Overdraught fees reclaim

raaaar

Firstly I think I’ve heard recently it might be possible to claim back overdraught fees if the overdraught was not used as intended for its purpose. If that’s not the case sorry folks. About four years ago I was already in financial difficulty and went to my bank to ask about a loan for a vehicle. I was told I was not eligible for a loan but could get an overdraught which would give me access to funds. This was a face to face conversation so I have no evidence of this. I had already been using payday loans at this time which they must have known. I took the overdraught and was desperate. I have been living in overdraught for about four years now paying about 500 a year in fees. Twice I’ve asked for help and they have waived fees for a month to give me breathing space. I also pay 10 a month for a managed account so I don’t get further fees. I’m a lot better now with money and don’t use payday loans etc. It would take me about a year to get my overdraught down to nothing. Can I claim for fees as it is clear I’ve been using the overdraught to survive rather than as an emergency to dip into. Also I’m worried that if I make a complaint they might say that now they know the situation they are taking the overdraught away which would mean more than a months wages would be unavailable meaning I couldn’t pay rent and bills. Thanks if anyone can advise. I’ve looked into switching but can’t get another account.

BorisThomson

* overdraft

The bank may offer you a goodwill gesture if you are in a cycle of debt, but as they have already done this twice they may refuse to do so again.

The overdraft was used as intended for its purpose, you used it when you had run out of funds. You didn't have to take it, and nor did the bank have to offer you a loan.

dunstonh

Firstly I think I’ve heard recently it might be possible to claim back overdraught fees if the overdraught was not used as intended for its purpose.

That is not correct. Overdrafts can be used for any purpose. Whilst you are borrowing money from the bank, they are not specifying what you can spend the money on. That is your choice as an adult.

About four years ago I was already in financial difficulty and went to my bank to ask about a loan for a vehicle. I was told I was not eligible for a loan but could get an overdraught which would give me access to funds. This was a face to face conversation so I have no evidence of this.

You dont need evidence as there is nothing wrong there. Loans are credit scored and decisions made centrally. So, if you failed a credit score (which is likely if you had pay day loans) then bank clerk could offer an overdraft facility as they are not credit scored.

I had already been using payday loans at this time which they must have known.

Not unless you told them. The bank credit scoring system does not tell the staff member that sort of detail.

Can I claim for fees as it is clear I’ve been using the overdraught to survive rather than as an emergency to dip into.

You have already asked the bank for help twice. You can ask them again. Any outcome is at the goodwill of the bank. So, put your case to them and see.

raaaar

Thanks for the advice. I obviously misunderstood. It would seem pointless making a claim as it appears unlikely it would cone to anything g and the only thing I can achieve is having it withdrawn leaving me in a worse mess than I am now.

[Deleted User]

raaaar wrote: »

It would seem pointless making a claim

As already stated, you cannot make a "claim". Any refund or suspension of interest etc is a goodwill gesture by the bank.
Approach this with that in mind and you may get another gesture. If you have a Managed Account, isn't that helping you to reduce your overdraft anyhow?

raaaar

I pay around £40 a month in overdraught fees and an extra £10 for a managed account. A managed account means I can’t go over my overdraught limit which means I can’t be charged more than the fees mentioned. I’ve paid off the majority of my other debts first as I could roll over my overdraught for want of a better phrase whilst the others would have defaulted me. It was prioritising debts in order of consequence. I’m now on a significantly smaller wage and have a dependant I didn’t have before meaning the overdraught will take a tear or so to clear. I’ve taken the comments on board and think it’s best not to ask for their assistance as it seems the only outcome could be the overdraught being withdrawn and as it’s more than my monthly wage I couldn’t pay bills without it. I’m not whinging just explaining. Thanks again for the advice.