Camel) says
how long did this go on for? How large were the charges each month?
Timbo says
Hi just sent off an email about an overdraft I had with Nationwide. With three months they upped it from £500 to £3000 ( I was earning about £1900 a month) with a lot of payday loans on my credit history and my nationwide credit card maxed out at its £3500 limit . It meant for the next three years I never came out of my overdraft and only did when they withdrew it with in 30 days and I agreed to pay back £100 a month until it was cleared. Has anyone had experience of claims with nationwide?
Sarah Wood says
Hi Sara
I wondered if you might be able to advise me on a Barclays overdraft, a few years ago I was consistently using the full amount of my overdraft – I was never in debit. They decided to almost triple it, way above the amounts going into my account and of course I was further in debt. I raised the issue via telephone once i managed to clear the debt as I thought it very odd and it happened to be around the same time the overdraft fees shot up but they brushed me off and said they didn’t know anything about the increased fees???
I have avoided making a formal complaint as I seem to recall around 17 years ago I made a complaint about overdraft fees – it was around the start of the whole PPI thing and they made me sign a document saying I would not raise the issue again – Im not sure if Ive imagined taht part???
Sara (Debt Camel) says
I don’t know what you signed. But if you are complaining about something that happened more than 17 years ago you aren’t likely to win anyway.
Sarah says
No sorry I think that was misleading, 17 years ago I claimed for what is essential a refund on my overdraft charges as they were upping my overdraft etc. in 2016 they did the same thing again upped it to more than triple my wages even though I was never out of my over draft – I know I was foolish to get in to the same mess again. Can I claim for the last few years or would I not be able to?
Thank you
Sara (Debt Camel) says
what refund or help did you get in 2016?
Sarah says
No refund in 2016, in 2016 I was constantly in my overdraft by at least £500 then they increased it from £1200 to £4900. My income was around £900. I’ve only just got out of that cycle in the last year.
In 2006 I made a complaint that my account was £600 overdrawn even though I had no overdraft agreement and I was paying massive fees, I seem to recall that as a goodwill gesture they refunded some fees but I had to agree not to make any such claims in the future – I was 19 at the time.
Sara (Debt Camel) says
Then I think this sounds like a good complaint. I don’t think something you signed more than ten years before should prevent you from complaining about a bank trebling you overdraft 10 years later.
send this straight to the Ombudsman if Barclays dont at least offer to refund charges from 2016.
Sarah says
Thank you – I shall use your templates and see what comes of it!! I have heard of some banks closing customers accounts when they make complaints – is this likely??
Thank you again for your help
Sara (Debt Camel) says
It’s unlikely they will close the account or remove the overdraft but in any case it might be a good idea for you to move to a new bank with no overdraft and start afresh, just seeing the overdraft as an old debt to be paid off. Monzo and Starling are good current accounts with apps that help you budget.
Anno says
Hi I’m after some advice please I have an overdraft of £600 with NatWest I have been in this overdraft for over 10 years, I was in financial difficulties with pay day loans my wages went in paid the OVerdraft and payday loads I then have to take them straight out and basically use the overdraft to get through the month went on for years until I opened a new bank account and got my wages paid in to there and stopped the pay day loans I still have the overdraft which I just pay the interest charge each month could I complain on this?
Sara (Debt Camel) says
what is the rest of your current financial position like?
Anno says
I have many defaults on pay day loans credit cards etc rent arrears moved back in with my parents due to the financial difficulties I’m on monthly payment plans for them all now
Sara (Debt Camel) says
I suggest you talk to StepChange and set up a debt management plan. And include this overdraft in the plan.
You can also complain about the overdraft, but really you need the charges stopped right now. A complaint that goes to the Ombudsman – as many of these do – can talk a long while to go through.
Tom says
Hi Sara.
I have a current account with Barclays that was initially set up when I went to University back in 2002 and was granted an overdraft facility. Essentially since then I have always been in the overdraft and never spent more than a few months in the black at any one time.
I have looked at the Barclays online banking facility and the oldest statement on there is from December 2009 at which point my overdraft was £3,000 and my monthly salary was £1,080. I had significant gambling transactions on my account at the time, which in time lead me to take out payday loans. I was almost every month being charged guaranteed transaction fees of £8 for every time i made a transaction above my overdraft limit.
I still currently have the overdraft which is down to £1,500 but I am still living within the overdraft and never being out of it. Fortunately I have a refund on the way from Quick Quid (£2,600), thanks to your advice, which will allow me to finally clear the overdraft.
Basically i have never been out of the overdraft for 20 years so am looking to make a complaint to Barclays.
Firstly do you think I have a basis for a complaint?
Secondly if I can only see statements from December 2009 on the app will this be as far back as a complaint could go?
Thank you for all of your help.
Sara (Debt Camel) says
I think this sounds like a good complaint. Make the points that the overdraft was much higher than your salary, so you were 2hardcore borrowing” as it could never be cleared. And point out that Barclays should have seen the gambling transactions and that you had payday loans – all signs of major financial trouble.
Even if it only goes back to 2009 it should be a good refund!
Expect Barclays to reject it because of its age and then send this to the Ombudsman.
qq says
Is the Camelot (Lotto, Euromillions) once or twice a month considered gambling? (£10 – £20)
Sara (Debt Camel) says
Probably not at that sort of low level
qq says
I’m surprised there are no FOS decisions in regards to overdrafts at HSBC (Last 15 months). Are they so good and uphold all complaints at the point of the first moan?
Sara (Debt Camel) says
It may just mean they accept all adjudicator decisions. Only Ombudsman decisions are published.
Dave jones says
Hi Sarah, not sure I have a case. I am with Barclays and have been since I was 11. As a student 17 years ago I got a university overdraft for up to £1k. This increased to £2k by the time I graduated. 14 years later when my salary is paid i am still in this overdraft. I’ve paid various account fees over the years and now pay monthly for being in the overdraft. Plus I was given the £150 reserve which is often used by the end of the month. I have won various affordability’s complaints from pay day loans including 1.2k from the most recent cash Euronet ones. I am living within my means now but am paying 60-85 per month in fees and not clearing anything. Apart from being a complete idiot for being still in this situation do I have a complaint and should I open a new bank account with or without the switch guarantee before making a complaint?
Sara (Debt Camel) says
How much of the month are you in your overdraft?
Dave jone says
All of the month i think I have been out of it maybe 6 times in the time ive had it
Sara (Debt Camel) says
Then this sounds like a good complaint,
Expect Barclays to reject it because of its age and send it to the ombudsman.
Dave jone says
Thanks Sarah, should I be opening a new bank account before making the complaint? I dont want to get stuck if Barclays canel the overdraft.
Sara (Debt Camel) says
They don’t normally. On the other hand why not move to a bank such as Monzo or Starling? nice apps with great budgeting facilities.
Dave jones says
Ok thank you very much. You’re a real life loving angel
Sim says
I had made an unaffordability compliant with Natwest for overdraft. My overdraft was £4000 and I was in overdraft for more than two years and had been paying only for the interest. Natwest final response said that they had done their check and did not uphold my complaint so I sent it to FOS. FOS just informed me that Natwest informed them that they made a settlement offer to me which they did not. Can they make such lie to FOS anyway I responded that they did not made any offer nor did not received any letter nor email for any settlement. Also I am on DMP and Natwest continue to charge me for interest for my overdraft and loans can I make a complaint about why they are still charging me for interest
Sara (Debt Camel) says
the overdraft was listed in your DMP?
Sim says
Hello Sara
Yes it is listed on my DMP
Sara (Debt Camel) says
Then they should have stopped the changes. I suggest you also tell your adjudicator this.
If your adjudicator says that is a seperate matter, not part iof this complaint, then let this complaint get resolved and if you don’t get a refund for that period, put in a new complaint about that specifically.
Sim says
Its not only the overdraft that they are still charging interest. They charge interest as well in the three loans I have with them. And this three loan is also part of my DMP. I called them and asked why they are still adding interest they just transferred me to Moorcroft and said that they are dealing with my accounts but it was natwest sending me the statements so I am confused. So my balance with them really has not changed much.
Ruth says
Hi Sara,
I’ve been with RBS since I graduated and started building debt when I became single mother 10 years ago. Long story short, I started with o/d and cc usage, then took loan to refinance both and then would go back to using o/d and credit card and refinance everything every 2 years or so and never repaid a single loan off with my loans becoming bigger and bigger with worse interest rates. There was also a period of a few years when I was in £4k o/d and utilising credit card limit of £1k slowly going up plus taking wonga and qq loans. My debt with them is managable now (kind of as long as nothing bad happens with earned income), but I am fully utilising almost £3k credit card and I still have overdraft, but will reduce it to 0 due to qq payment today.
During the period of o/d use during those 10 years they only contacted me once to offer refinancing into second loan and actually refunded charges of around £100 for a short period. However, looking at my statements at the last 7 years (they only show last 7 years online) , I paid so much more in interest and unarranged o/d and unpaid item fees, especially during that dark period when I was taking qq and wonga loans.
Do you think I could make a successful claim considering there were short periods o/d and cc went to 0 due to refinancing and would it be just for o/d, or is there anything else I could argue was irresponsible lending? And if yes, would I have to submit one or separate claims?
Sara (Debt Camel) says
I think you should make a single complaint about the overdraft, loans and credit card usage. Say the bank has not treated you fairly by keeping offering loans to refinance overdrafts and then allowing you to borrow more, when they could see you were struggling and taking payday loans.
Bozza says
Hi, I composed my letter to bank regarding the £500 overdraft I lived in for years which was increased to 17 times that to £8500. I had a bad gambling habit and earning only £3000 a month which wouldn’t allow me out of my overdraft of £500 after bills.
They let me increase my overdraft consecutive days up and up until I reached £8500.
I’ve paid on average £230 a month interest for 2years now.
I received my reply today saying they don’t agree with my argument but as a token gesture they have credited my account this months interest of £200 or so into account.
I thought I had a good case as within the last three years after living in £500 overdraft with lots of gambling transactions for years previously they allowed my limit to go up so high were I wouldn’t have a chance of paying it off.
Really disappointed and the worries continue.
Do you think it’s worth replying or should I be thankful of the £200 back for this month and look at some kind of debt company who may be able to help.
Sara (Debt Camel) says
I think you should send this complaint to the Ombudsman straight away.
What is the rest of your financial situation like? What other problem debts do you have? Are you behind with any important bills?
Have you managed to stop gambling?
Bozza says
Hi Sara thanks for your quick reply.
I have the £8500 overdraft which is lived in.
I have a large loan £7000 left to pay.
I manage to survive paying all bills maybe the odd one is later from time to time but as I earn a decent wage I make it work. I’ve managed to cut the gambling down dramatically in the last year or so maybe £25 a week with the thought I may win and my troubles will be over. Silly I know.
Ok I will take your advice and forward my letter to bank and also their reply. Do you think I have any chance of getting anything more then the £200 they credited my account with?
Thanks for your help.
Sara (Debt Camel) says
I hope so! Send it to the Ombudsman if they don’t make you a decent offer – if you aren’t sure, come back here to discuss it.
Andy says
Anyone had any success with TSB?
Had a £3k overdraft for around 5 years which i am always in
Only recently my wage has reflected this amount, back when they gave it to me my wage was around £1,500.00
They are 4 weeks in to my complaint sent and have sent me a letter today to say they are still investigating my complaint
Kim says
Has Anyone had a successful claim with Clydesdale Bank/virgin money recently? If so how long did it take?
Sara (Debt Camel) says
I don’t remember one recently. Expect them to reject this and send the complaint to the Ombudsman.
Laura says
Hi can anyone help/advise pls? Had a hsbc overdraft refund complaint held up last week by fos which hsbc agreed to. Can anyone advise how they contact you to sort the refund, how long it takes etc. I’m expecting a rather large refund and it could really really help but I don’t know how long it will take
Laura says
Anyone? They agreed on 24/04 and yet to hear from them and I’m financially struggling this month 🥹
Sara (Debt Camel) says
They have 28 days in which to sort this out. I suggest you don’t expect it until then of that period…
what are the rest of your finances like at the moment?
Laura says
Okay thank you. Normally finances are stable (after a long long time of struggle) but this month I’ve been caught out by having to pay more tax and bills going up. I will have to try and borrow some money from family. I was hoping they might come back to me quicker but it looks like they will string it out to the last minute.
Saz says
Had my response from Halifax
Is it worth sending to the FOS.. had a overdraft for 2500 for years got it down over the years now I only owe 1100 I was in bad circle of payday loans etc.
Thanks for getting in touch about your overdraft and your financial situation. We haven’t been able to talk about this, but I’ve looked into this for you and based on what we know, we’re declining your complaint.
I’m sorry for any upset or inconvenience caused by this. I appreciate this may not be what you expected, so I’d like to explain our decision and what you can do next.
We’ve paid you £100.00
I’m sorry to hear about the impact arranged overdraft fees are having on your finances. I’ve paid £100.00 to cover some of the charges that debited your account in the last 12 months.
We’ve taken steps to temporarily stop further arranged overdraft fees
A 30 day freeze on arranged overdraft fees was added to your account on 5 April 2022. We’ve paused fees on your account as we want to give you the time to get in touch with us so that we can discuss how best we can help you.
Sara (Debt Camel) says
That is all they said? They are declining it without giving any reasons?
can you say some more about the overdraft?
did they increase your limit? to what? how long agao?
what was your salary at that time?
do you know how much you have paid in overdraft charges in the last year?
Saz says
Yes that’s it. They just mention FOS. It was from 2016 from when I was browsing from Peter to pay Paul upping my overdraft to pay other payday loans etc debts. I was on around 1500 a month at the time maybe even less and trying to get myself out of it ever since. Overdraft fees between 30-40 a month. I am now in better financial position and slowly getting rid of it but I was really bad at the time.. young and stupid!
over space over a month or two I upped my overs after from a few hundred to 2500 there was even times I’d reduced it for a few week hoping I wouldn’t do it but then would up it again!
Sara (Debt Camel) says
Then I suggest you send the complaint to the Ombudsman straight away. £100 doesn’t cover much of the last years charges, does it, let alone any previous ones.
The overdraft was a lot more than your wages – how were you supposed to clear it? It was unaffordable.
Saz says
Thank you Sara,
I will do it straight away funnily I’ve had to chase them 3 times to email me the letter as they said they posted it of 5th April only got the email today. I’ll keep you posted.
Jade says
So ive followed the advice youve given and complained about a 2500 over draft from lloyds bank, they have responded by saying they will wipe 2210 off it. There is a part of the letter i dont understand which says i dont qualify for the 8% back as the account is in debit and its definately not its minus 2500. They have also stated i have to pay the rest or my bank account faces closure. Do i take this as a win or esculate to the FOS? Thank you
Sara (Debt Camel) says
How long have you had an overdraft problem – can you say some more about it as otherwise I can’t guess if this is a good offer or a poor one.
What is the rest of your financial situation like at the moment?
When they say your account is in debit, they mean you are using your overdraft. If your account was in credit, then you would have money in the bank, no overdraft.
Mh says
Hi,
Interesting question for you. Whilst a student in the last 6 years, I was able to open 4 student bank accounts with the overdrafts (£5500 total) that they come with without any issues and used these to try and pay off other debts. As far as I am aware your only supposed to be allowed 1 student bank account however there seemed to be no check in place to see if I had another which allowed me to get into these debts. Surely they could have seen that I was in overdraft debt in other accounts and not let me have the account. I as a result now have defaults etc on my report with these accounts. Whilst I never paid anything back and entered into a trustdeed, I wonder if there is any grounds for the defaults etc to be taken off my credit file?
Sara (Debt Camel) says
With a trustdeed on your credit record, removing a few defaults isn’t likely to make any difference I would have thought. But ask a Scottish expert by posting in the comments on this page: https://www.advicescotland.com/home/protected-trust-deed/.
Lewis says
Hello Sara,
Could you help me please.
I had an account with NatWest.
Standard / Basic account – No overdraft/No credit cards.
My credit history was awful so just had an account for my wages.
I was gambling online and noticed a day later that my account was £1100 overdrawn.
My account was immediately closed by the bank.
I set up a payment plan with Stepchange and now pay them monthly to clear it.
I raised a complaint with NatWest as they shouldn’t of even let me go overdrawn.
My account didn’t have this facility.
They didn’t uphold my complaint and said that it was in relation to pending transactions as to why it happened.
I raised it with Ombudsman.
They called me today and are now saying that they will look into the ‘pending transactions’.
The lady didn’t sound very confident with my case.
I just find it really weird how it happened.
Even if something is pending in my bank then it still comes off my available balance.
Am I wasting my time?
If the Ombudsman don’t uphold my case then is there anything else that I can do?
I know I am partly to fault as I should’ve been on top of what was going in/out but the transactions were accepted so I just assumed I had the funds.
Thanks
Lewis
Sara (Debt Camel) says
I haven’t seen an Ombudsman decision on one of these cases.
If your case is rejected at FOS by an adjudicator, then you can ask for it to be looked at by an Ombudsman.
If it is rejected by an Ombudsman, your only option is to sue the bank. I think you should take professional advice from a solicitor if you want to do that.
Lewis says
Thank you.
I will wait and see what they come back and say.
Lewis
Rob says
Hi Sara,
Great work you do here and its much appreciated. Can you advise if there is an email address for overdraft complaints for Santander? I have scoured their site yet cannot find one, apologies if this has been asked before. I have tried looking on this site yet cannot find anything in comments or replies regarding Santander email address.
Thanks in advance, Rob
Sara (Debt Camel) says
Banks normally want you to phone them or send them a complete via secure messaging. Or write a letter.
You can try emailing customerservices@santander.co.uk with COMPLAINT as a title. I don’t know if that will work.
Rob says
Thx Sara, will givebit a go. I have today spoke to them as i no longer have access tobthe account. Im still paying off the overdraft via a DMP. The email you suggest is the same i was given by the advisor who assures me they will take onboard the complaint via that channel
Thx again.
Chris says
Hi
Has anybody won a case against the Halifax for giving unaffordable overdraft ?
Thanks
Sara (Debt Camel) says
A lot of wins against Lloyds.
Vince Le Whadher says
Yes, I did but they ringed fenced the amount of years claimed, I have subsequently sent to FOS to inspect on Sara’s advice. Personally they actually agreed to my complaint, so they have accepted they had failed me, so it makes no sense that they ring fenced, when the accounts were on trouble for many years before.
Chris says
Hi
Thanks for reply so how many years did Halifax go back too ?
Thanks
Vince Le Whadher says
To 2017, they have poor reasons for do this, saying there was no issues before. There were actually 2 current accounts with overdraughts on both in negative. My wages were put into one, which put it into positive, which soon became negative when bills came out, they were taking overdraught payments out of negative balanced accounts, this went on for years before 2017.
Lee says
Santander?
Sara (Debt Camel) says
?
Lee says
As in success rate ? Sorry for broken english , i need a coffee.
Sara (Debt Camel) says
These complaints are too new for me to be able to guess a success rate. And the Ombudsman decisions website doesn’t help as they bundle together all complaints about a bank, not just affordability.
But this really doesn’t matter to you. If the success rate is 80% or 20% what matters is what will happen in your case, and they are all quite individual. Can you say something about your situation?
adele says
Hi Sara,
I have an overdraft debt that is currently with Moorcroft. I pay them an affordable amount each month, however it will take forever.
The debt is £2600.
I have £2000 that I have managed to save.
What is the likelihood of them accepting this if I was to offer them and pay it all in one payment?
Would it be put down as part paid on my credit file?
Cheers, Adele x
Sara (Debt Camel) says
do you have other debts? because I assume no interest is being added to this, do it would be better to use the money to clear any credit cards or cataloges that are charging interest.
Adele says
You’re right, no interest is being added. I have two other debts which are both for just over £300. They are just payday loans so no interest or changes are being added. They are with Stepchange who I pay monthly.