Have you had big overdraft problems for a long period?
You can make an affordability complaint and ask for a refund of overdraft charges if:
- your overdraft limit was increased to a level you are unable to clear; or
- your overdraft usage showed you were in long-term financial distress. For example, being in the overdraft all the time, or using an unauthorised overdraft a lot.
This article shows how to make an affordability complaint to your bank, with a free template letter to use.
These complaints do not hurt your credit record.
Contents
Overdraft affordability complaints
Overdrafts are supposed to be for short term borrowing
Overdrafts are intended to be used for short-term problems, not as long-term borrowing. A bank should review a customer’s repayment record and overdraft limit and if there are signs of financial difficulty, offer help.
One sign of financial difficulty is hardcore borrowing for a long period. The Lending Code defined hardcore borrowings as “the position where a customer’s current account overdraft remains persistently overdrawn for more than a month without returning to credit during that period”.
Some Ombudsman decisions
All cases are very individual. But these examples give you an indication of what the Ombudsman thinks is important.
In this 2020 NatWest decision, the Ombudsman decided:
NatWest did have an obligation to monitor Miss K’s use of her overdraft facility.
Any fair and reasonable monitoring of Miss K’s overdraft facility would have resulted in NatWest being aware Miss K was in financial difficulty … by October 2014 at the absolute latest. So NatWest ought to have exercised forbearance from this point onwards.
In this 2021 Santander case, the bank didn’t notice hardcore borrowing:
By this point, Miss C was hardcore borrowing. In other, words she hadn’t seen or maintained a credit balance for an extended period of time. Santander’s own literature suggests that overdrafts are for unforeseen emergency borrowing not prolonged day-to-day expenditure. So I think that Miss C’s overdraft usage should have prompted Santander to have realised that Miss C wasn’t using her overdraft as intended and shouldn’t have continued offering it on the same terms.
A similar decision was reached in this 2021 Lloyds case:
Mr and Mrs C’s statements leading up to the renewal shows they hadn’t really had a credit balance on their account for a prolonged period. Indeed, they’d had regular returned payments and had also exceeded their limit. In these circumstances, it ought to have been apparent Mr and Mrs C were unlikely to be able to repay what they owed within a reasonable period with overdraft interest, fees and associated charges continuously being added.
Decide which reasons apply to your overdraft complaint
Read through these and think about which apply to your case.
The bank set your limit too high
This may have been from the start when you were first given an overdraft. Or the initial low limit may have been fine, then the bank increased it to a level which it was impossible for you to repay.
If the bank saw signs of financial difficulty, it should not have increased your credit limit, even if you asked for it. And it should have considered offering your help (the regulator’s word is forbearance) for example by stopping adding charges.
How high is too high?
There is no set figure, it depends on your income and expenses. An overdraft of £2,000 for someone whose income is £1,800 a month is a lot – but if you earn £5,000 a month, then a £2,000 overdraft may be reasonable.
The bank should have seen you were in difficulty
Overdrafts are meant to be used when you have a problem. Using the overdraft a lot for a few months is fine. Or for a few days at the end of a month before you are paid.
Banks should review your overdraft annually. This is in most overdraft tgerms and conditions. And even if it isn’t the Ombudsman says this is good industry practice.
So at one of these reviews, your bank should have seen if you were in financial distress. For example if you are in the overdraft for all (or almost all) of the month for a prolonged period. Or if you were exceeding your arranged overdraft limit regularly for a significant amount.
I would say over a year is prolonged.
Other points that help your complaint
You don’t win an affordability complaint by saying the charges were too high.
Instead, you say the bank should have known they were unaffordable for you because of all the financial problems it could see on your statements and your credit record.
Here is a checklist, work out if any of these apply to you:
- often having direct debits or standing orders not being paid;
- a lot of gambling showing on your statements;
- significantly increasing other debts with the same bank;
- being recently rejected for a loan or a credit card by the bank;
- significantly increasing debts with other lenders showing on your credit record;
- a worsening credit record – maxed out credit cards, new missed payments, defaults etc;
- using payday loans;
- increasing mortgage arrears;
- making payment arrangements with other creditors;
- a reduction in the income going into your account.
Any of these suggests you are reliant on the overdraft to pay everyday bills and you will find it hard or impossible to repay the overdraft and not use it the next month.
If you can think of another reason your bank should have known you were in trouble.
Making your complaint
What you need at the start
You don’t need to know the exact dates your limit was increased before complaining.
If you have paper statements or you can download them from the app that may be useful for you. But you don’t need to send these statements to the bank with your complaint – the bank already has them!
You can’t go back and see exactly what your credit score was in say 2018 when the bank increased your limit. But your current credit record shows what was happening in 2017 and 2018. So download your credit report now and keep it. The sooner you get the report, the further back it goes. I suggest you get your free TransUnion statutory credit report.
Send a complaint in the app or by email
I don’t recommend phoning to start off a complaint. It’s too complicated and you will be talking to someone that doesn’t specialise in these complaints.
When the account is still open, you can send your complaint by secure message in the app or on the bank’s website. Take a copy of what you put in the message – you could email it to yourself so it won’t get lost and the date is recorded.
Most banks now have an email address that you can use if you prefer or if the account is closed so you can’t use the app. But banks don’t make these easy to find, so here is my list of bank email addresses for complaints.
A template you can adapt
The section above looked at the reasons to complain and the other good points that apply to your case – you are now going to turn those into a complaint.
In the template below, I’ve invented some examples and dates so you can see how a complaint email could read. The bits in italics should be changed or deleted to tell your story.
The bit about other points is important – what should your bank have noticed that showed you were in difficulty?
I am making an affordability complaint about the overdraft on my current account number 98765432.
Your identity details (these are needed if you complain by email, not if you use secure message):
My name is xxxxx xxxxxxxx. My date of birth is dd/mm/yy. The email address I use/used for this account was myaddress@whatever.com.
START BY SAYING they should have noticed when your overdraft usage got worse
Overdrafts are meant for short-term borrowing but that was not what I was using the account for. The fees and charges you were adding were making my position worse.
I am complaining that every year since [20xx] you have failed to notice my difficulty during the annual reviews of my overdraft. You should have offered forbearance eg by stopping interest and charges being added.
By 2014 I had been in my overdraft constantly for many months, not getting back into the black even when I was paid. This “hardcore borrowing” is a clear sign of financial difficulty. My income was only £1,850 a month – after I had paid bills, there was no way I could hope to clear an overdraft of £3500 in a reasonable length of time.
OR
By 2017 I had a large unauthorised overdraft for many days each month.
some other points that you can include if relavent- see the list above – these are just a few examples
You should knew I was in financial difficulty because you had rejected my loan application in 2016.
You should have noticed that the income going into my account decreased from 2018.
From 2018-20 there was a lot of gambling showing on my account.
In 2017 you should have seen from my credit record that I had made payment arrangements with other debts.
ALSO Was the limit to high when it was set?
(It may have been ok then and things only got difficult later – in that case miss this out.)
You should never have given me an account with such a large overdraft. When I applied in 2015, you should have checked my credit record and you would have seen I had recently missed payments to a credit card and had taken several payday loans.
OR
You should not have increased my overdraft limit in about 2014. When you increased the limit, you should have seen that my debts to other lenders on my credit record had increased a lot.
I do not know the exact months of these overdraft limit increases. In your reply to this complaint, please tell me when the increases were and how much the limit went up on each occasion.
END BY asking for a refund of charges and interest:
I would like you to refund all the interest and charges that were added to my account from 2016 when you increased my overdraft limit.
OR
I would like you to refund all the interest and charges that were added to my account from 2018 when you should have realised that my finances had got worse to the point that I was no longer able to clear the overdraft.
The Financial Ombudsman says that 8% simple interest should be added to any cash refund paid to me.
I would also like any late payment and default markers to be removed from my credit records.
Points to note
Personal accounts, not business accounts
The complaints covered here relate to personal accounts. For business accounts, talk to Business Debtline about your options.
You can complain if the account is still being used or if it is closed
These complaints can be made in a lot of different situations. For example:
- you are still using the account or you have stopped using it and are paying it off;
- the account has been closed;
- the bank defaulted it and sold it to a debt collector (here you still complain to the bank, not the debt collector). If the debt collector has gone to court and got a CCJ, add to your complaint that you want the CCJ removed as part of the settlement of your complaint.
But if you have had an IVA or bankruptcy after these problems, or if you are still in a DRO, then you shouldn’t complain – ask in the comments below for details.
Old accounts
Banks may say FOS won’t look at an old complaint, but this isn’t right. FOS will often look at a complaint if you have only just found out you can complain.
Open and recently closed accounts aren’t a problem – the bank will still have your statements.
If your complaint is about an account that was closed more than 6 years ago, it’s harder to win. The bank may no longer have much information about the old account. If you still have copies of your old bank statements for these old closed accounts this is worth a try.
If you feel you have a good older case take it to the Financial Ombudsman and let them decide!
Packaged bank accounts
These affordability complaints are nothing to do with packaged bank accounts. MSE has a good page about how to complain about packaged bank account charges. I suggest you don’t try to combine this with an affordability complaint – make two separate complaints to the bank and leave a gap of at least a month between them.
Student overdrafts
You are unlikely to win a complaint about a student overdraft saying you were a student and it was unaffordable – they are at 0% interest and nothing is charged until you are in work. So you need to argue it was unaffordable at the later date when they started to charge interest.
The Bank replies
They want to talk to me on the phone!
People are often scared if they get this message. But it may be good news!
You can just ignore it or say you would like a reply in writing.
If you decide to take the call, it helps to be prepared. Have a pen and paper handy so you can write down anything. If they say they are partially upholding the complaint, ask them the date they are refunding the fees from and how much. Also say you would like to see this in writing before you decide whether to accept it.
If they want to ask you questions that sound complicated or worrying (this is unusual), ask them to put the questions in writing as you find the phone difficult.
Rejection or a poor offer – go to the Ombudsman
The bank should reply in 8 weeks. You can’t go straight to the Ombudsman, you have to wait for the bank to reply.
Banks reject many good complaints, hoping you will give up. So don’t! You know if the overdraft has caused you a lot of problems.
And the bank may offer to refund fees for the last 15 months say, even though your problems have been large for many years. Think twice about accepting a low offer – you won’t put this offer at risk by going to the Ombudsman. If you aren’t sure, post in the comments below.
In particular, if the bank says you could have declined the increase to your overdraft limit or you never let the bank know you were in difficulty, FOS may not think that is a good reason. And ignore any statements by the bank that FOS will not look into things that happened more than 6 years ago.
Santander has been rejecting some cases then giving a full refund only a few weeks later if the case is sent to the Ombudsman – before the Ombudsman has even looked at it! Santander obviously knows it has been sending out misleading rejection letters.
The easy way to complain to FOS is by completing this online form:
- you can use what you put in your complaint to the bank;
- if the bank rejected your complaint or made a low offer, say why you think this is unfair;
- use normal English, not legal terms.
If your credit record shows that you had other debt problems send it to FOS. You don’t need to send your bank statements – the bank will send those to FOS. And you don’t need the policy documents for your bank account the lender will supply those to FOS if they are needed.
Do these complaints work?
Yes! In 2024, some banks are making more offers directly.
A Guardian article featured a case where someone used the template letter here. Barclays denied it has done anything but made an £8,000 “good will” payment to the customer.
And if yours doesn’t, people are winning cases at the ombudsman. FOS is a friendly service although it isn’t speedy. It isn’t any faster if you use a solicitor or a claims firm,
The comments below this article are from other people who have made this sort of complaint. That is a good place to ask for help if you aren’t sure what to do.
If you have priority debts such as utility bills, rent, council tax and benefit overpayments, these can’t wait until your overdraft complaint is settled. Start the overdraft complaint now, but you need debt help as well. So phone National Debtline on 0808 808 4000, tell them you have made an affordability complaint but you would like to know what your debt options are.
Is your credit card limit too high?
Get a refunds from large loans
Unaffordable car finance – your options
B says
Hi Sara
I had a current account with Lloyds whereby you have to credit it with £500 or a £3 fee- I understood this. In November however, I innocently didn’t realise that I hadn’t credited the account with £500 and they applied the £3 fee which then took me into a £3 unarranged overdraft. I didn’t log in throughout that month because obviously I had no need to. In December I got a notification from credit Karma to say that a missed payment on my credit file. I called the bank to complain, and without even hearing my complaint they stated it wouldn’t be upheld and they had done nothing wrong. The lady said she would send out a final response letter so that I could take the matter to the FOS but after 4 weeks i had no letter. I raised an additional complaint and someone telephoned me stating they would not be changing their position! i had to point out I didn’t even know what their position was as I hadn’t had any communication other than the advisor I originally spoke to telling me it wouldn’t get upheld but she raise it for me anyway! the lady sent out another letter in which she stated Lloyds sent me a letter in November stating the account was overdrawn – They most definitely didn’t! and at no point did I receive any communication from them at all.
b says
I’ve raised this now with the FOS, but what do you think the chances are of them upholding my complaint? I could understand if it was a credit card or loan, but this was a bank account! how can you miss a payment on a bank account, it seems completely blown out of proportion over the grand sum of £3 and has ruined my financial health for a further 6 years after spending over a decade to repair it
Sara (Debt Camel) says
It’s obviously reasonable to charge you this fee as it is one of the terms of the bank account and you were aware of it. Dod you select getting notification by letter re the account, or email/ text?
They obviously aren’t doing very well with their communications, what with one letter going missing and no reply to your complaint. I can’t really guess what FOS is likely to decide.
Miss B says
Just thought I’d drop a note here as my OD claim is a little different to others on here and thought it might encourage others to pursue a claim. I set up an account with Santander in 2010. Their deal at time was to mirror what I had with HSBC so copied over my £500 OD. This has never increased but until 2020 as soon as I was paid and my bills went out I was in the OD. Santander have never allowed me to increase it or have any other credit with them. Up until 2017 they also allowed me to go over my overdraft often by double and then charged me for the pleasure. From 2015 I started getting bigger charges and fell into a gambling/pay day loan cycle until the end of 2018. I put a composing in to Santander Dayi g they should have realised my situation was worsening and didn’t attempt to help and shouldn’t have allowed me to go over my overdraft which meant I was receiving bigger charges. Santander turned down within a few days. Off to the FOS and nearly a year later they have agreed with me and today said Santander need to pay back all interest and charges from Feb 2015. The charges alone for this period are over £2000 my overdraft is still £500. Santander have until the 8th to reply. I will update their response – but my point is you don’t have to have lots of increases or high OD amounts to be successful – hopefully this will encourage others to complain when they live in their OD on smaller amounts of bank credit.
Sara (Debt Camel) says
Thanks – fingers crossed Santander accepts this decision.
Miss B says
Keeping everything crossed. It looks like most people are getting offers from Santander whilst waiting on FOS decision so I may still be in with a fight ahead of me but hopefully not. Not entirely sure if they are prompt at responding either.
Miss B says
Santander have agreed.
Although made a strange comment stating the refund will clear my overdraft which I knew. They would therefore remove the facility, fine I knew this would be the case. But then said if that would be a problem I should call them. Almost like they are suggesting I could keep it. Which I absolutely don’t want to do – it just seemed an odd comment to make and a bit counter productive – is that normal. I’ve politely declined.
Sara (Debt Camel) says
This is common at the moment. I think it’s because the regulator doesn’t want to see lenders remove a line of credit someone may be relying on, not as a marketing ploy.
Of course most people once they are out of the overdraft trap don’t want to be able to slip back into it.
Steven W says
When did they agree? I spoke to them yesterday and was told overdraft refunds are currently all being placed on hold whilst they review the policy. They said we should have an answer in the next few weeks before my 8 weeks is up.
Miss B says
Sara – aaah I guess that makes sense I just thought it a bit odd. But all good news none the less.
Steven – I complained the beginning of 2022. I was turned down by Santander within a week and then went straight to the FOS. An adjudicator picked up my case in June 2022 and made a final decision to agree with me last month. They gave Santander two weeks to respond to their decision to which they agreed after about 3 weeks. My complaint is much further along than yours with FOS involvement so it’ll be different to what is happening with yours. Good luck though most people seem to be winning these.
Kim says
Hi Sara, I was turned down by Halifax a second time so I’m looking to foward complaint to ombudsman. But I forgot on 5th April 2019 I filed for insolvency as my family advised due to my mental health at the time but I wasn’t in it longer than a couple of months as I just didn’t know what I was doing then. So is my complaint going to be differant from others?
Sara (Debt Camel) says
what form of insolvency? bankruptcy, IVA, Debt relief order, or was it a debt management plan?
You can’t usually be in a form of insolvency for just a couple of months. Who helped you set this up?
Kim says
It was an IVA and the reason it stopped was once I started to get myself straight hardly anything I was paying was goin to my creditors
Sara (Debt Camel) says
so did the IVA fail? or was it settled?
Kim says
I’m guessing it failed as I told them I wasn’t happy with it and no more payments were made
Sara (Debt Camel) says
who was the IVA firm? Have you checked the Insolvency register to see if your name is still on it? See https://www.insolvencydirect.bis.gov.uk/eiir/
Kim says
I don’t remember name of company I would have to find paperwork but just using the link you gave me no I’m not on the register
Sara (Debt Camel) says
Then I think you should carry on with this complaint. It isn’t clear to me what happened. Worst case a refund is taken by your IVA firm, but that may not happen so worth a try?
L Taylor says
Hello Sara,
I wanted to give an update to the above case.
Yesterday Barclays called me to refund me 6 years for chargers, totally just over £8k. I’ll give more detail, and also the template I used to write to them.
Complaint put in on January 15th via the chat functions on the app (I had a letter drafted that I had to then type in on my phone – but worth it as the complain reaches them quickly versus by post!)
Was told to expect response by 30th Jan – this came and went – I called that day and they said it would be now by the 19th Feb
1st Feb – received a call from my case handed to say she had reviewed and in light of my circumstance they would refund 6 years totalling just over 6 years.I had asked for £9k in refunds… so was happy with this!
I do have charges dating back beyond this, so probably could have taken up with the FOS for historical charges, but I’m the interest of time I was also happy with this.
L Taylor says
It has meant that I’ve been able to pay high interest debts down, leaving me with the two overdrafts still (now at 6.5k currently 0% interest and a payment plan in place)
Additionally, I would like to add I have spoken with Barclays financial assistance at the back end of last year, and they did freeze the interest on my overdrafts and we have since put a plan in place that should allow me to pay down the balance as a 0% loan, that they don’t credit check for, but budget planner etc is required.
(Part 2) My main point is call Barclays and explain your situation! Speak to financial assistance and be persistent. I have spent hours on the phone, but worth it. However, at no point was I offered refund or anything for charges, so if it wasn’t for this website and community I would still be struggling with double the debt at least! Thank you!
L Taylor says
Sorry so many typos! I meant I was refunded 8k from the 6 years of charges!
Sara (Debt Camel) says
it was a very good result for you. What a relief!
cyrilv says
So… the case handler at the FOS got in touch today – and it looks like she has come up with the goods. About £1350 compo from Halifax (minus the £297 that has already been paid to me) plus an extra £150 by way of goodwill and for the trouble caused. Needless to say I’ll be snapping their arms off for that one, can’t see any reason as to where there’ll be any more to come via the Ombudsman.
All I now need to know is what happens next; the adjudicator has been informed that I’ve said yes to her offer and it appears that Halifax have up to 16th Feb to agree to my acceptance. Surely they won’t withdraw it now. How long before this ~£1200 hits my account?
Anyway, looks like a decent win here. Many thanks to Sara and everyone.
Sara (Debt Camel) says
If Halifax says No it can take another few months as it goes to an Ombudsman.
Bank seem to be are accepting most adjudicator decisions at the moment so fingers crossed.
cyrilv says
Halifax have said yes; according to the adjudicator this is what Halifax have agreed to offer at this stage, and it looks good to me so I’m accepting. Hope they don’t backtrack after all this!
Sara (Debt Camel) says
I have never heard of a bank changing its mind after accepting a decision.
cyrilv says
All sounding good then! What’s the time scale between the bank’s acceptance of my decision and the money landing in my account? I’ve heard 28 days.
Sara (Debt Camel) says
They should deal with it in that time. It may be a lot quicker.
But you cannot be 100% sure this money will arrive within 28 days – even though it is rare for a bank to go over, don’t make a promise to do something and then be unable to keep it.
Chris says
I’m wondering if you complain to your current bank about the overdraft that you have had for years, will they then remove the overdraft completely from your account after the complaint?
Sara (Debt Camel) says
See https://debtcamel.co.uk/affordability-complaint-credit-record-faqs/
Saz says
Hi,
FOS sent Halifax a letter mentioning what they found and supporting my claim and that I should be paid back any interest from dec 2017 they had up until today (3 Feb) to response to see if they had any evidence to show that I shouldn’t be paid , what’s they likeliness of Halifax coming back and objecting? ..on the letter to Halifax it didn’t say how much I would be paid. Are people just figuring it out how much they are getting or they getting told? Just wondering what the next steps will be. assuming I will hearing something today
Saz says
Hi,
I’ve just got this, has any one else had this
Halifax hasn’t responded to my assessment sent on 20 January 2023. I have sent a follow up chaser this morning asking it to respond by 10 February 2023.
If I don’t receive a response by this date, I will prepare the case to be reviewed by an ombudsman for a final decision.
If you have any questions, please get in touch.
Sara (Debt Camel) says
it isnt uncommon for a lender to not reply in time. The adjudicator is giving them more time as if they do accept this will be quicker than this having to go to an Ombudsman.
Saz says
Just had the below sent. Is it common for Halifax still not to come back and now it’s gone to an ombudsman.
An ombudsman will review this complaint
Because Halifax didn’t reply, an ombudsman will review the complaint and make a decision.
Can Halifax in the meantime come back and accept the decision? Also how long does it usually take with ombudsman
Thanks
Sara (Debt Camel) says
It isn’t common.
Yes Halifax may come back and accept.
if they don’t, then 1-6 months usually – overdraft complaints normally seem to be at the quicker end of this range.
Saz says
So Halifax have come back with a counter offer do I accept it?
Halifax has made an offer to settle your complaint – but its offer isn’t in line with the recommendations we set out in our letter of 20 January 2023.
They are offering me 1 year back worth of interest. When I work it out I think I’m around 500/600 down do I let it go to an ombudsman?
Sara (Debt Camel) says
You said the adjudicator proposed a refund from Dec 17. Would this really only be £5-600 less than the offer of 1 year refund?
Do you know what charges you paid in 2018,2019, 2020, 2021? 2022
Saz says
In 2019 I reduced my overdraft (bonus from work) From 2500 to 2000 and kept digging away it when I got money I wasn’t expecting But then was stuck at 1500 overdraft for ages butI finally paid off when I got payday payout last year. So they are saying I was only result in money trouble 17-18 xx
Saz says
So I’ve worked out I’ll be around 600 less then I thought due to Covid etc when they stopped putting chargers on overdrafts etc.
Sara (Debt Camel) says
do you have the amounts you paid in charges for the different years?
Saz says
Sorry for the delayed response so chargers are as followed
Dec17-18 = 1247.47
Dec 18-19 = 1182.12
Dec 19-20 = 471
Dec 20-21 = 204
After speaking to my case worker at FOS I’ve decided to decline Halifax offer after checking all my statements Halifax was basically saying the reason why they are only giving me 12month back (17-18) as if they would have put me on payment plan etc this is what they would have done.
My only worry was if I declined the offer I had the risk of not getting anything!
They offered me 1700 after 8% was added.
Just wondering as anyone else had offers like this before it taking the next step to ombudsman. Is it likely they will come back and agree to what the FOS have said or will it go to ombudsman?
Thanks for all your help
Sara (Debt Camel) says
on those numbers it looks as though you were in quite a bit of trouble in 18-19 as well!
I am sorry I don’t think I have seen many cases in this situation, where an adjudicator has made a decision and then the lender has offered less – I don’t know if Halifax will now have a rethink or ask for it to go to an Ombudsman.
I think the chance of you getting nothing is about zero – the worst case would be an Ombudsman saying they think Halifax’s offer was a fair one.
Saz says
Hi Sara,
I just wanted to give you an update on this. so I got the ombudsman’s provisionally decision yesterday (it’s only been 2 weeks if that) they have given me a provisionally decision because its different to what the adjudicator said. They upheld my complaint and said Halifax have to refund from 2016 and not 2017 which the adjudicator originally said. so it should be an additional £855 in total, I should be getting just under £4000 but then there is the 8% on top of that ( not sure how to work it out if im honest). Halifax have up to the 4th April to either provide more evidence or accept the complaint. Hoping this will come to close soon it will have been a year in April since I started my complaint.
Will halifax contact me with a breakdown of cost or will they go to the ombudsman with it?
Thank you so much Sara, If I get this payment I will become debt free and weight will be lifted.
xx
Sara (Debt Camel) says
Normally the lender tells you what they are refunding not FOS. They should say how much 8% interest there is and how much tax has been deducted from the 8% part.
Saz says
UPDATE: Halifax has agreed to the Ombusdman decison. yeah :-).
how long usually is it before i hear from the bank the break down of what they will be giving me and when it will hit my account.
Thanks
Kim says
Morning, can I ask what the differance is between an adjudicator and ombudsman please?
Sara (Debt Camel) says
the Financial Ombuds is a two stage system.
First your case is considered by an adjusiducator, sometimes called an investigator. They make a decision – if it is accepted by both parties, you and the bank, that’s it. 90% of cases are settled like this.
But if either party doesn’t accept the adjudicator decision, the case goes to be looked by a more senior person at FOS with the title of “Ombudsman”. These Ombudsman decisions are also the only ones published, the customer is anonymosed so you would be Ms H. At Ombudsman decision is legally binding on the bank – they will pay up.
Steven W says
Has anyone heard from Santander recently? I was called a week ago to say all overdraft complaints are with another team to check over, before finalising the refund and now the 0800 number I called before / and was called on last Tuesday does not work.
Lynn says
I sent an affordability complaint 3 weeks ago to Halifax using the email address given on here. Is it normal not to receive an acknowledgement of the e-mail? Thanks for your help
Sara (Debt Camel) says
I think you should phone up and ask them to confirm they have your complaint.
Lynn says
I will do thanks
Peter says
A little update from my complaint with Lloyd’s about my overdraft and loan. I had 3 missed calls this morning and I received notification about incoming payments. They have transferred about £2000 in my account, cleared the overdraft (£700) and returned interest on my CC account from January, but still stands at £1200. I haven’t received any e-mails or letters though. Should I give them a ring back and ask for it? I’m curious why £2000, I had my CC for about 6 years and I have paid interest on it over £120 in the last 6 months alone.
Sara (Debt Camel) says
So you complained about an overdaft and a loan? Did you also complain about the credit card?
But they have cleared your overdraft and changed your credit card balance?
I think you need to ask for details in writing of what they have decided to refund. As it may well be you should send the rest of your complaint to the Finacial Ombudsman.
Peter says
Sorry, my bad about the loan. I complained about my overdraft and credit card. All they did, was sent me a letter that my complaint will be investigated, which was sent like 2 weeks ago and today, I had 3 missed calls with a message to call them back and discuss my complaint. But like I said, I checked my bank account and they have transferred 3 payments, 1×1800, 1×130 and 1×30 without any discussion. Not sure why 3 separate payments. But now, my overdraft is gone (£700), but my credit card account still is at £1200 and when I check into that, I see they have returned the interest from January, but that’s it.
Haven’t gone through my overdraft fees yet, but if do calculations like £20 (it’s definetly more) a month over 6 years, it ends up with almost £1500. And I assume credit card interest might be around the same number.
Sara (Debt Camel) says
Ok I think you need to wait for the decision letter. If nothing comes in a week, phone them up and ask where it is.
PS was there a loan that you didn’t complain about?
Peter says
OK, thanks.
I included in my complaint that they refused to give me a any loans, due to my credit score and history, but didn’t have problem increasing my overdraft and giving me a credit card.
I went through my CC interest and it’s about £1250 over 6 years. I might be wrong, but I believe refund should be bigger than £2000.
Don’t they also have to add that 8% on top of that?
Sara (Debt Camel) says
That is a good point to make.
They only have to add on 8% from the point your account should have returned to credit if they hadn’t added on the interest that they shouldn’t have.
Peter says
I see. I will wait for the letter and will post an update as soon I hear from them. I’m quite happy they haven’t refused to my complaint and have noticed there was something wrong.
Peter says
Received the letter today from Lloyds about my refunds. They agree they should’ve seen my account earlier but they are not agreeing with the credit card, since when I was offered it, CRA information looked good and there were not any red flags. They refunded the overdraft interest and tax for last 6 years and added £100 in cheque on top of it. Not sure what to do now, should I accept it or go to ombudsman?
Sara (Debt Camel) says
when was the credit card offered? and did they ever increase the limit on it?
Peter says
They never increased the limit, but I got it when I had several payday loans, ongoing HSBC loan and constantly around 800-900 in overdraft.
They were saying, because I made minimum or a bit over minimum payments every month, my account was in good hands.
Sara (Debt Camel) says
when was the credit card account opened?
Peter says
In August, 2017. Still opened, originally it was 1250, they decreased to 1200 in 2018 I think.
I tried to reduce it, but it didn’t let me do it. Only to increase it which I never did.
Sara (Debt Camel) says
So its your decision about whether the refund on the overdraft feels like a fair settlement of your whole complaint.
The card was opened in the last 6 years, so there would be no problem in getting FOS to look at at.
The argument would be that 1250 was too high a limit as they could see your heavy overdraft use and the payday loans. and the large HSBC loan.
N says
Hi,
I emailed NatWest today with an affordability complaint. I’ve never been charged for being in my overdraft as my account is a student account although I have been constantly in it since I’ve had it. I’m only 18 and my limit is at £2,000. I’ve asked them to bring me back to black, how likely is this to happen?
Sara (Debt Camel) says
It isn’t at all likely. The compensation for unaffordable debt is a refund of interest, which you haven’t paid…
If a few years after uni you are still trapped in your overdraft and have been paying fees at that point you may be able to win a complaint and get the interest refunded.
Julia says
This sounds very interesting. Over the years my husband and I have had lots of stress with money. Barclays kept sending us letters about taking out loans with them. We were desperate to get out of overdraft and away from credit cards, so took them up on it. In the end after nearly separating we decided to take out a larger mortgage to pay off all the debts, which has added years more. Hoping we can do a successful complaint, as looking back was a very dark, stressful time. Despite it should having being the best time to enjoy our young family.
Sara (Debt Camel) says
So you had an overdraft with Barclays for a long while, and then a loan, did you also have a credit card?
Julia says
Yep, credit cards too kept switching to interest free so been with most lenders over the years. Will keep you posted on the outcome!
Julia says
Yes, that’s right credit cards about 3. It was a very difficult time. We extended our mortgage in the end, which seemed mentally easier to take but obviously far from ideal! Thankfully in a better place, now children are older we both work full time. But looking back it was awful!
Sara (Debt Camel) says
Sorry I meant did you have a Barclaycard?
Julia says
Sorry Sara, yes we did, thanks
Sara (Debt Camel) says
In that case I think you should do a combined complaint – because if Barclays had stepped back and thought about all the information it knew about you, it would have realised that a lot of this credit was unaffordable.
Start with the overdraft template in the article above. But say at the begining you are asking for a refund on interest on the overdraft, loan and credit card. Then add a paragraph in on the credit card (read https://debtcamel.co.uk/refunds-catalogue-credit-card/ for ideas) and the loan (read https://debtcamel.co.uk/refunds-large-high-cost-loans/ for ideas). And also point out you had two other credit cards which Barclays should have seen from your credit records and the fact you were making payments to them from your bank account.
Julia says
Thanks Sara for your help with this. Barclays called yesterday and spoke to my husband. They made him feel silly, and said because the overdraft has “only” been £5k, since 2017 we weren’t in it for a few years as end of 2017 we took out a separate mortgage of £40k to pay off the loans, overdraft, credit card. Barclays in the 6 years say they “only” added £500 to make it £5500 for “emergency lending”. They says they could only go back 6 years and we have no case.
Do you think it’s worth pushing? Thank you so much. Julia
Sara (Debt Camel) says
I think you should send the case to the Ombudsman. Be clear you are complaining about the loan which they should have known from your ovderaft you could not afford. Also about the overdraft and about the Barclaycard. Point out you were ony able to get out of the debts to Barclays by remortgaging.
Kim says
Hi my complaint with Halifax is now with ombudsman but the update from them is there busy and can take upto 4 months for my complaint to be given to a case handler so still a while to wait
John says
Hi Sara
I have constantly been in my Halifax overdraft of £1000 since 2012, (yes 11 year) 90% of that time, a week after payday having no funds left because of increased payday lending etc. Off the top of my head I don’t remember Halifax increasing my overdraft but my question is should they have noticed month on month I had a decreased disposable income and that my outgoings were out weighing my incomings and If so does my criteria warrant starting a claim against Halifax? Many thanks again.
Sara (Debt Camel) says
I think Halifax should have noticed your financial problems from your overdraft usage. And also seen the payday loans – another red flag that you were in difficulty.
Send them a complaint! They may only offer you a refund for the last 6 years – if they do it’s up to you whether to accept that or take the case to the Ombudsman who sometimes decides that they can go back further than 6 years.
John says
Thanks Sara appreciate your advice
Denise says
Over draft charges
Sara (Debt Camel) says
Do you have a question? Have you read the article above these comments?
Jack says
Just wondering if anyone has put complaint in with Lloyds Bank on there online site. Just I did last Monday ( now 7days+) not heard anything back to say got it / looking at it etc.
Anyone know how long they take to just notified received.
Peter says
They didn’t reply to me either, I sent an email and received automatic reply and that was it. Couple weeks later I got missing calls and it was sorted (sort of).
Jack says
Thanks Peter now been 2weeks nothing. No email or letter. The website says will reply within 3-5 days. I’ll email as well now I think.
Peter says
Try maybe sending complaint through the email? I sent it on 9th of January and they called me 8th of February and refunded my OD the same day. But it looks waiting time takes roughly a month at least.
cyrilv says
And the payment hit my account last night, three days after the adjudicator informed Halifax I accepted their offer. Everything I stated above was there along with an extra £258. I can only assume that that was 2 1/2 years’ interest at 8% simple, which would tally with the original total.
So – that’s me debt free at last. Never thought I’d wipe out the £12k or so total over the years, but I’ve done it. And you’ve been so helpful on this journey!
Kim says
Hi, can I ask how long you waited for a case handler please? As Iv been told upto 4 months and my complaint is also with Halifax
cyrilv says
Hi Kim,
the whole process took me around six months. Heard nothing from August until the end of January other than two pro-forma letters about a backlog – and then the adjudicator got in touch and got to work fast. Once the (very fair) decision was accepted by Halifax they took three days to pay.
Lynn says
Complained to halifax on the 18th Jan, just off the phone to them, agree with my complaint and refunding me £3353 (this is from my overdraft, going back to 2017) should be in my account today. Cant thank you enough Sara, without your website I would never have know about affordability complaints! Thanks again
Sara (Debt Camel) says
Excellent. Have a great weekend!
Lynn says
Thank you I absolutely will :)
David says
I complained to HSBC about 6 months ago and they rejected my claim. I went to the Ombudsman and the judicator has agreed with me and told HSBC that they must refund my charges over 6 years, include 8 % interest and compensate me. My charges over that period were £11,858. HSBC had until the 16th to appeal and respond to the judicator but so far haven’t. Hopefully I’ll have some news next week and will update you all. I used the template on here from the start and constantly checked into the site to see how everyone else was getting on with their claims and this is the reason why I’m at the stage where I am. Thank you all for your input and keep fighting for what is rightfully yours. If you think that there’s anything you’ve done that may help others then make sure you leave a comment as your input will definitely help someone on here.
Sara (Debt Camel) says
fingers crossed they accept this decision!
George says
Hi Sara,
My case is probably a little different in that I had already received my refund from Lloyds bank back in August of last year for irresponsible lending.
It was initially rejected by Lloyds but after taking the complaint to FOS they said that I was entitled to all overdraft fees dating back to 2017.
The bank sent me a letter of my refund and stated that I would not be entitled to borrow from Lloyds for at least 12 months.
I originally had an overdraft or £4700 and then agreed to pay instalments and got it to about £2400 until my refund hit which covered the rest.
When the refund took place and they said I could not borrow, the bank put my overdraft back up to £4700. I am now back within the overdraft and the bank apologised for their error but are now proceeding charging me daily overdraft fees again. Admittedly, I would have liked to have avoided re-entering the overdraft but times are difficult and it should have not been accessible in the first place.
I have re-raised with the bank last year and did not hear back within 8 weeks. After calling again today, they apologised again and said they have a new complaints system and have now opened yet another complaint for which I may not hear back for another 8 weeks (all the while I will receive daily OD charges).
Do you have any advice for this? Should I open another complaint immediately with FOS?
Thank you
George
Sara (Debt Camel) says
How many days of the month are you currently in your overdraft? What is the maximum it gets up to?
what is the rest of your financial situation like – do you have credit cards and loans that you are repaying normally? or have payment arrangements for?
George says
The maximum is £4700. I am approximately £4000 into the overdraft and am unlikely to be able to be out of it within the near future. Therefore, I will be in it everyday of the month.
I have 2 existing loans, one of which the final instalment is due next month. The other has about 18 months remaining at £400 per month. No credit cards.
Sara (Debt Camel) says
What is your income each month?
The loan that finishes next month, what are the repayments on that?
What were the interest rates on these 2 loans?
And are you behind with any bills?
George says
My income each month is £2500.
The loan that I have 18 months remaining is for £8000 at 19% APR.
The other loan has one more payment of £350 which will be paid off mid-March.
I am not behind with bills and am fairly confident that this will remain the case.
I have spoken to the bank again and they said they won’t offer me any repayment plan (even though the overdraft was provided in error) whilst I have a complaint open with them.
Sara (Debt Camel) says
who is the loan from that is finishing? the interest rate?
who is the 19% loan from?
have you considered affordability complaints against the loan lenders/
you seem to have taken the decision to carry on paying these two large loans by using the overdraft which you knew should not have been there.
I have no idea what the Ombudsman would say in this case. But first you need to wait and see what lloyds say.
I suggest you should stop using this lloyds account completely and switch to another bank whioch does not have an overdraft. Then you can start paying £350 extra a month into the lloyds accoun to start clearing the overdraft debt.
George says
The loan that is finishing is with Savvy. It is only finishing because I am paying it off in full by the way instead of continuing over a long period with high interest rates.
The loan for £8000 was from Vanquis. Yes, perhaps a good idea for me to put an affordability complaint in against these.
The overdraft facility should not have been there but it is also an error from the bank as to why it is. I am going to proceed with the Lloyds complaint and also pursue with a complaint to the FOS as my original complaint was not answered within the 8 week period. Lloyds have now opened a new one because they have a new complaints system but that should not have impacted the set response timeframe.
I have a Halifax account I can use but would like to see what the outcome is first of all with Lloyds and see whether they would be willing to take any responsibility for their error. If interest is to incurred, I can contact the FOS again to make a complaint against an overdraft that not only could I not afford, I never requested for it to be there in the first place.
Sara (Debt Camel) says
It is clear that Lloyds complaint handling has made this worse. I would be interested to know how this complaint goes.
Halifax is part of the same banking group. I think you should switch to using a different bank. Whatever happens it seems likely that that will be a remaining overdraft to llods to be paid off.
Use the template here https://debtcamel.co.uk/refunds-large-high-cost-loans/ for claims against Savvy and Vanquis. In them you should have pointed out that the large lloyds overdraft at the time should have been an indication you were in difficulty.
George says
I also don’t hold out much hope that Lloyds will pay off any of the overdraft, however some form of accountability would be nice. I will keep updated on this when I receive a response.
Thank you for the template.
Great work you do here and have a good weekend.
Sasha says
Hi Sara do you have a contact email for nationwide overdraft complaints please
Sara (Debt Camel) says
there is an email address on this page, which is linked to in the article above: https://debtcamel.co.uk/email-addresses-banks-credit-cards/
Tom says
Hi. Anyone up to date on the Tsb complaint? I wonder how long they take to answer
GMR says
I had a bank account with HSBC for many years. I was in a bad way financially & was always in an unauthorised over draft & being charged bank charges every day/month. Finally I decided to break the cycle. Open up a new account & the overdraft that was owed was sold to a debt collector. This still shows on my credit score but the 6 years is almost finished so I hope it will clear. I submitted a complaint 2 weeks ago & missed a call from a HSBC escalated complaints member today. I am not holding much hope because of the time scale. Account closed in 2016. I am assuming this is just to say that I will not be eligible for a refund. Any thoughts ?
Sara (Debt Camel) says
I too would expect HSBC to reject this because of the age of the complaint. The Ombudsman can look at older cases if you have only recently found out you can complain. So you can send this to FOS – but do you have much evidence about this? The longer ago it was, the less evidence there may be.
Chloe says
Santander overdraft complaint went in 16/02 received a call a week later that the policy on overdrafts is being being reviewed and that may slow down the process.
I submitted a loan complaint same time, they’ve stated it will be looked at and should be dealt with quicker. Just in case anyone wants to know re current time lines.
Steven W says
Hi Chloe I spoke to Santander this afternoon. They tell me its still under review but the review team have now requested all the overdraft fee’s for all the open cases including mine…. the lady then said figures since the overdraft was last increased (this was Jan 2020) so I said “eerrm no I am looking at 6 years since Jan 2017 and not just since the last time it was increased! She said “oh right yes ok”
So just over 1 more week and my 8 weeks is up then it goes to FOS and I made this clear to Santander. Not sure why they are dragging their heels.
Chloe says
any luck on this one? I just called Santander, they said my complaint is waiting for a review from another internal team… whatever that means. They have another 3 weeks to reply before i send to the FOS.
TT says
I send an overdraft complaint to LLoyds in the first couple of days this month and just received a message that they have send a letter to me with a solution. Missed a Call and called them back, the lady had left for the day but spoke to a colleague who read the letter to me. Apparently they will refund partially around £800 from the period 2019 up to beginning 2022. However they wont refund the last 12 months, which were almost entirely in overdraft, those fees add up to almost another £800, with the reason that they have emailed me about budgeting (couldn’t find any particular email) and that was the point for me to have taken action with them get in touch and find a solution? Further they will Remove my remaining overdraft £2.5k at the end of March and refund me £800 on the same date. However the outstanding amount will be owed as Unarranged overdraft and is due immediately, that’s -£1.9k and this will be reported as immediate debt. I will receive my wages a few days later and will be immediately in problems again, that doesn’t seem fair, or is it? Hope you have some great advise like always!
Sara (Debt Camel) says
I think you should send this case to the Ombudsman. That does not sound like a good reason not to refund the last year. If they thought you were in difficulty they should have stopped charging you…
if they had refunded the interest up to now, they should have allowed you to make an arrangement to repay the rest of the overdraft.
You may want to consider getting a new bank account! Perhaps one of the new challenger banks, without an overdraft? Starling, Chase, Monzo…
TT says
They had send several in-app emails (which I missed), didnt receive on my email or posted – saying that ive been in overdraft and should consider changing the amount so the fees will be lower. First one came at the end of Jan, and then a couple throughout the year.
Waiting for the letter to arrive and then to have a call with the complaints manager, probably next week. Do you think they will still negotiate when I push back?
If not they will action this refund and removal of overdraft, in that case I can still send to ombudsman for the last year eventho i have received partial solution?
Sara (Debt Camel) says
should consider changing the amount so the fees will be lower.
How much is your income a month?
Do you think they will still negotiate when I push back?
I am not optimistic
If not they will action this refund and removal of overdraft, in that case I can still send to ombudsman for the last year eventho i have received partial solution?
I don’t know, I dont remember seeing a case quite like this.
TT says
In 2022 this was £2.5k. The complaint was for that period 2018-2022 predominantly.
Since the end of its 2022 (dec) £3.3k and therefore I am happy with still keeping some of the overdraft. But it was merely so at the time it was irresponsible and have been up till now deep in overdraft the entire month as it barely covered my salary.
As you said, shouldnt they have contacted me via phone or post to highlight their concerns which had been going on for years. Instead of sending in app message that seemed generic and wasnt opened?
Also seemed odd that they only refund at the end of next month, instead of doing this directly?
Sara (Debt Camel) says
so for 2022, which they havent refunded, your income much the same as your overdraft. In this case, for them to suggest you can budget your wasy out of this while they still add fees each month, was just wrong. Another point to make to the Ombudsman.
I would giver them a week to reply and no more, then sand the case to FOS.
anon says
Hi Sara,
I’m so happy I came across your Instagram and your website. I’m not sure if I can claim but here i go. I have an account with natwest and I have an overdraft of £2000. I mainly pay my bills into this account but for the past 10 years I have always been into my overdraft. And at times i go over which is disheartening. I did call them 2 years ago to see how I could repay it but the telephone conversation did not amount to anything and I’m still in my over draft. I get charged around £50 – £60 pounds in interest every month and my monthly salary is £1883. I’m on the last 3 months of my maternity leave with no income but i always try to scrape to find money to pay off the bills plus the interest. I have looked at your template but I’m still trying to see how I can word the letter so I can highlight the chargers. Thank you for your time. Any thoughts?
Sara (Debt Camel) says
First my apologies that your name is missing! This was caused by a database glitch – I managed to retrieve your comment but not your name…
This sounds like a good complaint to me. (UNLESS you told them 2 years ago that you were making a complaint. It doesnt sound as though you did.)
I think you should change the template to say you have been in your overdraft for 10 year. And that your salary is less than your overdraft limit so it seems impossible for you to pay off.
Tom says
Hi I was hoping for some advice please and also my story might help others.
I took out an overdraft with Halifax on 9th April 2020 for £250. I was constantly overdrawn then on the 17th April 2020 I managed to increase my overdraft to £1000 and again I was constantly overdrawn. I made an affordability complaint in 2022. I informed them I suffer from mental health problems and I wasn’t fully aware what I was doing when I took out the loan and also that my credit rating wasn’t good and they should have noticed this. For the higher overdraft I also informed them I was constantly overdrawn and they shouldn’t have given me a higher overdraft. I requested if they could please wipe off the £1000 overdraft and refund me all interest paid. There response was they found nothing wrong with giving me the first overdraft but found the second one was there fault. In total they deducted £595 from the £1000 overdraft….
Tom says
They also informed me they would wipe out the remaining debt if I provided more medical evidence as what I provided wasn’t sufficient which I felt was discrimination. I then decided to send in further medical evidence to have the remaining debt wiped and in a phone call chasing up the letter they informed me in my decision letter that I was misinformed by them and for this they would award me £20. They also refunded me a further £100 that went to reducing the remaining overdraft but I did manage to pocket some of that myself. They said everyone is entitled to this £100 in charges back once a year. My account is on hold for 30 days until I come to the decision to wipe off the debt and the account gets closed or pay it off myself and keep the account open. I was hoping that they would just wipe off the £1000 overdraft and refund me all interest paid? I seen on the financial ombudsman website that you can be financially awarded for stress and misinformation etc but then I checked UK Trust pilot website which is all 1* reviews saying things like your wasting your time with the ombudsman, there corrupt and in the pocket of the banks which makes complete sense! Does anyone have any suggestions what I should do please. Thanks.
Sara (Debt Camel) says
“I took out an overdraft with Halifax on 9th April 2020 for £250. I was constantly overdrawn then on the 17th April 2020 I managed to increase my overdraft to £1000”
is it right that that was the same month? or is one of the dates wrong?
“I wasn’t fully aware what I was doing when I took out the loan “
I assume that should have said overdraft.
” they deducted £595 from the £1000 overdraft”
have you added up how much interest you were charged on the overdraft from the point they increased your limit?
Faye says
Hello, just after a little advice , I’ve been in the overdraft constantly since around 2009 (£1100) like I’m in the whole overdraft every month, never really out of it, I get paid weekly so obviously when wages go in the overdraft usage decreases but once I’ve paid bills that same day I’m right back to using the whole overdraft again. In 2019 they gave me a loan of £5000, even though I was still £1000+ into my overdraft. Is it worth complaining about the unaffordable loan too (at the same time as the overdraft) or do I do these separately?
I had and still have credit cards from other lenders that I pay using this account and debt payments that appear on bank statements, I also have gambling transactions on my statements too.
I’m with NatWest overdraft and loan. Credit cards are with capital one
Sara (Debt Camel) says
how long have there been gambling transactions on your statement? how much are these – there is a lot of difference between a couple of trips to the bingo a month and a problem gambling habit… do you want to stop gambling?
how much are your weekly wages?
credit cards from other lenders – did any of these increase your credit limit when you were only making minimum payments?
Faye says
Hey,
Gambling in 2007 ish was anything from £80 per month to around £200 per month , still gambling transactions now but there are less, as I had set up a safe play of no more than £20 a week. Sometimes I don’t gamble as I’m already getting help on this.
My weekly wages were around £300 per week in 2016 but I’m doing lots of overtime to try and pay exsisting debts off and keep up with bills so my weekly wages are around £400 to £535 weekly with all the overtime. My partner has her wages paid into my bank too. I’ve had a few failed direct debits but my children do send money to my bank to try and cover these.
Yes aqua increased my credit card limit from £900 to £1600 a couple of years ago, whilst only paying the minimum I’ve also had two repayment holidays with them as I couldn’t keep up repayments .
Sara (Debt Camel) says
So this sounds like a good overdraft affordability complaint. Make the points that your bank should have seen the gambling, and that your wages were low compared to your overdraft. and that you have had direct debits that had to be covered by money from family – all of these points suggest that your bank should have realised the overaft fwas too high and offered to help eg by stopping adding overdraft charges.
This also means they should not have given you a 5k loan… you could add this into the overdraft complaint, but for some people this gets complicated if the bank makes an offer on one and rejects the other one. With very inter-tangled complaints (eg the bank gave you several loans and increased your overdraft limit or credit card limit) I think it’s worth putting them all together , but yours can be made as two seperate complaints easily.
Use the template in the article above for the overdraft and the template in this other article https://debtcamel.co.uk/refunds-large-high-cost-loans/ for the loan. Add a sentence into the loan complaint saying that the bank should not have given you the loan as it was clear from your heavy overdraft usage that you would struggle to repay it.
Let us know what happens to both of these complaints!
Faye says
Hey just an update.
I made 2 seperate complaints to NatWest 1 for the overdraft 1 for the loan, they came back within 2 weeks about the overdraft complaint and rejected it, so sent it straight off to the ombudsman… they have sided that it was unaffordable and NatWest have now agreed to pay interest &charges from March 2017… this landed in my bank this morning … overdraft paid off yay.
The loan complaint they haven’t even replied to, I chased them up after 3 weeks from the same email thread as the loan complaint and said they would look into it. 8 weeks still nothing so that’s now with the ombudsman. I’ll keep updating as I hear more, thank you for your help. Can’t remember the last time I didn’t have this overdraft hanging over my head.
Kirsty says
Hello,
I’ve had an overdraft since 2008 which was increased in 2014, since having the account I have literally lived in it and have only ever been in credit for a matter of days when I got paid.
The bank was originally Yorkshire Bank however they were taken over a couple of years ago by Virgin.
How likely is it my complaint will be accepted by Virgin as they didn’t originally give me the overdraft? If they do accept it, do you think it’s likely they would backdate to 2008 or am I correct in thinking they only consider the last 6 years?
Thanks for any help and advice!
Sara (Debt Camel) says
Virgin didn’t just buy some debts, they bought the whole bank so they are liable for Yorkshire’s poor lending decisions. If they reject your complaint saying they aren’t, then send this straight to the Ombudsman.
It’s unlikely they will backdate to 2008. They may offer 6 years. Or back to some other date that may or may not make sense… the Ombudsman may take a different view and say they should have gone back further.
If you get an offer and you aren’t sure what to do, come back here?
Kirsty says
Hello,
Thanks for your help above!
I received a call from Virgin today, they said they were looking into my complaint and wanted to clarify the reason for extending my overdraft in 2014. They said I had requested an extension because I was going on holiday. I said this could have been the case, it was almost ten years ago, however an overdraft should be for short term emergency use and I’ve been in it for almost 14 years and it hasn’t been monitored. Also, if they look back at the transactions before my increase, they will have seen I was using payday loans at the time.
They advised they will respond by letter in due course. I’m keeping everything crossed however I’m not feeling too hopeful!
Sara (Debt Camel) says
ok, straight to the Ombudsman if they reject it or make a poor offer – come back here and check if you aren’t sure!
Kirsty says
Hello,
As I thought, I have received a letter from Virgin to say they will not uphold my complaint as they did the correct checks and I could afford the increase in overdraft.
They haven’t acknowledged my complaint about being in my overdraft for 14 years and considering it irresponsible lending, or that around the time of increasing my overdraft they would have been able to see payday loans on my account.
I have raised a claim with FO and they have asked for a copy of the response from Virgin which I have sent.
How likely is it that FO award when the bank has refused the claim?
I’m worried because I asked for the overdraft to be increased the FO will dismiss my claim. Thanks for any advise!
Sara (Debt Camel) says
“How likely is it that FO award when the bank has refused the claim?”
It sounds like a good claim to me.
“I’m worried because I asked for the overdraft to be increased the FO will dismiss my claim.”
That isn’t relevant – the bank still needs to check that it is affordable even if you ask for the increase.
Luke Mc says
Hi Sarah, just wanted to say thanks for your help – I made a complaint to my bank about an overdraft that they shouldn’t have let me extend – this in time led to me having to default on the overdraft in 2021 (with covid etc) – I made a complaint and they took some responsibility and agreed to backdate it 3 years to 2018 which is great news. This will now end next year, will this automatically improve my credit rating by it being backdated? Or will credit score only improve once default is 6 years passed? I have paid the debt off already, I just read that each year that passes the default is slightly less harmful – thanks again!
Sara (Debt Camel) says
can you say some more about this – did you make an affordability complaint? Why did they pick 2018 as the date for a default?
Luke m says
Yes it was an affordability complaint with Lloyds – I think they said they could see I was having financial problems in 2018 so that’s why they backdated it to then. Will this help my credit rating seeing as now I’m effectively 4/5 years into it? I know credit score goes up once it’s removed
Sara (Debt Camel) says
I think you should send the complaint to the Ombudsman and ask for a refund of charges from 2018 and for the default to be removed.
Luke says
I forgot to mention they also refunded £1400 – so very happy with that. Regarding my question about how it will help my credit – will it improve now that it only has 18 months until default is removed?
Sara (Debt Camel) says
Ah!
The effect of a default decreases as it gets over 4 years, see https://debtcamel.co.uk/credit-score-change/. How much your score changes in practice depends how many other problems there are – if there are a lot then reducing or removing one may not make a big difference.
John S says
Complaints gone in last week for Santander, Lloyds, RBS and NatWest overdrafts. I’ve only received automated replies, strangely enough Lloyds came back and said they couldn’t find my account but after sending them my postcode again I haven’t heard anything back. Waiting game it is then.
Thank you Sara for all the information and templates. This site is really amazing.
John S says
Just an updated on the Lloyds O/D. I received a text message today to say they would be sending a letter out and also be giving me a call. That makes it around 10 days since I made the initial complaint. The lady said she agreed they shouldn’t have given me the overdraft and would refund interest only from when it first received an increase (twice in the same day) she said that the once the refund was received it would go towards clearing the balance and I would then have 35 days to clear the remaining balance other wise it will then be reported as an un arranged overdraft and start to affect my credit file. She also said I would be able to speak to the financial assistance team at Lloyd’s who may be able to set up a payment plan and stop that from happening.
All in all a pretty painless process with Lloyds and I’m £1200 better off. Thank you!
Sara (Debt Camel) says
will you be able to clear that balance? They should allow you to set up a repayment plan without this affecting your credit record.
denise says
I’m with Halifax but I m still paying for overdraft fee of 17 pound a month am I entitled to them fees back
Sara (Debt Camel) says
This depends how much of a problem your overdraft is for you. Roughly how many days of the month are you overdrawn?
Denise says
I was married when this overdraft was out but I’m single now so it’s becoming a problem I don’t use this account much now
Sara (Debt Camel) says
Is the account now in your name only? How many days of the month are you overdrawn?
Gill says
Hi thank you for this group, it’s giving me hope. I submitted an affordability complaint with Santander regarding overdraft. The over draft was increased from £500 to £3000 within a year. I sent complaint on Friday via email and then via the app. Got a very quick reply saying they are not upholding my complaint.
I have a gambling habit which I am now finally get support with to stop. I had a debt management plan in place when the overdraft was increased in 2018/19
Do you think it’s worth a send to the FOS?
This is part of the response
I regret you have been aggrieved enough to complain.
We discussed all of this further by confirming that each time a customer’s overdraft is increased, the customer’s credit file is checked to ensure that we are responsible lenders.
If the overdraft was not affordable at the time, then we would not have increased it.
I would also politely like to point out that just because a customer is given the overdraft facility, they are not duty bound to use it.
Within my discussion with the Financial Assist Team, we have considered that your position, in terms of the overdraft being unaffordable, would not have been discovered just recently.
Finally, there has to be some responsibility on the customer. Once again, the overdraft may be in place but there is no obligation to spend this.
Sara (Debt Camel) says
yes send that straight to the Ombudsman!
Gill says
Thank you, I think I have a very strong chance.
Santander chat said I had had an email response, I didn’t! Also said they called and left a voicemail, they didn’t! They basically said I didn’t have to use the overdraft, difficult to do that as I have been at the limit of £3000 since they approved that amount. My salary was £1440 so each time I got paid and paid bills (including dmp payment) I was back at limit.
I will keep you updated of any progress
Thank you again for your help
Gill says
Not sure what this means but will keep you updated
Update. Santander sent message in the app chat
After getting a not upholding message
From Santander
apologies, your complaint has been escalated, I am currently still investigating and will get back to you with my resolution shortly.
Then
Thank you for that, I have sent your details to the project team who review these decisions retrospectively, I will get back to you with their findings in a few days.
NW says
I’ve had an overdraft with Santander since around 2016 initially 1k. I also had a 10k loan with them taken out at the end of 2015 which I paid off over 3 years but did miss a few payments. In 2018 once the loan was paid they upped my overdraft from 1k to 2k. I’ve pretty much been in my overdraft since the initial 1k borrowing. They would have seen I also had payday loans and gambling transactions on my account (not many in the 3 months leading up to the loan, but a lot in 2015 and 2016 before the overdraft and loan were given) Also lots of money In and Out from friends and family lending me money. Do you think I should complain? I’ve stopped gambling a little while ago now but picking up the pieces from all the interest i ran up over the years has left me in a vicious cycle. The only evidence I have of unaffordability will be all my bank statements, Santander has provided me with statements from 2013 till now so it’s all there but I don’t have any credit reports or anything, it’s also outside the 6 year window.
Sara (Debt Camel) says
what was your overdraft usage like in 2018, 2020?
NW says
Pretty much always in my overdraft till present. I was always using payday loans too or loans from family. It’s littered all over my bank statements. There may be a quiet month here and there but on the whole a complete mess year on year.
Sara (Debt Camel) says
Then I think you should complain.
MH says
Hi Sara,
I complained to Halifax when they increased my OD from £1000 to £1900. I have been in and out of it for years (probably back to 2016 (mainly in it more than out of it!) They replied very quickly saying they would call me. To be fair to the lady, she was very sympathetic and apologied that they should never increased it looking at my history on my account. She agreed to go back and refunded me 6 years worth of charges totalling £1140. She did however say that the OD would have to be removed which suits me. Thank you SO much for this page!
Steven W says
8 weeks is up and no news from Santander. Apparently my case is still under review. The case handler called me this morning and she doesn’t think I will get 6 years fee’s back so I said no worries it is with FOS now so will leave it with them. Constant £1000 overdraft for 12 years, increased twice in 2020 and 2021 and now £2000 o/d. Gambling, DMP, payday loans and other debts all being paid in that overdraft.
Chloe says
Good luck. I have a similar case but only at the start of my journey with Santander. I won’t hold out much hope to them settling in the 8 weeks then!
Steven W says
At the beginning 8 weeks ago it sounded quite hopeful.. Santander were basically agreeing to look into refunding all fee’s for 6 years….then we suddenly hit a brick wall and all cases were put under further review… I expect they had too many cases and most were being upheld by the FOS so they have retreated and gone away to think up an explanation to help them wriggle out of any responsibility… That was what I gauged from the lady on the phone this morning and the last couple of calls from Santander… Rather than offer refunds they are probably going to offer us some action plan / pay plan to get out of it… but that is just my hunch and NOT fact. Something they know they should have done a few years ago rather than allow these overdrafts to drift and drift…
To be honest I am happier this is now with the FOS after weeks of deliberating from Santander. They are definitely working on a way to wriggle out of these cases.
Ask for fee’s to be put on hold while the account / overdraft is under review, they agreed to this for me.
Neil says
Hi Sara,
I just want to extend my gratitude and thanks for creating such a great resource. You really are doing such a good job.
Thanks to you, today I have received a refund of all the charges on two overdrafts that I have had with TSB since 2018. I sent my initial complaint at the end of January, and today have received the refund of all charges. One account had a £3000 overdraft and the other was £1000, and now with the charges refunded, both accounts are in credit (something I have not seen in a very long time). Just some feedback for anyone else who is pursuing a refund too – they have removed the overdraft facility on both accounts, and I agree this is for the best as they never should have let the limit be increased so many times anyway.
Also, I did ask on the phone about the 8% interest when I was assigned an advisor for my case, however was told swiftly and bluntly ‘this is not something we do’. Not really sure where I stand with this, but I am so elated to finally not be in an overdraft anymore that I don’t know if it is still worth pursuing?
Thank you again Sara! You have given me, and many others in this forum, the confidence needed to regain control of our finances!
All the best.
Sara (Debt Camel) says
you would only be paid 8% interest for the time your accounts were in credit. So it may not be very much.
Tom says
Hi Neil
Can I ask when did you send the complaint? Did you get a reply by letter? I sent a complaint on January 26, no response yet.
Rhiannon says
Hi.
Made an affordability complaint to Drafty for a £500 credit line they approved in October 2021. I feel like they were irresponsible in lending to me but also they increased my credit line to £830 in December 2021, and again in Jan/Feb 2022 to £990. The interest on this is 89.7%! They responded advising they were upholding my complaint partially and agreed that the credit line was unaffordable from November 2022 based on the amount of £500! They didn’t acknowledge the complaint point I made regarding increasing my limit irresponsibly. I went back to them and they still stand by that they were not irresponsible in lending to me or increasing my credit line. I’ve had to borrow elsewhere and only ever been able to make the minimum payments so it was definitely irresponsible. I’ve sent this across to the ombudsman now. Do you think I have a case?
Sara (Debt Camel) says
yes – two years using this expensive line of credit, you know that its unaffordable because of the additional borrowing.
what other debts do you have?
Rhiannon says
I have a loan with Halifax £5,577 remaining, around £8,000 across a few credit cards & a loan with Monzo for around £3,700 so around £16,000 debt elsewhere.
Sara (Debt Camel) says
what was the interest rate on the Halifax and monzo loans?
was Halifax your bank? did you also have a credit card from them?
the credit cards, did any increase your limit to too high a level even though you were only making the minimum payment?
the reason I am asking is few people get into problem debt with Drafty without already being in a mess elsewhere, so what other affordability complaints might you be able to win?
Rhiannon says
Yes, Halifax is my bank. I have put affordability complaints in with all of my other creditors, Monzo loan rejected & Halifax also rejected the loan complaint. I have sent the Halifax loan one to the FOS and I had an email advising they’ve not gotten around to it yet due to a back log. All of the other complaints I’ve won directly with the companies. Had around £4,000 refunded across the complaints so far which is great!
Sara (Debt Camel) says
Good! Send the Monzo one to FOS too?
Jack says
Just wondering if anyone / sara.
Has ever put complaint / heard anyone put complaint in to Lloyds bank, I did there on site on 7th Feb not heard out I did email them to 27th Feb incase still nothing. There site says should get reply within 5days? Anyone else had issues ?
Chloe says
I put a complaint to Lloyds using the online system. I also emailed them just to be sure the following day. I sent one email for the overdraft and one email for the credit card. I had a text message within 10 days advising me they would each call me with an update. The text number contained a reference number too. Complaint sorted within 11 days. Overdraft upheld, credit card declined. Good luck
Jack says
Thank you chloe for this advice. I think I might ring them see. Or even email again.
That was quick for yours Chloe I hope you get what your looking for on yours good luck.
Jack says
So update Sara ‘ to anyone who wanting complain to Lloyds Bank.
I rang yesterday spoke to a lady not really helpful like, as wanted complaints ref number. Which is funny I said that’s why ringing as not heard from them with a one, explained I did there online one then 2weeks later email. She just said have to wait then for your letter. Only one good thing she said & confirmed the online system one DOES NOT work for complaints you have to email them.
Sandy says
Had a rejection from NatWest regarding an overdraft for 1000.
Basically said they had checked my report and there was nothing on there so show I couldn’t meet payments or would struggle…. I’ve had a look myself tonight and I was in 10k debt with all my cards being used and hitting over their limits.
The rejection seemed generic. At least I can get to the FOS sooner.
Adriana C says
For the past 3 years, I’ve been doing extra jobs and managing my finances to lower my £30K+ debt. I am in a much better position now although I still have a credit card balance.
I’ve been in a positive balance for the past two years but I checked my annual Barclays bank statements and my overdraft limit was £2000 since 2015 and possibly a few more years but the records are only back to that year, and my salary was less than that. A year ago I lowered the overdraft limit to only £100 as I am no longer allowing myself to go in red numbers.
Checking those statements I was charged over £700 in fees or interest for using the account overdraft. My question is, even when my credit score has now improved and I am no longer in red numbers for the past two years, could I still complain?
Sara (Debt Camel) says
Yes you can make a claim for a refund of the few years you were Being charged a lot and your income was less than your overdraft.
Adriana C says
Hi Sarah
Many thanks for your help and information very useful.
I sent the complaint to Barclays and I received a phone call from them today, they said they were unable to refund any of the fees because all the fees applied are within the terms and conditions of the overdraft. She understood the reasons for my complaint but said that there’s nothing they can do as they act accordingly to T&C. I said I didn’t agree and I am sending this to Ombudsman.
The £2000 overdraft limit was given to me in 2013 but they are only able to see records from 2016 until now.
They will be sending a letter giving their formal answer to this complaint in the next few days.
I was just checking the Ombudsman website but when I put Barclays as the service provider I want to raise a complaint, it says “Barclays: we can’t review your complaint as we don’t operate in the financial sector”.
Could you help me with some information about what would be the next step in my case?
Sara (Debt Camel) says
what Ombudsman website were you looking at?
You want the Financial Ombudsman – there is a link to FOS’s online form in the article above.
Daniel says
Hello, was wondering if you can help me with my question. I have had my nationwide current flex account now since 2011 & since I have had it out I have been given a £1500 overdraft which I almost used and went into every single month to the maximum amount, so this was from 2011-2022 end of October. I am no longer with Nationwide and now bank with someone else because of a problem I had with them around August 2022. Nationwide blocked my account because of a PayPal withdraw I made and it drew suspicion so they blocked the lot, outgoings, ingoings and direct debits which I missed a lot because the investigation took a month and a bit to solve so I was left with no access to funds. If I make a complaint with Nationwide bank would it be worth it? Baring in mind the overdraft was given to me on a unaffordable basis throughout 2011-2022, thanks D
Sara (Debt Camel) says
how many days of the month were you in the overdraft roughly?
Daniel says
Hello, I’d say 20 days of each month for around 2016-2022.. so a lot!
Helen says
I made a complaint to Natwest about constantly being in an overdraft for years they refunded me charges for overdraft charges for 5 months as a goodwil gesture but didn’t uphold my complaint I have since decided to take to the FOS do you think it’s worth it
Sara (Debt Camel) says
Have you been in the overdraft for most or all of the month for a long period?
Helen says
Practically all through the month and sometimes over with charges
Sara (Debt Camel) says
in that case this sounds like a good complaint. Quite right to let the Ombudsman make the decision on this.
Helen says
Ok thank you and it won’t matter they refunded the 158 pounds,
Sara (Debt Camel) says
No, not unless they asked you if yo7 would accept that In settlement of your complaint. If they just credited yiur accoun5 with that (which is what normally happens) you can Still take 5he complaint to the Ombudsman.
Helen says
Thank you should I tell natwest I have referred my complaint to the FSO?
Sara (Debt Camel) says
You don’t have to, but I would.
Helen says
Ok thank you. Will they take the money back they given me or will they wait until the FOS decision is finalised?
Sara (Debt Camel) says
I would say its 98% likely they will just wait.
Helen says
Thank you that’s helpful.
Do you think there’s a chance they may make another offer before the FOS look at it now they know I’ve sent to this to FOS?
Sara (Debt Camel) says
Only Santander seems to be playing that game.
Helen says
Ah ok oh well never mind
Ana says
Hi Sara/anyone else who can advise.
I have pretty standard case of constantly maxing out £1500 overdraft since I first got it about 10 years ago. Along the line I had pay day loans, cc debt etc. All paid and settled and no adverse records on file in last 3 or so years. As soon as I pay rent, bills etc it’s almost max out. Now, I’m finally finishing studies, salary is increasing and I’m looking to pay off £150-200 a month FROM May to get out of it. Question, is it worth filing complaint with Lloyd’s? As if they upheld the last 6 years of interest (not talking any u arranged overdraft fees etc), it would cover the £1500 outstanding and happy days. But if they don’t, or do only some of it, they would close the overdraft, right? There is no way I can pay £1500 in one go so I’m scared of this possibility. Even worse if anything bad is recorded in credit file.
Sara (Debt Camel) says
This sounds like a good complaint.
It shouldn’t hurt your credit record, see https://debtcamel.co.uk/affordability-complaint-credit-record-faqs/
If they do close your account, you should be allowed time to clear any remaining balance. People generally haven’t had a problem with a bank being unreasonable in this situation.
In particular if they don’t uphold your account it is because they think the overdraft is affordable, so they have no reason to close the account.
Miss C says
Hi Sara,
I put in a complaint a couple of weeks ago to HSBC about the affordability of my overdraft. It was 2014 and, in the space of a few days I (stupidly!!) increased it from £0 to £1500. I then increased it further to £2500 about 9 months later, which is where it’s been since, and still is today.
During this time I was consistently in my overdraft, and sometimes over. I had PDL’s (many!!) and possibly some reversed direct debits. My earnings were below £2000. Subsequently I’ve managed to control my overdraft and other borrowing, meaning my overdraft is no longer maxed out.
Given the time that’s passed since I applied for the overdraft, do you think HSBC and/or the ombudsman will consider upholding my complaint? The account is still open and in use.
Sara (Debt Camel) says
HSBC will almost certainly reject this so it will have to go to the Ombudsman.
How long has it been since you turned things round? Have your earnings gone up a lot?
Miss C says
Hi Sara, it’s been about 5 years since things turned around and I sorted out the PDL aspect.
My earnings have increased during that time to around £3,200 pcm, although that’s only been in the last 4 years.
Thanks
Helen says
Hello, I wrote to Lloyds Bank at the weekend (11/03/23) and I got an automatic email response that they are very busy at the moment so may take some time to look at my complaint. My overdraft is £2.5k and have maxed it out for many years. I now have an option to apply for the first £500 of my overdraft as interest free until October 2023 – it’s a good thing to do if Lloyds reject my claim, but don’t want to scupper my chances of getting any other help because they can say that they have tried to help. Should I apply for the £500 interest free or wait for my complaint response? Thanks for reading.
Sara (Debt Camel) says
You should be refunded for years when the overdraft was unaffordable. Doing something sensible now by taking up the offer for the first £500 to be free will not affect your claim UNLESS Lloyds have said sorry you have complained this is what we are proposing to settle the complaint… but if this offer has nothing to do with your complaint, it won’t affect it.
Helen says
Hi Sara
Thanks for responding to me. Quick update – Lloyds tried to call me twice but unfortunately was busy and was unable to call them back. They have sent me a letter saying they will refund me £2360.80, which I am happy with. However they said that they will put a default on my file for 6 years but back date it to February 2018. I am renewing my mortgage next year and although I should be out of it by then (mortgage renews March 24 and this comes off Feb 24) am quite worried as was aiming to look for mortgages before then. Any advice? Thanks again.
Sara (Debt Camel) says
Your choice is to agree to this and leave off looking for a new mortgage until it has dropped off (NB you will usually still be able to get a new fix with your current mortgage lender without any affordability checks, see https://www.gov.uk/government/news/mortgage-lenders-commitments-to-borrowers).
Or to tell Lloyds this is unreasonable and you will be sending the case to the Ombudsman if they add a default.
Helen says
Yes, I think I will try and complain – I have a help to buy so need to ask for more money when remortgaging hence the panic. I don’t understand the default – I haven’t defaulted on any payments? They have said that they are defaulting from the time that they issued the overdraft to me – that’s not when I defaulted though? Seems very strange and unsure why because other people don’t seem to have been given this? Thanks for your help.
Sara (Debt Camel) says
I don’t think that sounds at all reasonable. If there was already a default there and you win an affordability complaint at the Ombudsman, then the lender is normally told to remove the default!
Hinesh says
Hello,
I have banked with Natwest PLC for approximately 15 yrs – I would say around 80-90% of my relationship with Natwest, I have been in my overdraft, taken out loans regularly and maxed out my credit card limits. Surprisingly I have never defaulted or missed any payments.
For the last 10 yrs, I have had several loans and the interest rate on each has been from 10% – 28% and I have also been gambling – Incoming payments were around under 2k and my money was being blown mainly on gambling and when l maxed out my OD completely – I would take out a loan and basically it was a circle of borrowing.
If I make a complaint regarding irresponsible lending – Do you think l have a strong chance of winning and getting my interest back?
Thanks :)
Sara (Debt Camel) says
I think if there was significant gambling showing on your bank statements NatWest should not have given you loans and it should not have carried on charging for your overdraft. If NatWest reject this or make a poor offer, send it to the Ombudsman.
In theory it’s easier to make a single complaint in this situation. I suggest you use the overdraft template above and change it so the first sentence says “this is a complaint about BOTH the loans you have given me since 2013 (or whenever) AND my overdraft over this period.”
Then complain about the overdraft, saying the bank should have seen the significant gambling, pointing out it was only reduced by loans and then run up again. Say this was irresponsible lending and ask for a refund of all charges.
Then complain about the loans. If the amounts and / or interest rates got larger point this out As this shows you were getting deeper into debt and NatWest knew this – they should not have carried on lending because of the gambling showing on your bank statements. Say this was irresponsible and ask for a refund of all charges.
Brenda says
Hi Sara, does making these overdraft charges complaints affect you in any way. I would like to really start saving and buying a house in the future. I’m done with this overdraft I took as a student in 2011 which became a graduate account at some point. Now it’s just a normal current account with charges every month as I keep using it. I have only ever managed to stay afloat for maybe 3 months at most. Do I have a good chance of it being upheld? And if I make a complaint and it’s upheld will lenders see that?
Sara (Debt Camel) says
See https://debtcamel.co.uk/affordability-complaint-credit-record-faqs/
How many days a month are you usuall in the overdraft?
Brenda says
My pay doesn’t cover my overdraft if it does it’s maybe by £100. So I’m in overdraft atleast 21 days of the month.
Sara (Debt Camel) says
then that sounds like a good complaint.
Mike James says
Just had a call from Ombudsman, after originally having my affordability claim for being constantly in overdraft for over 10 years ( £4k+), denied now found in my favour and should be getting any fees/charges/interset back from between 2016 > 2020, no small sum so worth persevering with after an initial rejection as was the case here
Sara (Debt Camel) says
Thanks for sharing this. Was there a particular point that made the ombudsman reach a better decision than the adjudicator?
Mike James says
Just got a call this afternoon Sara, was told the turnaround would be within a week to 10 days, if i get a fuller explanation i will share here in case its of help to anyone else, given the details from my original application i was surprised it was turned down ( overdraft for 10 + years, gambling transactions and no contact from the bank at any time to question any of this)
Sasha Paton says
Has anybody heard anything from Santander recently I’m 10
Weeks into complaint, now with ombudsman!
Was being reviewed by the executive complaints team
As I sent complaint email to ceo and he was
About to give me his proposal then everything got
Put on hold to review there policies. Not heard anything since!
No final response or anything
Steven W says
Same here with Santander. All cases on hold to review policies which in layman terms means “we are looking at how to wriggle out of this one”
My case went to the ombudsman 2 weeks ago and apparently FOS have contacted Santander and advised them to put things right with my account…. Still nothing.
Kim says
I havnt heard from ombudsman since 6th feb saying there behind so I’m still waiting to get a case handler
Helen says
Do you have a complaint email for Barclaycard or is it Barclays email?
Sara (Debt Camel) says
Tha Barclays one
Richard says
Hi Sara, I’m hoping you can advise. Adjudicator has rejected my claim for my overdraft.
I had a £2700 OD which I remained in and increased my borrowing with 2 credit cards) and several loans (My overdraft was never reviewed despite me spending prolonged periods of time in my overdraft and not coming out. My monthly wage was £2000 per month. I have had my account since 1996. Should I review?
Adjudicator said My findings
Our website sets out what we typically think about when deciding whether a lender’s checks were proportionate. Generally, we think it’s reasonable for a lender’s checks to be less thorough – in terms of how much information it gathers and what it does to verify that information – in the early stages of a lending relationship
What I think this means for your case
Your overdraft was an open ended credit facility. So Lloyds Bank PLC needed to get an understanding of whether you could repay the balance within a reasonable period of time, rather than if you could pay it all off in one go.
Sara (Debt Camel) says
despite me spending prolonged periods of time in my overdraft and not coming out
when was this and how long did it go on for?
When were the loans and credit cards given? Do you still have the credit cards?
Richard says
Lloyds would only send a statement to 2016 despite me asking for info back to 2011. I was in my overdraft for 10 months sometimes coming out when I got paid but most of the time I never got out. They increased my limit from £2000-£2700 in June 2016 after I had taken out a loan of £15,000 with nationwide and taken a credit card out with Lloyds (£7100 limit) both within 2 months from May 2016. i took out a further loan for £10,000 virgin money in 2017. Lloyds moved my renewal date an extra year as I had money in my account from my loan I was soon back upto the limit of £2700 until I took a further loan of £21,500 with Lloyds and cancelled my overdraft.
The adjudicator told me because it was all done online the checks they do are not as thorough so Lloyds did everything they could do and the fact my credit check did not show anything to suggest I would have trouble paying back my overdraft
Sara (Debt Camel) says
this is a complaint just about the overdraft to Lloyds? Have you made a separate complaint about the Lloyds loan?
Richard says
I have 3 separate claims in with Lloyds for credit cards, overdraft and loans. The ombudsman wouldn’t look at them as a whole.
Sara (Debt Camel) says
so this was for the overdraft?
Richard says
Yes it was just for the overdraft. The loans is looking more promising and credit cards have only just got in contact with me
Richard says
Yes this is purely for my overdraft complaint
Sara (Debt Camel) says
Go back and say your increasing other debts were large and should have shown you were in trouble if Lloyds had made any checks. And your high overdraft usage should have prompted them to make chacks at the annual review. Ask for this to go to an Ombudsman if the adjudicator does not reconsider
Richard says
Thank you Sara. I will update you when I get a reply.
I have now obtained a full credit report from trans union. The credit card complaint have asked for it. Should submit as part of my overdraft complaint to show the ever increasing credit balances and cash withdrawals made on my credit cards?
Sara (Debt Camel) says
yes
Kristina says
Hello Sara
thank you so much for all your work helping people.
My bank HSBC contacted me to say they are reviewing my overdraft (£1000) and may have to reduce/remove it. This prompted me to seek advice online and I found your site to be the most helpful. I have sent Irresponsible Lending Complaint via email this morning and already received acknowledgement with complaint number. They were happy to let me hang in unarranged overdraft (let alone arranged) for 7 years before they first approached me to review in 2020. There were a lot of gambling transactions, every month, all those years. I have paid thousands in unarranged overdraft fees. So I am now awaiting outcome of their investigation.
In regards to my current arranged overdraft, I spoke to Financial department (before I made the complaint) and they asked me to fill in income/expenditure form online and get back to them. I have filled the form but haven’t gotten back to them yet. My question is – do I talk to them now or do I wait for the outcome of my complaint first? And if I’m to talk to them do I make them aware that I also lodged a complaint or will they see it on my account themselves?
Thank you
Sara (Debt Camel) says
What other debts do you have?
Do you still have a gambling problem, if so are you getting help with this?
I don’t see any reason not to fill in the online form about your finances. Bu as your bank they can probably see most things about your finances from looking at your bank statements.
Kristina says
Registered with Gamstop and blocked my card for use on betting sites. I haven’t gambled for a month and honestly – don’t miss it one bit. The longer it goes on the less I’m tempted to go back. Not easy to go back gambling once with Gamstop anyway. I just want to live a normal life for once.
I have couple of Payday loans (urgh) and a 118118 loan and credit card all amounting to approx. £3000. Also defaulted Fluid card that is now with Wescot and I’m paying them £30 a month. I am able keep up with repayments if not gambling anymore.
I have filled in the form but they asked me to call them back once it’s done. Do I call them and ask for repayment plan on my overdraft or do I wait for their investigation re my complaint to conclude first?
Sara (Debt Camel) says
I suggest you also look at an affordability complaint against 118. And the payday lenders if you have used them several times.
I suggest you ask for an affordable repayment plan for the overdraft. this wont hurt your complaint – that will depend on the previous decisions that the bank made. helping you now isn’t relevant.
Kristina says
So I put in my Affordibility Complaint with HSBC on Tuesday, had an acknowledgment on Wednesday and reply on Friday (today). They see no error on their site but offered £500 as a gesture of goodwill. They already paid it to my bank account, they did not wait for my response.
I feel I have a strong case. I put together all statements since 2016 and calculated I paid £4200 in unauthorised overdraft charges while being constant hardcore borrower for 6 years straight. Is it a good idea to take my case to Ombudsman and do I need to tell them to take the gesture of goodwill back because I’m not accepting it?
Sara (Debt Camel) says
I suggest you send this straight to the Ombudsman. You can tell HSBC you have done this. I see no need to mention taking the 500 back but thats up to you!
Liz says
Thank you so much Sara.
One message on the chat function to TSB yesterday about two Overdrafts I had in 2020 and I have just received over £3000 back in my accounts this afternoon. Delighted! 😊