Were you mis-sold?

Bank Overdrafts

Overdrafts can provide a useful financial safety net, but they are also a common area for mis-selling, leaving many customers in financial difficulty. Mis-selling occurs when overdrafts are offered without assessing the customer’s ability to repay, or when the terms and conditions, such as fees and interest rates, are not clearly disclosed. In some cases, customers may have been encouraged to rely on overdrafts instead of more suitable financial products, leading to excessive charges or long-term debt. Understanding how overdrafts may have been mis-sold is essential for identifying issues and seeking redress.
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Let down by the lenders because they failed to reach the standards required of their role? Any of these are potential grounds for a claim:

  • Lack of Clear Explanation: Customers may not have been fully informed about overdraft fees, interest rates, or terms, leading to unexpected costs.

  • Inappropriate Recommendations: Banks might have encouraged customers to use overdrafts without assessing their ability to repay, causing long-term financial difficulties.

  • Failure to Provide Alternatives: Customers may not have been offered more suitable financial products, such as loans with lower interest rates, when an overdraft was inappropriate.

  • Unfair Charges: Mis-selling can include imposing hidden or unfair fees, such as daily overdraft charges, without proper disclosure or justification.

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If you’ve experienced financial hardship due to unaffordable repayments, we’re here to support you in achieving financial fairness.

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Mis-sold?

When overdrafts are sold to customers who may not need them or would benefit more from other financial solutions, such as a loan. Or when banks fail to disclose the potential for high charges if customers exceed their overdraft limit, when customers are not informed of more suitable financial products, such as personal loans or credit cards with lower fees, you might have a claim.

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Irresponsible lending?

When a bank offers an overdraft without properly assessing whether the customer can afford to repay it or fails disclose fees and charges by not clearly explain all fees, such as interest rates, daily charges, or penalties for exceeding the overdraft limit you may have a claim.

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Experienced

Our goal is to provide you with the support and solutions you need to regain control of your finances and reclaim what’s rightfully yours. Contact us today to find out how we can help you take the first step toward financial fairness.

The mis-selling of overdrafts in the UK has become a significant financial concern, as many customers have found themselves burdened with unmanageable debt due to practices that lack transparency and fairness.

One common issue is that overdrafts are often offered without proper affordability checks, meaning customers may be encouraged to rely on them without the bank assessing whether they can repay the borrowed amount. This can lead to a cycle of debt, particularly for those who are already financially vulnerable.  This can lead to a cycle of debt, particularly for those who are already financially vulnerable. Additionally, customers may be placed on an overdraft limit that far exceeds their financial needs or capabilities, further increasing their financial risk.

Another area of concern is the failure to disclose the true costs associated with overdrafts. Banks may not adequately inform customers about high interest rates, daily fees, or penalties for exceeding their overdraft limits. Promotional offers, such as fee-free periods, can also be misleading if customers are not made aware of the higher charges that apply once the promotional period ends. These hidden costs can create unexpected financial strain for customers who were not given clear and complete information when agreeing to the overdraft. A successful claim can alleviate financial strain, helping you regain stability and control over your finances. Additionally, challenging these unfair practices holds lenders accountable, promoting greater transparency and fairness in the lending market for others. With a straightforward claims process, the potential rewards could make a meaningful difference to your financial well-being.
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QUESTIONS & ANSWERS

Unaffordable finance refers to loans or credit agreements, such as car finance, that were given without proper consideration of your ability to repay them comfortably. According to the Financial Conduct Authority (FCA), a loan is only considered affordable if you can meet the repayments on time without experiencing financial hardship or neglecting other essential financial commitments, such as debts, household bills, and living expenses.

If you had to prioritize your loan repayments at the expense of other obligations—such as taking on additional debt or falling behind on bills—it’s likely the loan was not affordable. Lenders are required to conduct thorough affordability checks, and if they failed to do so, you may be entitled to compensation.

If your overdraft was unaffordable or mis-sold, you could be entitled to a refund of overpaid interest and fees, compensation for financial distress, or both. In some cases, the loan balance may also be reduced or written off entirely if the lender’s negligence is proven.

Compensation aims to restore your financial position to where it would have been if the loan had not been unaffordable or mis-sold. 

Evidence is essential to proving your claim and may include your finance agreement, correspondence with the lender, proof of financial hardship, and records of your income and expenses at the time of the loan. This documentation helps demonstrate that the loan was unaffordable or mis-sold.

Additional evidence, such as credit card statements or proof of late bill payments, can highlight the financial strain caused by prioritizing loan repayments. 

Yes, banks are obligated to assess whether customers can afford an overdraft before offering it. If they failed to do this, you might have grounds to challenge the overdraft agreement.

Overdraft mis-selling occurs when banks fail to provide clear, accurate information about the costs and terms of an overdraft, or when overdrafts are offered without proper checks to ensure the customer can afford to repay.

The Financial Conduct Authority (FCA) regulates lenders and sets strict guidelines to ensure loans are affordable and fair. The Financial Ombudsman Service (FOS) steps in to mediate disputes between consumers and lenders, providing a neutral judgment if you believe you were wronged.

These organizations are key to holding lenders accountable. If a lender fails to meet FCA regulations or rejects a valid claim, the FOS can review the case and enforce corrective actions, such as compensation or refunds.

The time frame for resolving a claim can vary depending on the complexity of your case and the lender’s response. Some claims may be settled within a few weeks, while others might take several months, particularly if referred to the Financial Ombudsman Service (FOS).

Our team works diligently to ensure your claim progresses as quickly as possible. We provide regular updates throughout the process, so you’re always informed about the status of your case.

You might have been mis-sold an overdraft if the fees and interest rates weren’t properly disclosed, if you were encouraged to take out an overdraft you didn’t need, or if no affordability assessment was carried out before it was offered to you.

Ask Us Anything, Anytime.

If you suspect you were impacted by discretionary commission practices or believe your car finance agreement was unfair, reach out to us for assistance. Whether you're uncertain about the details of your agreement or need guidance on your next steps, our team is here to help clarify your options and assess whether you have a valid claim. Contact us via phone, email, or by filling out our online enquiry form. Provide as much information as possible about your car finance agreement, including the lender's name, the loan start date, and any concerns you have. Even if you’re unsure about your eligibility, it’s worth exploring—you could be entitled to a refund, compensation, or more.

Financial Claims Experts