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How to sue a bank for negligence or fraud

When entrusting money to a bank, clients are doing so in the belief that banks provide a professional service and will keep their money secure. However, banks can make mistakes which can lead to serious financial issues for those involved. Those who have been affected as a result of negligent or substandard service which resulted in financial loss, could be entitled to compensation.

Banking related negligence can include when a bank refused to refund money to a client following a bank account error, a bank sold you an unsuitable financial product or made mistakes leading to financial loss when you attempted to transfer money.

how to sue a bank for negligence; how to sue a bank for fraud

Banks have a duty of care towards their customers and business clients, and there is legislation, such as the Payment Services Regulations, in place to protect customers if banks are guilty of professional negligence. When suing a bank for negligence or fraud, you require advice and help from experienced solicitors who understand all aspects of professional negligence.

At Annecto Legal, we understand that suing a bank for negligence can be incredibly daunting. Therefore, we are determined to help you get the legal guidance you need. We can assist you in funding your case and connect you with professional negligence solicitors to guide you throughout the legal process.


How to sue a bank for negligence or fraud: the claims process


If you believe that you have a claim against your bank for negligence or fraud, it is important to act immediately. The first option is to make a submission to the Financial Ombudsman Service (FOS). The FOS is an independent body established by the government which specifically deals with complaints against financial institutions.

As a service, the FOS is impartial to both sides, and their approach to claims is inquisitorial. The FOS will request information from both sides and investigate the merits of small claims based on the information they receive. When making a submission, it is essential to make sure that it is detailed and has been checked thoroughly by a specialist legal adviser.

The second option is to initiate legal proceedings. It is possible to take legal action if the FOS has already been pursued, but you were not satisfied with the outcome. Court proceedings are adversarial in nature, which means that it is important to seek independent legal advice and representation before bringing a claim to court.


Litigation funding for banking negligence or fraud claims


If you are currently thinking about suing a bank for negligence or banking fraud, it is important to consider all options. There are a number of litigation funding methods that can be used to minimise risk on your behalf when suing a bank.  Consideration should always be given to the suitability and availability of alternative funding approaches.


Third party funding

One funding method that is commonly used for professional negligence claims is third party funding. Third party funding acts as a form of non recourse financing for litigation. Third party litigation providers take on the financial risk of litigation so that clients can pursue a claim without having to worry about the legal fees associated with it.

In return for taking the risk, the litigation funder will typically seek a share of the proceeds in the region of a fifth to a third of any damages recovered. This means that you keep up to 80% of the reward, having taken none of the risk. If the claim is unsuccessful, the funder will lose their investment.


Damages based agreement


A damages based agreement (DBA), also known as a contingency fee agreement, is a type of arrangement made between a client and a solicitor in which the solicitor agrees to fund their case and share the risk of litigation. In return, the solicitor will be paid a percentage sum of the damages recovered as long as the client’s case is successful.

DBAs provide that, instead of being paid on a conventional hourly rate, the solicitor’s legal fees are only payable in the event that the case is successful. Therefore, these types of agreements allow clients the opportunity to pursue a case without having to worry about the solicitors’ fees associated with it. In some circumstances, however, fees for Counsel and other disbursements may still be payable by the client.


ATE insurance


After the event (ATE) legal expenses insurance is taken out after the event that has led to a dispute has taken place to protect you in the case of your claim being unsuccessful. ATE insurance can protect you from paying for experts and barristers, as well as your opponent’s legal costs, should your claim not be successful.

However, ATE insurance is not free, and it is important to remember that if your case is successful, you may have to use some of your reward to pay the cost of the insurance premium, which will be included in the terms and conditions.

The use of third party litigation funding, CFAs and ATE insurance can sound complicated, but they are simply risk management tools and when used correctly, they can make all the difference to a banking litigation case. The idea that banks cannot be held accountable is a misconception; when they are faced with a well organised, presented and funded case, they can be brought to justice.


Who can Annecto Legal assist?


Annecto Legal regularly helps customers and business clients of banks get the legal advice they need for negligence disputes in cases where there is a loss in excess of £100,000. The professional negligence solicitors that we can connect you with can assist with claims involving: 

  • Bank loans
  • Debt management
  • Business banking
  • Insurance
  • Investments
  • Personal banking
  • Online banking
  • Will and trusts
  • Tax advice


How can Annecto Legal assist?


When considering how to sue a bank, don’t be dissuaded simply because your opponent has superior resources – their position is often a lot weaker than it initially appears. Get proper advice on how to bring your claim and give yourself the best possible chance of success.

Annecto Legal has access to a network of legal specialists and considerable experience of funding claims against banks. For more information on how to sue a bank, visit our banking litigation page, or get in touch using the information below.

Although Annecto Legal do not deal with legal claims, we can pass your enquiry onto a firm of solicitors who can assist and provide advice on how to sue a bank for negligence or fraud.

Annecto Legal are authorised and regulated by the Financial Conduct Authority FRN: 707558 as an Appointed Representative of 2direct Limited. We are not a firm of solicitors nor a claims management company. We do not receive payments for passing enquiries onto firms of solicitors.

The firms we may pass you onto are independent firms and not linked with Annecto Legal in any way. If you proceed to make a claim, we can assist by providing funding or legal expenses insurance for your case if you have lost more than £100,000 due to banking fraud or negligence. If your case is worth less than £100,000, you can make a claim by following the link below:


Get in touch

* Annecto Legal can only assist on case where the loss is in excess of £100,000, with the exception of data breach claims. If you need assistance on a claim worth over £100,000, please get in touch using our form or the details below:

Registered Office

Annecto Legal Ltd, 106 Kennedy Building, Murray Street, Manchester , M4 6HS

London Office

71 Central Street, London, EC1V 8AB


0800 612 6587


Contact us directly

We are not a firm of solicitors and unfortunately, we are unable to deal with personal banking issues.