Money is a touchy subject. Everyone needs and wants it yet it is still a topic that some people frown upon discussing in front of others. It can be a personal thing, particularly if you have fallen on hard times. Don’t fret. We’re here to help.
Banks aren’t evil. I know sometimes they can create as much anxiety as credit cards, especially if you are in arrears. Above and beyond fees and interest charges, late loan payments and overdraft costs can put a very large hole in your account in the blink of an eye. But, by and large, banks are just businesses that have to meet a bottom line.
If you’ve run into a problem with overdraft charges due to financial hardship, there is an option you may not know about. There is a process by which you can reclaim those fees if you qualify under the bank’s guidelines for financial distress. The process is free and relatively simple. In most parts of the UK, charges can be reclaimed for up to 6 years. There is no mark on your credit rating or anywhere else outside the bank.
At one time, banks were not terribly cooperative with payouts/reclamation and often required the account holder to close the account. The FSA says no more:
“A firm must not close accounts or threaten closure when it might reasonably appear that this is for the purpose of penalising customers that have complained about unauthorised overdraft charges.”
If you’re in this situation, get in touch with your bank and ask about reclamation. It’s worth a try!
