Is it possible to request NO unauthed Overdrafts?

Tom1234

Might be a stupid question, but is it posible to request that your bank does not let you go over your agreed overdraft limit?

Ie if I try and put a £10 transaction through when I'm £5 off my limit, it'll simply be declined?

I can't put a £10000 transaction through when I'm £5 off my limit, so the mechanics are obviously in place to prevent this, however does anyone know if it's possible to request this put in place?

willo65

No, but you could change to a Full auth debit card and maybe keep a closer eye on your balance so you don't try and spend £10 if you only have £5.

Viper_7

Yes - depends on the Bank/building Society.

I know for example Britannia don't allow you to go overdrawn. For the example you gave it would be denied.
NS&I maybe another.

These are simple accounts though - no direct debits etc.

pie81

As Viper_7 says I think if you have a Basic Bank Account then there is no overdraft (authorised or unauthorised) and no charges. however also no cheque book etc.

LeeSouthEast

Keep a closer eye on your money. Personal responsibility and all that.

*dons nomex underpants*

amtrakuk

I was told by HSBC after a trip into town to discuss, they don't bounce transactions, "It may affect your credit rating and cause embarrassment".

SurlyBonds

Tom1234 wrote: »

Might be a stupid question, but is it posible to request that your bank does not let you go over your agreed overdraft limit?

Of course it is. Just send a recorded letter giving them 30 days notice (or whatever number of days they have in the contract) stating that it is a negotiated term. They can't argue that it's too difficult, as they can bounce Debit Card payments wehn not enough money... yet, not surprisingly, never charge you £25 for doing that!

State in the letter that you do not wish them to process any payments that would put you in a position of going into any breach of contract, or that would incur any charges.

They can't have it both ways.

Under Clause 5, you have the right to have equitable terms in the contract.

willo65

SurlyBonds wrote: »

Of course it is. Just send a recorded letter giving them 30 days notice (or whatever number of days they have in the contract) stating that it is a negotiated term. They can't argue that it's too difficult, as they can bounce Debit Card payments wehn not enough money... yet, not surprisingly, never charge you £25 for doing that!

State in the letter that you do not wish them to process any payments that would put you in a position of going into any breach of contract, or that would incur any charges.

They can't have it both ways.

Under Clause 5, you have the right to have equitable terms in the contract.

Or the bank could just give you 30 days notice to close your account if you don't agree to the terms and conditions??

SurlyBonds

willo65 wrote: »

Or the bank could just give you 30 days notice to close your account if you don't agree to the terms and conditions??

Not true at all.

Bank accounts are deemed contracts in perpetuity.

All contracts have to be negotiated. End of. That has been agreed in all the judgements all the way up to the SC judgement... it's also embedded in the original European directive.

Any clause that does not conform can be struck out. Judges can also remove single clauses if the overall contract can still be continued.

Viper_7

Yes, it will be the latter, they won't come up with a specific contract for you, but will suggest an alternative account.

This is why Basic Bank accounts were set up. The government initiated this, in the main for benefits to be paid directly into an account and thus reduce admin costs and sadly also caused many post offices to close down.

The bank is not just going to change their current account policy just for you, they naturally want you to go overdrawn as it makes them money, and yes most say they won't deny a payment as it causes embarrassment.
Or would you rather your card be denied in a packed supermarket due to lack of funds?

danm

Tom1234 wrote: »

Might be a stupid question, but is it posible to request that your bank does not let you go over your agreed overdraft limit?

Ie if I try and put a £10 transaction through when I'm £5 off my limit, it'll simply be declined?

I can't put a £10000 transaction through when I'm £5 off my limit, so the mechanics are obviously in place to prevent this, however does anyone know if it's possible to request this put in place?

This should defiantely be available. These are the types of issues the crusaders need to focus on.

My wife recently had some charges on her account and asked Abbey for this. They told her they couldn't do it which i think is outrageous