How to reclaim overdraft interest with an affordability complaint
Sky-high overdraft interest is bad enough. But if your bank kept the overdraft running for years while you were clearly struggling, and never properly checked you could afford it, that can be irresponsible lending, and the interest is reclaimable. This is exactly how recla.im's founder got about £1,336 back from Monzo.
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
Lenders must check that credit is affordable and not let you stay stuck in a costly overdraft indefinitely. Where they failed to, an affordability / irresponsible-lending complaint can have the overdraft interest and charges refunded, with 8% simple statutory interest on top, and any adverse markers removed from your credit file. You keep the money you borrowed; you get back what it cost you. Complain to the bank first, then the Financial Ombudsman Service for free if they refuse.
Step by step
- 1Write to your bank's complaints team. State how long you were in the overdraft, that you were struggling, and that you don't believe the lending was affordable or properly reviewed.
- 2Ask specifically for a refund of overdraft interest and charges, 8% statutory interest, and removal of any adverse credit-file data.
- 3Give them a deadline. Banks have up to 8 weeks to issue a final response.
- 4If they reject it or go past 8 weeks, escalate to the Financial Ombudsman Service. It's free and they uphold a lot of these.
What they'll say, and your comeback
““The overdraft was within your limit.””
Comeback, Staying within a limit isn't the test. The question is whether the lending was affordable and whether they should have intervened while you were persistently overdrawn.
““You never told us you were struggling.””
Comeback, Banks are expected to monitor persistent overdraft use and act on the signs. Point to the months you barely came out of it.
““This is too old to look at.””
Comeback, The Ombudsman generally accepts complaints within six years of the lending, or three years from when you realised the problem. Say when you realised.
FAQ
How much overdraft interest can I reclaim?
Often hundreds to a few thousand pounds, depending on your limit, the rate, and how long you were stuck in it. The recla.im founder reclaimed about £1,336 from a £1,000 Monzo overdraft held since 2018.
Will it hurt my credit score to complain?
No. Complaining doesn't affect your score, and a successful affordability complaint usually results in adverse marks being removed, which helps it.
Ready to get your money back?
Reclaim it now, free →More money you might be owed
A self-serve tool, not a law firm. General information, not legal advice.