If we’re always (or almost always) using our overdraft, we may be able to claim interest and fees back. This can add up to £100s or even £1000s…
Banks are facing a challenge to the way they operate overdrafts on current bank accounts. If our bank has given us an overdraft, and we find we are always using it, we could be due for some help in the shape of returned interest payments and bank charges.
This is because the bank has failed to run a proper ‘affordability check’ on us. This is how they decide how much we can afford to borrow. And the bank’s code of practice sasy they should review this check every 12 months, often they don’t.
£8,000 refund
One woman successfully claimed £8,000 from Barclays. ‘Laura’, who lives in London, made a complaint to Barclays in January 2023 and within weeks had been refunded £8,000, covering fees and interest accrued over a six-year period. The bank says this was done “as a gesture of goodwill”.
The refunds were made after ‘Laura’ used a template letter from debtcamel and wrote to her bank. But banks won’t always just cough up the money. Sometimes we may need to go to an ‘ombudsman’ which is an independent judge who will decide our case. That may sound like a faff, but the good news is that the ombudsman will often find in our favour.
Stubborn overdraft
If we’ve been struggling for years with a stubborn overdraft that we just can’t shift, this is definitely worth a go. And it won’t negatively affect our credit score, whatever the outcome.
Image: Bigstock/Waldemarus
