Reclaiming overdraft charges

Harmsy

Hi Guys,

I have been reading the article about reclaiming bank charges for financial hardship.

I have a £3000 planned overdraft, I'm not sure but I think this may mean I am unable to claim for anything because it is "planned". However I am really struggling with financial difficulty at the moment as a result of slowly working up an overdraft and credit card debt. For the last two years every month after I have paid rent combined with nursery fees my monthly pay has been completely wiped out.

I have also been told before that I should not have been allowed to have such a high planned overdraft by a Lloyds representative when talking on the phone.

Every month for the last two years or so I have been getting a flat rate £5 charge for being in my overdraft plus a £35 - £45 interest on top of that. Am I allowed to reclaim these charges?

Thanks in advance for any and all help!

dunstonh

Do you have any arrears or defaults on your debts?

Am I allowed to reclaim these charges?

You can ask them but they are under no obligation to refund any. You just need to put your case to them. Tell them what arrears and defaults you have and give them a budget breakdown that shows you are finding it difficult to live within your income.

If they agree and your bank statements have no luxury payments going out (i.e. Sky TV, mobile phones, restaurants etc) then they may choose to refund some of the charges or suspend interest for a period etc.

Harmsy

Ok thanks for your help

Wywth

Harmsy wrote: »

Hi Guys,

I have been reading the article about reclaiming bank charges for financial hardship.

I have a £3000 planned overdraft, I'm not sure but I think this may mean I am unable to claim for anything because it is "planned". However I am really struggling with financial difficulty at the moment as a result of slowly working up an overdraft and credit card debt. For the last two years every month after I have paid rent combined with nursery fees my monthly pay has been completely wiped out.

I'm sorry, but based purely upon the information your have given, this appears more like overspending than genuine financial hardship.

Two of the pre-requesites for proving financial hardship are:
1. A sudden, recent and unexpected drop in disposable income. Whilst a new baby may sometimes cause this, it appears you've now returned to work and you've not given any other indication of a drop in disposable income.
2. Priority debts (such as rent), but as you say, you are paying this (and you don't mention any other form of priority debt)

More information on what consitutes financial hardship can be found in the links here:
https://forums.moneysavingexpert.com/discussion/2428497

Harmsy wrote: »

I have also been told before that I should not have been allowed to have such a high planned overdraft by a Lloyds representative when talking on the phone.

I don't understand why they told you that, or why they haven't taken action to reduce your planned overdraft if they were correct. :huh: