Overdrawn £1 for 1 day – how much will this cost you?

If you feel you have been overcharged, you should still register your claim, as you can only recover charges dating back six years.

What you shouldn't do Don't send a stroppy letter to the bank manager or hurl abuse at a call-centre worker.

What you should do The following advice applies solely to claims for current account charges.

Gather together your bank statements going back a maximum of six years. Tot up all the charges. Then wait for your ire to subside and write a polite, businesslike letter explaining how much you have been charged and requesting a refund.

If the bank does not reply or maintains that the charges are fair, telephone them and ask for an explanation. If this yields no result, it's time to launch a formal claim.

First steps

Before you take on your bank, open a current account elsewhere. You may win back your charges but your bank may also close down your account in a fit of pique.

If you don't have all your statements, send the bank a letter requesting them, as well as all information on charges and a copy of your initial contract with the bank. Under the terms of the Data Protection Act they have to supply this material going back six years.

Banks can (and always do) charge £10 for this. To speed up your claim, enclose a cheque with your request.

Keep copies of all letters you send and make a note of the dates you sent them.

If you do not receive the data within 40 days, call the bank. If nothing happens, complain to the Information Commissioner's Office (www.ico.gov.uk).

Once you have the information you need, present the bank with your case, by means of a letter containing a summary of what you believe you are due.

Provide exact dates and the circumstances that led to you being charged. Ask if there is a form you need to fill in to make a claim against them. If you want a speedier settlement, ask for a smaller percentage of what you believe you are owed.

The bank will either repay the money you have paid in charges, or ignore your claim. If it takes the latter course, it's time to get legal.

The Small Claims Court

If you are claiming less than £5,000, your case will go through the small claims system. You will not be liable for costs.

The best way to pursue your claim in England and Wales is by using the online www.moneyclaim.gov.uk">Money Claim service

This allows you to make claims and costs between £30 and £120, which will be refunded if you are successful.

If the bank fails to acknowledge your claim, after 14 days you can ask for a judgement against it and win by default. If it acknowledges your claim, it has 14 days more to enter a defence. If it doesn't do this, you win by default.

If the bank enters a defence, you will be sent a Court Allocation Questionnaire. Send it back to the court and give a copy to the bank. It's unlikely that the bank will send a representative to court, in which case you win by default. Crack open the champagne.

Bailiffs

If the bank still won't pay up, you can use a bailiff to collect your money, via the Money Claim website.

Scotland and Northern Ireland

In Scotland the maximum claim is £750 for claims made before 14 January, 2008. Claims up to £3,000 can be made after this date. You can reclaim a maximum of five years of charges. Information on the Scottish system can be found at www.scotcourts.gov.uk

In Northern Ireland the maximum claim is £2,000. Find out more about the NI system at www.courtsni.gov.uk

Interest

Perhaps the sweetest aspect of a win is the ability to charge your bank interest. You can add 8 per cent on to recouped charges, from the date you were 'deprived' of the money. Unfortunately you cannot compound the interest.

Useful contacts

Read about successful cases and find latest news on the test case at the Consumer Action Group website

Use the Courts Services Money Claim website to make a speedy, simple small courts claim.