Unfair and Fair Charges

Originally written by Jennifer Lowe, updated by the editorial team on 4th April 2026

It is very difficult to read any personal finance related news without coming across something relating to unfair bank charges. But how do you know when a charge is unfair?

Over recent years highstreet banks and building societies have been exposed for imposing high charges on their customers which are deemed unfair.

Penalties have come in all forms and have been recorded as being as much as £39 for going just £1 over and authorised overdraft.

These unfair charges, according to the banks, are there to cover the cost of processing the interaction with the customer. This however, isn't really true as all the banks does is send out a franked letter informing said customer that they have been charged for exceeding their overdraft limit, an action that only costs around £3.50.

The good news is that many people have been successful in reclaiming these charges.

The law

For many, many years, banks have got away with charging customers for overspending, either through exceeding an overdraft, bouncing a cheque or a reversed direct debit.

But, the law associates these charges with a breach of contract. It simply states that the charges must reflect the true costs incurred by the bank, or if they are a fee they must be reasonable for what the customer is offered in return.

As a result of the mounting cases banks have had to deal with, the Office of Fair Trading stepped in and heard a test case that ultimately decided whether these charges were, or were not, fair.

The Financial Conduct Authority (which replaced the FSA) now regulates these matters.

What you can claim:

Account misuse fee
Cheque return fee
Card misuse fee
Unarranged borrowing fee
Unauthorised overdraft fee
Unpaid direct debit fee
Unpaid cheque fee
Unpaid standing order fee
Exceeding Authorised Overdraft Limit
Exceeding Unauthorised Overdraft Limit
Direct Debit/Standing Order/Cheque returned fee
Irregular fee
Paid referral fee
Total charges

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Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.

And what you can't claim

Cash Machine Withdrawal Fees (ATMs)
Account Service Charges
Service Fee/Annual Fee
Charges related to foreign currency transactions and conversions.
Monthly account fees on certain type of accounts (such as RBS Royalties)
Normal overdraft interest charges

How to reclaim

The process of reclaiming unfair bank charges has been largely resolved through regulatory changes and test cases.

However, there are some steps you can take to prepare.

First of all you need to gather together bank statements. Now, because you can reclaim bank charges for the past six years you can write to your bank and ask them for this information, which they are legally bound to give you under the Data Protection Act. However, they can charge a fee for this - usually around £10 - a fee which is classed as fair.

If you have access to online banking, however, you can obviously get all of the information you need from there.

Once you have collected all of your information, you need to calculate how much you are owed. Many website now have a tool that does this for you.

Armed with all of this information, all that's left to do is write a letter to your bank outlining that you have been unfairly charged and wish to claim back the disclosed amount.

You should get a reply from your bank to acknowledge that they have received your complaint, however they will no doubt also say that they don't have to act on any case at the moment following previous regulatory guidance.

The Next Step

Now that you have read through the advice above, you might want to put it into practice. Our Bank Account Fee Comparison Calculator lets you compare the total annual charges across different current accounts based on your banking habits. Try it now →

63 questions

Ask Bank Account Advice a Question

TT 21/05/2019 at 7:08 pm

I've been with NatWest since I was 16-17 and ever since I got contactless it's been putting me into and an un arranged overdraft. When I spoke to the woman years ago it was re-embursed to me. Now the same thing is happening because their system don't process my payments that if make on a Friday untill the Monday. Not only that but the bank has been showing I've got a few pounds left. Also the banks payment system for arranged over drafts and unarranged is taking money from my account that it's clear I DO NOT HAVE and for lack of a better phrase forcing me into an unarranged overdraft. What do I do, because is effecting my credit history a serious amount. Please advise

Dan 28/11/2018 at 11:14 pm

Hi, I have been charged by FirstDirect £80 for unarranged overdraft payment. I have gone over £74 in the minus but they have charged me £80 for this.

Can this be reclaim?

Thanks

CW 14/11/2018 at 12:56 pm

To add further detail to my first comment, my business banking is with Santander. In my early days of running a creative micro business (a startup recording studio without any startup business load), a monthly outgoing for around £33 was paid even though there wasn't enough money in the account. Santander would honour the DD, despite a shortfall of between between less than £1 up to £15 at most. I would be charged £30 for honouring the DD and then a further £15 plus interest for going into an unarranged overdraft limit, so total charges would be around £45. The shortfall would usually be cleared by me within a matter of days. Sometimes the charges would themselves put me into an unarranged overdraft. Again by small amounts which were cleared within days wherever possible, but would lead to further charges the following month. Clearly, this snowballed as it was then twice as difficult in the early days of my business to make the same payment the following month plus covering the charges. Santander also refused to grant me a minimum overdraft to help cash flow would have clearly resolved this situation.

CW 14/11/2018 at 11:05 am

Would this apply to business banking? As a sole trader in my early days, I was often charged £30 for going over, sometimes less than £1. It was always paid back within a couple of days and due to oversight rather than misuse. Hard to keep your eye on everything daily as a startup, as much as I tried and some outgoings are on variable dates.

Sjwilson 17/08/2018 at 2:25 pm

My partner had a letter saying he owes just over £500 form a bank he was with over 8 years ago, never had an overdraft or direct debits but paid on card at a shop, thought he had money in the account but didn't (didn't realise untill a few days later) the transactions went through, now they have sent a letter years later saying he owes £500, what can I do please

Hannan 26/02/2018 at 8:23 pm

I have a Metro card. For almost a year there have been an authorised direct debit from a fake American account. I spoke to my bank and I was told they can not refund me the money as i was 6 months late to ask for help. Am I being treated unfairly?

Hannah 30/01/2018 at 8:06 pm

I have a Lloyd’s bank account a - Basic one -

It states that the account doesn’t have any fees but I have been charged numerous amount of
“Unpaid DD or SO” & O/D usage fees as well.

Also if I have been overdraw in my current account they have transferred money from my savings account without my knowledge

I would like to know if I have a claim worthy case as my account does state “no fees/charges”

Thank in advance..

Markss 31/12/2017 at 6:30 am

Nationwide basic account was defaulted in July 2014 for failing to keep up repayments on bank charges they issued when I went in the red by £43 back in 2012. I was in an IVA at the time so was struggling as you imagine. I reached a settlement to pay £43 last year and they agreed to mark account satisfied. However they refuse to remove the default so my argument now is were these charges justified and I thought you can only be defaulted on credit agreements. This was a basic bank account which are designed to stop customers going overdrawn. I needed advice to see if I have any form of redress on this. I am trying to improve my credit score.

Cf 04/11/2017 at 4:39 pm

Lloyd’s Bank has just introduced a daily overdraft fee which must be paid daily when overdrawn.
What do you advice?

JMS 25/09/2017 at 11:34 pm

First it I important to state that these charges are always the individuals fault, however, Santander has continously put me in a cycle of charges.

As a 16 year old care leaver I have experienced over 10 Years (yes) of constant charges usually from 50-150 pounds. My account has no overdraft and a majprty of charges are for -1 to -10 pounds or from the charges themselves.

Considering this has put my in dire fincial stress, impacted my studies, creates further debt and contributed to my depression I hope one day a ruling will force repayment.

Once again, it is the individuals poor managment that enables this - does this make it ethical?

Lukily, I now freelance for my daily bread and get a majority of my imcpme paid into a PayPal account -- slowly turning my back on the banking system.

Hope the best for all.

Jimbo 23/08/2017 at 12:33 am

When banks were bailed out by the government ....if over 51% did they not by default be also become subject to the Human Rights Act ....and its effects on unfair .unjust actions of a goverment body ????? It is also apparant .i was charged 15 £ per month for ....emergency call out etc. However when i failed to pay in 500 they stll charged 500 BUT i did not have access to emergency call outs ????

Jimbo 23/08/2017 at 12:18 am

Mangan 22/08/2017 at 10:02 pm

I was with lloyds tsb around 4 years ago, i had a £1000 overdraught which i had used exept 2p left on my account. I owed £600 on a payday loan and as i only had 2p in my account could't pay that week but my bank just let them take £600 from my account in one go which caused my account to be £600 minus lloyds then froze my account and passed my debt to a debt collecting company which the debt has risen to nearly £4000 now after court cases, i an fuming that lloyds should not have given money that was not in my account in the first place.

Manz1983 17/07/2017 at 3:50 pm

I am currently battling santander as they have hit me with near £500 in charges this year, when they charge me this puts me overdrawn and i am then charged again and this is just a vicious circle, i have contacted them and they are refusing to do anythin about these charges

jay 23/06/2017 at 9:39 am

the core thing I go for is usuary

of, two months ago, the bank charged you ten pounds. and today you go two pounds over your overdraft limit, then the issue is that they have forced you into overdraft fees with their own fees. this has been completely illegal since the dark ages.

I had every charge ever made in my account bar two refunded without even referring to the unfair charges act

ASde Editor 13/06/2017 at 11:26 am

@Rose - they may have refunded only the charges that were not applicable. If you racked up an overdraft charges that were applicable perhaps they have charged you rightly for these.

Rose 12/06/2017 at 1:52 pm

Hi I've recently put in a claim to get my bank charges back they sent me a letter saying that they would refund 900 pound and 300 compensation over the last six years I have had refund but messaged to say they only refunded a third of bank charges as they totalled 3 thousand and I said I wasn't happy still they did send a letter stating that we were given wrong information and sold bank account wrongly .they have said now that they have paid out all they are going too .is it worth me writing to ombudsmon to see if they can get me the full amount especially as I have the letter from them stating blame on there part

ASHERS 18/05/2017 at 1:14 am

Just been charges £48 unauthorised overdraft fee plus 3 x £10 authorised card payments fees for card transactions of £1, £4 and £2.29 by Santander. This amounts to 428% interest on the payments made. It's daylight robbery. How can I go about claiming these back if they refuse? Feel like going to the media about this.

Thanks

J 28/04/2017 at 1:10 pm

I've just been charged £50 for a direct debit overdraft of £8. Money that I needed for bills and they took it without any notice or reasons why. The charge went through and put my account into overdraft. They took 3p of unaranged overdraft interest along with the £50 saying "fees according to advice". I've messaged the bank telling them it's unfair as everything I do is done with online banking so the cost to the bank would be nothing... I'm with Danske Bank. What steps can I take to get the money back as quickly as possible?

kk 20/04/2017 at 3:25 pm

Hi,

I am trying to reclaim bank charges from an account older than 6 years. Lloyds have said that they dont have to refund anything passed the last 6 years? Is this true because they was taking around £180 in charges in some transactions back in 2007. Thanks

Cally 20/03/2017 at 1:34 pm

Hi ..I have recently asked my bank for the last 6 years statements so I can calculate the charges I've incurred and start the process of reclaiming.im with Santander and they charge £25 for a non payment of direct debit or standing order even if you 10 P shirt they will bounce it ....i have written to them bfre and they just say I accepted those charges when I opened up the account with them ...This does not deter from the fact that they are abusing their position and overcharging IE I'm sure a reasonable amount has been indicated at £3.50 ...So what is the status of this decision now march 2017 ? They've taken thousands from my account over the years ..Single working mum ..Thanks

BankAccountAdvice Editor 13/03/2017 at 2:16 pm

If you think the charges have been unfair, then you would have to speak to Barclay's customer service dept directly regarding this matter.

budulis11 12/03/2017 at 8:25 pm

Im with Barclays for years.Very often i have missed payments (direct debit,outstanding orders).Over them years i paid many charges which most of the time were 8£ per missed payment.Can i claim it back?

Thanks

Mistry Tor 20/02/2017 at 7:46 pm

Charges for sending first copies of printed statements when you are paperless should be deemed unfair.

Helena Troy 20/02/2017 at 7:42 pm

Could we stop these
Unfair charges
Now.
This is getting
Silly.

Missp 13/02/2017 at 4:58 pm

Halifax have charged me 10 pounds for unpaid direct debits. I've seen that they have taken over 2000 pounds over the year. I 2as looking at my online banking and sometimes taking 40 pounds in one month. Can I reclaim this?

Ang 04/01/2017 at 11:35 pm

I am in the same position as Smaz. I have just been charged £30 for one month because of Talk talk. Now my car insurance has been returned so I will now be due £10 bank charge CV on/ around 1st of next month. Single mum on benefits who can't get out of the unfair system. Halifax account too.

Matt 28/12/2016 at 12:29 pm

Over the past few months my bank have been charging me an average of £105 for "unplanned overdraft charges" even when i am not using my overdraft they had charged me. Now i have lost my job and i have no money to make any payments but they kept the huge charges coming and now im in over 300 pound in debt for there charges and now they are harrasing me with phone calls and letters stating if they dont get the money they will close my account down can i take legal action on this? because it is getting rediculous now

bm 25/11/2016 at 1:34 pm

Every month I go over my overdraft because of my unauthorised overdraft usage charges coming out.
In the letter they send me every month it says:
"We do charge a fee of £6 per day for our unarranged overdraft service...The maximum amount you can be charged in daily unarranged overdraft usage fees is £90 per monthly charging period..."
I end up having to pay £90 EVERY MONTH because I pay all my normal bills then do the monthly grocery shopping and after I've done all of that I'm not exceeding my overdraft but then it takes out the unarranged overdraft fee and I end up going over my overdraft, I don't get any more money coming in till the next month and by that time I'm at the maximum fee again. It's rediculous surely that's way too much, I just can't afford it.

BankAccountAdvice Editor 18/10/2016 at 10:57 am

Some banks will let you overdraft your account by a small amount without a fee, so you would have to check with your bank to determine its policy.

Clibb68 17/10/2016 at 9:33 am

I went 49p over my over draft i wasnt aware of this until i received a letter from my bank to tell me that they would charge me £5.00 a day for being over my overdraft. I received the letter after I had already racked up bank charges of £65.00, they have taken there charges I am now £65.00 over my over draft because they took the charges and they are now charging again for being over my overdraft .

Sie 13/10/2016 at 1:12 am

I never had enough with my bank they charged me 75 pounds. for 89 direct debit yes Santander left me with nothing total disgrace

BankAccountAdvice Editor 12/10/2016 at 12:24 pm

You will need to contact its customer service dept and ask if these can be wiaved.

Michael 11/10/2016 at 7:13 pm

Over the last two months, Santander have charged me £138 for two unpaid direct debits, one for £3.74 and the other for £5.78. This is apparently made up of reversal fees and what looks like a £6 daily charge for being overdrawn. I wouldn't have been overdrawn if it weren't for their charges. I'm on ESA and DLA, so I'm usually very careful with my money. These charges are crippling me because I just can't afford this amount of charges.

BankAccountAdvice Editor 05/09/2016 at 10:19 am

Looking at your case objectively, if you think the charges were unfair, disproportionate, pushed you into debt and made it difficult to extricate yourself from the debt, then you may have a claim. However, you can only take the claim back six years. You can request a list of charges from your bank under the Data Protection Act and you should apply to the bank directly if you wish to have these charges investigated further.

Khris 04/09/2016 at 12:41 am

I've been hit a few times (quite often as a student) by RBS for bank charges, the only notification i get is a letter from them being vague, stating that the amount will be charged at £6 per day and will be taken out on the same date or next following banking day of the from the date when i set up my account (which after 14 years is hard to remember) they proceed to then take the amount off me which then sends me back over drawn, and at which point they begin to charge me again. Is it possible to submit for a claim back as this seems to be an unfair situation as it is the bank themselves who keep putting me overdrawn by keeping the amount unknown, leaving me unable to workout how much is needed to cover it and when as the days seem to change.

Smaz 02/09/2016 at 9:10 am

I'm with halifax an if a direct debit gets reversed because I dint have the funds in my account they charge me £10 everytime can I claim this back

Jay 24/08/2016 at 8:57 am

I get charged a £1 for low balance because they took it, I then went over drawn and charged another £20. Also bank holiday so wages went in a day later told me bank holidays they don't work, but they took money out my bank on bank holiday to pay bills so again I was charged £ 20 for one day, and so it goes on.

Shel 25/07/2016 at 2:56 pm

Can I claim even if the account is now closed and has been for nearly 5 years?
I know I had lots of charges or the account before hand

mattd 19/12/2015 at 11:59 am

Hi there

I've just received a text from. My bank telling me I am £1500 overdrawn due to unpaid direct debit for the past few months. This is all made up of return fees. Is there anyway I can reclaim this as now going to have to pay the unpaid direct debits and also the fee.

BankAccountAdvice Editor 20/11/2015 at 2:43 pm

Have you thought of changing your account? There may be different banks or building societies offering different terms. Which? has a page that offers the best bank accounts for unauthorised overdrafts, which

Daz 20/11/2015 at 11:18 am

I went £10 overdrawn. Halifax are charging me £90 for the privilege. I have on several occasions asked for an overdraft to avoid these charges but they will not allow it. These costs cripple me.

BankAccountAdvice Editor 21/10/2015 at 2:14 pm

You would have to contact the bank's customer complaints department directly.

tiot 20/10/2015 at 5:12 pm

Bar clays have charged a transaction fee of 53.50 on a Australian holiday final payment I think that's outrageous why so much and can I claim it back Thanks

BankAccountAdvice Editor 03/09/2015 at 1:59 pm

I suggest he calls Barclay's customer service helpline directly to see whether he would be eligible to claim for unfair charges. He may also wish to contact the National Debtline via the link herefor some further advice on how to manage his finances.

Potter60 02/09/2015 at 8:05 pm

My son has banked with Barclay's since he left school and over the last 14 years have taken thousands of
Him in charges,charging him 22 pounds every few days,causing him a lot of hardship and distress over the years,debt he could never get out of just a continues spiral of debt that over the years ruined his life,even after all these years can he get his money back

BankAccountAdvice Editor 04/08/2015 at 12:35 pm

@Tipp - have you made an appointment with your bank regarding this situation? It is really something you should talk through with them, given the fault is due to external factors.

Tipp 01/08/2015 at 8:20 pm

I've had Unpaid DD charges from Santander quite often over the past year or two, i'm currently on Jobseekers allowance so as you can see my financial status is quite poor. My electric bill comes quaterly and i made an arrangement with my supplier to take the direct debit the day i get paid, quite alot of the time they try take it out a week and 1 day before i'm due to be paid, and then the day before i get paid, which leaves me £50 down (2 x £25 charges due the reversed Direct Debit) also quite often the Job Centre will pay me the money into my account late also incurs reversed Direct Debit charges, it seems unfair that i should be charged by my bank because of errors that are out of my control. Would i be entitled to them charges refunded? As

BankAccountAdvice Editor 25/06/2015 at 11:01 am

@AdTwo - I think in this case you may find it better to talk to someone directly. I have included a link to National Debtline here. I hope this helps.

ADTwo 23/06/2015 at 8:28 am

I have an account with Santander (123) which I don't use anymore because i've had such problems with them and on top of that have consistently been charged unarranged overdraft fees of +£60. The reason I don't pick the negative balance is because whenever I look at the account there is money even a small amount. I don't understand how they can let money go out if there is not enough in the account and I haven't agreed an overdraft. I can't afford these monthly charges of £60+ when I'm not even spending a quarter of that. Please help? It seems like a never ending cycle.

BankAccountAdvice Editor 15/06/2015 at 10:50 am

@Kev - you would have to see whether you are eligible to complain and whether your bank charges are legally considered unfair, you can do this via the Financial Ombudsman website here. I hope this helps.

Kev 12/06/2015 at 9:25 am

Halifax are charging me £5 a day when going over my over draft. Do I have a chance to make a claim?

Thank you

BankAccountAdvice Editor 18/05/2015 at 11:28 am

@Mel - I don't think the reason for not being able to get through to the right department would have any sway as most bank helplines are geared up for customer service enquiries. If you have bank charges, it depends what they are for. I'm afraid, you would have to get in touch with your bank directly in order to sort this query out.

Mel 14/05/2015 at 4:27 pm

Hi,

I have been paying for rbs royalties gold account which I have tried to cancel on few accounts however can never get through to the correct department, I also get a monthly charge for having bank charges, am I entitled to any of this back?

BankAccountAdvice Editor 27/04/2015 at 12:12 pm

@campbell - you would really need to get on to the policy holders'
complaints department in order to try and resolve this issue directly.

campbell 24/04/2015 at 11:49 am

The royal bank of scotland sold my father an accidental death policy. The thing about this is, he was suffering from a chronic illness, and never left the house. He was under the impression it was a life policy and that it would pay for his funeral. When the family went to claim the money, that was when they were told it was void as he had not died from an accident. Can we take this further?

BankAccountAdvice Editor 16/03/2015 at 11:24 am

@Mariam - I'm afraid I don't really understand your question and as we area UK-based site, I can't advise you on this sort of US law as it is outside my jurisdiction

Mariam 12/03/2015 at 10:36 pm

I bought a bedroom by installments ( interest free at the first year) and i was paying the installments monthly in the right time. It took from me like 13 month to pay the whole amount. the problem is that I thought I had to pay the interest charge for only the remaining amount which is only (100 $) but I figured out that I had to pay the interest charge for the whole amount ( 2800 $) and actually, I feel it's unfair to pay the interest charge for the whole amount instead of the remaining amount only. For your information, the store didn't inform us about that at the beginning and when we talked to them regarding this issue, they said it's mentioned in the contract ... why didn't you read the contract...
Need your advice please....

shooby 03/01/2015 at 9:29 am

are the banks allowed to charge £10 for missing direct debits

Barry Editor 07/01/2015 at 2:28 pm

@A - I would definitely give it a go. You should contact the bank directly via their customer services and ask can you put in a claim.

A 02/01/2015 at 2:43 am

My mother went to live abroad when she retired. Her pension was paid into the bank and £200.00 was transfered reach month at the cost of £40.00. This continued for 14 years. Shereturned to the UK in 2011. I have now been made her legal guardian because she has dementia. Would I be able to claim unfair charges from the bank. Sincerely,
A

bert 02/12/2014 at 2:34 pm

can i claim returned d d chargers from my bank Halifax i also had another account with halifax and went 5 pounds over so the charged me 560 pounds witch i paid 270 the stopped so they sold my balance to some dept firm witch i have not paid

cheap 19/11/2014 at 9:01 pm

i had savings account with direct debits on it was charged bank charges if money enough money in account after 8 year told i should not have had direct debits

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