Reclaim bank charges UK 2026: refund rights for unfair fees and charges

Chandraketu Tripathi

Finance Editor, Kaeltripton

Published 10 May 2026

Last reviewed 10 May 2026

✓ Fact-checked

Reclaim

TL;DR

You can challenge bank charges that were applied in error, applied unfairly, or where you were not given adequate notice. The 2009 Supreme Court ruling means standard overdraft charges are not automatically unfair, but charges applied incorrectly or without proper notice may be. Complain to your bank formally first; if unresolved within eight weeks, escalate free to the Financial Ombudsman Service. Time limit: six years from the charge date, or three years from when you first became aware of the grounds.

Bank charges have been one of the most contested areas of UK consumer financial law since the mid-2000s. The landmark 2009 Supreme Court ruling in Office of Fair Trading v Abbey National established that standard overdraft charges set out clearly in a bank's terms and conditions are not subject to an unfairness test under the Unfair Terms in Consumer Contracts Regulations 1999 (now replaced by the Consumer Rights Act 2015). This ended the mass reclaiming of historical overdraft charges that had been pursued through the courts and the Financial Ombudsman Service.

However, bank charges remain challengeable in specific circumstances: where charges were applied in error; where you were not given adequate notice of a fee change; where the charge was applied to a person who should have been in a vulnerable customer process; where charges were applied despite prior agreement to waive them; or where the bank failed to follow its own terms. The FCA's Consumer Duty, effective from July 2023, also requires banks to ensure their charges deliver fair value, which creates a basis for challenging charges that are disproportionate given the circumstances.

Key facts (2026)

The 2009 Supreme Court ruling (OFT v Abbey National) confirmed that standard overdraft charges clearly stated in terms and conditions are not automatically unfair under the Unfair Terms in Consumer Contracts Regulations (Supreme Court).
FCA Consumer Duty (July 2023) requires banks to ensure their charges represent fair value and do not cause foreseeable harm to retail customers; this creates a basis for challenging disproportionate charges (FCA PS22/9).
FCA overdraft reforms (April 2020) banned unarranged overdraft fees that were higher than arranged overdraft rates; all overdraft pricing must now use a simple annual interest rate (FCA PS19/16).
Time limit for bank charge complaints to the FOS: six years from when the charge was applied, or three years from when you first knew (or ought reasonably to have known) you had grounds to complain, whichever is later (FOS time limits).
Banks must acknowledge complaints within five working days and issue a final response within eight weeks; unresolved complaints can then go to the FOS free of charge (FCA DISP rules).

Which bank charges can currently be challenged

Following the 2009 Supreme Court ruling and the FCA's 2020 overdraft reforms, the landscape for challenging bank charges has changed significantly from the pre-2009 mass reclaim era. Charges that remain challengeable include: charges applied in error - for example, a monthly account fee applied despite the fee waiver conditions being met; charges applied without adequate notice of a change - the bank must give you at least two months' notice of fee changes under the Payment Services Regulations 2017; overdraft charges where the bank failed to notify you in advance of the charge being applied, as required by FCA rules; charges applied during a period when the bank had agreed in writing to waive them; charges applied to a vulnerable customer who should have been placed on a different tariff or had charges waived under the bank's own vulnerable customer policy; and charges that cannot be justified as a genuine pre-estimate of the bank's loss, for example penalty charges for returned direct debits that bear no relationship to the bank's actual administration cost.

FCA overdraft pricing reforms

From April 2020, FCA rules banned banks from charging higher rates for unarranged overdrafts than for arranged overdrafts. All overdraft pricing must be expressed as a simple annual interest rate (EAR), making it easier to compare and eliminating daily or monthly fixed fees that made overdrafts disproportionately expensive for small amounts. If you were charged unarranged overdraft fees at rates higher than your arranged overdraft before April 2020, the FOS time limits may still allow a challenge if the six-year or three-year limitation period has not expired. For charges since April 2020, the relevant question is whether the rate applied was compliant with the FCA's rules and your contract terms.

How to make a formal complaint to your bank

Submit a formal complaint in writing to your bank's complaints team - by secure message through online banking, by email, or by recorded post. State clearly: the dates and amounts of the charges you are challenging; the specific reason you believe each charge was wrongly applied; what resolution you are seeking (a refund of the charges plus interest, or a credit to your account); and any relevant evidence such as account statements showing when charges were applied, correspondence confirming any fee waiver agreement, or evidence of your financial vulnerability at the time. The bank must acknowledge within five working days and issue a final response within eight weeks. If the complaint is resolved in your favour, obtain written confirmation of the refund amount and payment timeline.

Escalating to the Financial Ombudsman Service

If the bank does not resolve your complaint within eight weeks, or issues a final response you disagree with, you can refer the matter to the Financial Ombudsman Service free of charge. Apply online at financial-ombudsman.org.uk. The FOS will investigate independently and can require the bank to refund charges, pay compensation for distress and inconvenience, and take remedial action. FOS decisions are binding on the bank if you accept them. The FOS has broad powers to look at whether the bank acted fairly, even where the strict legal position may support the bank. Under FCA Consumer Duty, the FOS is likely to take a progressively stronger view on charges that, while technically permitted by contract, cause disproportionate harm to retail customers, particularly those in financial difficulty.

Time limits for bank charge claims

The FOS applies a six-year time limit from when the charge was applied, or three years from when you first knew (or ought reasonably to have known) you had grounds to complain, whichever is later. For charges applied before 2020, the six-year limit means charges before 2020 are outside the FOS's jurisdiction in 2026. However, if you only recently became aware that a charge was incorrectly applied, the three-year awareness rule may extend the window. For charges applied since 2020, the full six-year window applies. Gather your bank statements for the relevant period before making a complaint to identify all charges that may be in scope. Banks can be asked to provide statements for up to six years; they must provide these under your data subject access rights at no charge under UK GDPR.

Related guides

Frequently asked questions

Can I still reclaim historical overdraft charges from before 2009?

In practice, no. The 2009 Supreme Court ruling and the FOS time limits (six years from when the charge was applied) mean charges from before 2020 are outside the FOS's jurisdiction in 2026. Courts applying the Limitation Act 1980 would similarly bar claims more than six years old. The mass reclaiming opportunity from the 2006-2009 period is closed.

My bank charged me an overdraft fee that I was not warned about. Can I get it back?

Possibly. FCA rules require banks to give advance notice of overdraft charges before they are applied, and from April 2020 all overdraft charges must be expressed as a simple annual interest rate. If you were charged without adequate advance notice in breach of these rules, raise a formal complaint with the bank citing the FCA's BCOBS and CONC rules. If rejected, escalate to the FOS.

Can I get bank statements to support a charge complaint?

Yes. Under UK GDPR, you have the right to request all personal data held by your bank, including transaction and statement history, via a Subject Access Request (SAR). Banks must respond within one month and cannot charge a fee for a standard SAR. Request statements covering the period of charges you are challenging. Most banks also provide online access to the last 5-7 years of statements directly through their apps or online banking portals.

Do I need to use a claims management company to reclaim bank charges?

No. The bank complaint and FOS escalation process is entirely free. Claims management companies charge fees - sometimes a significant percentage of any refund - for a service you can do yourself at no cost. Citizens Advice provides free guidance on drafting complaint letters and FOS referrals. Never sign a document that assigns your right to a bank refund to a third party.

What compensation can the Financial Ombudsman award for unfair bank charges?

The FOS can direct a bank to refund the charges plus simple interest at 8% per year from the date the charge was applied to the date of refund. It can also award a goodwill payment for distress and inconvenience, typically £100 to £300 for significant and avoidable errors. The FOS cannot award punitive damages but can require the bank to take remedial action and provide a written apology.

How we verified this guide

All legal references and FCA rules were verified against the 2009 Supreme Court OFT v Abbey National judgment, FCA PS19/16 (overdraft pricing reforms), FCA Consumer Duty PS22/9, FOS complaint time limits guidance, and Citizens Advice bank charges resources during May 2026. We do not accept payment from banks or claims management companies.

Disclaimer: This guide is information only, not financial or legal advice. Rules and time limits change. Always check the primary sources cited and consult a regulated adviser for decisions about your own circumstances.

Primary sources

Last reviewed: May 2026.