Reclaiming unfair credit card charges

You might be able to reclaim bank or card provider charges if the fees are too high or you’ve been charged by mistake.

You might be able to claim back some or all the difference between what you were charged and £12.

If you have online banking you might be able to look back over your statements for years to see what you’ve been charged.

If the information is incomplete or you can’t get it this way, write to the card provider asking for a list of all the charges taken from your account in the last six years or longer if available.

If they refuse, write again and explain the provider is obliged to provide the information under the Data Protection Act.

It’s important not to ask for credit card statements, as you could be charged a lot more for the information. Instead, ask for details of every charge.

Under the terms of the Data Protection Act, card providers have 40 days to reply. If your card provider doesn’t reply on time, you can complain to the Information Commissioner.

When you have a list of the charges, add them up and think about whether you were having financial difficulties at the time. If so, you might be entitled to make a claim for this amount, plus an annual interest rate of 8%.

If you were, write a complaint letter to your card provider explaining:

• how much you’re claiming for
• what difficulties you were having
• how the charges contributed to your difficulties
• how it affected you – the stress and anxiety it caused
• why you think the charges were too high in the circumstances.

See later in this guide for a link to letter templates you can use to help you.

If your provider makes an offer, decide whether you think it’s fair based on how much you feel the charges contributed to your difficulties and distress.

When you know how you want to respond, write back either accepting their offer or stating what you think would be a fair refund under the circumstances.

If they write back with further questions, make sure you answer them as completely and honestly as possible and wait for the next response.

If they reject your claim outright – either the first time around or after you reply to them with more information or a suggested resolution – you can complain to the Financial Ombudsman Service.

Don’t be put off by any response suggesting you’re not entitled to a refund and you should give up – no matter how official the language might sound.

If you need help drafting your letters, use one of the templates provided below as a starting point.

The Financial Ombudsman Service will consider your case. If they believe you’ve been treated unfairly, they’ll ask the credit card provider to refund you in full or in part.

There’s no charge for using this service. 

Avoid using companies saying they can help you reclaim unfair credit card charges.

They’re no more likely to be able to win compensation for you than if you claim yourself.

These companies charge high fees for writing a few letters you can easily do yourself.

Sometimes they take 25% or 30% of the charges you recover, which would be £250 to £300 of a £1,000 claim.

Or you can talk to your nearest Citizens Advice. Find your nearest branch:

• in England and Wales, on the Citizens Advice website
• in Northern Ireland, on the Advice NI website
• in Scotland, on the Citizens Advice Scotland website