Millions could be owed refunds for unfair overdraft fees, it has been reported. Three in ten bank customers have dipped into their overdrafts in the past year, with £2.7billion owed to banks in fees, YouGov statistics have this week reveaked.
Consumer champion Martyn James told the Sun newspaper today (Monday April 8): “Though they don’t advertise it, it’s possible that your bank could turn your overdraft into an interest-free loan and remove it from your account completely.
“You could then pay back the money at a rate you can afford.” Sara Williams, founder of advice website Debt Camel, says: “Anyone who is in their overdraft for most or all days of the month may be able to win an overdraft affordability complaint against their bank if this has been going on for more than a year.”
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Writing to Money Saving Expert, one Brit said: “I was constantly in my overdraft and more, and never came close to paying it. I tried to talk to the bank, but it was no help at all. After going to the ombudsman, the bank agreed to pay me back over £6,000 meaning so I am now totally debt-free.
“If it wasn’t for you Martin, I would never have been in the position I’m in now. Thank you.” “Thanks to your advice. I have just received £923 credit from NatWest for unfair overdraft charges. Very happy!” a second said. A third wrote: “I followed your online help guide for bank charges.
“Got £900. Massive thank you.” Jane Tully, the director of external affairs at the Money Advice Trust, the charity that runs National Debtline, says: “In many cases, incomes simply aren’t keeping up with rising prices, and our advisers at National Debtline are hearing from many people who are using overdrafts and other forms of credit to plug the gaps in their budgets.
“If you are struggling to get out of your overdraft each month, this is often a sign of financial difficulty.”
