Are You Continually Overdrawn?

If you’ve had a big overdraft for a long time, an overdraft limit at a level you are unable to clear, or an overdraft causing you long-term financial distress, you may be entitled to a refund of charges.

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What are Overdraft refunds?

You are borrowing money when utilising an overdraft, just like with loans and credit cards. Your bank is providing you with credit up to an agreed limit based on your financial circumstances. Overdrafts provide a solution to short-term borrowing, not long-term borrowing.

Banks are regulated by the Financial Conduct Authority (FCA) and should regularly review their customers’ financial circumstances. Where they notice signs of financial difficulty, they should offer support. A key sign of a client in financial distress is “hardcore borrowing” over an extended period.

“the position where a customer’s current account overdraft remains persistently overdrawn for more than a month without returning to credit during that period”.

The lending code

Checking you have a valid claim

Expert view: The emphasis on this claim is affordability. A successful claim illustrates that the overdraft was unaffordable and that the bank should have recognised this through the customer’s financial statement/credit record.

If ANY of the following apply to you, then you may have a claim against your bank.

  • Overdraft is/was higher than your monthly income.
  • Reliance on your overdraft for everyday bills.
  • Direct debits or standing orders defaulting.
  • Gambling transactions on your statements.
  • Took out a loan or any other form of borrowing such as credit cards with your bank whilst overdrawn.
  • Made redundant or lost your job.
  • Increased borrowing with other lenders.
  • A worsening credit record.
  • Using payday loans.
  • Increasing mortgage arrears.
  • Making payment arrangements with other creditors.
  • A reduction in income.
Couple checking list

The Evidence you need

When you complain to your bank, you don’t need to supply any exact dates or statements; they already have this information.

However, everyone’s case is different. To bring a strong case to both the lender and FOS (if the bank rejects the initial complaint) it is a good idea to have some evidence or information to hand that could assist your complaint.

The information that you would need to gather is as follows:

  • Name of Bank
  • Current account number of the overdraft
  • Overdraft limit amount
  • *Key Dates (where applicable) such as:
    1. When the bank increased your overdraft and by how much
    2. When you started to use your overdraft for extended periods
    3. When your level of income changed

*Note - You don’t need to know the exact dates, the relevant year will suffice.

Frequently Asked Questions

The time it takes to process unaffordable overdraft claims varies from case to case. At our team strives to handle your claim promptly, aiming to get your money to you as soon as possible.

You typically have up to 6 years to make a claim for past overdraft fees, so you have plenty of time.

The amount you could potentially get from an overdraft claim is determined by the extent of the financial losses you incurred due to your unaffordable overdraft. There's no specific minimum or maximum limit for this, which is why it's crucial to have experts like to maximize your claim.

Average Claim Pay-out

Claims can range from £100s to £1000s and depend upon factors including length the of time spent in overdraft. We will be looking to reclaim all the interest and charges that were added to your account alongside a further award of 8% simple interest added to any refund.

We will also request that all late payments and default notices be removed from your credit record.

Don’t Delay, Claim Today

Why choose Financial Claims?

100% Confidentiality

100% Confidentiality

Being discreet is part of our business, our legal representatives will never discuss your case without your permission.

Proven Track Record

Proven Track Record

So far we’ve handled over 10,000 cases and claimed back over £2,000,000 for our clients so you are in safe hands.

Claim Professionals

Claim Professionals

We partner with specialist firms so your claim is handled by an expert who is familiar with your type of claim.

Don’t Delay. Check Now.

The deadline for claims against each company is different and that’s already started to expire for some payday lenders which means you can’t claim. The form takes 5 minutes to complete, so why not check now?

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