A reader used my overdraft affordability complaint template letter to ask Santander for a refund:
Santander are refunding 5, nearly 6, years worth of fees and interest and 8%. It’s over £3.5k… amazing! This pays off my overdraft completely with spare and the overdraft will be removed.
That was a “full refund” – the maximum she could have got from the Financial Ombudsman (FOS). She was very happy with the result.
Then she told me the surprising timescale.
Santander had rejected her complaint so she sent it to FOS in late November. But after only three weeks FOS contacted her and said Santander wanted to make a settlement offer. This was before anyone at FOS had started to look at the case.
That’s pretty unusual. I assumed Santander realised they had made an error and wanted to put it right straight away.
Contents
This was not an isolated case
Here is a comment left in late December:
Another person winning against Santander! They have agreed to refund all charges/fees on my 3 overdrafts from Dec 2016 onwards. This was after only being with the FOS for 2 weeks.
After that I looked back and found a couple more where Santander had made full refund offers in October and another in November.
So that was five cases where Santander had originally rejected the complaint but had then offered the settlement before a FOS adjudicator had started to look at the case.
What the rejection letters said
We didn’t make a mistake
This phrase was used in a couple of letters:
While I appreciate the problems this has caused you, my investigations have shown that this wasn’t due to a mistake on our part.
It’s your fault not ours
They didn’t quite use those words, but that is the implication behind:
We do not force a customer to use an overdraft and it remains the customer’s responsibility to manage their overdraft effectively.
But allowing someone to have an overdraft that is so large it is impossible to get out of is not fair to the customer. And Santander knows perfectly well that they have a regulatory duty to treat their customer fairly.
Limit checking
One rejection letter gave this general description of overdraft limit checking:
It may help if we explain that before an overdraft is applied to an account, we conduct a range of checks which we are required to complete for every customer to ensure that we treat all customers fairly and that Santander acts as responsible lender within the financial market. This process is repeated each time a customer requests an overdraft limit increase.
But how good were the checks in practice? And were they really carried out each time?
The customer getting this letter had had more than 20 overdraft increases in less than three years. The other 4 cases were more standard, without such a huge number of overdraft increases. But for Santander’s limit checking to not pick up on this sort of case makes it sound like Computer Says Yes rather than a proper check.
Another letter went into more detail about what the checks were:
To ensure that we are lending responsibly, we use a scoring system when looking to increase a customers overdraft facility and when looking to offer them credit. This isn’t something that is taken lightly and is reviewed by our underwriters to ensure that the customer can manage their financial affairs. Regrettably we do not have the resources to check every account to see if a customer is in financial hardship, nor can we assume that they are.
Obviously there is no personal bank manager who looks at every request for a limit increase anymore. But if a bank wants to use a scoring system, it has to be good at detecting financial hardship. And one of the obvious things to include in it is the number of times an increase has been requested. Surely after the first few increases a human should look at the case?
Quoting an irrelevant court case
One rejection letter said:
Please note that the Supreme Court provided guidance on bank charges in the matter of The Office of Fair Trading v Abbey National &Ors. After considering Regulation 6(2)(b) of the Unfair Terms in Consumer Contracts Regulations (UTCCR), the court decided that bank charges formed part of the price or remuneration for the banking services provided, It was therefore unanimously decided that the level of bank charges couldn’t be assessed for fairness under UTCCR. As such, I respectfully believe that there is no basis on which your complaint can be pursued.
That was actually totally irrelevant to the customer’s complaint, which was not about the level of the bank charges at all. But I guess it was supposed to look impressive to the customer, so they think there is no point in taking the complaint to the Ombudsman.
Standard rejections
Apart from the list of overdraft limit increases, no letter I have seen makes any mention of the customer’s income, account history, credit record etc.
They are generic rejections, not specific to the complaint. And no letter makes any reference to the annual overdraft reviews Santander is supposed to undertake.
How many customers gave up and didn’t go to FOS?
So the rejection letters from Santandar weren’t short and dismissive. They were lengthy and looked as though they explained in detail why Santander hadn’t done anything wrong. Many people may have thought they sounded authoritative and must be right.
One customer said
I wasn’t going to take it further because I thought the ombudsman would throw it out too because the bank did.
Luckily she told me it had been rejected and I told her to send it straight to FOS.
A deliberate strategy on the part of Santander?
Mistakes do happen. But five very similar cases in a short period suggests more than the odd mistake on Santander’s part.
One possibility is that Santander has realised in late 2022 that it has had a major problem with its overdraft complaint handling and is trying to correct it.
The other possibility is that this was not an accident. Santander decided to reject many good overdraft complaints because it knew that many would not be sent to FOS so this would save it money. But it then settles a lot straight away rather than have FOS inspect them.
In either case, it is unfair on customers who have not taken their complaint to FOS because of the misleading rejection letter. Santander should review all rejections over the last year and contact the affected customers again with a better response to their complaint.
Has your overdraft been a big problem for a long while?
Overdraft debts can be very hard to get out of because the charges are so high. And if you are in your overdraft for all or most of the month, it may seem impossible.
But all banks are supposed to review your overdraft each year, not carry on charging high fees when you are in difficulty. So read How to ask your bank for a refund of overdraft charges and think about making an affordability complaint.
As you can see from this article, banks are rejecting some good cases. You know if the overdraft has been a real problem so if you have a rejection, send it straight to the Ombudsman!
Refunds from cards and catalogues
Worried you can’t pay the car finance?
Refunds from large loans eg banks
Emma R says
This article gives me a bit of confidence in raising a complaint with my overdraft I have with santander since 2016, went to 0 to 2k in 6 months. Just one question do you know if they are closing accounts, this is something that worries me a bit.
Sara (Debt Camel) says
The ones I have seen, Santander has removed the overdraft but not closed the account after a refund has cleared it.
Lots of people worry about having the account closed but it doesn’t seem to be a problem in practice.
Jon says
I am not sure the lack of engagement is just Santander. I have two complaints going regarding Virgin Money. VM have just not engaged with either myself or the FOS however within a week of the FOS sending a decision on one of them they accepted it, within 3 days of them receiving my acceptance they paid out. Not sure what they will do with the major complaint or closing my banking services in retaliation to me making a complaint.
Sara (Debt Camel) says
The Santander cases were rather different in that they offered a full refund before FOS had even assigned the case, suggesting that Santander knew they were going to lose these cases badly, despite the outright rejections they sent.
People worry about bank accounts being closed but this rarely seems to happen. But as you are worried, this would be a good time to open a new one, One of the new challenger banks perhaps, Monzo, Starling or Chase?
Marius says
What about Barclays?
I have an overdraft facility of £6500.00 ( agreed) which I am unable to clear. Even with this facility I struggle to the core. monthly Interests on this overdraft has now reached £140 + per month
I simply do not know where this would end with current cost of living crisis and very high energy cost crisis we are faced with
I am so scared to even reach them as they might change the agreement
Any suggestions please
Sara (Debt Camel) says
So you are in this every day of the month? How long has this been going on for?
Marius says
Many many years… at least 10 years I guess.
I can check it up for sure
Sara (Debt Camel) says
That sounds like a very strong complaint. Read https://debtcamel.co.uk/get-refund-overdraft/ and use the template letter there.
Do you have any other debts with Barclays? Barclaycard? Loans?
Marius says
YES
Barclaycard with just £260 Credit Limit for my lunch/ sandwiches..which I am paying off every month..No issues there
Barclay Loan….Balance £11,000.. which I am paying £20.00 per month with their agreement but now chased by Arvato Financial solutions Ltd on behalf of Barclays Bank UK PLC ( which I just came to realise as a result of full analysis my financial situation because of another issue at hand)
Why now? I wonder all are getting heavy handed when we need every help we can get to overcome this current cost of living crisis and economic crisis we are faced with
Do others feel the same as me?
Sara (Debt Camel) says
Then I suggest you make a complaint to Barclays covering the overdraft and the loan. That is a very large loan to have given to someone who was in difficulty with their overdraft.
Start with reading https://debtcamel.co.uk/get-refund-overdraft/ and use the overdraft template from there.
Adapt that to say at the start that you are complaining about the overdraft and the loan.
Then at the end of saying why the overdaft was unaffordable, add a couple of paragraphs on the large loan and how they should not have given you that given what they knew about your finances.
Fiona says
I put 3 unaffordable lending complaints into Santander, 2 overdrafts and one credit card. All not upheld by Santander then passed to the FOS. FOS upheld both overdraft complaints and I received a total of £9k made up of clearing the balances and then cash for the remainder. Also 2 defaults removed. Ombudsman then also upheld my credit card complaint. Santander did not accept this decision saying I had complained too late – over the usual 6 years, the account was opened in 2012. I said I had only become aware I could complain 2 years ago and the Ombudsman agreed and upheld. So Santander were forced to accept that one too. Another £ 7.5k and another default removed. All 3 cases won within the last 18 months. Always challenge.
Clare says
That’s great! Could I ask – did they close your account after this?
Fiona says
Yes the accounts were closed after the balances were cleared. I had moved banks prior to submitting the complaints so I had no further need for the accounts.
Matt says
Hi Fiona
Well done in getting that result against santander .
Can i ask what email address you sent your complaint to for santander . I would like to raise a complaint with my credit card
Thanks
Matt
Sara (Debt Camel) says
I suggest consumerservice@santander.co.uk and put Complaint as the subject
My page on credit card complaints is here https://debtcamel.co.uk/refunds-catalogue-credit-card/
Rachel says
I submitted an overdraft complaint to Santander and they denied it using the same kind of response above, then 4 days later I recieved a letter saying I had 30 days to clear my overdraft otherwise my account would be closed, I contacted them to arrange a payment plan and they asked me to complete a budget planner which I did that same day and they said somebody would be in touch. I waited 2 days and contacted them on chat and they said somebody would be in touch, waited a week and wrote again and they said my account was in the process of being closed that I had not contacted them in time. I raised a complaint as I had proof I contacted them and the response was that I had not completed the budget planner, even though I had a confirmation email from them that I had, I escalated the complaint and sent a screenshot of there email and they responded from a “senior” complaints handler saying it was not recieved…….I sent my case to the Ombudsman showing all proof they closed my account just for complaining and 2 days later santander made and offer of refund of charges and interest plus 8% from 2016. They are terrible so I would advise to have a backup account just incase. I am still waiting for my refund and also how much I will be receiving.
Sara (Debt Camel) says
Another case of an outright rejection and a full refund as soon as you go to the Ombudsman. This should not be happening!
Interesting that they closed your account – no one else has reported that that I remember. I hope you are now with a much better bank – it’s a hassle but they have done you a favour!
Fiona says
I opened a new current account with another bank before I started complaining. I think it is crucial to do this so you have a back up before you start.
Steven says
Hi I have also set up a new current account before complaining to Santander. I have had an overdraft and in it every month for approx 11 years in which time they gave me two £500 increases to £2000 and often pay £40 per month in charges. with out goings I am in the overdraft within a couple of days every month. I emailed a letter to consumer@santander.co.uk with a letter attached. They have acknowledged the email this week.
Sara (Debt Camel) says
let us know what happens!
Chloe says
I have just received a response from an adjudicator at FOS saying that Santander want to make me an offer to refund me all charges and interest from September 2016 for my overdraft. They said the refund will clear my overdraft and that the facility will then be removed. But there was no mention of my account being closed. Should I be worried? My adjucator has gone back to ask them if they will also be removing default markers as they don’t mention this in the letter and I want to double check this before accepting the offer. They haven’t stated a figure in their offer which apparently isn’t unusual, but they’ve worded their offer quite strangely that it seems the refund will just clear my overdraft and that is all, yet my calculations say I should be getting surplus
Sara (Debt Camel) says
How large is the overdraft? Can you copy the wording in here?
Chloe says
The overdraft is £2000 and I‘be been in it nearly everyday for the last 6 years.
“ Santander have agreed to refund fees and interest between September 2016 and October 2022 and apply 8% simple interest to that amount.
Santander have calculated this will clear your overdraft entirely. Once cleared, Santander will remove the overdraft facility. As we discussed, if this action may cause further hardship, you should contact Santander immediately”
Sara (Debt Camel) says
That is their standard wording. Do you know how much you have paid in overdraft fees and interest since September 2016?
If you think you have more than the current overdraft, you could ask the adjudicator to confirm that you will be getting a cash refund in addition to the balance being cleared.
They aren’t saying your account will be closed and this hasn’t happened to most people. They just remove the overdraft.
Chloe says
Thanks Sara, I’ve calculated that I have paid £3,327 worth of interest and fees in the last 6 years. The adjudicator has gone back to ask if their will be any surplus. With the 8% simple interest, is that taken off the total and multiplied by 6 (for 6 years) or is it calculated individually for the interest paid in each year?
Sara (Debt Camel) says
the way it should work is that your account is reworked without the interest and charges being added. You will be paid 8% interest for the periods that your account was in credit. This is not easy to work out :(
Steven W says
Hi Chloe how did you calculate £3,327 of overdraft fees? I cannot see anywhere on Santander to view all previous fees unless I personally click on each monthly statement going back 11 years. I guess Santander can provide this but just wondered how you calculated it. Similar to you I have been in my overdraft almost constantly for 11 years with 2 increases to £2000.
Regards
Steve
Chloe says
Hi Steve,
It was a long old slog. I had to go through every monthly statement and log the interest which it states on the first page of your monthly statements. Luckily I had a lot of my bank statements saved to my files on my phone as I sent copies with my FOS complaint. Like you Steve, I’ve been in my overdraft for a long time, actually longer than 6 years but because of the six year rule they’re only willing to pay back from 2016 onwards
Steven W says
Hi Chloe / Sara
Santander called me this afternoon to ask what I wanted in terms of redress and to ask exactly what my complaint was. The lady is going to speak to her manager tomorrow and call me back. I have been overdrawn almost constantly for 10 years paying I guess about £2-£2.5k in fees since 2011 and had two increases of £500 in Jan 2020 and Jan 2021. Now £2000 o/d like Chloe…
Has anyone else had the call from Santander where they pretend to play dumb and ask exactly what is the issue?
Chloe says
Keep us posted what they say Steve. I never had a phone call. They rejected my offer from the get go and I went to FOS and now they’ve decided they want to make an offer . What did you ask them for?
Steven W says
Hi Chloe / Sara I asked them for a refund of charges for the long period I was living in my o/d from 2011 (although only valid from 2017 due to 6 year rule) or I would refer the case to the FOS. Someone is apparently calling me back by the end of the week. I said I needed a final response in writing so I can then refer to the FOS, therefore giving the impression I will not be palmed off.
Chloe says
Any news Steve? I’m awaiting Santander to contact me with their calculations
Steven W says
Hi Chloe no, not heard anything since that call last tuesday so I might try that number today and see if I can get hold of this lady who called me, said she would call back last week. As I said it was a strange call, she played dumb asking what exactly was my complaint despite it being explained in the letter / template I sent.
Steven W says
Hi I am also waiting on Santander to reply with their calculations of 6 years overdraft fees. They called me yesterday and agreed to look at refunding the 6 years of fees! I have calculated this myself and it clears my £2000 overdraft plus a few quid on top but not much, however just getting the o/d cleared and reversed will be a relief! Apparently they will call me on Thursday!
Sasha Paton says
Hi Chloe/Steve after being made the offer from Santander with the fos did you receive
The pay out and if so how long did it take please? Accepted the offer just over 3 weeks ago and still nothing received and apparently still haven’t calculated what it should be! So interested to know if they pay out there offers!
Sara (Debt Camel) says
Sasha please relax. You will get paid. It hasn’t been 28 days yet.
Adam says
Hey Sasha,
I’m currently 16 days since agreeing to the offer and sending my details for payment to Santander – how long did it take them to pay you and did you hear anything before?
Thanks,
Adam
T says
Hi Sara,
I raised a complaint with Santander over secure message having lived in my overdraft for a number of years. They were very quick to dismiss it stating:
“Unfortunately, we would not be able to refund the fees on the account due to the fees being correct and valid according to the T&C’s of the product. I understand your perspective that you feel Santander should have seen you were in potential financial difficulty however, it is your responsibility to reach out to Santander to express your concerns as the account is self managed. On our website, your account statements and other account resources we advise to contact us if you require support with financial difficulty.”
I’m awaiting a final response but based on what you say on your website, I understand that the ombudsman considers it a joint responsibility and that they should do an annual review of overdrafts. Worth sending it off to the FOS?
Sara (Debt Camel) says
Definitely! Let me know how this one goes!
T says
Can I just check about complaining about a joint account, do you have to include both persons details or can the complaint be raised by only one of the account holders?
Sara (Debt Camel) says
It needs to be a joint complaint
Chloe says
Hi Sara,
If Santander have said they will refund all fees and interest in the last 6 years, do you know if this will also include fees for unarranged overdraft and fees for direct debit reversals? TIA
Sara (Debt Camel) says
yes it should do.
Steven W says
Had a call from Santander today. All these cases for refunds of overdraft fee’s are now being reviewed by a separate team due to a change in guidelines. Last week I was told my case had been put forward for review and should be looking at a refund of 6 years fee’s but the tone seems slightly different today. Santander have promised to contact me as soon as they hear back from this team reviewing these cases…
Steven W says
Hi Chloe have you heard from Santander? I spoke to them today and all overdraft refunds are on hold whilst they review the refund policy and review on which terms the overdrafts were offered. From the conversation I gathered they are looking for some loophole to try and shake off all these overdraft complaints, but I could be wrong. Frustrating as I was almost there with getting 6 years fee’s refunded then 3 weeks ago hit a brick wall. The review is on going.. I told them they have 3 weeks before the 8 weeks is up and I send it to the FOS.
Chloe says
Not heard yet have you? I have an around 3 weeks before I can submit it to FOS. I’m hoping it’s one that gets an offer within 2 weeks of it landing with the FOS.
Steven W says
Nothing at all, my case is with the FOS for the last 2 weeks now, Santander are saying they are reviewing their policies so I have left this with FOS for now. Not speaking to santander until they contact me as I am fed up of their fob offs. ‘Reviewing Policies’ translates as ‘Trying to look for legal ways to wriggle out of these refunds’
Chloe says
I’m not the person above, but the same name. I too have put in a complaint but haven’t gone the whole 8 weeks yet. I have an around 3 weeks before I can submit it to FOS. I’m hoping it’s one that gets an offer within 2 weeks of it landing with the FOS. How long has yours been with the FOS for?
Sasha Paton says
Hi all mine was with ombudsman for 2 weeks and got an offer last week, anybody know how long they take to settle? They are paying back all charges from jan 2016
Steven W says
Should I also expect interest at 8% then if Santander are offering 6 years of fee’s refunded?
Sara (Debt Camel) says
Yes after the point where the refunds have brought your account back into credit. This can be hard to assess.
Bob says
I can confirm this is still happening with Santander. Made a complaint in January, they rejected it outright. Complained to the Ombudsman and within 2 weeks had an email stating Santander had offered to refund all charges. No mention of the default though, the investigator is now querying this with them. Out of interest, has anyone had their default removed after one of these refund offers?
Sasha Paton says
Hi Bob I’ve just had the same happen to
Me, how long did they take to
Settle?
Bob says
Hi Sasha, it took 2 weeks from me referring it to the financial ombudsman for Santander to make an offer, another two weeks of waiting for them to reply regarding the default, and then I accepted their offer on 27th March once they replied. Still waiting for the payment itself to come through just now. The investigator told me to go back to her if Santander don’t contact me directly to sort within 4 weeks.
Sasha Paton says
Yeah mines been 2 weeks for acceptance of offer and still
No calculation or payment! They do seem to drag it out!
Sasha Paton says
Hi Bob any news yet from Santander?
Bob says
Still nothing, it’s 4 weeks at the end of the week so I’ll be going back to the investigator on Monday if they don’t contact me in the next few days as advised. Nothing for you from them yet either?
Sasha Paton says
No nothing, contacted this week and they said they hope
To have figures and settlement details 2 weeks from acceptance but that’s passed.
Sasha Paton says
Hi Bob did they stick to the 4 week time limit and get in touch or
Still silence from their end? I email the executive team and ceo to see if that would push on movement but just got told I have to now
Talk to the adjudicator as they will liaise
With her but they have yet not calculated any settlement! Can’t see why it’s
So difficult I presume
Within there systems would take a
Matter of minutes to see what’s been charged in an account!
Bob says
Hi Sasha, unfortunately I’ve not heard a thing from them, so will be going back to the Ombudsman first thing Monday morning. Incredibly frustrated, and another example of why they’re having to make these payments in the first place!
Bob says
Just to let you know I got my payment today. Maybe due to bank Holidays it took two days longer.
Sasha Paton says
That’s great glad to
Know! Seems they are taking the maximum possible time with the settlements
Bob says
It certainly does! I didn’t get round to chasing them on Monday either, so they’re slow but it’ll come. Give it a couple of extra working days after your 28 days. Not had any paperwork explaining the breakdown but hopefully it will be in the post.
djw says
does anyone else find with Santander that they sometimes, randomly, seem to charge for overdraft on ‘pending’ transactions, even though they haven’t yet debited your account?
i always make sure my balance is at zero and not in overdraft yet some months i have small amounts of interest charged?!
even Santander themselves can’t seem to explain it when queried!
Sara (Debt Camel) says
I think you should ask for these to be refunded if Santander cannot explain the charges.
Chloe says
Hear how my process with Santander went for anyone going it wondering what they may expect. I complained to Santander end of Feb, they passed their 8 weeks in middle of April and advised they weren’t in a position to resolve it as they were looking at policies. I put the complaint to FOS where it’s been for the last month, not picked up. At the end of last week Santander called, they offered me a refund going back 6 years plus interest. A total of 3117. The refund was in my amount the same day. I’ve not seen that balance at zero for as long as I can remember. Thanks again Sara, amazing!
Sara (Debt Camel) says
Good!
Jen says
Hi Sara, got an email from FOS 5 days after initial complaint sent to them, asking me to send all emails from Santander, which I did, just wondering if the FOS contact Santander at this point too, as saw people have been getting offers after 2 weeks of complaint being with FOS & if they do make an offer is it worth waiting for an additional 3 years & do they usually add the additional 3
OD of £2300 for around 20 years, originally student acc then the charges started, constantly in OD, even on payday I don’t get near 0.00
OH & just to add the FOS email was in my junk box don’t know why ?? I’ve an iCloud email just so others check their junk as well as inbox
Sara (Debt Camel) says
Yes FOS will ask Santander for their case record.
if they do make an offer is it worth waiting for an additional 3 years & do they usually add the additional 3
I think you may have misunderstood the 6 and 3 year rules.
FOS can look at anything that has happened in the last 6 years.
Additionally, if FOS decides you have has a cause to complain in the last 3 years, it can decide to go back further than 6 years as far as it chooses. This doesn’t extend the 6 years to 9 years.
I suggest you wait and see if Santander make an offer and then decide when you know what it is. Come back here if you aren’t sure!
Jen says
Hi Sara update, Santander called me 2 days ago, to say they will be refunding charges & interest from April 16, they said the 1st letter they sent out about my overdraft was April 15, so are refunding 1 year from that date, told me the money will be in my account the next day, which it was, they said they will be removing my OD, done & someone from account opening will be in contact in the next 10 days so I can apply for a basic acc. I queried if a new acc will my acc number still be the same as I have DD due out, they couldn’t confirm that, said they would contact me yesterday to confirm that redress paid & if new acc will have same details & card as old 1, no contact yesterday. But money is in my acc & card still active, will wait & see if any other changes, thanks for your advice on here it’s amazing & good to know I no longer live in my OD
Sara (Debt Camel) says
Good news!
Jen says
Hi I was contacted again today to open/ transfer to basic acc, explained my new acc will be same details as old acc except the different name, then went on to explain, can’t use contactless any more, which will be a pain as my eldest lives near London & contactless needed for underground, acc does not take CPA either so the debt I’m trying to reduce by £50 a month can’t be paid, (ive paid extra to it from the redress) was told they will get back to me again & go back to complaints to see what happens next
Sara (Debt Camel) says
You can always open an account with another bank.
Emma says
Hi, made a complaint to Santander on 28th April so 8 weeks have just passed. Received a letter from santander saying they hadn’t completed investigation but are looking into it. Letter asked stated they needed more time but that I could take my complaint to the Ombudsman now. Should I sent this straight to the Ombudsman to at least gets the wheels in motion? Anyone else get the same letter?
Sara (Debt Camel) says
Santander needs to staff its complaints department better, quite a few people are getting this.
yes I would send this to the Ombudsman now. If in a few more weeks you get a good offer, then that is your case at the ombudsman sorted. And if you don’t, you are in the process and a few weeks closer to it being resolved.
Emma Robertson says
Thanks for your help Sara. Sent over to the Ombudsman, however I contacted Santander via telephone today for an update as it would have been 12 weeks tomorrow I’d sent the complaint. Had a call back from them within minutes they are refunding all charges from Sept 16 when they gave me overdraft, money in my account today. Downgrading to a basic account and removing overdraft etc. Very happy with this result.
Sara (Debt Camel) says
Nice one!
Raeanne says
Hi
I wondered if anyone could give me some advice. I have an account with Santander and have an overdraft of £2000. My salary is less than this but I do have other credits that go into my account each month taking total credits in reaching to around £3750. I never am out of my overdraft though as I have direct debits that come out several times a week.
I took a loan from Santander a couple of years ago and paid off the overdraft but then I had a PPI payout, which I used to pay off my loan. I was back to bring in the black! Then because of increased prices of literally everything, I applied for another overdraft which is at £2000. Would it be worth putting in a complaint? I’ve recently opened another account elsewhere (but not currently using it) but I am worried that if I put a complaint in, they may just reject the complaint and demand the £2000 overdraft back in an unrealistic amount of time which may then put me in more debt and affect my credit score.
Thank you
Sara (Debt Camel) says
What are the other credits – benefits, child maintenance or what?
I took a loan from Santander a couple of years ago and paid off the overdraft
What year was this? At that point had you been constantly in your overdraft all month for years?
Then because of increased prices of literally everything, I applied for another overdraft which is at £2000.
when was this?
do you have any other debts at the moment?
Raeanne says
PIP, DLA and some cash deposits when I borrow money off family as well as Child benefit.
I took the loan out in 2020, paid it off and eventually paid off the loan too.
I have other financial commitments such as 2 credit cards and 2 finance debts (Next and Currys).
My over draft went from £200 in 2021 to £2000 in 2022 and it’s been the same since.
Sara (Debt Camel) says
OK so your overdraft problems fall into two period. Before 2020 and from last year.
If before 2020 you had been in your overdraft for all or almost all of the month for a long period, you should complain about that. Getting a refund from that period can help with the current overdraft situation.
It is much less likely that you will get a refund for the current period. Overdrafts are there for when you have problems, it is the prolonged use of them that a bank should look out for. The problems haven’t been going on for very long.
I think you should talk to StepChange about a debt management plan so interest is stopped on all your debts. See https://www.stepchange.org/how-we-help/debt-management-plan.aspx. That does harm your credit score but when you don’t have to make such high debt repayments, that doesnt matter so much as you don’t need to keep borrowing. It sounds as though you have had debt problmes for many years – a DMP can stop this constant cycle.
Two other points:
1) If the loan you took to clear the overdraft was also causing you difficulty and you only manage to clear that because of the PPI refund, then you should complain about that too. See https://debtcamel.co.uk/refunds-large-high-cost-loans/ for a template for a loan complaint.
2) the PPI refund – was there any tax deducted from that? If there was, then you may be able to can reclaim up to £200 of that from HMRC. See https://debtcamel.co.uk/ppi-payday-refund-get-back-tax/ for how to do this
Raeanne says
Thank you.
I have been living in my overdraft for several years. Obviously at one point it was paid off totally but within 3 months I was back in one. That has now escalated to £2000 which I am never out of and been in it since the beginning of 2022.
I will put a complaint in.
As PIP has only been a new thing for me since last year, will they argue that as I get an extra credit from that per month, my income is higher and my finances should be more manageable? Obviously they can see what my other financial commitments are from the debits that come out of my account.
Thanks
Sara (Debt Camel) says
You can also argue that you were awarded PIP because you had additional costs because of your disability – that may have been extra heating, paying for minicabs, someone to wash your heair, help around the house, special diet, whatever.
KB says
I have raised a complaint however the angle and approach slightly differs due to the fact that I was hardcore borrowing and the overdraft fees interest along with numerous other debts were getting the better of me. I was in a significant sum of debt across credit cards alongside the student overdraft which had begun to gain charges of interest.
I was advised by the bank to opt for a consolidation loan at a lesser interest, it was advised from Santander who I had the overdraft with. This was advice given to me following a rejected request of forbearance on the account. The information I was given by the bank was that we cannot freeze payments for you to pay off the overdraft however if you opt for this consolidation loan with us the interest will be less.
I wondered if you can advise me how I should approach this with Santander as I am concerned that my angle hasn’t been the best this far.
Kind Regards
KB
Sara (Debt Camel) says
How long ago was this advice to take a consolidation loan?
Did you take the loan?
KB says
The consolidation loan advice was given in 2021 after I requested a freeze on my overdraft charges so that I could pay a sum each month to clear the balance.
I did take the loan I was suffering with my MH as a result of the debts hanging over me and this seemed the best way to pay one sum every month to clear all the debts together (the overdraft and 4 credit accounts).
I am still paying the loan currently
Sara (Debt Camel) says
OK so you have two possible complaints to Santander
– the first for a return of overdraft fees before 2021. See https://debtcamel.co.uk/get-refund-overdraft/ for how to complain about this
– and the second about the loan if the repayments are so high that you have had to take on more debt, eg using your overdraft again. See https://debtcamel.co.uk/refunds-large-high-cost-loans/ for complaints about loans.
Rob says
Hi Sarah
Firstly. thank you so much for all that you do. Helping people all over the country. I have a question. I have received an offer back on my Overdraught complaint. They told me over the phone that I would receive £2400 back but never had anything in writing. I was happy with this result at the time but 3 weeks later I received the final letter back stating ” Having completed a full review of your account number ending xxxx, it has been agreed that we should have stepped in before now to assist you with reducing your overdraught facility. I have therefore paid all charges incurred after November 2020 back to your account as this date was 24 months after continuous overdraught usage. This is a total of ££2069 plus 8% interest which has been paid to reduce the total arrears of your account, once the balance has been brough to zero I will request that any default markers be removed from your credit file”.
My query is, are they correct to repay only after 24 months after continuous overdraught usage? And also, because they are initiating payment, am I able to make them reveiw this? I didn’t explicity accept or decline their offer, but was happy with the original outcome.
Sara (Debt Camel) says
I suggest you go Back and tell them they told you on the phone that they would be refunding £2400 and you are Not happy that has now been reduced to 2069. Say you will Be sending the complaint to the Ombudsman if they don’t increase it.
Jameson says
Hi Sara,
Thanks for your advice – Santander did indeed respond the next day (!!!) with a letter saying the exact “While I appreciate the problems this situation has caused you, my investigations have shown that this wasn’t due to a mistake on our part.”
Their reason was that it was offered to me under the terms and conditions that the fees have been charged as a part of, that they aren’t unlawful and that it’s in line with their policy.
I’ve been at max £2,000 of the overdraft for years as well as having others that I am only really making minimum payments on, so I can’t really see how they can claim it as affordable. Sent to the ombudsman with everything I feel they failed to or unfairly addressed.
Thanks again Sara, this really gave me courage to stand up for myself.
Kira-Beth says
Anyone finding that they just can’t seem to get anywhere with Santander? I escalated to the ombudsman but the complaint was raised around 13 weeks ago now and still nothing, ombudsman are due to assign it to someone soon but not a peep from Santander aside of them advising me they are going to close my savings account I had with them
Sara (Debt Camel) says
how much money is there in the savings account?
Kira-Beth says
Nothing fortunately haha!
Sara (Debt Camel) says
ok! I was just going to warn you that with significant savings you were unlikely to win an overdraft affordability complaint!
Kb says
Hi Sara! For some reason they’ve sent correspondence to say they were closing it but actually haven’t closed it so I’m not sure what’s going on there. 16 weeks since my complaint was raised and still no response unfortunately
Julius Griffin says
Kb let me know if you get anywhere. I made a complaint to Santander as I had an overdraft that was increased after I was a student and since then pretty much every month I’ve been at the bottom due to low income mostly and disability without support. I have received overdraft charges almost every month and sometimes it’s been such a hit. Anyhow I’m so glad to find this, I complained last year beginning of November but I didn’t get any reply from Santander, the financial ombudsman said someone is going to look into my case so I guess I’ll just have to wait. It will be interesting to see what happens given I had no reply from Santander, is that odd or common now?
Julius Griffin says
I got a message from the investigator telling me Santander told them they didn’t receive my complaint, I sent my complaint letter to their consumer complaints email address early November and it went through with no postmaster error I’m sure the address was correct so I’m not sure what happened there. Kind of annoying haha, I said this to the investigator and thanked them for looking into it, they said Santander has 8 weeks to respond, hopefully they respond now they’ve acknowledged the complaint and at least it’s progress.
julius griffin says
Just to say I messaged Santander customer service on the app to see if I would have any luck, it turns out the address I used for my first complaint consumerservice@santander.co.uk is for Santander car insurance so not connected just in case anyone comes across it, a bit miffed I didn’t get a response anyhow but it means I’ll just have to wait from the date that they received the complaint again. I’m not sure what email complaints can be sent to maybe just messaging on the app is the only way..
Sara (Debt Camel) says
that is the email address for complaints that Santander lists on its FCA registration.
KB says
Hi Julius
To add to this sounds similar to me I raised to Santander beginning of November they never responded I chased and they said they noticed it was with FOS so they would update them not me, I found that chasing up with FOS helped to progress a case handler being assigned so I’d advise doing that after a month or so that it’s been with them
KB says
Hi Julius!
Absolutely, my case handler at the FOS has written to Santander to advise they need to refund all interest charges along with the 8%, Santander have until the 5th march to respond. With mine my mental health was so bad I consolidated this debt along with some others into a loan with Santander and I’ve been advised to complain about that too as my student overdraft and any interest is now wrapped up in that loan
julius griffin says
Maybe I would say I have been caused significant psychological distress by accepting the loan as it’s not something we all have the capacity to easily manage if our health isn’t good. Anyhow thanks for the reply hopefully you get a resolution soon, I got an update on my complaint email from Santander just saying it’s taking them longer than expected to deal with my complaint xD but at least it’s something.
Lee-ann says
I sent a caomplaint to Santander on 12th January, I sent it through the app chat, was given a reference number and told it was being investigated, I received an email from santander on the 8th March (8weeks from intitial complaint) asking for more time to investigate my complaint. I went on the app yesterday to ask for an update and was told that I should receive a decision by the end of this week which will be 10 weeks from initial complaint. If i dont receive anything i will contact FOS on monday……..
Julius griffin says
I have good news anyhow, they called me today, the ombudsman had messaged me last week to say it had been 8 weeks and they will chase it, I’m not sure if that had an affect but I would guess it wouldn’t hurt to get them onboard. I also received an email last week just to say it had been 8 weeks that they are continuing to investigate but I’m free to go to the ombudsman. Anyhow when they called today the person was quite friendly and said they had investigated my case and there offer was to refund fees with the 8% interest back to 2017. This comes to £2600 I think, and the overdraft being paid off will be removed and I’ll be blocked from having an overdraft for a while. They said it will be in my account by tomorrow. I’m happy with that result as it’s better than I had worked out, and not having those fees mess up my nuerodivergent life haha every month is a big relief, thanks for the information and space to share.
KB says
This is brilliant Julius.
I can only hope I get some clarity on mine soon It’s been 6 months since I raised my initial complaint and the bank are not responding to the FOS case handler. She has advised if the bank continue to provide no update they will have to raise this for a final decision by the ombudsman.
Sara can you advise what I should expect in a situation where the bank are not responding to my case handler at the FOS?
Ironically I have another complaint with the bank for unaffordable loan and they’ve provided a final outcome on this which now has to be escalated to FOS but yet this complaint that was raised months prior has not come to a close
Sara (Debt Camel) says
Leave it up to FOS to sort out.
N says
Hello Sarah
Are you aware if this is still happening? Like many others on this thread I didn’t receive a complaint outcome within the allocated time frame, so I referred it FOS.
However since referring it to the FOS I did get an outcome and Santander didn’t uphold it. Now I’m wondering if Santander is just declining complaints in order to say they’ve at least looked at them!
Sara (Debt Camel) says
Santander has to respond to your complaint. I wouldn’t say they have a great record of upholding complaints, but it’s no longer the No To Everything it seemed to be a couple of years ago.
Good luck with your FOS case!