Overdraft fees of up to 39 pounds a time are applied by banks when you go over your agreed overdraft limit. The cost to the bank so simply decline or temporarily grant a small loan (if they so decide) clearly doesnt cost this much, and the Office of Fair Trading has provisionally decided that they are unfair.
After hundreds of thousands of successful claims the FSA decided to put the process of reclaiming overdraft fees on hold in 2007. This hold will be lifted once a current case, expected to take about another year, is completed.
However, if you count as being under financial hardship you can still apply for your full bank charges to be refunded.
According to the financial ombudsman:
“A complainant is considered to be in financial difficulty when his or her income is insufficient to cover reasonable living expenses and meet financial commitments as they become due.”
If you struggle to pay your bills and rent, or repayments on debt you probably qualify. If you are living off credit or benefits this may help your case too, its not in the courts interests to have the tax payer funding the banks charges.
The process for reclaiming bank fees for those in hardship is currently something like:
- Convince the bank (and once they reject your claim out of hand) the financial Ombudsman that you are in financial hardship weekly e-mail.
- Request that your bank provide you with information of all bank fines they have applied in the last six years
- A battle of backwards and forwards letters then ensues with you insisting they have to pay out, and them saying they wont
Money saving expert has an excellent article on all of this complete with template letters. Also the citizens advice bureau should be able to give you impartial advice.
Hi my names Richard, any comments? 
