How to Claim Back Unfair Bank Charges: A Step-by-Step UK Guide
Published 6th of August 2012·Updated 1 April 2026
Reviewed by: Reviewed for accuracy April 2026
If bank charges have pushed you into financial difficulty, you may be entitled to claim some or all of them back under the financial hardship provisions of the Standards of Lending Practice. The process is free, requires only a letter and some supporting documents, and can be escalated to the Financial Ombudsman Service if your bank refuses to cooperate.
Short Summary
Most UK high-street banks have signed up to the Standards of Lending Practice, which requires them to act fairly and considerately towards customers in financial difficulty. This gives you a formal route to challenge charges if you meet the hardship criteria.
You do not need to pay a claims management company to do this for you. The process is straightforward and completely free when done yourself. Claims management companies take a percentage of any refund, which can amount to hundreds of pounds.
If your first complaint is rejected, you can escalate to the Financial Ombudsman Service (FOS) at no cost. The FOS is independent and its decisions are binding on the bank.
Keep copies of every letter, email and phone call record. A paper trail strengthens your case significantly and is essential if you escalate to the Ombudsman.
When can you claim back bank charges?
You can challenge bank charges on the grounds of financial hardship. The Standards of Lending Practice, which most major UK banks including Barclays, Lloyds, NatWest, HSBC, Santander and Halifax have signed up to, requires banks to treat customers in financial difficulty fairly.
You are likely to have a valid hardship claim if one or more of the following apply:
| Hardship indicator | Example |
|---|---|
| Cannot afford essentials | Struggling to pay rent, food or utility bills |
| Low income | Charges represent a significant portion of earnings |
| Frequent returned payments | Direct debits regularly bouncing due to insufficient funds |
| Income has fallen | Job loss, divorce, bereavement, illness or reduced hours |
| On benefits or parental leave | Income substantially reduced |
| Entering debt management | Starting a DMP, IVA or bankruptcy |
| Credit-dependent | Relying on credit to meet basic monthly costs |
| Repeated charges | Regularly going over your limit and incurring ongoing charges |
You do not need to meet all of these criteria. A single strong indicator supported by evidence is usually sufficient to open a formal complaint.
What if it is your first charge?
If this is your first bank charge, telephone your bank directly and ask them to waive it as a gesture of goodwill. Most banks will agree to a one-off waiver for customers with no previous charges. You do not need a formal complaint for this; a polite but direct phone call is usually enough.
If you have been charged multiple times or the bank refuses, you need to follow the formal complaint process below.
How to write a hardship complaint to your bank
Write a formal complaint letter or email to your bank's customer complaints team. Keep it clear and factual: state what charges have been applied, explain how they have caused financial hardship, and list the evidence you are attaching.
Your letter should include:
- Your name, account number and sort code
- A list of charges applied (with dates and amounts)
- A clear statement that you are challenging the charges on financial hardship grounds
- A brief explanation of your current financial situation
- Supporting documents (payslips, benefit letters, bank statements)
- A request for a response within eight weeks
- A statement that you will escalate to the Financial Ombudsman Service if unresolved
Address your letter to the bank's complaints department directly. All UK banks are required to have a formal complaints process and provide a written response within eight weeks.
What responses can you expect from your bank?
Banks must acknowledge your complaint promptly and provide a final response within eight weeks. Possible outcomes include:
- A full refund of all disputed charges
- A partial refund (you can negotiate further if this feels insufficient)
- A refund credited directly to your outstanding overdraft balance
- A request for additional information, such as a financial statement form (complete and return promptly)
- An offer of other support, such as a freeze on future charges without a refund
- A rejection of your complaint
If your complaint is rejected or you receive a final response you consider inadequate, you can refer the case to the Financial Ombudsman Service. You must do this within six months of receiving the bank's final response.
How to escalate to the Financial Ombudsman Service
The Financial Ombudsman Service (FOS) is a free, independent body that resolves disputes between consumers and financial firms. You can submit a complaint online at financial-ombudsman.org.uk or by calling 0800 023 4567.
You will need to provide:
- Your complaint against the bank
- Copies of all correspondence with the bank
- The bank's final response letter
The FOS will investigate your case independently and can order the bank to pay compensation if it finds in your favour. The process typically takes several months, but it costs you nothing and the bank is legally bound by the Ombudsman's decision.
FAQ
Can I still claim back charges from several years ago?
The Financial Ombudsman Service generally accepts complaints about events within the past six years, or three years from when you first became aware of the problem. Charges older than six years are very difficult to claim back. Act as soon as possible to preserve your options.
Do I need a solicitor or claims company to claim back bank charges?
No. The process is entirely free when done yourself. Claims management companies are regulated by the FCA but charge fees of 20 to 30 per cent of any refund recovered. There is no benefit to using one when the process is this straightforward.
What if my bank says the charges are contractually valid?
Banks are entitled to apply charges that are part of your account contract. However, the financial hardship provisions exist precisely to protect customers who cannot afford those charges. A contractual argument does not automatically override hardship provisions. If your bank dismisses a valid hardship claim, escalate to the FOS.
How long does the Financial Ombudsman process take?
The FOS aims to resolve straightforward complaints within three to six months. More complex cases can take longer. You can check the current status of your complaint through the FOS online portal. During this time, the bank cannot take any debt action related to the disputed charges.
What if the charges have caused me to miss other payments?
Include this in your complaint. If bank charges triggered a cascade of missed payments, defaults or further charges, the cumulative impact strengthens your hardship claim. Document every knock-on effect as clearly as possible.