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
amber says
Wondering if anybody can answer. Are RBS and Natwest one company? i wrote a complaint and included both my overdrafts but they responded only focusing on the natwest one. Do i now need to submit a complaint again to RBS?
Sara (Debt Camel) says
Don’t start a new complaint, reply asking them why they have not replied about the RBS debt.
Amber says
They said that they could not find my accounts. I included my RBS for the loan and overdraft but they just responded about NatWest only. So I’ve assumed I need to do a new separate one for RBS
Sara (Debt Camel) says
have they upheld the NatWest complaint?
Amber says
No it was rejected.
SB says
Hi Sara,
I had a call from Lloyds today following my affordability complaint about my OD. I had my OD increased to 4.2k in 2021.
Lloyds called today and said they are partially upholding my complaint and agree they shouldn’t have increased my OD. However, they will only refund me up until a certain point as letters (via my banking app) were sent to me about me constantly being in my OD, they will refund me up until the date that the 2nd letter was sent. I missed these letters being given then we’re on the app not physical letters being sent.
Do you think I should push back on this? I’ve asked for it all in writing before I make a decision.
Sara (Debt Camel) says
what was the OD before that increase? Was that also too high for you?
have you read these letters – were they just general information saying your charges would be lower if your overdraft usage decreased?
SB says
It started at £1k but then I had a few increases to £4.2k I was in the OD most weeks, so yes, too high.
I’ve read them now – it is just generic on OD usage
Sara (Debt Camel) says
Then reply saying that – it was not talking to you or making any practical suggestions about how they could help – it went to EVERYONE who was using their overdraft. Say you want a refund up until now or the case goes to the ombudsman.
James says
Hi, I am in a DAS (Scotland) that is administered by the AiB.
I had an overdraft with Bank of Scotland that was at a level of £700 for several years.
I would say it was fair to comment that I was rarely fully out of the overdraft, other than immediately at pay day.
Appreciate Scotland may not be your forte but is there anything to prevent me from making an affordability complaint for this account (the debt is part of the DAS/DPP and is accordingly slowly being repaid)?
It wouldn’t shine a negative light on the DAS?
I have had partial refunds of overdraft fees in the past from the bank but I imagine *if* a complaint were made and upheld it would involve a substantial amount of money…the cost for me to service the overdraft was ~£1/day over several years…not including any interest that may be added over that sum.
Thanks.
Sara (Debt Camel) says
I don’t see why you shouldn’t, but talk to a Scottish expert by asking here https://www.advicescotland.com/home/debt-arrangement-scheme/
Tom says
Hi Sara
I would like to ask if you know how long the bank has to settle my account? After two months, I got a reply from TSB that on April 17th they would refund me part of my fees. Is it normal that I have to wait this long? I read the comments and most people got their money within 8 weeks of filing a complaint
Sara (Debt Camel) says
It’s up to the bank.
Are you happy with the refund offered?
Tom says
£3,000 overdraft for 7 years. My salary does not cover the overdraft. Many payday loan, direct debits for debt collection companies. They said my credit history was good when they increased my credit limit. But to help me, they will refund me all interest from January 2020. Maybe it’s not fair, but I’m glad they closed my overdraft. I feel relieved. Thank you Sara for helping people!
Sara (Debt Camel) says
That sounds like a pretty poor offer to me. It doesnt matter what your credit record was like if your salary was less than your overdraft! Especially if your bank could see payday loans being paid.
If you send it to the Ombudsman you may well get a refund going back a few more years. But it’s up to you if you are happy with the offer.
Tom says
Can I send my complaint to the FOS after the bank refunds me part of the fees? Will the fact that I accept the money mean that I accept the bank’s offert?
Sara (Debt Camel) says
were you asked if you accept the offer or did they just credit your bank account with it?
Tom says
Here’s what they wrote.
„I am confident we would have been able to discuss ways of reducing the overdraft if you had contacted us, so to assist you now, I am refunding the charges applied to your account since January 2020, a total of £3403.57. The refunds will be paid to your account on 17 April 2023. On the same day we will remove your overdraft facility. As the amount of the refund is more than your overdraft limit this will not reduce your available balance, but you will no longer have an overdraft facility to use”
Sara (Debt Camel) says
That doesn’t sound like you were asked to accept it? Just that they are refunding you *this amount*
If that is correct, you can send the complaint to the Ombudsman (It should have said this at the bottom of the letter.)
Marc says
Hello would like some advice please. Been in my overdraft of £1960 for over 3 years never been in credit always been minus 1780 or lower. I have not worked since 2015 I rely on ESA AND PIP. I took the overdraft out in Jan 2020 paid on average 1.70 per day for over 3 years. I bank with Lloyds lots and lots of gambling transactions since 2017 up until this present day. Lloyds have never once contacted me or anything to ask how i am coping or doing they have just been taking on average 1.70 per day off my benefit payments. Any advice please?
Sara (Debt Camel) says
Send them a complaint!
Also I think you need to get help to stop gambling. See https://debtcamel.co.uk/gambling/
Marc says
Thanks for getting back to me. What are the chances of Lloyds refunding me the charges? Also what will happen to the overdraft? I have been overdrawn for over 3 years no by at least £1700 There is no chance i will ever be able to clear it Also been in the overdraft the day they gave it to me back in JAN 2020 by £1700 POUND.
Sara (Debt Camel) says
I would hope you will get a refund. Lloyds seem to be making some poor offers at the moment, cutting off a refund if they sent you a vague letter saying you could cut down your charge by using the overdraft less… if this happens to you, send the complaint to the ombudsman.
It’s common for a bank to remove the overdraft if they refund you, or chop it down to £500.
Steven W says
Hi Chloe (I can’t find your latest comment to reply to). No I haven’t heard anything from Santander, it’s been assigned to an adjudicator at the FOS and could take a few months. Left the account overdrawn and got charges frozen for now. They are working on something to try and wriggle out of these complaints… in for the long game…
Chloe says
Thanks Steve.
I submitted two at the same time, rejection received for the Loan but the O/D still nothing. I’m guessing you were right when you said they’re probably looking at a way to wriggle out of it! Good luck with yours! I hope we all get the result we rightly deserve!
Ree says
Hi
I have a joint account and I have an IVA my husband doesn’t can he apply for refunds on overdraft in his name?
Sara (Debt Camel) says
You will both need to make the affordability complaint as it’s a joint account.
You can make a complaint in an IVA – but usually it’s pointless as the debt in the IVA gets reduced or any cash refund is paid into the IVA. And this doesn’t speed your IVA up or reduce what you have to pay into it in 99% of cases. So why bother…
But for you two this is worth it as this debt is not being cleared in your IVA, it becomes the responsibility of your husband. So winning the case will reduce the debt he has to clear. (And if there is any cash refund he should be paid half and the other half goes into your IVA.)
Bella says
Hi Sara, I can’t find my original post to you about this but I’ll explain again quickly.
I owed Natwest c.£3.3 in total on a £2.8kOD. For 3/4 yrs no one chased me for this money whatsoever. I poked the bank into life again by requesting old bank statements in order to make various affordability complaints. Still at this point no one chased me for the money owed. I then made an affordability complaint against the OD. The FOS found in my favour and Natwest agreed. In their repsonse however they said…“I confirm that I agree with your view. However, having reviewed the complaint again I note that Ms xxx’s account was written off and closed in September 2019, and the outstanding balance at that time was £3386.31″…(They go on to say how they are going to reduce my balance owed to c.£1.5k after deducting interest/charges).
You advised me to go back to them with; “I had never been told that the account had been written off – if I had been I would not have made a complaint about it. I would like Natwest to confirm in writing that this debt has been written off by them and show as being partially settled on my credit report please.”
(1/2)
Bella says
Yesterday NW said; “”Whilst we wrote off the debt on our system and made the decision to stop pursuing Ms xxx, it is still a valid and owed debt. As such we will not advise her it has been written off as whilst unlikely it could be pursued at a later date. As previously explained in resolution we would deduct the refund from the outstanding debt owed and update the CRA’s of the refund accordingly, therefore reducing the amount owed. This would not result in us marking the debt as partially satisfied as that is not what has happened. I have attached a copy of what we are reporting to the CRA’s.” (I haven’t got any attachment either – the adjudicator hasn’t passed it on).
Any thoughts? Should I ask for it to go to an ombudsman? Or is this a dead end and I should just add this to my DMP?
(2/2)
Sara (Debt Camel) says
So it drops off in Oct this year, that’s ok?
There isn’t any need to start paying the debt – why would you?
I suggest you go back and say nothing was attached to the email and can the adjudicator confirm the debt is marked as defaulted in oct 2017?
Bella says
Okay I’ll sure do this, thank you.
What happens after the default has dropped off? The debt won’t show on my file anymore I understand, but can they still persue me for it? Could it end up biting me on the bum if I just continue to not pay anything from here on in?
Sara (Debt Camel) says
they have said they won’t, haven’t they?
Sara (Debt Camel) says
Is this debt showing as defaulted on your credit record?
Bella says
Yes, a default was applied oct 2017 and it’s showing a ‘D’ against every month ever since.
Vanda says
Sara thanks for providing this information regarding (overdrafts) you saved me and I believe others from this unfair and unfortunate course of events with our finances.
In my case my they are upholding my complaint but are refunding only partially the fees I have paid( 4 years )and the are nearly 2 years worth of charges that they are not considering saying my level of contact with them was not enough?
I have paid ~1800£ a year in overdraft fees on 4000£
Any suggestions please ?
Sara (Debt Camel) says
is the bank (who?) refunding the last 4 years?
Vanda says
Yes Bank of Scotland they are refunding 4 years 2017 to 2021 but not considering 2021-2023
Sara (Debt Camel) says
Why not 21-23?
Vanda says
Not engaging with them they said they have sent letters and I have not replied?
Sara (Debt Camel) says
ask for a copy of this letter – it may just have been one that “if you use your overdraft less, your charges will be lower”. Unless it was specifically written about your situation, not a general sent to thousands, say you want a refund up to the current date of the case goes to the Ombudsman.
Vanda says
Dear Mr Vanda
We’ve previously been in touch about how using your arranged overdraft often over the last 12 months might be costing you more than you think. It’s there to help when you need it for short term borrowing, but the interest can add up if you use it regularly or don’t pay it off.
Compare overdraft costs with our calculator
You can use our online calculator at bankofscotland.co.uk/overdrafts to see how much it could be costing to use your arranged overdraft. You can also see how much less interest you could pay if you reduced the amount you borrow, or how long you borrow for.
You can reduce your arranged overdraft limit
If you think your arranged overdraft limit is more than you need, you can reduce it in just a few simple steps. Just log on to Internet Banking or the Mobile Banking app and tap ‘Overdraft’ on the account menu. From here you can choose a lower limit that’s right for you – this can’t be below your current arranged overdraft balance.
If you would prefer to talk to someone about amending your arranged overdraft limit, you can do this in branch or over the phone.
———
It’s this letter something of a concern? Or this is a generic one?
Sara (Debt Camel) says
That looks like a generic letter to me. There is nothing in there that is specific to your account.
I think they should continue to refund you after that letter and I suggest you send the case to the Ombudsman
NV says
Has anyone had any case with Vanquis recently? My claim is coming to week 8 and I’ve not heard anything other than the initial acknowledgement?
Sara (Debt Camel) says
was that a claim about a credit card>? This page is for overdrafts, best ask over on https://debtcamel.co.uk/refunds-catalogue-credit-card/
Adriana says
Hi Sarah
Could you give me your opinion on this, please?
After reading your article I decided to send an unaffordability complaint to Barclays because they gave me a £2000 overdraft and my salary was only £1800 approximately and I started to rely on it gradually. I can only go back to the statements available from January 2016 and I can see a pattern that built as the months/years passed.
However, Barclays respond to my complaint saying:
“Our records show that the £2000.00 overdraft was applied to the account in 2013. As per guidance from our regulators, we’re only legally required to investigate events that have taken place within the past 6 years. As such, the unaffordable lending aspect of your complaint is out of scope for investigation.
Having reviewed the overdraft charges applied to your account over the past 6 years, I found these were applied in line with the account terms and conditions. I also found the overdraft was not used to excess and that the account activity doesn’t give us any indication that you may have been at the time”.
Adriana says
I was just trying to keep the financial commitments and I used a lot my Barclays Credit Card for grocery shopping and other things, then trying to pay my credit card in full but I was going into overdraft until I had my salary again but again not enough to cover everything so going back to the credit card. Then I started to do free money transfers from another credit card to my current account to get back to positive because Barclays apply a fee for overdraft usage below £1000 and a list of things to pay, of course, that free balance transfer eventually expired so I applied to a new credit card to request a free balance transfer for another number of months which added a fee to the balance and this cycle was repetitive and I end up with a total debt balance of £30K+.
Adriana says
I never used betting sites or requested day loans and I pay always the minimums on every card because I was trying to keep an “okay” credit record so this could have given the impression that I wasn’t struggling because I was paying. Only when banks gave mortgage payment holidays during the lockdown, without going out and kids’ activities stopped completely then I was able to put my balance positive. I started to sell Avon, unused clothes or items around the house, took on cleaning jobs, and paper rounds on top of my full-time job to produce extra income to pay.
After checking my Barclays annual statements, I noticed that throughout the years I added £700+ in fees for using the overdraft to the total balance in debt. I still have £8000 to pay on these credit cards so my position is very different now. I reduced the overdraft limit from £2000 to £100 this year when I realised it was possible to do it myself and it hasn’t been used at all in the past two years.
Do you think is still worth sending this to Ombudsman?
Many thanks for your time!
Sara (Debt Camel) says
£700 in overdraft fees – over how many years was that?
Think of the period when you were using your overdraft the most – prepandemic it sounds like. At that time how many days a month were you in the overdraft on average?
Adriana says
By 2020 I managed to get out of the overdraft because I applied for the mortgage payment holiday offered by banks around June.
I tried to go through the statements thoroughly and the actual fees accumulated are £963.64 between Oct 2015 – Oct 2020, 5 years.
The total days using the overdraft on those 5 years was 946 so an average of 189.2 per year, but looking at the statements I was starting the month in negative and closing the month in negative, just a few days in positive after getting paid my salary.
I can see Money Balance transfers made from other credit cards to recover from the overdraft usage in Aug 2016, Jan 2017, May 2018, Feb 2019, August 2019, and Oct 2019.
Sara (Debt Camel) says
That seems quite a low level of overdraft fees. I suspect you may find this a hard case to win. BUT have a look at whether you may be able to win a complaint about those credit cards. See https://debtcamel.co.uk/refunds-catalogue-credit-card/
A says
Many thanks Sarah!
Claire says
I applied for an overdraft in 2017, and initially was for £100.00 but then bumped up to £1000.00 within the next few months. At some point, I realised I was in trouble then voluntarily reduced it to £900.00 with the intention of doing so on a monthly basis – however, my credit score took a massive nosedive and this gave me cold feet.
I have been living in my overdraft since then – the only times my fees have not been high, have been the months where I have taken out loans to try and consolidate debt and left the money sitting in my account for a bit.
Today I got a response from Lloyds stating that they agree with my complaint, but specifically will only cover charges up to July 2021 because they had sent me letters about my overdraft. This doesn’t make sense, because they have actually sent one since, March 2022. They also advised that they should have removed my overdraft at a review in 2018, but they didn’t – I wasn’t aware of this review; and there is no concrete evidence anywhere of how often this takes place. Surely they have done reviews since then, and reached a similar conclusion? And if so, sent me letters about this?
They offered me £635.96 to cover fees, and £25.00 for how this has affected me.
I have calculated my overdraft fees from July 2021 until present, and its an additional £298.35. The £635 will not get me into the black.
Is this worth pursuing with the Ombudsman?
Sara (Debt Camel) says
Yes this is worth sending to the Ombudsman. This 2021 letter was a vague one sent to everyone with an overdraft saying they could reduce the overdraft charges if they use the overdraft less – it was not suggesting that you needed help with your debt.
The bit about removing the overdraft in 2018 but not telling you makes no sense.
Claire says
Thanks Sara!
Andrea says
Hi Sara,
I submitted my affordability claim to the Halifax as I have had a £1k overdraft that has been fully used constantly since 2012. I have used payday loans and been in default with credit cards throughout that time.
I have had a reply from Halifax within the 8 weeks agreeing they should have done much more to assist me as it was clear I was in financial difficulties. It didn’t take any arguing or additional information at all. However they are saying ‘based on what we know, this happened too long ago which means we’re not taking part of this complaint further. I do feel however we should have stepped in to help you when your overdraft was due to be reviewed in December 2017. I’m refunding the charges (1482) and removing your overdraft’.
I’m happy my overdraft is now paid off, but do you think it is reasonable for them to go back just to December 2017? Basically she is saying that the FCA set the 6 year time limit and I didn’t request any increases so she can’t look back further.
Sara (Debt Camel) says
They could go back further if they wanted to.
This is quite a common situation, to offer a refund going back 5-6 years.
If you send the case to the Ombudsman, explain you have only just found out about these complaints, before that you had no idea Halifax should have checked that that the overdraft was affordable you did not realise they were partly to blame for your situation. So you think your case comes within the “3 year rule”.
I can’t guarantee you will win this complaint at FIS but you are not risking the Halifax offer by doing this.
The question for you is whether it’s worth trying. How large a refund is being offered? Do you know how large the overdraft charges were from 2012 until December 2017?
Andrea says
Hi Sara, thank you for the speedy reply. They have credited my account with £1482.29. Once the overdraft of £1000 has gone I am now in credit. I don’t know what the charges are 2012 to 2017 but would assume they are around the same amount as it’s about the same time period.
To be honest I’m happy they have just agreed with what they have, as it appears other people are really having to fight for theirs. And affordability complaints with payday loan companies were only paying out 5% of what they owed (£15k less than agreed they owed me). To be honest I’m just relieved.
I want to thank you so much for this site. Your information and advice across the board has really helped me get sorted out financially. Things are now looking good when 2 years ago they were almost hopeless.
I know you have helped so many people. Bless you, you are a star.
Sasha Paton says
Morning
Just had an email from ombudsman to say Santander have made an offer as a goodwill to refund me all charges plus interest from January 2016. I have accepted does
Anybody know how long the settlement normally takes?
Sara (Debt Camel) says
Another one! Santander has a bad habit of doing this – nice for you, but not for all their victims who were put off by the rejection and didn’t go to the Ombudsman.
Sasha Paton says
I know! I sent my original complaint to a ceo email address and had a reply from the executive communications team the next day to say they were investigating were about to make me an offer 3 weeks ago and then said couldn’t anymore as there policies were being looked at and everything was on hold, been with ombudsman about 2 weeks now . Any idea how long they generally take to settle it all up after acceptance? I’ve had my overdraft 20 years and practically been at maximum the whole time they’ve never reviewed
BECKS MASH says
Hi how do I go about claiming back the interest that was taken off my overdraft charges redund now we are in the new tax year please?
Sara (Debt Camel) says
See https://debtcamel.co.uk/ppi-payday-refund-get-back-tax/
Paul says
Santander have had my claim for 8 weeks. They’ve just sent me an email to say they are still investigating but I can go to FOS if I want. Is it worth giving them more time? Or shall I go to FOS?
Sara (Debt Camel) says
Straight to FOS. Who knows how long Santander will take to reply and it may be a rejection or poor offer when they do.
Anna says
Hi we have a joint account £4500 oD which we are in every month and don’t put enough in to touch the surface. We only put in our bill money. We have no way of getting out of this as we both have other overdrafts with the same bank and they have just declined us a top up on our mortgage with them due to our credit scores. I had have gambling transactions on my own current account with them (Santander) if we apply for the unfair charges etc and it’s not enough they offer for the od, what happens? As there is no way we can start paying it back as we already struggle for monies. If the refund us will they reduce the od amount by this? Or will they withdraw the od and we will have to set up arrangement to pay? (Just making sure we don’t end up with a default) as we would still pay our bill money in but won’t be able to let them take money from us thanks
Sara (Debt Camel) says
How large are the gambling transactions on your account and how long have these been going on for?
When does your mortgage fix end?
Apart from these overdrafts and the mortgage, do you have any other debts – loans, credit cards – with Santander? Or from other lenders?
Anna says
Lots of small transactions going back a year ago. Mortgage fix ends in October. Nothing else with Santander but yes to debts and credit cards
Sara (Debt Camel) says
ok so first you should be able to get a new mortgage fix with Santander in October no matter how poor your credit score or affordability is, see https://debtcamel.co.uk/new-mortgage-fixed-rate-poor-credit/.
So you need to take action on your debts now, not try to postpone this to avoid credit score problems. I thinbk you should talk to StepChange about a debt management. To include all your other debts and the overdrafts.
Otherwise you will be looking at a crisis in October when your mortgage payments go up. get the other debts into a DMP now so the interest and fees stop and the debts start falling.
You can still make affordability complaints in a DMP – about these overdrafts and about any of the other loans or credit cards where you think the credit was aunaffordable. Winning any of these will really speed up the DMP.
And you need to open new bank accounts with someone you don’t owe any money to. Move all the income and bills payments over to the new accounts. All the payments to your current debts you can cancel as StepChange will pay these in the DMP. StepChange will explain all this to you in detail.
Anna says
Thank you. We already have Stepchange. I was just curious if they do refund sums in the overdraft but it’s not enough to cover it will they just reduce the overdraft by that amount and the overdraft still be there? Or will they withdraw the overdraft and then it becomes a debt (just checking so we get no more defaults
Sara (Debt Camel) says
Why are the overdrafts not included in the StepChange DMP? Ask StepChange if you can add them and change banks so you start again, no overdraft.
Then make the overdraft complaints.
Anna says
Hi they weren’t included originally and I am worried that the bank will default us again if we put this in the DMP, as our defaults are coming up to 3 years old now and don’t want to risk any fresh ones.
Sara (Debt Camel) says
Any defaults will be removed if you win an affordability complaint. A large overdraft you are permanently in is a costly nightmare. You cannot work your way out of that.
You can try overdraft complaints first – if you fail then the overdafts need to go into Stepchange’s DMP. Or if you win but there is a remaining balance then that needs to go into the DMP.
Otherwise you will finish your DMP and still be left with these problem debts which spoils the while point of it. Your credit record here is not the most important thing!
Adam says
Hi, new here but wanted to share my experience.
Thank you for the above advice which I followed precisely and after sending it through as a message in a live chat to both Santander & Lloyds, I’m pleased to write Lloyds contacted me today after 2 weeks of radio silence to be told I’ll get almost £780 back, (£30 as goodwill).
Santander on the other hand who were quickest to respond initially, are yet to give any formal answer as my message is “still with their complaints team”
Having read other experiences, I had thought Lloyds would’ve been the hardest to get anything back from & after sending my message through the live chat, I hadn’t heard anything at all back, not even an email confirmation & then suddenly today I was contacted with my small bit of good news.
Had it not been for this website and your template, this would not have been possible & I’m very grateful for this webpages existence.
Sara (Debt Camel) says
Can I ask what period Lloyds are refunding for?
I have seen quite a few people who have had poor offers from Lloyds as the refund stopped when lloyds send them a very generic letter saying they could cut their overdraft cost if they used it less… If this has happened to you, you may be able to get a larger refund by going to the ombudsman with this.
Santander are missing some deadlines at the moment and people are later getting rejections… send that one to the ombudsman at 8 weeks if they are still asking for more time.
Adam says
Lloyds have offered a refund going back 6 years but due to the law can not go back further. However they did advise if I wish I can still accept the offer and take it through to the Ombudsman, which I was considering as I don’t believe £30 as a goodwill gesture reflects the distress I was caused.
Is there scope for the Ombudsman to award more as a goodwill gesture in this scenario?
Thanks Sara, will keep an eye on Santanders timeline.
Sara (Debt Camel) says
£780 seems like a low refund of 6 years of overdraft fees?
Adam says
I assumed this was fair and didn’t question it as I thought if they are accepting my claim then they would have added all fees incurred together.
As I have now accepted the offer, is it too late to ask them to recalculate?
Generally, do Lloyds offer a better sum when asked to recalculate in such scenarios?
Sara (Debt Camel) says
I think you can go back and say you would like to see how they calculated the number as you think looking back that you must have paid more than that in interest and charges.
Claire says
Hi Sara,
I went to the Ombudsman with my response from Lloyds, and they came back a week or so later asking me to reattach the letter. I have done so, but I am getting a bit nervous as no further response. Lloyds is going to apply their offer to my account on the 30th of April (no request of acceptance) – what happens if the Ombudsman doesn’t get back to me before then? Am I forced to accept the initial offer, which is quite low?
Sara (Debt Camel) says
No – they cant make you accept an offer. and if they didn’t ask you to accept it, then you are free to go to the Ombudsman and take the offer.
Claire says
Thanks Sara, just to confirm – I’ll just ignore the letter from Lloyds and allow them to apply the refund; but I’ll still wait for a response from the Ombudsman? As per below, I’m going to open another bank account making use of a switching offer – and I’ll have to “top up” the amount that their offer will be short on to get me into the black. Will ignoring the letter from Lloyds and closing the account with the top up cause an issue for the Ombudsman, or lessen my chances of getting a more reasonable refund?
Sara (Debt Camel) says
“Will ignoring the letter from Lloyds and closing the account with the top up cause an issue for the Ombudsman”
the letter didnt ask you to reply accepting it, did it?
I don’t see what switching shoudl create a problem but you may feel this is all very complicated and you would prefer to leave that to a later date.
John says
Hi Sara
Last day of the eight weeks that Halifax had to reply to my complaint I had a missed call from them, only to check my account and they have cleared and removed the overdraft and deposited an extra £600.
Don’t get me wrong I am elated to be final debt free but was expecting to have to make a decision on whether to accept this offer before being refunded and the criteria in which they have issued the refund for, I was certainly expecting more in pound value, not that I am ungrateful
or greedy but I am left wondering whether they have looked at the last six years in total or issued a partial refund even though I was going to ask the ombudsman to look at my complaint further back than the six years mentioned.
My account has been littered with payday loans returned direct debits and only ever in the black for at the most 1 week of a whole month of being paid.
Have you any advice on what you think I should do next, many thanks as always John
Sara (Debt Camel) says
I think you should phone them up and ask for a response in writing to your complaint saying that the amount refunded looks low so you want to know the details before deciding whether to send this to the ombudsman.
Peter says
Knowing halifax is with Lloyd’s you should expect a letter soon, mine came like week later, but I had the same situation.
Hunny says
Hi Sara
I have only just found out about this
I’m a bit confused as to making an older complaint.
My account under pressure from Halifax was closed around 2 years ago. I had never been able to get out of my 2,500 overdraft so that has now been sent to an extra care team no interest.
All fees interest were stopped in 2015 as I informed halifax of a bereavement and they put this in place.
However up until this point I was never out of my overdraft from around 2002 maybe on very few occasions I was in credit for around a week.
Throughout this time I paid fees and charges monthly. I have got statements and now looking
back I can’t believe how much I paid in fees interest and for how long.
It must have been clear to the bank I was struggling as I was never out of my overdraft , there were periods direct debits were returned, I paid unarranged overdraft fees and payments often minimum were going out the account to many other creditors.
The last good standing I had with credit agencies is likely to be around 2010.
I will look at credit catalogues I was given also wrongly as well but in respect of this post I am wandering would I stand any chance of putting a claim in with Halifax? as I feel they kept increasing my overdraft to a point I could never get out of it.
Thanks in advance
Hunny
Sara (Debt Camel) says
what is the rest of your current financial situation like?
Hunny says
Hi
Thank You for replying
I would say my financial situation is severe the good news is I am working with Stepchange.
I do have Priority debts. I have worked with the energy company but still owe quite a lot and just moving on to water who have just applied for a charging order but Stepchange have advised.
My non priority debts just sit there as I simply cannot afford to pay them.
My life did a 360 just before Covid up until then I had worked all my life I really understand the saying that many people are one payday away from everything collapsing
Throughout the pandemic it got worse as agencies were under pressure and long delays as I need reassessing at DWP which is now 3 years overdue as well as inflation
I’m limited on options because of very poor credit rating , age, and homeowner.
So am starting to recover as it has been quite a difficult time and thought I would check of any potential reclaims at least some to get back on the road as this is a real obstacle to finding work.
Thank You
Sara (Debt Camel) says
I’m sorry to hear that and I am glad you are getting help from StepChange.
In this situation you may as well make as many affordability claims as you can!
But one other option you may want to consider if you don’t win affordability complaints is asking for a write off of your non priority debts. See . This is an unusual option but the combination of your priority debts, your age, your health and that as a home owner you cannot choose bankruptcy, means this could work. See https://debtcamel.co.uk/debt-options/less-common/write-off/
Hunny says
Hi Sara
Thank You I had not even heard that you could ask to write off non priority debts. I will give it consideration and I will do the affordability claims no harm in trying
Thanks again Hunny
John says
Hi Sara,
I had a gambling problem which I have now registered with gamstop and am on top of it. I have an overdraft with HSBC of £4,900, due to my gambling I was always at this limit. In 2019 HSBC told me they were stopping that interest for that month because I was always at my limit. Every month until now I have been expecting to pay interest but it never happened. This month I received a letter saying my account was no longer being looked after by the Financial Support team and interest would continue. 1) I was never told it was being looked after by them. 2) the only help/advice I received in this time was random letters telling me to keep the overdraft within £0 and they would review after 6 months.
When I went through gambling spells and hit my limit of 4,900, naturally direct debits etc got returned, my card couldn’t make transfers and left me in more debt. BUT HSBC would allow me to deposit approx £750 more into gambling websites?! So bring my total overdraft to £5,650 (750 unarranged overdraft). Because they allowed me to deposit that much into a gambling site, I took out a payday loan to bring it back down to £5,550, assuming I could then use this to pay bills and transfer to another account, they didn’t, so affectively I have taken out that loan for nothing.
Sara (Debt Camel) says
So you are in this overdraft all month? How many years has this been going on for?
John says
Sorry I waiting for your reply so I could add to it as ran out of characters to use in previous message.
Yes, unarranged overdraft this month.
I have had this overdraft since 2013. They came back to me and offered me £150 goodwill gesture, I cannot use this though as it only takes off £150 of what I owe them for the arrears.
I spoke to financial support team who told me they can only let me have ‘access to funds’ if they saw it was for benefits. They have told me I cannot use the account until the extra £550 or so has been paid and I’m back into my arranged overdraft of £4,900.
They cannot seem to give an answer and just said ‘it’s the banking system’ when I asked them how they allowed me to deposit that much into gambling websites and not allowed to use it for any other use.
Sara (Debt Camel) says
I suggest you urgently open a new bank account and move all your income, direct debits and standing orders over there. Abandoning this old overdraft – it will have to be dealt with but at the moment it is more important you have a functioning bank account.
And you also send HSBC an affordability complaint using the template above, amending it to describe what had happened here.
John says
Thanks Sara, I have done that already today.
It just really appalls me that HSBC have basically said ‘oh you can get hundreds into the unarranged overdraft for gambling purposes but we wont let you use it for any other use’
Obviously they didn’t use those words but that’s what it pretty much seems like
John says
Hi Sara,
I last heard from HSBC a couple of days before I sent these previous messages. I was told in the original response to respond directly to the email if I needed further help, which I did asking why my reasons were ignored.
So… between then and now I have sent countless emails pleading for help, I have also made at least 10 phone calls to the complaints team and financial support team begging for assistance. ALL of them said the complaint was being handled by ‘one man’ and they’d pass on my message and ask for it to be dealt with urgently. Still nothing. Towards the end of last month I went 6 days without being able to buy food, which I had told them at the time that that was the reason I took out payday loan and their goodwill gesture would’ve stopped that, which they denied me. This affected work performance to point of nearly being let go, my relationship ended and I had suicidal thoughts. Because I moved my bank account, payday came and I could breath again. But I’ll never forgive this.
So I was just wondering where do I stand with all of this? As no one seems to want to help me??? Do I contact the media and then at least that usually gets them to respond?
Thanks for your help
Sara (Debt Camel) says
so you have sent HSBC an affordability complaint? On what date?
John says
I sent the affordability complaint on 17th April but that’s the least of my complaints with HSBC that I’m concerned about at the moment as I realise it can take a bit for them to come back with that.
My main issue at the moment is all the other things.
Sara (Debt Camel) says
Yes but you are now in a safe place using a different bank are you not?
And you changed the affordability complaint template to describe what has happened to you and the mess this has left you in?
In this case you need to wait for an answer to your complaint and send it to the Ombudsman if the answer isn’t satisfactory.
John says
I’m in a ‘safer’ place but I have my payday loan repayment coming out soon which HSBC didn’t allow me to access which I cannot afford to pay back unless HSBC allow me to access it. I kind of regret doing the affordability complaint as soon as I did as they said they added it to the already huge complaint, rather than treating it separately.
Regardless of this, two different agents frok the complaints team told me that they would make sure the person handling it would contact me either way within a day or two as a matter of urgency but it’s now been nearly a month and not heard from them.
I’ll just keep doing what I can. Thanks for your help
Sara (Debt Camel) says
I doubt you would have had a reply by now if you hadn’t included the affordability complaint – that is much the most straightforward part of your complaint.
There is no way to speed this up. The Ombudsman will not take the case before the lender has had 8 weeks to reply.
If you can’t pay the payday loan, ask the lender for a payment arrangement. Do not get deeper into trouble with more expensive borrowing.
What other debts do you have?
John says
Thanks Sara. Well I did have a response to the complaint after about 4 days where they automatically gave me a goodwill gesture of £150 just for the service I received from their agents and then rather than saying if unhappy I could forward to FOS, the email said to reply directly back if unhappy with it. So I did asking why they hadn’t addressed any of my points and just acknowledged the bad customer service. Because of this I thought I would have at least had something back saying they were going to look further into this and maybe apologise for overlooking all the other major points… The main thing from this is that I was allowed to gamble £750 into my unarranged overdraft and then when I put money in to bring this down for food etc, they then didn’t allow it. Despite my pleas that I was being starved as couldn’t buy any food, they said they wouldn’t allow me ‘access to funds’ as its not benefits.
Sara (Debt Camel) says
As I said, there is no way to speed this up. It isn’t me you have to convince.
Do you have any other debts?
John says
Convince you on what, sorry? I know complaints arent your field but regardless of the outcome of it, it is absolutely disgusting and very, very wrong that HSBC allowed to do this to someone who is seen for years as a ‘high risk’ customer. Allowing someone to starve and almost commit suicide is ridiculous and agents just passing the buck to someone who doesn’t respond when I pleaded with them all this.
Yes, I have multiple loans and credit cards. All credit cards maxed out. Total outgoings per month is about £1550 and my income is £1600.
Sara (Debt Camel) says
You need help urgently with your debt situation. Not just the payday loan but all your other unsecured debts.
I suggest you talk to StepChange about a debt management plan urgently- they are open until 2pm on Saturdays, phone 0800 138 1111
This will not affect your complaint with HSBC but it will get you into a safe financial place.
I also suggest you should look at making affordability complaints to your other debts. See https://debtcamel.co.uk/tag/refunds/ which has different articles for credit cards and loans. But these take time to go through – many months if they have to go to the ombudsman, which it is likely that some of them will. These complaints by themselves are not a way forward for the next few months.
John says
Thank you Sara for your help. Whilst I will be doing this, my mental health is far more important. I was mentally healthy and happy just over a month ago, the whole situation with HSBC has turned me into a completely different person, which I’m fearing that despite the outcome to all of this, will never be reversed.
Claire says
Hi Sara,
Would it be wise to open up a new current account to take advantage of a switch offer, whilst waiting for the results of a complaint? Lloyds have already told me that they are going to automatically apply a credit to my account, but the Ombudsman has responded that their side could take a few months. I’m keen to take advantage of a switch offer, and plan to put the cash bonus into another debt so it would really be useful. Thanks :)
Sara (Debt Camel) says
I don’t see why you shouldn’t do this.
Claire says
Thanks Sara, wasn’t sure whether it would affect the situation or not! Your advice is so very much appreciated.
MJ says
hi, just wondering if anyone has actually had a pay-out from Santander when they’ve offered to pay after it’s gone up to the FOS? Making an offer is one thing but pretty pointless if it doesn’t actually get paid. I passed my Santander complaint to FOS yesterday after not hearing a thing through th e8 week investigation.
Sasha Paton says
Had an offer 3 weeks ago
Still no pay out, no calculated figure nothing! Definitely dragging there feet with the pay outs
Johhny says
Hi all. Does anyone know how long Overdraft complaints with the FOS are taking at the minute?
Sara (Debt Camel) says
I would say they are on the speedier end of the spectrum. Which bank is it?
Johnny says
I have a few; Santander, NatWest, Royal Bank Scotland and Lloyds Bank. All been with FOS 6 weeks. None allocated.
Sara (Debt Camel) says
6 weeks isn’t that long.
FOS first has to ask for the bank to send over their case file. This isn’t normally a big delay for banks (unlike some bad credit lenders) but it is another step in the process that you don’t see.
If the RBS and NatWest ones cover the same time period, you could ask for the, to be considered together as this was the same bank. Or wait 7ntil one is picked up and then ask the adjudicator if they would like to pick up the other one.
Mark says
I recd settlement from Lloyd’s in 5 days…incl w/e for complaint going back 6 years (banks max). Going back a further 9+ years complaint, the FOS wrote back acknowledging receipt but 4 months before can consider it. That was end Feb 23.
Becca says
Hi Sara,
What do you think i should do, i think i’ve made a mistake.
I complained to Natwest about a O/D. They rejected and its gone to FOS.
I then made a separate complain to RBS regarding a loan and a different O/D – I included them on one complaint. It was rejected and have now been sent to FOS .
This means i have 2 separate complaints at FOS but really do i want them all looked at together? Because if I’m right, NatWest and RBS are one of the same company?
They cover the same period of time, 2018 to present. The O/D’s were given in 2018 and the loan was given in 2021.
Is it okay to keep them them separate?
I’m worried one will be allocated and they won’t take the others into consideration. Or does this not matter?
Sara (Debt Camel) says
Did you say mention on the second one that you had Already made the previous complaint to FOS?
Becca says
Ye on the second one i mentioned i had a Natwest complaint also.
Sara (Debt Camel) says
That’s OK. Whenever one is picked up, ask the adjudicator if they would like to pick up the other one at the same time.
Martin says
Hi so I’ve been in my overdraft of 1400 for years now with Santander and I’m unsure of what do do I have numerous other credit cards I have maxed and a loan since my motorbikes got stolen and this led into more debt and upkeep of said bikes then 6 months ago my mum passed im 28 this has hit me pretty hard and I live alone with my father who is disabled I can’t help financial support him because of the situation I am in and really just want a bit of help I feel like I could go for the complain but am unsure how to go about this and what to do some help would be really appreciated as I can’t go on living in debt any longer I’ve been in debt since I was 18-20 and it’s a huge burden to bare not being able to help my father with rent or food as he only receives dla/pip and most of my money around £500-600 a month goes on debt and overdraft charges
Sara (Debt Camel) says
How much is your motorbike worth? Do you own any other assets?
How much do your other debts add up to?
Martin says
It’s probably worth around 1200 and I don’t know what would be classed as a asset I own a computer that woulda probs would be worth around 400-500 then a tv that’s around £100 but I live with my dad so unsure whether the bank would consider his stuff as a asset
But I need the bike to get to work
Sara (Debt Camel) says
You may well be able to win an affordability complaint against Santandar for the overdraft.
However it sounds as though you have a much bigger problem. It isn’t fair that you aren’t paying your share of the rent and bills. And if you didn’t you couldn’t possibly afford these debt repayments.
I suggest you talk to National Debtline on 0808 808 4000. Explain you havent been paying any rent or towards the bills and you need to start. They will help you look at your options.
One possible option is a DRO -if you are eligible – that would clear all your debts with a single payment of £90. You would be able to keep the bike and the other things you mention.
Another option is a debt management plan where you would make a single affordable payment a month to your debts and interest would be frozen.
In a DMP you can still make affordability complaints and winning them would speed up the DMP.
In a DRO you can’t (well it’s more complicated and the DRO may be cancelled). But in a DRO you don’t need to as you get a clean start without the debts.
Rrr says
Hi Sara, this is the reply I just got from my bank. Is it a lost cause? I didn’t know until a couple of weeks ago you could make an unaffordable lending overdrafts complaint.
When I originally got it and increased it I wasn’t working and had never had any income/benefits going into the account. At the time I was gambling an awful lot too (sorted now). Ive basically been unitlising the full OD since I got it. This is the reply I got from them
My Investigation
You feel that based on your personal and financial circumstances at the time, the overdrafts should have been declined as they were not affordable and has resulted in you getting into financial difficulties – you consider this irresponsible lending by the Bank. So you want a full refund of all interest and charges applied to your account
since 2014. I have looked at your account history in respect of the overdraft facilities on your account, ending ****, however I’m unable to investigate them you.
The reason for this is because it falls outside the time limits set by the Financial Conduct Authority for us to review complaints. These being if what you’re complaining about happened more than six years ago, and if you’re complaining more than three years after you realised, (or should have realised); that there was a problem.
I have checked our records and can see that the last overdraft facility of £800 agreed on your account, ending ****, was done on 31 July 2015 – this was well over 7 years ago. I can see from my records that you were incurring debit interest and arranged overdraft charges as a result of using the overdraft in 2015,2016,2017,2018 & 2019 so you would have received a monthly interest & charges notification statement. So you were aware of its existence and more importantly its impacts and could have raised your concerns
Sara (Debt Camel) says
You still have this account? If not, when was it closed?
Rrr says
I still have the account. Its just no longer my main account.
Sara (Debt Camel) says
And you are still using the overdraf?
Rrr says
Yes, it’s always -799. Odd.
I’ve one DD that comes out of it, apart from that I Just send the fees to it every month.
Sara (Debt Camel) says
Ok, then this is certainly not a lost cause as the bank is simply wrong. Who is it?
A bank should review your overdraft every year. So you should always be able to go back 6 years and get a refund that far back – that is within “the 6-year rule”.
Additionally the ombudsman may decide that they can look further back. You can argue to FOS that you have only recently found out that the bank should have checked for affordability and that back in 2015 and 20116 you though the charges were your own fault and you did not realise that the bank was partially responsible.
So I suggest you send this to the ombudsman straight away.
Rrr says
It’s RBS, I only submitted the complaint on Thursday, they were very quick replying. Should I give them another chance and ask him to check again? Or bypass them altogether?
Sara (Debt Camel) says
if you would be happy to accept a refund for just the last six years as a compromise for a speedy settlement, then you could go back and propose this, and give them a deadline of the end of next week to reply or it goes to FOS.
If you want a refund going further back then they arent going to agree and you may as well send it to FOS now.
Rrrr says
I would happily accept a refund of the last 6 years as that would clear the overdraft and then I could close the account.
I’m awful with constructing letters/emails and relied heavily on your template (thank you). If at all possible could you give me a rough idea of what I need to say in the email to get them to look at my account again, please.
Sara (Debt Camel) says
Just a few sentences will do.
Say you have been told by a debt adviser that FOS will always go back 6 years and may decide it can go back further as you have only recently found out about these complaints and befiore that you were unware that a bank had to check for affordability. But say in the interest of a speedy settlement you would be happy to acceot a refund of the last 6 years’ fees. Say that if they don’t agre by 5 may you will be sending the case to the ombudsman.
Rrr says
Thank you so much Sara. I’ll let you know how it goes.
Rrr says
Thank you for contacting us on the 26 April 2023 about the outcome of your complaint. I’m sorry you
don’t agree with our decision which was explained in our letter dated 25 April 2023.
I believe that we’ve investigated your complaint thoroughly and that the decision is fair as per our final
response letter dated 25 April 2023.
Although I hope it will not be necessary, you do have the right to refer your complaint to the Financial
Ombudsman Service, free of charge – but you must do so within six months of the date of this letter. If
you do not refer your complaint in time, the Ombudsman will not have our permission to consider your
complaint and so, will only be able to do so in very limited circumstances (for example, if the
Ombudsman believes that the delay was as a result of exceptional circumstances).
Sara (Debt Camel) says
so straight to the Ombudsman.
which bank is this?
Rrr says
The bank is RBS. I’ll send to the FOS.
Laura says
So Santander have phoned me today to make an offer. I’ve been in my overdraft of £2000 for a long time now and they have let me increase it numerous times since the account was opened in 2012. I have my mortgage with Santander and asked for help with it when covid hit in 2020. They have offered me £600 odd pounds to refund charges and interest going back to this time so March 2020. I have in the last couple of weeks referred this to the Ombudsman, as the 8 weeks had past and Santander hadn’t responded. I’ve told Santander that I will think about it and contact the ombudsman as they’ve yet to respond. When I told the person on the phone at Santander this she said she would phone me back in 40 minutes to see if I had made a decision on the offer! As is seemingly common practice with these cases, Santander have also said that on refunding this money they would also drop my overdraft down from £2000 to £1400. But would help me pay off the remaining £1400 over three years and stop any interest and charges during this ‘help’ period. Any advice please? Thank you
Sara (Debt Camel) says
What was happening pre covid – do you remember if you were in your overdraft all or almost all of the days each month?
Laura says
Hi Sara, thanks so much for your response. Yes I was in my overdraft but probably not as heavily….
Sara (Debt Camel) says
And do you agree that you have paid £600 in charges going back to March 2020? Banks sometimes get their sums wrong!
Laura says
I think it’s probably double that! I feel that it is a low ball offer. Should I let the ombudsman do their bit?
Sara (Debt Camel) says
I suggest you tell Santander you think have paid a lot more than £600 in charges since March 2020 so unless they will reconsider their offer you will ask the ombudsman to proceed with the case
Laura says
Thank you. I’m likeminded to do just that.
Laura says
So Santander have just paid me £650 as a settlement without me agreeing to it! I’d already lodged the case with the FOS! What do I do now? I never would have agreed to this. They’ve just taken it upon themselves to settle it and written me a respond via secure messages!
Sara (Debt Camel) says
That’s fine – just tell your adjudicator what has happened and that you do now want to accept this in settlement
Kim says
I see some people are asking how long it takes fos to deal with complaints. I put mine in with them 27th Jan and I’m still waiting to be allocated to a handler. They gave me an aprx 4 month wait so I’m hoping it won’t be much longer
Catherine says
I am curious to know how everyones experience has been with the Halifax? I raised my affordability complaints last week. I have received a text to confirm receipt.
I had two (still have one) overdrafts with the Halifax. One was £3K and the other £2K. I spent very little time out of the overdrafts and since 2021 my income has declined significantly making these overdrafts and charges even more unaffordable. As a result I took out three loans to keep on top of everything.
From what I have read I think I have a good case but I am nervous.
Mh says
Hi,
I raised an unaffordable OD claim with Halifax back in Feb 23, they were very prompt to look at it and agreed an refunded me back 6 years and th money was in my account with 2-3 weeks of me raising the complaint. They phoned me to discuss and paid directly into current account. They did however take the OD facility away as it was deemed ‘unaffordable’
Hope that helps!
Catherine says
I love a positive outcome! I am keeping everything crossed. I have been through the last 6 years statements today abd I have paid a lot of interest!!!!
Mh says
Good luck!! I have a few complaint in and Halifax were by far the speediest and tbf she was very understanding and apologetic on the phone saying the OD should have been reviewed regularly
Ben says
Curious to find out anybody’s experience with TSB? Submitted a complaint over a month ago and have no communication from them yet
Kiki says
I’ve had successfully Santander complaint. No word from Santander after 8 weeks so I sent to FOS. After 4 weeks with FOS Santander have now called with an offer. From reading the posts on here I imagine I won’t be the last this happens to.
Thank you Sara for the advice and platform to share.
Sara (Debt Camel) says
This was happening a lot a few months ago, see https://debtcamel.co.uk/santander-overdraft-complaints/.
Is this a good offer? At least one person was made a pretty poor one.
Toni says
Hi, I secure messaged HSBC last night who have come back to me today advising the following:
Dear XXXXX
Case Ref: XXXX
Thank you for contacting us about your arranged overdraft facility and for confirming that you’d like to receive our response to your complaint via email.
We don’t retain detailed records for more than six years, in accordance with our regulatory obligations. We, therefore, no longer hold detailed records from prior to May 2017.
Our records confirm that your arranged overdraft facility of £1,500.00 was already in place in May 2017, meaning that the facility had been agreed prior to this time. Regrettably, we’re unable to investigate the circumstances surrounding your application and this element of your complaint is now subject to time bar. We’re sorry for any misunderstanding that may have arisen.
We’re dedicated to assisting our customers when they’re experiencing financial difficulties. We can see that we’ve written to you about your overdraft usage on a number of occasions during the past six years, with our letters providing details about the potential cost of prolonged overdraft usage and inviting you to contact our Financial Support Team to complete a review of your income and expenditure. Regrettably, we have no record of you completing an income and expenditure review.
Please contact our Financial Support Team on 03458 500 622 to complete a review of your income and expenditure.
Does this sound right?
Sara (Debt Camel) says
Do you still have this account? If not, when was it closed?
Toni says
Hi Sara, I still have this account. I did go back them to stating that the letters they sent were generic to all with overdrafts but are staying due to not having charges only interest although I clarified that it does not even cover my wages so I am in the overdraft every month
Sara (Debt Camel) says
I suggest you send this straight to the Ombudsman then.
When the overdraft was set up is not relevent as the Ombudsman can always look at problems that have happened in the last 6 years. And HSBC should have checked yearly to make sure that the overdraft was affordable – so the lat 5 checks were within the last 6 years…
Toni says
Thank you Sara I shall lodge a complaint with the financial ombudsman this evening
AC says
Hi Sara,
Do you have contact details for First Direct please?
Sara (Debt Camel) says
use the email address given for HSBC in the page that is linked to in the article above
Matt says
Hello. I had a £2000 student Barclays overdraft whilst at Uni, this was kept after graduation. Due to a low salary and caring for a Mum with terminal cancer, I built a lot of debt via that and credit cards By 2016 I was heavily living in my overdraft most of the time and barely covering payments. I wrote asking if they could freeze the interest payments. I didn’t get a reply.
I didn’t chase this, as shortly thereafter I had a nervous breakdown and was placed on very strong antidepressants. Mum died a few months later. Not long afterwards , my father developed a number several severe health problems which meant I had to care for him.
Recently, I’ve made efforts to sort my finances out and managed to shift my overdraft and credit card debt to 0% cards and a low-rate personal loan. I recently confided in a close friend who had had similar problems with debt. He directed me here.I wrote to Barclays Bank, Barclaycard and Amex.
Barclays Bank replied and offered me £1417 as a “gesture of goodwill” with no interest, back to 2017. Amex just said no as I apparently could have opted out from automatic increases in my credit limit at any time. Barclaycard hasn’t responded. I’d appreciate some advice on going to the FOS. Your site suggest the FOS might be willing to go back further, but I don’t know how much evidence they’d want. if I appeal and the FOS don’t uphold my complaint, I’m thinking the Barclays offer will vanish?
Sara (Debt Camel) says
So send the Amex complaint straight to the Ombudsmn. As far as I can see Amex rejects most complaints!
Is 31417 the amount you have paid in charges and interest back to 2017? Sometimes the number doesn’t seem to add up to what the bank says it is …
Pre 2016 were you only in the overdraft for a few days a week?
Did Barclays response mention that you contacted them in 2016 and never got a reply?
Matt says
Hello. Sara.
Ok, I’ll go the Ombudsmen re Amex.
For the Barclays overdraft-there’s no breakdown of the £1417 figure. I have statements back to late 2019 and have requested a breakdown of charges and interest occurred as far back as possible-but they are taking their time to provide that. From the statements I have and extrapolating back to 2017, the figure seems in the ballpark, but possibly a bit low.
Prior to 2016, it varied over time, at first I was in the overdraft only at the end of the month,, then I was in it by the middle of the month, finally it was such that I was in it pretty much a week after payday. There were very long periods where I never left it-My salary was not much over £1000 a month for much of that period and there was a period when I was running close to the limit at the end of the month. Being paid the next month wouldn’t take me out of the overdraft. One-off bills like car repairs or new glasses derailed things.
Re the 2016 letter, I didn’t mention it in my letter as I thought I’d need to provide a copy to them. I thought it had been lost when a old laptop died, but I’ve just found a paper copy I filed away.
M
Sara (Debt Camel) says
I think you should also go back to Barclays. Say you asked them in 2016 if they could freeze the interest (or whatever you did ask them) but they never replied or told you you the right to go to the Ombudsman. So say you think they should backdate the charges until then – attach a copy of the letter.
Matt says
Hello Sara.
Belated update. Did as you suggested, but never recieved reply from Barclays. Ended up sending all 3 cases (Barclays O/D, Barclaycard and Amex) to FOS. FOS adjudicators refused to go back more than 6 years for all cases-stated my letter of 2016 proved I knew I had a problem and should have known to complain about the unaffordable lending then. I disagreed and went the Ombudsman-who found in favour, saying the letter was was just a request for help and the 6-year limit on recompense could be waived.
The adjudicators were then sent back to look at the merits of my complaint. Barclays O/D & Barclaycard complaints still being looked at.
They have come back on AMEX, saying they think a rise in the limit from £2,900 to £5,500 in 2018 was unwise as they didn’t take steps to verify my income (They assumed £70K salary-I wish!) and disregarded high balances on another card and overdraft.
They have suggested that AMEX repay the interest paid on balances above £2900.
I’d like to ask is that a common finding? To just pay the interest accrued the debt above a credit limit increase? I didn’t really much of the credit limit increase, but the “headroom” led me to disregard thinking I should be paying the balance down, as compared to being very near the credit limit-as I was before the increase
Would it be unreasonable to ask the adjudicator to consider repayment of ALL interest and charges accrued since the 2018 increase?
Sara (Debt Camel) says
can you show you were in significant difficulty in 2018 and that Amex should have seen that?
Matt says
Yes Sara-I was living in my overdraft for long periods of time and barely managing to cover other debts. The Adjudicator has identified this;
“This shows Xs income to be just under £1,200 per month. I’ve also reviewed expenditure , which includes monthly rent of £450 to his parents along with other commitments including a loan repayment of £272. There was a Tesco Credit card being managed relatively close to limit, which also had a £2,000 increase from £4,100 to £6,100 in May 2018. Further to this, I can see an MBNA credit card opened in April 2018, which within a month of opening had a debt of £4,224 against a limit of £4,500.”
“Further to this, I can see Xs overdraft utilisation has increased substantially and he’s account is always in a debt position for the three months leading up to this limit increase. Even after being paid, the account never goes into credit, which supports X is now reliant on his overdraft and further lending from the facility. I can see the amount in the overdraft is close to the limit.I’ve also thought about the type of transactions being made on the account and I’ve not seen much to suggest a high proportion being discretionary spending, He’s now making all his repayments using credit and didn’t have enough disposable income to be able to cover any increase to these circumstances along with being charged consistently to do so.
I therefore think any further lending at this point would be unsustainable due to Xs already high indebtedness and I’m persuaded if Amex had completed proportionate checks, they would have seen this.””
Sara (Debt Camel) says
then I think you should go back to the adjudicator and say that in view of your very bad financial situation in 2018, you think Amex should not only have not offered you a credit limit increase, but they should have offered you forebeaance at that time and frozen interest. So now you thing the redress should be a full refund of all interest charged from that point, not a partial one.
Ask the adjducator to reconsider and say you would like this to go to an Ombudsman if the adjuidciator doesn’t change their mind.
Matthew Wright says
Thankyou Sara-will do.
NB. Adjudicators have just come back re Barclaycard and O/D. Near identical decision on the Barclaycard-only repay interest incurred above a limit increase, but for the O/D its’ to repay all the fees and charges. Will go back to Adjuducator re Barclaycard in the same vein-my financial mess was even more apparent as they could see my current account! Will accept the O/D decision-I just hope Barclays don’t challenge it.
Again, thanks for your help.
Matt
Sara (Debt Camel) says
this is worth trying. Same argument as for Amex.
but the difference with an overdraft is under the T&cs they have to review it every year – that doesn’t apply to a credit card where decisonns are only made when the limit is changed.
Matt says
Thanks Sara
I’ll follow your advice re Barclays and the overdraft. I’ve also found similar letters I wrote to Barclaycard and Amex at the time (neither of which replied). I’ll see if if those letters may have an impact as well.
Again, thanks for your help.
M
Matt says
Hello.
A brief update. I did as you suggested-but there’s been no response form Barclays. Firstly I sent them a copy of the letter and asked them if it would make any difference to their decision-no reply after 4 weeks, Then I followed up with a second letter (and a copy of the letter) suggesting they backdate the charges until 2016-4 weeks and no reply. With that in mind, do you think that going to the Ombudsman now might be a successful course of action?
Sara (Debt Camel) says
yes, no point in waiting longer.
Make the argument that if Barclays had told you in 2016 that you could go to the Ombudsman you would have gone then.
Matt says
OK. Thanks Sara.
Matthew Wright says
Hello Sara. Do you know how long it should take the FOS to pick up your complaint and give you a ref number? Lodged my complaint re the overdraft on the 10th July and apart from the Auto acknowledgement there’s been nothing. The complaints I lodged re credit cards had both given me reference numbers within a week. Does the FOS actually tell you if they’re NOT picking up a complaint?
Sara (Debt Camel) says
They will always pick up a complaint or explain to you why they can’t (eg you have complained about a firm they don’t regulate.)
CM says
I submitted my affordability claim to the Halifax four weeks ago. Should I call my for an update or wait patiently until they call me?
Sara (Debt Camel) says
Have you had any acknowledgment of your complaint?
CM says
I actually received their final decision yesterday. I had two accounts with the Halifax, one with an overdraft of £2K which is still open and another account with an overdraft of £3K which I transferred to Nationwide. My salary was less than half of the £5K overdraft(s) each month so I had no chance of ever clearing it.
I worked out my interest to be well over £6K. Halifax partially upheld my complaint with a £2K refund and closed my overdraft straight away. I was not asked to accept their offer. I am happy I no longer have this £2K overdraft but disappointed that it was only partially upheld. Their reason was they could see evidence of none essential spending on the old Halifax account that is now closed. As the account is now closed I don’t have visibility of those statements but any none essential spending during these years would be child related as I had babies at the time they are referring to so I certainly wasn’t out partying.
Once I receive the official correspondence I will take it to the Ombudsman to see if I can get a full refund.
Sara (Debt Camel) says
good plan
CM says
Thank you for getting me this far Sara. Four weeks ago I could only dream of not having an overdraft with the Halifax.
All because I came across your instagram page.
Hopefully we have just scratched the surface.
CM says
UPDATE: I took my Halifax complaint to the ombudsman and received a response yesterday which is where I need your advice.
“Having considered everything provided, I think Halifax acted unfairly when it continued to provide the overdraft and continued charging overdraft fees from April 2018. I think this is the case because by this point, Mrs C hadn’t seen a credit balance for an extended period of time. Halifax’ own literature suggests that overdrafts are supposed to be for unforeseen emergency borrowing not prolonged day-to-day expenditure. So I think that Halifax should have realised that Mrs C wasn’t using their overdraft as intended and shouldn’t have continued offering it on the same terms. As Halifax didn’t react to Mrs C’s overdraft usage and instead continued charging in the same way, I think it failed to act fairly and reasonably.”
My query is why is 2017 not being taken into account as this still fall’s under the six year guidelines? I was in persistent debt in 2017 with both accounts so I don’t understand why the adjudicator has advised a refund from April 2018 and not March 2017. Can I challenge this and what should I say?
Sara (Debt Camel) says
What date did you complain to the Halifax? And what date did you send the complaint to the ombudsman?
CM says
Hi Sara,
I raised my affordability with the Halifax on 19th April 2023. I received their outcome on 16th May 2023 and I sent to the ombudsman on 17th May.
Natasha says
Hi the adjudicator at the ombudsman got back to me about my NatWest complaint deciding that the charges were unfair and I should be refunded I am a little confused as he decided it was unfair from august 2017 and talks about March 2017 (From the information made available to me, I can see already had an overdraft facility with NatWest in March 2017. Having considered everything provided, I think NatWest acted unfairly when it continued charging overdraft fees from August 2017.) my complaint was sent to NatWest in September 22 but I didn’t send it on to the ombudsman until March so I am not sure if that’s why he talks about March 2017 I did include a copy of my credit report that I got in September with my complaint. I tried asking why March/august but he hasn’t got back to me and the deadline he gave for me to accept his decision is next week. I’m not sure if I should just accept it or not. He says it will go to the ombudsman if I don’t respond I don’t really know what this means?
The all charges from august 2017 would clear the overdraft and give me some money so maybe I am just being greedy trying to get a few more months of charges refunded. Do you have any advice? Could the ombudsman decide Ithe adjudicator is wrong and I should get nothing?
Thank you for all your help I am still waiting to hear from them about my Barclaycard complaint.
Sara (Debt Camel) says
Does August crop up anywhere else in the decision?
Natasha says
August crops up just in teRms of that’s when things should be reWorked from
Having considered everything provided, I think NatWest acted unfairly when it continued charging overdraft fees from August 2017.
This means I think NatWest should rework’ account to remove all of the interest and charges added to her account from August 2017.
Settlement
In this case, I think NatWest should now settle complaint as follows:
• Re-work current overdraft balance so that all interest, fees and charges applied to it from August 2017 onwards are removed.
AND
• If an outstanding balance remains on the overdraft once these adjustments have been made NatWest should contact to arrange a suitable repayment plan for this. If it considers it appropriate to record negative information on credit file, it should backdate this to August 2017.
I believe that my pay was reduced in half in January or February that year and stopped in June/July due to my ill health so I am wondering if that might be why august 2017. It hadn’t been out of the red in ten years by then.
Sara (Debt Camel) says
I suggest you ask the adjudicator why August and not March? There may be some reason. The adjudicator can change what they are recommending if it was just an error.
Natasha says
Well I logged in today and the money has been paid. I think they must have taken my question as agreement and told NatWest to pay me? I emailed the adjudicator back the same day asking why March and august, I had no response from him but now the money has been paid so I would say to people be very careful in replying to the email asking if you agree with their decision especially if you don’t. For reference this is what I sent.
– Thank you very much for looking into this matter. I just had one question. I complained to NatWest in September 2022 which would have taken the six years back to 2016 but you cited March 2017. Is that because it’s six years from when the complaint is submitted to yourselves? –
I am awaiting a decision on my credit card still but fingers crossed. Do you know if you can complain about PayPal credit the same as a credit card? Sorry for the questions and thank you again for your help it is truly invaluable.
Sara (Debt Camel) says
You can still query this. I think NatWest probably just decided to pay anyway – there is no time for FOS to have misread your query as an assent and told Natawest to pay.
Your email to FOS wasnt that clear that you think the refund should me from March and not August.
Yes you can make a complaint about Payplan – use the credit card template here https://debtcamel.co.uk/refunds-catalogue-credit-card/
CC says
I made a complaint to PayPal credit. They were super quick. My claim was not upheld so it is with the ombudsman now but of all the complaints I have raised PayPal got back to me the quickest.
Rachel says
Dear Sara,
Thank you for all this information and advice. on your website.
My husband and I have a joint account and have lived using our overdraft of £5k since at least 2016. Does it matter that it’s a joint account that I’m claiming for? The account is held with Natwest. My husband also had buisness accounts with Natwest until 2021 when he had to stop work due to ill health. Natwest quickly picked up on the drop of earning and the overdraft on the buisness account and were chasing for it to be cleared. These account have now been closed. but they have never called about our personal overdraft Do you think it right that I make the complaint about both points – longer term use of overdraft & since 2021 reduction income?
Thanks so much for your help.
Sara (Debt Camel) says
You and your husband will need to make a joint claim as it is a joint account.
have lived using our overdraft of £5k since at least 2016
By that do you mean you were in the overdraft all or almost all days in the month>
Rachel says
Yes, since 2016 we’ve lived almost entirely in the overdraft – most months completely in it every day.
Sara (Debt Camel) says
That sounds like a strong complaint, even before your income was reduced in. 2021.
. Let me know how it goes!
Steven says
How far back are complaints considered? The majority of my overdraft use was between 2008 and 2018 where i was permanently overdrawn.. would banks consider complaints that far back?
Many thanks in advance
Sara (Debt Camel) says
A bank will normally reject a complaint about anything over 6 years old. But the Financial Ombudsman can choose to go back further if you have only recently found out that you have a reason to make a complaint.
Sara F says
Hi Sara,
I have just come across this website and find this information very helpful. I have been in an OD for a very long time and can’t get to positive balance any of the months. I have only I question, if I request for this refund will it affect me credit score? I am due to remortgage my house and I am scared this will affect my remortgage. Regards, Sara Forca
Sara (Debt Camel) says
Are you looking for a remortgage or just a new fix? A fix is the same mortgage terms (same lender, same amount, same term)?
Is your overdraft with the bank that is your mortgage lender?
Sara F says
I am thinking of borrowing more money when I remortgage. No my OD is with NatWest and my mortgage is with nationwide.
I am due to remortgage January 2025.
Sara (Debt Camel) says
Making these complaints does not show on your credit record, see https://debtcamel.co.uk/affordability-complaint-credit-record-faqs/
So the only problem for a remortgage would be if you are complaining to the same bank you are applying to for a mortgage. So avoid applying to NatWest for a remortgage – other banks should be fine.
Sara Forca says
Thank you very much for your reply.
I have just an email to NatWest to complain about my overdraft and my credit card and I just realised that they increased my credit car limit from £1600 in May, then to £2500 in June and by November it was £3350 and at the time I was deeply into my OD. Does it matter if it is a joint account? Do I need to include my husbands name in this too? Again thanks for your help.
Sara (Debt Camel) says
Yes a complaint on a joint account should come from both of you.
It is hard to see how increasing a credit card limit can be a responsible decision for a customer who iis using an overdraft heavily.
Sara forca says
Thanks for your advice. Another question. I sent the complaint yesterday to the email address you provided in the page but I didn’t get anything back to say it was received? Is that normal? I tried to look on NatWest page but there are no details where to send it to. Thanks
Sara (Debt Camel) says
I would check with them that it has been received if you have not had any acknowledgement in a couple of weeks.
Sam Rowlands says
Hi,
I have just tried to contact Barclays through the app with the adjusted template you left above and they are saying I need to call them or go into branch. Is this correct. They say there is no email address to email the complaint over.
Any help would be appreciated
Sara (Debt Camel) says
Email addresses for banks are here https://debtcamel.co.uk/email-addresses-banks-credit-cards/
L Taylor says
I dealt with Barclays via the app, then I’ve the phone. If anything maybe call financial assistance as well. That team are quite helpful.
They should be able to give you a complaint reference via the chat function when you log your complaint though.
Sam says
Thank you for that, did you get a payout in the end?
L Taylor says
Yes I did!
The only annoying thing is you can’t copy and paste your complaint letter into the chat function on the app. You’ll have to re type it out – but it will be worth it potentially.
Sam says
Yeah, that’s what I was trying to do! I have emailed it now so probably shouldn’t do it on the app. That’s great about your pay out.
Thanks again.
Sam says
Hi,
How long did the process take with Barclays if you don’t mind me asking?
Thanks
L Taylor says
It took about 3 weeks – but I did literally call them every other day for updates as well. I was annoying.
Louise says
Hi, I was wondering your thoughts on making an affordability complaint against a bank I work for? I am thinking that due to GDPR it can’t be held against me but really interested to hear your thoughts.
Thank you
Sara (Debt Camel) says
I haven’t come across anyone that has done this. I have no idea if GDPR will help you.
James says
Hi there,
Hoping you can answer some questions for me. Long story short I’ve been in a £25k (almost entirely maxed out) overdraft for years.
1. My account is still around -£25k. Even if I get compensation that will unlikely take me above 0. Will they try and close the overdraft and make me pay back immediately?
2. Are they allowed to shut my bank account or will it remain open and able to use?
3. Will future lenders (mortgage?) be able to see that I’ve made this complain etc?
Thank you for any help
Sara (Debt Camel) says
How has the overdraft got so large? Is this on a business account? What are the month charges on it?
James says
No it’s a personal account. The overdraft usage got so large because of gambling – I now have an active GamStop etc (note I would transfer money from this account to another of my accounts with a diff bank before depositing to a gambling sit). I applied for this overdraft a few years ago and got it. It’s about 5x my monthly income.
About £360 a month interest.
Sara (Debt Camel) says
If this has been going on for years, then this could be a very large refund.
Me talking about what normally happens in other cases isn’t going to help you much as the numbers on this one are much larger.
Yes a bank can close an account. That is unusual but I am not going to say it couldn’t happen in a case like yours. T -hey cannot make you repay an unaffordable amount immediately but you could set up a payment arrangement to clear the balance.
I suggest you should open a new bank account and switch your income and direct debits and standing orders to that one.
A complaint doesn’t show on your credit record. The bank itself will be able to see it from their own records, so you should avoid applying to this bank for a mortgage or any other credit.
Unless you get this sorted, you have about zero chance of being able to save up a deposit and get accepted for a mortgage anyway. Don’t let daydreams about a mortgage stop you from taking a very sensible step forward that you have .
Let me know what happens with this one
James says
Just looked and the sum of Interest, Arranged OD usage and Unarranged OD usage charges since June 20216 is £23,326 (£22,610 if can can only go back 6 years). There has been interest every month bar one., which included 63 months in a row.
Will wait till this months salary goes in. Move everything over. And then start the process.
James says
Not sure if posts this far back get seen/replied to.
If I make a complaint is there a risk that the bank may choose to “default” the account?
Thanks
Sara (Debt Camel) says
Not if you are paying enough into the overdraft account to cover the fees each month
Frances says
I’ve had a response from Natwest, I’ve been in a £2k OD constantly for the last 6 years and during this time even defaulted on a Natwest Credit Card. My complaint was just around the OD and the interest charges incurred over the last 6 years. In their response they’ve said this:
Although you feel the Bank should have been aware that you were struggling, NatWest and our
wider group do not manually monitor accounts, therefore; if any difficulties are being
experienced, it is the responsibility of the account holder to make us aware so that relevant
support, guidance and assistance can be provided.
So have they admitted that they havent been annually checking affordability which they should have been? I’ve referred this complaint to the FOS this morning.
Sara (Debt Camel) says
I wouldn’t expect a bank to manually monitor all overdrafts, but I think it should have some automated annual review process that would highlight accounts which do need to be looked at manually.
See the Some Ombudsman decisions section in the article above, which has a quote from a FOS NatWest decision.
mark says
How long did NatWest take to reply? Thanks
Frances says
Came back the following day and it was over a weekend.
Drew says
Firstly thank you for your extremely helpful webpage. I have just recently made a complaint to Halifax/Lloyds.
I currently have the following with them
One account with a £900 over draft (1st item)
One account with £1,200 over draft (2nd item)
Credit card with £2,500 (3rd item)
Loan of £4,580 (4th item)
I have followed your amazing guidance. Is it realistic and reasonable to complain about the fees on all elements or just the over draft?
Sara (Debt Camel) says
How many days a month are you in the overdrafts?
See https://debtcamel.co.uk/refunds-catalogue-credit-card/ for the credit card and https://debtcamel.co.uk/refunds-large-high-cost-loans/
Drew says
£900 every day every month
£1,200 within ten days of being paid
Credit card only minimal payments. I was paying off half then using it to live on.
Sara (Debt Camel) says
ok so you need to consider the sequence of when you were given the different sorts of credit.
Have the loan and the credit card caused the overdraft problems? Or did you already have overdraft problems before and so the bank should not have given you the card… or increased the card limit (if they did).
Change the different template letters to explain what the bank knew about you at the point of giving you the loan, or the credit card, or increasing the credit card limit.
Drew. says
I have the £900 over draft, then the £1,200 overdraft, living in both, then the credit card, then the loan to then pay back the above. Unfortunately now have all four to pay.
I also had an Amazon card, the card moved to a pulse card, which I had a £1,000 limit on, paying back the minimal payments. They just automatically increased my limit to £2,000.
I sent the email to them as a template for the over draft but with all four elements in it. Should I send separate ones per accounts, credit card and loan?
Also your help, guidance and assistance is awesome thank you.
Sara (Debt Camel) says
No it’s fine to have sent a single complaint.
But you need to check that when you get a response they have replied to you points about the overdrafts, loan and credit card. Sometimes they just seem to spot the word overdraft and then treat it as an overdraft complaint without reading the rest.
Blake says
Hello there Sara, my problem is not directly linked to overdraft interest but I was in a lot of debt (loans mainly) and during this time the bank provided me an overdraft that I hadn’t requested of almost £5k. At this time I was gambling frequently and also looking to pay off the high interest loans.
Now I have paid the loans back, I am still sat in my overdraft. I have contacted the bank to state that they made an error, for which they provided me a £200 payment and an apology letter for the mistake. To date, I have not had any overdraft interest charged but the bank have advised that this will commence as of next month.
Do you have any suggestions for whether this is worth making a formal complaint about with the bank and / or FOS?
Sara (Debt Camel) says
I have contacted the bank to state that they made an error, for which they provided me a £200 payment and an apology letter for the mistake
How long ago was this? Did the bank say at that point that they would start charging interest?
Blake says
Hi Sara,
The error in which they provided me the overdraft (one that was not requested) was approximately 6 months ago.
They have stated as of last month that if I do not put a plan to pay off the overdraft (that they accept they added to my account mistakenly) I will be charged interest.
Do I just accept their mistake and make a plan for repayment or would you advise that I make a formal complaint?
Thank you
Sara (Debt Camel) says
could the bank see that you had a gambling problem from your bank statements?
Blake says
Yes they could. They were frequent and on a daily basis.
Sara (Debt Camel) says
Have you manged to stop gambling?
Have you looked at affordability complaints about the high cost loans?
How much could you afford to pay back a month in a payment plan for the overdraft?
Blake says
Yes, thankfully gambling has now stopped. I have formalised affordability complaints about the loans and am currently awaiting feedback.
I can afford pay about £200 per month. I feel perhaps I should make a formal complaint with the bank as they provided me an overdraft, without me applying for it at a time that they were aware I was a gambling addict with other debts. I was also informed only weeks prior that it not be possible to borrow from Lloyds for at least 12 months. The £200 the bank offered as way of apology can also be considered as an admission of their carelessness.
Admittedly, I am not blameless but it seemed the most viable option to use the overdraft at the time to pay off high interest loans.
Sara (Debt Camel) says
Well £200 a month would clear the debt in two years if they agree to freeze interest – have you offered this?
Blake says
I have not yet made an offer. I can do though, if this is believed to be the best option available to me. Assuming you do not agree with making a complaint about the bank providing me an overdraft that was not requested?
Sara (Debt Camel) says
oh I think you can complain about that. But it isn’t clear to me what the Ombudsman would decide a suitable compensation would be, as you have so far not been charged any interest.
Blake says
Thanks Sara. I think I will make the offer to pay back the overdraft at £200 per month and then submit a complaint. I will advise further once there is an outcome.
Thank you
Sara (Debt Camel) says
Make sure your offer is to repay this and for them to hire start adding charges.
Mark says
What are peoples experiences with NatWest on this? How long do they normally take to come back with a final response? Where do they sit on the spectrum in terms of dealing with these complaints in customers favour, or being stubborn? Thanks
Natasha Yeomans says
I think quite stubborn, I had a NatWest and a Barclays overdraft at the same time. Barclays gave a refund but NatWest didn’t however the FOSfound in my favour eventually and I got the refund.
Chloe says
I received a response from them
Very quickly and it was a straight dismissal. Complaint logged via the email address given and response via email within 2 weeks. I’ve sent to the FOS so just a waiting game now.
Dan Mozer says
What an amazing thread this is – sounds like this is a bubble that is about to burst big time. About time these banks became accountable for their actions. Sheer Greed – payback time now
Matt says
Hi there,
I have a complaint against Natwest for overdraft fees that has been with the Ombudsman for over 5 months now and I have still not been allocated a case handler. Should I call to chase this up or is this normal? I note from some of the comments above people have received replies within around 2 months at times.
Sara (Debt Camel) says
That is getting to be pretty long. I suggest you phone them up and ask if there is any more information that you need to supply.
fns says
Hi Sara,
As per your advice and template above i made a complaint and refund request to HSBC – i have basically been in my overdraft for years (if not a decade) save for maybe 5-7 days each month after payday. This is easily visible on my account. I basically for childcare and then make repayments. i have never missed a payment but i am just paying back debt every month and nothing more
HSBC have come back to me already saying – even though my overdraft was increased 14 times (and paid back and opened again) over the 6 years and it has never been less than £1500, ” I’ve reviewed the applications you submitted for overdraft limit increases from May 2017 onwards and I’m satisfied that the correct checks were undertaken and the affordability of each request was assessed in line with our policies and procedures.”
what is my recourse now? do i respond or do i forward to the Ombudsman, i feel very discouraged.
Sara (Debt Camel) says
Send it straight to the Ombudsman. A lot of strong complaints are just rejected. And the number of limit increases should have caused them to think you must be in difficulty.
fns says
Thank you – I will try and update you on the outcome.
Do I need to send anything to the Ombudsman apart from the correspondence?
Do you feel that it’s likely to have a good outcome?
Sara (Debt Camel) says
It does sound like prolonged usage. But I don’t remember a case where someone has asked for so many limit increases and then paid them back.
fns says
when i say i paid them back i mean i have reduced as well as increased but the overdraft has never been under £1500 and i’ve been in it ever since i opened it. at once point the offered me a loan to pay back the overdraft.
Ana says
Hi Sara, I submitted complaint with Lloyd’s via email address on this website on 15th of March, 9 weeks ago. Got immidiate automated answer saying they got and it wil take longer then usual. Chased them via chat online banking on 21st of April, turns out they don’t monitor that email address so they only acknowledged that they have logged the complained when I got in touch, that is 21st April. Then last Friday got a text saying they still looking at it. Should I leave it for now, or chase them again and go staright to FOS as the initial email I sent (and got automated replay) was 9 weeks ago?
Sara (Debt Camel) says
I would send it to the Ombudsman now.