Unauthorised Overdraft Query

ClaireCam

I’m sorry if this query is dealt with in another thread, I couldn’t find it.

I checked my accounts resently and noticed that once had plenty of funds and the other was very low. I needed some cash so went to the cashpoint but stupidly took money from the wrong account putting myself £21.14 overdrawn. I didn’t realise my mistake for a couple of days but immediately transferred money across to cover it.
Yesterday I received the inevitable letter saying that I had been a naughty girl but the kind old bank had lent me the £21.14 and were only charging me £25 for the privilege. I phoned the bank and explained my mistake and asked that they not let it happen again as I didn’t want to be charged another £25, basically put a stop on any overdraft from that account. The lad explained that that would be impossible because it was all done by computer and no people were involved in the decision. I pointed out that 40 years ago computers were smart enough to put men on the moon, I was pretty sure that they’d come on enough to not let me have any money if I didn't want it. He explained that it wasn’t actually the bank system but the cashpoint system and if I had only £18 in my account and asked for £20 then it would give me £20. This, I explained was my point…if I only had £18 in my account why couldn’t the cashpoint tell me I couldn’t have £20 as I had insufficient funds and only let me have £10. He said it wasn’t just First Direct but all banks and there was nothing I could do to change it.
Now I’m pretty sure than in years gone by I have been told that I have insufficient funds and the cashpoint wouldn’t let me have money, after all it can give me a balance so must have access to my actual account and know that I don’t have £20 in there. I asked whether this was just a way for the banks to maybe be making money out of people who might be running their account near to zero and he said definitely not but he did sympathise with my request.


So why can’t the banks computer systems stop me going into the red if I request it? They are happy to give this account an unauthorised overdraft and charge me for it but when I asked for an authorised one the answer was a definite NO!

hustle90

If it is your first time going into an unauthorized overdraft, ring them again and ask them if its possible they could drop the fees this once. Most banks will drop the fees for the first time.

A note for the future, always check your available balance before withdrawing cash.