Guides › Banking Scams and Fraud › Overdraft Charges: What Banks Can Charge
Overdraft Charges: What Banks Can Charge
Since April 2020, banks and building societies must price overdrafts with a simple annual interest rate. Fixed fees for borrowing through an overdraft are banned, and unarranged overdrafts cannot cost more than arranged ones. Banks must also identify customers showing signs of strain from repeated overdraft use.
At a Glance
Your Rights
What the rules say, with a link to the official source for each.
Overdraft Rules
Pricing
The FCA stopped banks charging more for unarranged than arranged overdrafts; banned fixed fees for borrowing through an overdraft; required a simple annual interest rate; and required arranged overdraft prices to be advertised with an APR, by 6 April 2020. source
Repeat Use
Banks must identify customers showing signs of financial strain and have a strategy to reduce repeat overdraft use. source
Complaining
Complaining to the Ombudsman
If your bank refuses or you are unhappy with how it handled a scam, you can complain to the bank and then to the Financial Ombudsman Service, which is free. Its compensation limit is 430,000 pounds, and it can look at cases where losses are over 85,000 pounds. source
Time Limits to Know
Miss a deadline and you can lose a right. Check the dates on your own paperwork.
- 8 weeksBusiness answers your complaintThen the Financial Ombudsman Service, free
Steps to Take
Step 1 of 5
Check your statements for fees and interest.
Step 2 of 5
If you are struggling, ask your bank for help.
Step 3 of 5
Complain about charges that break the rules.
Step 4 of 5
Get free debt advice.
Step 5 of 5
After 8 weeks, go to the Financial Ombudsman.
(Tap the numbers to reveal steps)
Where to Go If It Is Not Put Right
Your options, in order, and when each one applies.
Your Bank's Complaints Team
Always start here, in writing, once your bank has refused or not replied.
Financial Ombudsman Service
You are unhappy with your bank's final response. It is free, and its limit is 430,000 pounds.
Free Debt Advice
MoneyHelper can help you find a free adviser.
Good to Know
Small things that make your complaint stronger.
Ask your bank about alerts for unexpected overdraft use.
Want Help?
If you would like one of our team to look at your problem, our initial case review is free. We cannot guarantee any outcome and we do not give legal advice.
Lead reviewer
Luke Marley
Founder and Lead Reviewer
Luke founded CPUK in 2026 after seeing how hard it is for ordinary people to get problems with companies put right. He oversees our guides and checks them against official sources.
Research by Katie Burt, Co-founder and Operations Lead (17 years in the care sector, including managing services for vulnerable adults), and the CPUK Research Team. Researched with AI-assisted research tools, then checked and corrected by our team.
Last checked: 13 October 2026. We are not paid by the companies we write about. Adverts never affect our guidance. Read our editorial policy.
Sources and official links
- fca.org.uk/news/press-releases/fca-confirms-biggest-shake-up-overdraft-market Checked 13 October 2026
- psr.org.uk/information-for-consumers/app-fraud-reimbursement-protections Checked 13 October 2026