Keep reclaiming bank charges

Which? is urging people to continue reclaiming unauthorised overdraft charges, despite a recent Court ruling in favour of Lloyds TSB at Birmingham County Court.

Which? personal finance campaigner, Emma Bandey, says: “This news must not deter people from reclaiming their bank charges. It was a county court ruling and does not set a precedent. People shouldn’t be scared or worried about continuing with their claim or indeed starting one.

“We have now had over 387,000 downloads of template letters from the Which? website. It’s such a simple process. Keep reclaiming those charges and if you experience any problems, go to the Financial Ombudsman Service.”

Which? step-by-step guide to reclaiming bank charges:

Step One - avoid being charged
Contact your bank immediately if you think you might go over your overdraft limit. Explain your situation and the bank may agree to offer a larger overdraft facility.

Step Two - work out how much you've paid
By law you can make a claim for charges paid on unauthorised overdrafts in the last six years. Write to your bank and ask it to provide this information. Under the Data Protection Act 1998 it must provide this information within 40 days and cannot charge more than £10.

Step Three - complain to your bank
Write to your bank, telling it you are unhappy with the charges you have paid as you believe they have breached regulations. Go on to detail the total amount of charges you are complaining about and seek a refund.

The bank has a maximum of eight weeks to respond and resolve your complaint.

Step Four - taking your case to the Financial Ombudsman Service
If your bank refuses to refund any of your charges, or it makes you an offer you are not happy with, you can refer it to the Financial Ombudsman Service (FOS).

Template letters for each step can be downloaded from which.co.uk/bankcharges