Overdraft Affordability Complaints
💥 OVERDRAFT COSTS — TAKE CONTROL
🧠 INTRO: UNDERSTANDING OVERDRAFTS
Overdrafts can be useful for short-term borrowing, but they’re not always the best long-term solution. If you’ve been using an overdraft regularly or paying charges for a long period, it may be worth checking whether your situation has been managed appropriately.
“If you’ve been overdrawn for many months and paying regular charges, you may want to review your options.”
🚩 SPOT THE SIGNS
Here are some things that may suggest you could benefit from reviewing your overdraft use:
- Your account is overdrawn more often than it’s in credit.
- You’ve experienced bounced payments or returned direct debits.
- Your income has reduced but overdraft charges continue.
- You’ve taken out other types of borrowing while also using your overdraft heavily.
- Your overdraft limit was increased but you weren’t offered other support options.
🧱 GATHER INFORMATION
If you’re concerned, the first step is to collect the facts. Some useful checks include:
- How long you’ve been overdrawn (e.g. most days over months or years).
- Whether your bank carried out regular reviews of your overdraft use.
- If you ever requested help and how your bank responded.
- Whether your limit was increased without a discussion of alternatives.
📩 STEPS TO RAISE CONCERNS
If you think your overdraft has been managed in a way that caused problems, here are some practical tips:
🔎 Step 1: Contact your bank. Every bank has a complaints process, usually through their website. Explain your situation clearly with dates and details.
📝 Step 2: Give them time to respond. Banks have up to 8 weeks to review and reply to a complaint.
⚖️ Step 3: Escalate if needed. If you’re not happy with the outcome, you can ask the Financial Ombudsman Service to look at your case independently:
www.financial-ombudsman.org.uk
📂 Step 4: Request your data if unsure. You have the right to make a Data Subject Access Request (DSAR) to see your account history, statements, and review notes.
This content is for general information and tips only. It is not financial advice. For guidance specific to your circumstances, please contact your bank or the Financial Ombudsman Service.
