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    • handac
    • By handac 6th Jan 18, 8:49 PM
    • 1Posts
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    handac
    Claiming bank overdraft charges
    • #1
    • 6th Jan 18, 8:49 PM
    Claiming bank overdraft charges 6th Jan 18 at 8:49 PM
    Hi everyone,
    I've looked through the moneysavingexpert website and read about reclaiming overdraft bank charges. There were several points that qualified us to apply including constantly going over our overdraft every month and having less money the following month as we've had to cover the money we went over and then the charges on top.
    I've followed the template provided and written my letter including a breakdown of charges and interest. Then my partner puts a spanner in the works and asks if considering our circumstances with going over the overdraft; would any money we are awarded from the bank be taken to cover the overdraft and our overdraft cancelled???
    Also we were both on debt management plans when we took out an overdraft on our account (my partners is now finished) and when it was increased at least two further times. We don't know if we did declare this and if we didn't then will this also be a problem as it was one of the points that qualified for us to apply.
    Very confused and anxious about possible consequences of reclaims please help.
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    • dunstonh
    • By dunstonh 6th Jan 18, 9:59 PM
    • 90,300 Posts
    • 57,080 Thanks
    dunstonh
    • #2
    • 6th Jan 18, 9:59 PM
    • #2
    • 6th Jan 18, 9:59 PM
    I've looked through the moneysavingexpert website and read about reclaiming overdraft bank charges.
    Good that you have read it. You will now know that after the banks won the case in 2009, reclaiming overdraft charges ended.

    Nowadays, it is just incorrect application of charges and current financial hardship where it is possible. And in the case of the latter, it is a goodwill gesture and refunding some recent charges is not the only thing open to them.

    I've followed the template provided and written my letter including a breakdown of charges and interest.
    You didnt need to itemise anything. its a waste of time doing that. Also, you dont get any interest back.

    Then my partner puts a spanner in the works and asks if considering our circumstances with going over the overdraft; would any money we are awarded from the bank be taken to cover the overdraft and our overdraft cancelled???
    The bank will be assessing your scenario to see if you are in genuine financial hardship or whether you are just spending too much. They will likely as you to complete a budget analysis or discuss your spending with them over the phone. They will check your bank statements to see what you spend your money on. People in financial hardship dont have Pay tv subs or shop at next or buy sandwiches at M&S or going on holiday to Spain (those are some examples where people have in the past said they were in hardship and trying to get a refund but were rejected by spending money on those things - i.e. spending beyond their means on lifestyle things rather than being on the breadline).

    They may decide to refund nothing but suspend future charges for 3 months. Or they may decide to put you on a debt management plan. Or they may refund a certain amount of charges (typically the last 3-12 months depending on the situation) and decide that now they have got you out of hardship, they will reduce or remove the facility. So yes, cancellation is a possibility. Not the account. Just the facility to overdraw.

    We don't know if we did declare this and if we didn't then will this also be a problem as it was one of the points that qualified for us to apply.
    Actually, debt management plans can do your request more damage than good sometimes. Going into a debt management plan is one way to make things more affordable and get you out of trouble. That is a solution open to them in place of getting a refund (or in addition to getting a refund). So, they may consider that was enough to get you out of hardship. Or conversely, if the debt management plan failed and your spending really is genuinely breadline, they may consider to refund a greater amount than they would normally do.

    Each case is on its own merits but all are reliant on the goodwill of the bank. You need to paint a picture that makes the person feel for you. Not go in all guns blazing. And under no circumstances mention the charges as being unfair (or words to that effect).
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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