How to reclaim unfair or packaged bank charges

Banks must treat customers fairly, which means their products and services must be suitable to your individual needs. There are two main reasons where you may have a case to reclaim bank fees or charges:

1. You’re struggling to pay bank charges

Banks can apply two main charges if you spend more than you have in your account:

• daily interest for using an overdraft – this can be:
  • arranged, where the bank has agreed an amount you can spend in advance, or
  • unarranged, where they allow the payment to go through anyway.
• a fee to stop a payment – this is usually called an unpaid transaction fee. 

There’s usually a monthly cap on the amount a bank will charge you in unpaid transaction fees and unarranged overdraft interest. This can be found in your account terms and conditions – ask your bank if you’re not sure.

If you think the charge is wrong or unfair, contact your bank to ask them to review it. They might even waive it as a goodwill gesture. 

If the charges are making your financial situation worse – for example, you’re struggling to buy necessities, pay bills or you’ve lost your job – the bank should suggest ways they can help, such as refunding the charges or agreeing an interest-free repayment plan to clear your overdraft.

For more information and template letters to use, see MoneySavingExpert’s reclaiming guideOpens in a new window

2. You pay for an account with features you don’t need or can’t use

For a monthly fee, a packaged bank account comes with insurance policies such as travel, mobile phone and car breakdown cover, and other perks like fee-free spending abroad or cashback.

If any of the following applied when you took out the account, you could have been mis-sold and can ask for a refund of all the monthly fees you’ve paid (plus interest):

• you were told you couldn’t have a free account or had no choice
• you didn't want or need the insurance or an included service – for example, you already had a travel insurance policy
• you weren’t eligible for one of the account’s benefits and this wasn’t made clear – for example, if you were too old to claim on travel insurance
• you weren't told how much the account would cost
• you were told you had to open the account to qualify for a different product, such as a mortgage, overdraft or credit card.  

For step-by-step help and a free complaints tool, see MoneySavingExpert’s guide to reclaiming packaged bank account feesOpens in a new window

Once you’ve made a complaint to your bank, they have eight weeks to respond. If you’re unhappy with their reply, or the time limit has passed, you can ask the Financial Ombudsman Service (FOS) to investigate.

This is a free service where an independent person will assess your case. If they think the bank was wrong to reject it, they can ask the bank to put things right.

You can use the FOS complaints checker toolOpens in a new window if you’re ready to start your complaint.

Avoid using a claims management company.

They’ll complain on your behalf, usually following the same process you could do, but will take a large portion of any refund you’re given. They’re no more likely to win a case than you are.