Just to show how nice bankers can be, I accidentally went 90p overdrawn last month. I'd forgotten about a direct debit but I was mortified because I don't think I've ever been in the red before. Anyway, the bank (Natwest) said it didn't matter and there'd be no charge.

  What planet was this on? I must consider moving there. Heartiest congratulations.

I've never done it myself, being one of those stupid people who actually tries very hard not to go over my limit ( )*, but my flatmate, who never worries about such things and just spends money whether it's there or not, recently managed to re-claim about £1500 which was the sum total of his bank charges over the last 5 years or so. They don't argue, basically - you just work out how much they've charged you, write to them asking for that amount back (get a pro-forma letter from the CAB), and, so it seems, they'll refund it all.

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*I'm joking. But it is one of those things that makes me wonder why I ever bother worrying about not going overdrawn etc.

Some banks have indeed gone on something of a charging spree over the past few years and hoped that they'd get away with it in most cases because few people tend to argue with their banks, especially when they are overdrawn. This matter has certainly been thrown under the spotlight of late and, whilst I have no problems with banks charging what they are entitled to charge (provided that they do so under prior written agreement that has been duly explained to the customer), it is not usually this that the recent developments have sought to address.

The problem is that, when banks do agree to return past charges in the ways decribed, they usually only stick them back on again elsewhere. One example of this has been where banks' credit card service provider departments have been castigated for charging more than £12 as a late payment penalty (some were charging more than twice this amount) and, now that this is no longer permitted, they all charge that minimum but have also reacted by increasing other costs to customers in a bid to make.

Furthermore, the days of free personal banking are pretty much at an end now, even for customers who do not go overdrawn. My own bank has always charged me a quarterly fee and an additional fee for every transaction of any kind, in and out of my account, unless my average balance is maintained in credit by more than £5,000 (a likely circumstance!); whilst this may seem expensive on the face of it, the bank does allow me to run just the one account for both business and personal use (so only one set of charges) and I have to say that the quality and level of service I receive from the bank has been consistently excellent and it includes fully itemised monthly statements (by which I mean that ,if Sir Joseph Bloggs sends me a cheque for £100, the statement will show "Sir Joseph Bloggs - £100CR" - a very useful defensive facility if ever the taxman wants to pick a fight...). That said, I endeavour keep my individual item charges to a minimum by ensuring that all outgoings are paid for by charge card, which incurs no charges at all. I don't therefore feel that I would have any right to try to get my charges back, but I fully support those who do when they have actually been overcharged.

Best,

Alistair

I always thought of these types of charges as a deterrent for customers to spend the banks money when the individual doesnt have it.  With some ludicrus ammounts of money being banded about (one guy trying to reclaim 12,000 over a few years) I seriously wonder if some of these people are sensible enough to even have their own bank accounts.
 

My son, trying to claim back the £2000, certainly wasn't sensible enough in his youth!  All the same many people seem to be being paid out, so he may as well try to reclaim it I suppose.

That said, banks' charges have been ridiculous in the past.  I recollect a friend of mine and her husband who had their own business which went to the wall unfortunately, were desperately trying to meet their debts and their bank - Barclays (don't touch 'em) - would charge them £25.00 to bounce a cheque written for £8.00. 
How on earth is any one supposed to try and get out of that sort of dreadful situation with charges like that inflicted upon them when they most need some leeway.

Personally I bank with a building society. I've always preferred it to a high street bank.  I don't know how they compare with banks for charges as fortunately I've not had to pay any yet.  Long may it last!!!!

Sorry, Ian, just spotted this now the thread's come back up. I'm not sure, is the answer - I think he was so far in debt even discounting the bank charges that he was on special repayment plans etc. anyway.

£30 is N***est's standard referral charge too, or rather the only time recently I've gone overdrawn I was charged £30 for having done so, PLUS £28 for each day that I was overdrawn. I actually realised what I'd done the day it happened (had overlooked a direct debit), so went into the branch and was told they'd have to charge me the £28 daily penalty but would waive the £30 referral charge. Then it appeared on my statement, and I had to go back into the branch to remind them of what they'd promised. They did refund it, but it was quite time-consuming as it wasn't my regular branch, and my regular branch told me I'd have to go back to the branch who'd made the promise in order to get the refund, despite the fact that one was in Manchester and one was in London! Fortunately I was back in that neighbourhood pretty soon, but if I hadn't been I'd have had to argue harder, I think.

I do have some sympathy for the idea that people should avoid going over their debt limit, rather than reclaiming bank charges when they do so - plus as Alistair said I'm sure the bank only redistribute the charges elsewhere - but on the other hand the regulators do now seem to be on the customer's side, for the moment at least, and it would seem foolish not to take advantage. There are certainly lots of schemes to help people who are in debt reduce their debt at the moment, although apparently credit agencies are beginning to be more harsh again with people who don't stick to interest-frozen repayment plans and the like.