Claiming back charges for long term overdraft use?

mickym

Hi,
Just putting the feelers out to see if what has happened to me warrants any chance of making a claim for over draft charges?

Firstly, I will hold my hands up and say ive not been great with my finances over the last few years. Being a father to 2 children with extra needs and full time work, and poorly family members often meant I left it in the back ground and left unsorted.

I had been in my overdraft for a few years, and found it really hard to get out of it and I was often getting paid my wages which would clear it and then id be back into it again. At its worse i was at approx £2.5k overdrawn each month before being paid. However, this was within my arranged over draft limit, and I was under the impression was costing me £6 per month to be using it.

Last year i decided to clear it outright after receiving a lump sum through work, and since I have been finding that im saving each month without much effort (perhaps because of lockdown with COVid etc...but maybe not)... so I am now wondering if the fee I thought I was paying was actually much more?

I always used to think that £6 per month seemed like a very low for the amount I was over drawn compared to say a credit card / loan, and checked it a few times over the years on statements and I couldnt ever see it being more than that. 

Does this £6 pm fee seem realistic? Have I been totally stupid and misunderstood the fee and how it works?

I thought I would enquire here first before the bank, so If i did have a chance of reclaiming it I would have the correct info first.

Thanks

mickym

FYI
I have only ever seen on my statement £6 over draft fee... I have never seen any further penalties listed in the statement.

brettcta

I don’t really see what you’d look to complain about and get refunded? They haven’t charged you over limit fees and have charged you a flat £6/month for a facility you were using to its fullest extent but you think it probably should’ve been more but still want it refunding?

if you feel it was too low, let the bank know and ask them to re-calculate - they might send you an invoice for uncharged interest.

mickym

Sorry, perhaps I should of explained more clearly.
Since clearing my overdraft, and with no major changes in incomings / outgoings I am saving a fair bit more a month than when I was using the over draft (certainly much more than the £6 fee I was playing per month for the arranged fee). So was concerned I had been charged extra unspecified charges/interest that didnt appear on my statements.

Is this something that can happen, and if so was wondering if it was worth investigating?

dunstonh

so I am now wondering if the fee I thought I was paying was actually much more?

No need to wonder.   Lloyds tell you the amount when they send the monthly statement.

Does this £6 pm fee seem realistic? Have I been totally stupid and misunderstood the fee and how it works?

It depends on what account you are on.  However, that wont be the only cost to you.  There will be an interest charge for the period you borrow money.  10 days of £2500 will be around £16-25pm interest.  
Look at your bank statements.

I thought I would enquire here first before the bank, so If i did have a chance of reclaiming it I would have the correct info first.

Nothing you have said so far indicates any wrongdoing by the bank or that you are in current financial hardship.

Walker1

You need to check your bank statements and see what they’ve been charging. 

I’m sure it’ll be more than £6 a month. 

I’m not sure how you’d miss these charges for 3 years though. 

And o doubt you’ll be able to claim anything back. If you borrow money you’ll pay interest. 

societys_child

Just putting the feelers out to see if what has happened to me warrants any chance of making a claim

Seriously?

[Deleted User]

mickym said:

Sorry, perhaps I should of explained more clearly.
Since clearing my overdraft, and with no major changes in incomings / outgoings I am saving a fair bit more a month than when I was using the over draft (certainly much more than the £6 fee I was playing per month for the arranged fee). So was concerned I had been charged extra unspecified charges/interest that didnt appear on my statements.

Is this something that can happen, and if so was wondering if it was worth investigating?

No
Banks cannot hide charges and interest and makes no logical sense anyway - they'd get huge fines for doing it and the numbers on your statements wouldn't add up.