Could Overdraft Refunds Be as Big as a Car Finance Claims? We Crunched the Numbers
- The Claims Guide
- Jul 24
- 2 min read
You’ve probably heard about mis-sold car finance claims — with refunds often worth £1,000 to £3,000 per person. But what most people don’t realise is that overdraft refunds could be just as significant, especially if you’ve used an overdraft regularly or for longer than intended.
💷 Average Refund Breakdown: £1,000 – £1,200+
We looked at real-world overdraft usage and complaints data, including from financial partners. Here’s what typical claims involve, though it can be much higher - our largest claim is £6,000:
User Type | Overdraft Use Pattern | Likely Refund |
Persistent users | Regularly overdrawn 9+ months, exceeded limit repeatedly | £1,200–£2,000 |
Heavy users | Long-term reliance, credit delinquencies, high charges | £800–£1,200 |
Occasional users | Approved unaffordable limits or charged without clarity | £400–£800 |
Many claims are based on the overdraft being used as a long-term loan - something banks themselves say shouldn’t happen. If your account was regularly in the red, and especially if you didn’t know the fees, your refund could be substantial.
📊 How big could overdraft claims really be?
Over 18 million UK adults have used overdrafts in the last year
Roughly 10 million of them may be eligible to claim — either because they were constantly overdrawn, or were approved unaffordable limits
Average refund estimates range from £1,000 to £1,200, with higher payouts for heavier overdraft users
That puts the total potential compensation at:
💥 £10 to £12 billion — possibly more
That’s not far behind the estimated £30–£50 billion from car finance claims — and overdrafts have affected more people over a longer period.
💷 Could you be owed money?
If you’ve:
Spent long periods overdrawn
Relied on your overdraft as part of your income
Been charged high fees without clear warning
Or were given an overdraft without proper checks...
...you could be owed a refund — potentially thousands of pounds.
How to check
Overdraft mis-selling claims are rising fast. Use our simple tool to check if you’re eligible - it only takes a minute, and you’ll find out if you could be owed money.
We are a claims management company that can help establish and process claims on behalf of consumers to recover compensation against various types of lenders. You do not need to use a claims management company to make your complaint to your lender or the Financial Ombudsman for free.
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