Reclaim Overdraft Charges from Lloyds
If you lived in your Lloyds overdraft for months at a time, paying interest that only kept the balance treading water, those charges may have been unfair. FCA rules require banks to spot customers making repeat use of their overdraft and step in to help, rather than profit from the situation. If Lloyds gave you an overdraft you could never realistically repay, or kept charging while you were clearly struggling, you can complain and ask for the interest and charges back. The claim is strongest where there is a sustained pattern of hardship and weaker for the odd short dip into the red. You send the complaint yourself, it is free, and you keep every penny refunded.
Skip the writing, get your claim in 15 seconds.
We'll draft a firm, ready-to-send demand tailored to your situation. Free.
Build my claim →Want a number first? Estimate the interest you could reclaim in a few seconds.
Your rights
This is not the old blanket 'unfair bank charges' reclaim that largely closed around 2009. Your claim rests on current FCA rules: the Consumer Credit sourcebook (CONC) requires affordable lending, and the FCA's overdraft remedies (which took full effect in 2020) require firms to identify customers making repeat use of their overdraft and to take steps to reduce the harm. If Lloyds failed in those duties, you can complain. If they reject you, or do not give a final response within eight weeks, you can escalate free to the Financial Ombudsman Service (FOS). FOS can generally consider complaints made within six years of the event, or three years from when you reasonably should have realised there was a problem. A typical successful outcome is a refund of overdraft interest and charges plus 8% simple interest, and the removal of any related adverse credit-file entries.
Step by step
- 1Pull your Lloyds statements (Internet Banking or the Mobile Banking app) for the full period you were overdrawn and total up the overdraft interest, fees and charges paid. Record any occasion you told Lloyds you were struggling.
- 2Submit a written complaint to Lloyds (via the app, the complaints form on lloydsbank.com, or by post) arguing the overdraft was unaffordable and/or that Lloyds failed to act on your repeat overdraft use, and request a refund plus 8% interest.
- 3Allow Lloyds up to eight weeks to issue a final response, and respond quickly to any questions they raise.
- 4If Lloyds rejects the complaint or eight weeks pass without resolution, refer it free to the Financial Ombudsman Service within six months of the final response.
What they'll say, and your comeback
“You agreed to the overdraft and its charges when you opened or extended it.”
Comeback, Agreeing to a facility does not make it affordable. FCA rules require lending to be affordable and require Lloyds to identify and help customers making repeat use of an overdraft. That is the failure I am complaining about.
“We sent you overdraft warnings, so we met our obligations.”
Comeback, Sending a generic message is not the same as taking effective action to reduce the cost or help me out of the overdraft, as the FCA rules require. If charges continued unabated, the duty was not met.
“These charges are historic and outside our complaints window.”
Comeback, The Financial Ombudsman can generally consider complaints up to six years old, or three years from when I reasonably became aware of the issue. Please review the charges within that period.
FAQ
How far back can I reclaim Lloyds overdraft charges?
Generally six years, or three years from when you reasonably should have known the charges were a problem, whichever is later. The Financial Ombudsman applies these time limits if your complaint is escalated, so it is worth gathering as many years of statements as you can.
Is there any cost or risk to complaining?
No. Complaining to Lloyds and escalating to the Financial Ombudsman are both free, and a bank should not penalise you for raising a legitimate complaint. You keep 100% of any refund because you do it yourself rather than through a paid claims firm.
Ready to get your money back?
Reclaim it now, free →More money you might be owed
- UKHow to reclaim overdraft interest with an affordability complaint
- UKHow to reclaim interest on a loan you couldn't afford
- UKReclaim Overdraft Fees from Barclays
- UKReclaim Overdraft Fees from NatWest
- UKAm I owed a packaged bank account refund?
- SpainCómo reclamar comisiones bancarias abusivas o no informadas en España
A self-serve tool, not a law firm. General information, not legal advice.