Step by Step Guide to Reclaiming Bank Charges

Follow this step by step guide to reclaiming bank charges and if you have any questions, get in touch!

Step 1: Open a new current account

What you are about to do might not make your bank too happy with you! Once you have completed your successful claim, there is a very real chance your bank may close your current account. It is best to apply for a new account before starting your claim so you don't end up without an account altogether.

Don't think of this as a problem though, there is a good chance another bank out there has a much better offer than you are currently receiving. Take this as an opportunity to improve your finances by getting a lower interest rate on your overdraft and higher interest rates on your savings.

An account I recommend is the Premier Direct Current Account from Alliance & Leicester. It has a 0% (interest free!) overdraft for a year!

Step 2: Work out how much you are owed

If you are incredibly organised, you should have every bank statement you have ever received. If like me you aren't, you can request a breakdown of the charges you have incurred from your bank.

Your bank will be reluctant to give you these details for obvious reasons. Luckily, I have a template letter for you to use which quotes your rights under the Data Protection Act 1998 to have access to this information held by the banks.

A small number of banks will just send you six years worth of bank statements for you to trawl through - if you can request bank statements over the phone or in a branch free of charge from your bank, do so and save some time!

Make a note of the date and the charge amount, as you will need to include a schedule of charges in your correspondence with the bank.

Step 3: Write to your bank and ask for the money

Let your bank know you are unhappy with the charges levied against you and ask that they give the money back. They may well agree to pay back some or all of the money. Give the bank 14 days in which to respond, and let them know you will take the matter to the courts should you not get the entire amount back. Remember to use recorded delivery so you can prove the letters have been received.

Download the template for letter two.

Step 4: Threaten to take your bank to court

If you received a response from your bank (I didn't!) which didn't have a satisfactory offer, it is now time for a last ditch attempt at settling this out of court.

You will write to them again and explain that if they do not give you a refund in full within 7 days, they will receive no further correspondence from you and court proceedings will begin.