Report Bank Charges successes and failures

jon995

I was charged around £15,000 over a 10 year period between around 1999 to 2010. Often £150 everytime I went pennies over my overdraft limit by HSBC bank. Being charged £300 a month meant that the following month O also went over my limit and so on. They kept increasing my limit and upping my credit card limit. At one point my CC limit was £15,000. And my overdrafts were £3000 and £4000 respectively. I currently owe around 16,000 in total including to hsbc credit card and overdrafts from those old accounts, pay day loan company, bank loan, car loan (car written off no gap insurance) and Barclay card took out to cover expenses at that time. These debts are with step change. I had to move house and down size. At the time I was also ill, exacerbated by the mounting debts, and took a large pay cut by changing jobs. I have a very bad credit score obviously and even as a full time teacher I cannot get a decent car or new windows or insulation etc etc for my house. My wife’s credit is bad as it is  be linked to mine as well.  Is there any chance that a claim would work for me at all??

dunstonh

Is there any chance that a claim would work for me at all??

Banks will consider current financial hardship cases.  In those cases, they don't just have a refund of charges available as an option.  They may choose to suspend future charges for a period instead or put you on a debt management plan.  Where they do consider a refund of charges, in most cases, it is no more than 12 months.   There are exceptions to that.  I think the most we have seen on this site in the last decade is 3 years but its rare.

[Deleted User]

jon995 said:

I was charged around £15,000 over a 10 year period between around 1999 to 2010. Often £150 everytime I went pennies over my overdraft limit by HSBC bank. Being charged £300 a month meant that the following month O also went over my limit and so on. They kept increasing my limit and upping my credit card limit. At one point my CC limit was £15,000. And my overdrafts were £3000 and £4000 respectively. I currently owe around 16,000 in total including to hsbc credit card and overdrafts from those old accounts, pay day loan company, bank loan, car loan (car written off no gap insurance) and Barclay card took out to cover expenses at that time. These debts are with step change. I had to move house and down size. At the time I was also ill, exacerbated by the mounting debts, and took a large pay cut by changing jobs. I have a very bad credit score obviously and even as a full time teacher I cannot get a decent car or new windows or insulation etc etc for my house. My wife’s credit is bad as it is  be linked to mine as well.  Is there any chance that a claim would work for me at all??

You can't complain (not claim) about historic charges, you could have put in a hardship case at the time, now you are in a debt management plan, you might get a token gesture but you won't get £15000 of old charges back

Finallyfacingup2

So I just wanted to advise on my story for anyone who may be interested… as a 24 year old, single, renting own 1 bedroom flat, 2nd hand relatively old car, I found it difficult to make ends meet. My credit card debts started to grow and the more they grew the more I was offered until I got to a point were my minimum payments each month were approx £500 and the interest going back on was about £490 because I had exhausted all of the 0% balance transfer offers. I was using my cards just to feed myself and put fuel in the car by this time. I had no idea how  I would ever get out of that situation. But after being on here I faced up to my debts and knew I had to act. So I spoke to the bank that I then had cards with (which was only 2 by then - but they were high balances) and I had to default on both accounts. This would have caused me a lot of stress had I not read up about the process on here. Since then I had been paying off a tiny amount each month. 

But then someone mentioned about possible claims for irresponsible lending and I felt that I had a case for this so again read up more on this process on here and researched each card/loan/store card etc I’d had over the last 20 years and I dropped them all an email (using the resolver tool). And despite some people stating you can only go back 6 years some of mine go back to 2008. 

To my surprise a number came back and agreed that they shouldn’t have offered me credit when they did but others either ignored my email or replied and told me that they didn’t agree and to refer my case to the financial ombudsman who would decide fairly one way or the other. 

I have now heard back from a lot including the 2 biggest cards that I had and every one has ruled in my favour with the FO stating that they shouldn’t have offered me credit at that time. So a refund of all charges and interest (plus 8%) should be paid back. Some have tried to wriggle out but in the end have paid what they should. And some have been ongoing for 18 months. And all default markers on my account have now been removed. 

My defaulted accounts were obviously and rightly paid back first and anything outstanding was paid to me. 

I now don’t owe 1p of debt to anyone and I have set up a savings account to hopefully start saving for a deposit on a house finally. I may get a little more back from the remaining ones that are still sitting with the FO but each one is just a bonus. I don’t expect anything back but I won’t give up trying either. 

I know that some peoples view will be that this was irresponsible spending and I’m ok with that. I agree to some extent but I’m also grateful that the finance industry, often through the FO is now taking some responsibility and agreeing that they shouldn’t promote and encourage people to get into unmanageable debt that can lead to financial disaster, sleepless nights and mental health issues. 

Details of my successes are in my signature below and I just hope that my story gives some people a little bit of hope that there is light at the end of the tunnel. Communicate with your banks (all of whom were courteous, professional and non judgemental with me) and if you feel that you have a case for asking for charges and interest back then just go for it. Don’t expect to get anything back but do what you can to fight your corner and don’t give up. 

And then thank Martin Lewis for all that he has done for people like us!!! Without him, his website and the people who offer advice and support on here my world would be a lot darker right now! 

[Deleted User]

It's good to hear but any bank should consider irresponsible lending / financial hardship cases if approached, this is fairly normal

Jim3891

There is a recent article about reclaiming charges by Kit Sproson on MSE. He states you need to provide evidence of current hardship or hardship in the past and mentions attempting to go back 6 years for charges or even further. 

This seems to be at odds with what many posters have said on here regarding current hardship cases only being looked at (maybe up to a year or two).

So is it worth going after 3-6 years of charges if in hardship at that time and that financial situation being roughly the same as now (so potentially hardship all the way through without it breaking)?

dunstonh

Jim3891 said:

There is a recent article about reclaiming charges by Kit Sproson on MSE. He states you need to provide evidence of current hardship or hardship in the past and mentions attempting to go back 6 years for charges or even further. 

This seems to be at odds with what many posters have said on here regarding current hardship cases only being looked at (maybe up to a year or two).

So is it worth going after 3-6 years of charges if in hardship at that time and that financial situation being roughly the same as now (so potentially hardship all the way through without it breaking)?

The vast majority of cases where refunds occur, look at the charges in the last 12 months.   However, every now and then, a case appears where refunds going back over multiple years comes to light.

It really depends on a whole range of issues regarding inaction or actions taken by the bank that were potentially wrong and whether the person is genuinely in hardship because of their own actions or because of things happening to them which they could not control.

mbvarkestra

Bank: Barclays
Amount Reclaimed: £5044 (inc. Interest)
Amount they paid: £3446

Barclays bought in new overdraft charges in 2016 - sending me into snowballing debt. The new charges were 3x the interest I was previously paying & I could cover the charges each month, but never got out of debt.  

In the end I borrowed the money at a better rate to pay it off (Feb 2020 - so we all know what happened next!)

I only just pulled it together to complain in spring 2023 (I was in an OK emotional place to deal with them coming back and denying any responsibility)

They've agreed to uphold the complaint and pay back the last 6 years overdraft charges. 

brightpinkgerberas

I recently claimed my bank charges from Lloyds and wanted to share how easy it was in the hope that it will encourage others. I stressed that when they adopted their daily charging system it hit me hard and that they didn't provide any support. I used the template provided by Martin. I didn't actually claim a set amount but advised what the approximate daily charge was on my account. I had in my mind the sum of £3k and I thought that this would be discussed later. They sent me an acknowledgement within a week and in just over a month they arranged a call where they advised that they agreed with my claim and I would receive £4.5k. This was all the charges, plus a few extra charges I'd forgotten about and the interest. To say I'm blown away is an understatement. I received the money that same day! If your story seems similar to mine then go for it. 

samdowner1

I received a letter today fro Lloyds bank saying they would refund me £82 in charges but will be cancelling my arranged overdraft and I can’t have one for 12 months. They said it’s customer support. I’ve been with them for 36 years and this feels really punitive and unpleasant, any suggestions please?