Bank charge claims 🏦

13 Feb

Table of Contents

Mass bank-charge reclaims are largely a thing of the past. Most banks no longer charge huge fees for going over your overdraft limit.

That said, people in genuine financial hardship can still reclaim past bank charges — and many have received £100s or even £1,000s back, particularly where charges snowballed and made their situation worse.

When reclaiming bank charges still works

If you’ve just been hit with a one-off recent charge, your best move is simple:
Call the bank and ask for it to be refunded — this often works.

This guide is for people where:

charges built up over time
they were already in financial difficulty
or bank fees actively made things worse

That’s where refunds are still happening.

Who can reclaim bank charges?

The key test is financial hardship.

You don’t need to prove the charges were “illegal”. Instead, you need to show:

There’s a clear link between the bank charges and your financial hardship
Either:

you were already struggling and charges made it worse, or
the charges pushed you into difficulty

You may qualify if some of these apply (now or in the past):

Struggling to pay essentials (rent/mortgage, council tax, food, utilities)
Falling behind on debts (loans, credit cards, overdrafts)
A large chunk of income went on bank charges
Payments regularly bounced or were returned unpaid
A sudden drop in income (job loss, illness, separation, caring responsibilities)
Increased costs due to disability or serious illness
In an IVA, debt relief order, debt management plan or bankruptcy
Reliant on credit to get by
Frequently over your overdraft limit
Caught in a cycle of charges (charges causing more charges)

This last point — snowballing charges — is one of the strongest arguments.

**What doesn’t usually qualify**

Occasional overdraft slips with no hardship
Charges you could comfortably afford
Packaged account monthly fees (different reclaim route)

If you weren’t struggling financially at the time, success is much less likely.

How much can you reclaim?

There’s no fixed amount — it depends on:

how many charges you paid
over what time period
how clearly they link to hardship

Important points:

You can reclaim on closed accounts
You can reclaim from multiple banks
You can reclaim again, even if you’ve reclaimed before
Six years is a good rule of thumb, but you can ask for more

Some people get:

£100–£500
Others (with severe hardship and long histories):
£1,000s

Partial refunds are common.

Can you reclaim interest too?

You can ask — but it’s not guaranteed.

Courts can award 8% simple interest
The Financial Ombudsman may award interest if you request it
Some banks offer refunds without interest as a compromise

Always ask — you can always negotiate later.

Step 1: Get a list of your past charges

You do not need old statements.

Try these first:

Online banking (if available)
Calling your bank
Writing to request a list of charges

Important tip

❌ Don’t ask for “statements”
✅ Ask specifically for a list of charges

Banks can charge up to £10 under data-protection rules, and have 40 days to respond.

Step 2: Write to the bank and ask for a refund

This is where you explain:

your financial situation at the time
how the charges affected you
why you believe they were unfair

This isn’t about legal language — it’s about telling your story clearly and honestly.

Evidence helps:

bank statements
redundancy letters
medical evidence
debt-advice letters

Banks have 8 weeks to respond.

What responses you might get

✅ Full refund

Rare — but it happens, especially for small claims.

⚠️ Partial refund

Very common. You can:

accept
negotiate
or escalate

🔁 Refund used to clear debt

Usually allowed. If you’re still in hardship after, say so.

📄 Asked to complete a financial statement

Fill it in carefully and return it promptly.

❌ Rejected

This is common — and not the end.

Step 3: Escalate to the Financial Ombudsman (free)

If the bank refuses or drags its feet, you can complain to the Financial Ombudsman Service.

Key points:

It’s completely free
You must complain to the bank first
You can go sooner if the bank issues a final response
Decisions are binding on the bank

The Ombudsman looks at:

fairness
hardship
whether the bank treated you reasonably

Many claims settle before a formal ruling.

How long does it take?

Bank stage: up to 8 weeks
Ombudsman stage: often 3–9 months

This is slow money, not quick money.

If you lose at the Ombudsman

For most people, that’s the end of the road.

Court action is technically possible, but:

legally complex
untested
risky
and very unlikely to succeed

We wouldn’t recommend it for most people.

Final thoughts

Reclaiming bank charges is not easy money — and it’s not for everyone.

But if:

you were in genuine hardship
charges piled up
and they made your situation worse

…it can still be well worth trying, especially as the main routes are free.

At worst, you spend some time and get a no.
At best, you could get £100s or more back — money that was taken when you could least afford it.

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