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Unarranged overdrafts

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Does anyone know if there is a general rule on how much a bank will let someone go overdrawn?

I'm asking because on a joint account we have a £5000 overdraft and I'd like to not have it, but I don't want to ask them to remove it if in a couple of months time one of us (I don't wish to go into details here) overspends and it ends up costing a lot more in interest and charges than if we'd kept the overdraft. I am working hard to keep the account in credit and the plan is that any debt will be individual debt rather than joint debt (eg, if one of us decides to spend on something 'we' can't afford then it only affects their credit history).

What I'd like to do is just reduce our access to that money, if that makes sense. I thought I could ask to reduce it to £500 so there was a buffer just in case there was a delay in salary or something and the rent was due but I've done projections and if there is no surprise spends and we keep to our agreed deposits then the account will stay in credit for at least the next few months until the bills start increasing again.
Debt Free: 01/01/2020
Mortgage: 11/09/2024

Comments

  • cloud_dog
    cloud_dog Posts: 6,326 Forumite
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    Just ring them up and ask them to set it to a lower level that you are comfortable with. Although you have a 'arranged overdraft' not unauthorised.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • Jami74
    Jami74 Posts: 1,294 Forumite
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    cloud_dog wrote: »
    Just ring them up and ask them to set it to a lower level that you are comfortable with. Although you have a 'arranged overdraft' not unauthorised.

    Yes, thank-you.

    But my question was, if I reduce it would it still be possible for the account to go very overdrawn (over the arranged overdraft limit)? How far is it possible to go into an unauthorised overdraft? Is there a general amount/percentage or is it an individual thing?

    I've never exceeded an arranged overdraft limit so I don't know what would happen. Ideally it would not be possible, but if it was then I imagine the charges and fees would be really high.
    Debt Free: 01/01/2020
    Mortgage: 11/09/2024
  • Rosemary7391
    Rosemary7391 Posts: 2,879 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I think it would still be possible. Imagine you were spending "offline" with your debit cards (eg contactless, on the train, anywhere that doesn't live check every transaction) - the bank doesn't know how much you're spending until the transactions get sent to it some time later. No way to decline the transaction at that point, so it can't stop you from going overdrawn. It's up to the account holders to communicate and keep track of the spending. Maybe you'd be better off with separate accounts? Or agreeing not to use the debit cards for that account?
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